Premier Gold Mines Limited
News Releases


 
Wed Jul 22, 2009
Premier Continues To Define High-Grade Gold At EP And SP Zone Targets


23.36 g/t Au across 5.4m within 6.60 g/t Au across 32.6m


PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that drilling continues to define both open pit and underground style gold mineralization within multiple subzones at the Company's Hardrock Project in Northwestern Ontario. The current program, consisting of delineation and exploration drilling, will continue throughout 2009 and is expected to result in an NI 43-101 compliant resource estimate by year end.

Drilling at the EP Zone is currently defining the limits of mineralization within a high potential open pit zone. An update of results is expected in the near future. Drilling in the South Porphyry ("SP") Zone continues to demonstrate the potential of this area to host significant high-grade, underground style, gold mineralization within multiple lenses.

Highlights from recent drilling include:
  • SP Zone: 6.60 g/t Au across 32.6 metres including 23.36g/t Au across 5.4 metres within the SP Zone underground target
Premier holds a 70% interest in the Hardrock Project, which is operated under a joint venture with Roxmark Mines Limited (TSX-V:RMK). The Hardrock Project is host to several past-producing mines which collectively produced nearly 3.0 Million ounces of gold within 600 metres of surface from 1938-1968. Early drilling in 2009 focused on open pit-style mineralization and is now targeting the huge potential to expand higher grade mineralization amenable to efficient underground mining methods.

SP Zone

Several highly prospective target areas, with the potential to host new underground mineral resources, have been identified. Initial drilling to test the potential of the SP Zone has returned multiple intersections of high-grade gold mineralization. Historic work, including mining, in the SP Zone has identified 3 lenses of mineralization that converge at the fold nose of the main porphyry rock unit at Hardrock. The SP Zone was partially mined in the upper levels of the mine with 264,354 tonnes (291,428 tons) of ore mined at an average grade of 8.37g/t Au (0.244 oz/t). Intermittent historic drilling that tested the unmined down-plunge extension of the SP Zone suggests the potential to outline mineralization over a plunge length of nearly 3.0 kilometres (8,500 feet).

Highlights from new drilling include 6.60g/t Au across 32.6m in hole MM014 which is located approximately 150 metres down-plunge from a previous intersection of 6.63 g/t Au across 28.1 m in hole MM05. SP Zone results correlate very well with previous surface and underground drilling results, all of which will be included in the Company's upcoming NI-43101 compliant resource that is expected by year-end. Holes MM04 to MM06 were previously released and are included to demonstrate the potential of this zone.

Table 2 New Sub-Zone Intercepts within the SP Zone Target Area

Hole-ID

UTM Coordinates (m)

Dip/Azimuth (degrees)

From (m)

To (m)

Interval (m)

Grade (g/tonne)

Interval (ft)

Grade (oz/ton)

Zone

MM004*

5502718 N 504306 E

-55/360

208.1

210.0

1.9

5.88

6.2

0.17

SP

219.0

223.4

4.4

6.36

14.4

0.19

SP

240.5

242.1

1.6

8.35

5.2

0.24

SP

334.0

336.0

2.0

8.42

6.6

0.25

F

MM005*

5502703 N 504257 E

-55/360

230.8

258.9

28.1

6.63

92.2

0.19

SP

including

252.9

258.9

6.0

17.14

19.7

0.50

SP

 

272.3

273.5

1.2

10.92

3.9

0.32

SP

 

297.5

300.5

3.0

4.57

9.8

0.13

SP

MM006*

5502694 N 504199 E

-55/360

244.0

251.0

7.0

6.74

23.0

0.20

SP

314.5

316.0

1.5

4.80

4.9

0.14

F

371.0

373.2

2.2

36.22

7.2

1.06

HGV

MM007

5502649 N 504147 E

-50/360

296.8

301.7

4.9

3.24

16.1

0.09

SP

347.3

353.8

6.5

3.35

21.3

0.1

F

367.9

369.2

1.3

8.40

4.3

0.25

HGV

MM008

5502720 N 504199 E

-55/360

301.5

302.5

1.0

8.25

3.3

0.24

F

357.0

359.0

2.0

4.05

6.6

0.12

HGV

MM009

5502649 N 504200 E

-55/360

387.0

395.8

8.8

4.12

28.9

0.12

SP

including

393.0

395.8

2.8

7.36

9.2

0.21

SP

MM012

5502675 N 504099 E

-55/360

hole abandoned

 

