Hardrock Tenacity Drilling Continues to Return High-Grade Gold; 15.97 g/t Au Across 32.1M

April 29th, 2009
View PDF

PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that ongoing drilling at the Hardrock Project in Geraldton, Northwestern Ontario continues to return high-grade gold mineralization in the Tenacity Zone. Initial drilling at the Tenacity Zone has been focused on defining potentially open pit-style mineralization which is being confirmed by intersections of up to (un-cut) 15.97 grams per tonne gold (g/t Au) across 32.1 metres (m) and 2.38g/t Au across 23.0m. Drilling is now directed on extending the Tenacity Zone down plunge to follow-up on recent intersections of up to 16.86g/t Au across 5.5m. Highlights of recent Tenacity drilling include:
  • The potential to develop both open pit and underground resources.
  • Extremely high-grade gold with individual samples returning assays of up to 688.0g/t Au (20.1 ounces per ton gold) across 0.7m.
  • The intersection of a second near-surface mineralized horizon located along a similar geological contact.
Follow-up drilling at Tenacity, as well as the testing of other target areas, is on-going.

The Tenacity Zone is marked by moderately to intensely silicified and veined greywacke host rocks, adjacent to a folded ultramafic rock unit. Mineralization consists of pyrite, pyrrhotite, arsenopyrite, and minor visible gold. Drilling has confirmed potentially open pit-style mineralization over a minimum strike length of 500 metres, and is now testing for higher-grade mineralization that could be amenable to mining from a ramp below the potential pit workings. Mineralization remains open at depth with some of the strongest looking core being returned from the western-most (down-plunge) sections drilled to date. Hole TN026 (15.97g/t Au across 32.1m) tested the Tenacity Zone up-dip from a historic intersection that returned 49.3g/t Au across 4.3m, and down-dip from a historic intersection that returned 3.8g/t Au across 32.7m.

A longitudinal section of the Tenacity Zone, including historic intercepts, is available on the Premier website www.premiergoldmines.com.

Table 1 Recent Tenacity Zone Intercepts
Hole-ID UTM Coordinates
(m)
Dip/Azimuth
(degrees)
From
(m)
To
(m)
Interval
(m)
Grade
(g/tonne)
Interval
(ft)
Grade
(oz/ton)
Zone
TN026 505599 E 5502607 N -50/360 86.9 119.0 32.1 15.70 105.3 0.46 Tenacity
including

106.3 107.0 0.7 688.00 2.3 20.09
TN027 505698 E 5502680 N -50/360 127.4 135.6 8.2 1.68 26.9 0.05 East Pit
TN028 505692 E 5502573 N -60/360 155.0 155.5 0.5 4.04 1.6 0.12 Tenacity
TN029 505449 E 5502582 N -50/360


NSV

Tenacity
TN030 505549 E 5502625 N -50/360 74.4 89.0 14.6 1.83 47.9 0.05 Tenacity
207.5 223.5 16.0 2.61 52.5 0.08 East Pit

Hole-ID UTM Coordinates
(m)
Dip/Azimuth
(degrees)
From
(m)
To
(m)
Interval
(m)
Grade
(g/tonne)
Interval
(ft)
Grade
(oz/ton)
Zone
TN031 505750 E 5503640 N -50/360 34.5 57.5 23.0 2.38 75.4 0.07 Tenacity
65.0 75.0 10.0 1.29 32.8 0.04
TN032 505650 E 5502580 N -50/360 140.4 143.5 3.1 4.35 10.2 0.13 Tenacity
TN033 505550 E 5502649 N -50/360


NSV

Tenacity
TN034 50498 E 5502552 N -50/360 201.4 208.0 6.6 2.34 21.6 0.07 Tenacity
278.0 289.5 11.5 1.37 37.7 0.04 East Pit

* True widths estimated at approximately 70% of intersection widths ** NSV — No significant assay values

Recent drilling has intersected a parallel mineralized zone (assays pending) located in a geological setting (ultramafic contact) similar to and south of the main Tenacity Zone. Hole TN052 collared into mineralization at 10.9m, and intersected more than 40.0 metres of veining, alteration and sulphides characteristic of Tenacity. An exploration hole (HR008) drilled from the ice several hundred metres east if this new intercept collared into similar mineralization that assayed 2.51g/t Au across 4.9m. Follow-up drilling to test this potential new discovery will commence upon receipt of assays.

These results at Tenacity continue to support management’s belief that historic and new results will be utilized in a NI 43-101 compliant mineral resource estimate, which is expected to be completed in Q4 2009. The current program at Hardrock is expected to consist of more than 50,000 metres of definition and exploration drilling. Importantly, 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:
  1. Open pit-style mineralization with grades exceeding 1.5 g/t Au (Timmins, Hemlo)
  2. Broad zones of mineralization with grades averaging 5.0+ g/t Au (Musselwhite)
  3. Narrow vein zones with higher gold grades often exceeding 7.0g/t (Red Lake, Pickle Lake)
The Hardrock Project is operated under a joint venture with Roxmark Mines Limited (TSX-V:RMK) (Premier earning a 70% interest). The Hardrock Project is host to several past-producing mines which collectively produced more than 2.0 Million ounces of gold from the same shallow deposits within 2000 feet (600 metres) of surface from 1938-1968. The mined zones remained open at depth at the time mining ceased and developed historical resources were left in place within the existing mine workings (a qualified person has not done sufficient work to verify the historical resource, the company is not treating the historical resource as a current resource and the historical resource should not be relied upon) .

The Project benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through the center of the property. Significant potential exists for developing resources in several areas including: 1) Open pit-style mineralization at the site of the original discovery where a resource containing several hundred thousand ounces of gold was partially drilled off by previous operators; 2) Several newer high-grade discoveries have been made throughout this large property package that have received little to no follow-up; 3) Resource blocks reported to remain within the mine workings; and, 4) The main mined zones which remain open below the 600m Level.

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. The assay results presented 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 Canadian-based mineral exploration and development company with several projects and deposits in Northwestern Ontario and a joint venture in Mexico. In the Red Lake gold mining camp, two projects are operated in joint venture with Red Lake Gold Mines, and another, adjacent to the Red Lake Gold Mines complex, is operated on a 100% basis. The company has recently announced a new gold discovery at its wholly-owned PQ-North Project located on the main Musselwhite Gold Mine trend and is acquiring a 70% interest in the Hardrock Project, an advanced-stage gold project in the Geraldton area.

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.