PREMIER GOLD MINES LTD (PG:TSX) is pleased to provide an update on the progress of a proposed underground drill program from the Red Lake Gold Mine, and the winter drill campaign on the Rahill-Bonanza Project (RBP), a 50-50 joint venture with partner Goldcorp Inc. (G:TSX, GG:NYSE).
Premier anticipates reporting assay results from the winter drilling campaign in April. Diamond drills have now been pulled off of the Red Lake ice owing to warm spring weather with the winter ice campaign being shorter (~ 6.5 weeks) than anticipated. In all, some 10,000 metres of drilling have been completed to date in 2007 testing initial targets along strike from the known deposits. The drill program will curtail for a few weeks to confirm the plan and schedule for the spring and summer drilling season.
Underground Drilling From Campbell Complex
Premier previously reported that it anticipated underground drilling from the Campbell Complex onto the JV property to begin in late March or early April 2007. A recent update from Goldcorp Inc. confirms, “Underground development is currently underway on the 41 Level at Goldcorp’s adjacent Red Lake Gold Mine. This program includes drifting further to the west towards the joint venture property. Upon completion of this exploration drift, expected to be in the next few weeks, exploration drilling will commence.” (See Figure 1)
Figure 1. ” Underground Drilling from RLGM”
Premier views this drill program as its premier “high priority” target for 2007.
Red Lake Gold Mines (RLGM) is the highest grade gold mine in the world and is expected to produce 790,000 ounces of gold in 2007. At December 31, 2006, Mineral Reserves and Resources for RLGM stood at 9.49 million ounces. Goldcorp’s exploration spending in Red Lake (including the RBP) is budgeted at US$26 million, representing almost 22% of 2007 exploration budget for the entire corporation.
The goal of this program is to attempt to demonstrate that the favourable rock-types, alteration and structural setting that host the high grade zones at RLGM also exist on the RBP. In the event that results warrant underground development toward the JV ground, the RBP lies immediately along strike from, and within 500 metres from existing RLGM infrastructure.
Meunier Claim Purchase
Premier also announces that it has come to terms with Mr. Dave Meunier regarding purchase of his claim that was positioned in (and surrounded by) the west central portion of the Rahill-Bonanza JV property. Purchase of this claim by Premier, for the JV, further consolidates our strategic land position within this prolific district. The claim is located in close proximity to Goldcorp’s Cochenour and Gold Eagle’s (GEA:TSX) Bruce Channel projects.
Spring & Summer Drill Programs
Premier expects to conduct between 25,000 and 30,000 metres of drilling during the remainder of 2007 on the RBP. In addition to furthering exploration of targets previously identified, Premier will begin delineation drilling on the Bonanza Deposit, discovered in 2004, in order to produce and report a NI 43-101 compliant resource estimate prior to the end of the year. The press release dated December 4th, 2006 anticipated the formal joint venture agreement (JVA) with Goldcorp Inc. would be signed in late January 2007. It is now anticipated the JVA will be signed during Q2 2007. No changes to the original Letter of Intent have been made or proposed by either party.
Stephen McGibbon, P.Geo., Executive Vice-President and Chief Operating Officer of Premier, 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.
Premier Gold Mines Limited is a Canadian-based mineral exploration and development company with diverse property holdings that include several projects and deposits in Northwestern Ontario and a joint venture in Mexico. In the Red Lake gold mining camp, two of these are operated in joint venture with Goldcorp Inc. (TSX:G). A strategic project is also located on the main Musselwhite Gold Mine trend (Goldcorp-Kinross).