 

 

 

 

MM014

5502674 N 504102 E

-55/360

285.7

318.3

32.6

6.60

106.9

0.19

SP

including

285.7

291.1

5.4

23.36

17.7

0.68

SP

including

286.7

287.8

1.1

93.40

3.6

2.73

SP

including

301.2

308.0

6.8

5.61

22.3

0.16

SP

including

315.5

318.3

2.8

10.40

9.2

0.30

SP

MM015

5502660 N 504000 E

-50/360

342.5

344.0

1.5

5.17

4.9

0.15

SP

353.0

356.0

3.0

6.51

9.8

0.19

SP

MM017

5502680 N 503900 E

-55/360

assays pending

 

 

 

 

 

* Previously Released
True widths estimated at approximately 70% of intersection widths


NN-Zone

Ongoing exploration drilling is also testing additional prospective targets that could host underground style mineralization similar to the West Zone at Hardrock from which 532,254 tons of ore was mined at an average grade of 7.85g/t Au (0.23 oz/t) The New North ('NN') Zone, a narrow vein target area has returned numerous significant intercepts within the first several holes drilled to test this zone. These initial results are presented in the following table.

Table 3 New Sub-Zone Intercepts within the NN Zone Target Area

Hole-ID

UTM Coordinates (m)

Dip/Azimuth (degrees)

From (m)

To (m)

Interval (m)

Grade (g/tonne)

Interval (ft)

Grade (oz/ton)

Zone

MM010

5502940 N 504124 E

-45/360

105.0

109.5

4.5

4.66

14.8

0.14

NN

129.5

131.0

1.5

8.56

4.9

0.25

NN

MM011

5502919 N 504050 E

-45/360

 

 

 

NSV

 

 

 

MM013

5502904 N 503950 E

-50/360

171.4

174.5

3.1

7.08

10.2

0.21

NN

MM016

5502900 N 503980 E

-50/360

172.8

175.0

2.2

5.59

7.2

0.16

NN

MM017

 

 

 

 

Results

Pending

 

 

 

MM018

5502899 N 503920 E

-52/360

177.5

182.0

4.5

7.56

14.8

0.22

NN

True widths estimated at approximately 70% of intersection widths

The Hardrock Project has the potential for defining several styles of mineralization capable of hosting resources, with grades and widths similar to many of Ontario's major gold mines including Open pit-style mineralization with grades exceeding 1.5 g/t Au (Timmins, Hemlo), broad zones of mineralization with grades averaging 5.0+ g/t Au (Musselwhite), and narrow vein zones with higher gold grades often exceeding 7.0g/t (Red Lake, Pickle Lake). The Hardrock Project benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline and major power lines running through the center of the property.

Stephen McGibbon, P. Geo., is the Qualified Person for the information contained in this press release and is a Qualified Person within the meaning of National Instrument 43-101. Assay results are from core samples sent to Activation Laboratories, an accredited mineral analysis laboratory in Thunder Bay, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods.

Premier Gold Mines Limited is a well-financed mineral exploration and development company based in Canada, with mineral interests and deposits in Northwestern Ontario and a joint venture in Mexico. Premier has recently earned a 70% interest in the Hardrock Project, an advanced-stage gold project in the Geraldton area. In the Red Lake gold mining camp, two properties are operated in joint venture with Red Lake Gold Mines. The company's 100%-owned PQ North Property a strategic project located on the main Musselwhite Gold Mine trend.

For further information, please contact:
Ewan Downie, President & CEO
Phone: 807-346-1390
Fax: 807-346-0100
E-mail: Info@premiergoldmines.com
Web Site: www.premiergoldmines.com

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.
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