PREMIER GOLD MINES LIMITED (PG:TSX) is pleased to announce results from an ongoing diamond drilling campaign on the CP-Zone of the Bonanza Deposit and Rahill-Bonanza Project in the Red Lake Mining District of Ontario. Premier is excited by the progress made on the SW-trending structure, which confirms the following:
- The CP-Zone is contained within a well-developed, strongly altered deformation corridor, implying the host structure will continue to extend to the southwest and at depth.
- Multiple-mineralized shoots occur within the corridor, characteristic of the Bonanza Deposit signature.
Significant results from the program, active earlier in 2006, and again between mid-October and Christmas in 2006 where a total of 8 holes (06WB-116 to 123) and 4,188 metres of drilling was completed, are listed in Table 1.
Table 1 All Intercepts > 1.0 g/t within the CP-Zone Corridor
|Hole ID||Azimuth||Dip||Zone||From||To||Length (m)||Grade (g/t)||Comments|
|incl.||269.0||272.0||3.0||11.56||Specks of visible gold|
|06WB-118||337||-45.0||No significant results|
|06WB-119||337||-62.0||No significant results|
|06WB-121||337||-70.0||CP||547.5||548.0||0.5||8.50||Specks of visible gold|
|06WB-123||350||-72.0||CP||567.3||569.0||1.7||3.25||06WB-122 didn’t reach target|
|CW06019||163||-50.0||CP||226.0||231.0||5.0||14.30||Drilled by Goldcorp|
|CW06022||161||-68.0||CP||273.0||285.0||12.0||12.20||Drilled by Goldcorp|
|CW06025||181||-75.0||CP||387.0||393.0||6.0||1.11||Drilled by Goldcorp|
|CW06030||291||-53.0||CP||255.45||257.0||1.55||9.80||Drilled by Goldcorp|
|CW06031||291||-67.0||CP||358.0||364.0||6.0||7.70||Drilled by Goldcorp|
|CW06034||350||-64.5||CP||333.0||334.3||1.3||8.52||Drilled by Goldcorp|
This drilling has identified multiple mineralized sub-zones within the corridor. Highlight intersections include 12.2g/t Au across 12.0 metres and 14.3g/t Au across 5.0 metres (CW06019 and CW06022) from Goldcorp drilling earlier in 2006, and 11.56 g/t Au across 3.0 metres within a larger interval grading 4.29 g/t Au across 14.0 metres from hole 06WB-117.Other intercepts were variable, with grades up to 8.50 g/t Au and mineralized intervals up to 8.0 metres along the core length. True widths are estimated to be between 50% and 60% of the core length.
The CP-Zone is contained within the Rahill-Bonanza Project, being explored under a joint venture with Goldcorp Inc. (G:TSX, GG:NYSE), and subject to a “Letter of Intent” released on December 4, 2006. Under the terms of a Joint Venture (JV) Agreement, that is expected to close shortly, Premier and Goldcorp will explore the combined project area on a 50/50 basis. The JV property is strategically located along the prolific “Mine Trend”, host to nearly 30 million ounces of gold (mined + reserves + resources) and sandwiched between the world class Red Lake Gold Mines (RLGM) to the east and the recent high grade discovery of Gold Eagle Mines Ltd. to the west.
Diamond drilling is currently active with two drills on the Rahill-Bonanza Project (RBP) however, the project team is seeking to activate up to four, including one underground drill. Two drills will be mobilized onto the ice of Red Lake to extend the CP-Zone further to the southwest and to test deeper targets proximal to the historic Wilmar Gold Mine workings.
The Joint Venture has earmarked a total of C$5 million for the RBP in 2007. Premier’s portion of the commitment is C$3 million. The project team has identified 5 key target areas on which to explore during the year including:
- Test the CP-Zone progressively to the southwest with cross section drilling on approximately 75 m centres.
- Test targets related to and/or proximal to Goldcorp’s Red Lake Gold Mines (RLGM) property situated immediately east of the JV property boundary.
- Test the main regional contact that hosts the Gold Eagle Mines Ltd. discovery and also migrates through the western portion of the JV property.
- Test targets related to the North Contact and Wilmar/West Granodiorite Zones.
- Provide a National Instrument (NI) 43-101 compliant resource estimate on the Bonanza Deposit.
Premier Gold Mines Ltd. is fully-funded to meet all exploration commitments on the Rahill-Bonanza Project during 2007.
The JV has been informed that underground diamond drilling should begin during late Q1 or early Q2 from a deep (~1,875 m or 6,150 feet below surface) platform situated at the Campbell Complex (formerly Campbell Mine) of Red Lake Gold Mines. Two holes are planned to be drilled toward the southwest some 1,300 m each, the final 650 m of each hole passing through the JV property. These holes are being drilled immediately west of, and along strike from, the current mine zones to identify possible extensions and/or repetitions of fault structures, key rock-types and vein-material known to be related to mineralization at the RLGM, including the prolific high grade zones (HGZ).
Definition drilling required on the Bonanza Deposit to upgrade the mineralization in compliance with NI 43-101 is earmarked to begin during Q2, later than originally planned, due to warm winter weather and availability of additional diamond drills. This will push the completion of the resource estimate into Q4 of 2007.
A brief slideshow in ‘pdf.’ format, outlines key aspects of this press release and is available to be viewed in the “Rahill-Bonanza Project” area of the Premier Gold Mines Ltd. website at www.premiergoldmines.com.
On a separate note, the executive team of Premier Gold Mines Limited has been invited to participate in opening of the Toronto Stock Exchange (TSX) on Wednesday, February 7th, 2007 at 9:30 am EST, to celebrate the listing of Premier on the TSX in August 2006. The event will be carried live on ROB-TV and CP24 television stations.
Matt Long, P. Geo., Red Lake Exploration Manager 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. Core is sent to Accurassay Laboratories for preparation and analysis - 2 assay-tonne fire assay with an AA finish on split NQ-sized drill core.
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. These include several in the Red Lake gold mining camp, two of which are operated in joint venture with Goldcorp Inc. (TSX:G), and a strategic project located on the main Musselwhite Gold Mine trend (Goldcorp-Kinross).