Premier Discovers High Grade Polymetallic Mineralization at the Cove Gold Project, Nevada

Highlights include 6.74 g/t Au, 13.00 g/t Ag, 0.02% Cu, 0.32% Zn and 0.06% Pb over 9.1 m

September 18th, 2013
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PREMIER GOLD MINES LIMITED (TSX:PG) (“Premier”) is pleased to announce that multiple zones of mineralization have been intersected in the first holes drilled to test below the historic Cove pit at the Company’s Cove Gold Project, located along the Eureka-Battle Mountain Trend in Nevada. Initial results confirm the potential for “Carlin-style” mineralization in the carbonate rock units immediately below the pit, similar to the mineralization in the Helen Zone located some 1.1 kilometres to the northwest, and also discovered polymetallic sulfide vein mineralization at depth, similar to that historically mined at Cove. Highlights from recent drilling include:
  • Hole AX-46 successfully intersected the Cove South Deep (“CSD”) horizon and discovered multiple polymetallic zones (2201 Zone) in the deeper rock units (see Images 1 and 2) including:
    • CSD 3.08 grams per tonne gold (g/t Au) across 49.1 metres (m) (or 0.09 ounces per ton gold (oz/t Au) across 161.0 feet).
      • Including 5.75 g/t Au across 4.3 m (0.17 oz/t Au across 14.0 feet) - CSD “Upper”
      • And 7.27 g/t Au across 8.0 m (0.21 oz/t Au across 26.3 feet) - CSD “Lower”
    • Discovered an extensive system of polymetallic mineralization (the 2201 Zone) in the deeper Dixie Valley (sandstone) formation with higher grade sub-intervals including:
      • 6.74 g/t Au, 13.00 g/t Ag, 0.02% Cu, 0.32% Zn and 0.06% Pb across 9.1 m (30.0 feet)
      • 6.55 g/t Au, 44.10 g/t Ag, 0.08% Cu, 0.8% Zn and 0.14% Pb across 2.3 m (7.5 feet)
      • 1.70 g/t Au, 41.58 g/t Ag, 0.07% Cu, 1.24% Zn and 0.19% Pb across 14.9m (49.0 feet)
    • Discovered mineralization in the Havallah sequence at end of hole assaying
      • 10.91 g/t Au and 9.20 g/t Ag across 1.5 m (5 feet)
  • Hole AX-47, a step-out hole in the Helen Zone deposit area intersected 26.30 g/t Au and 39.79 g/t Ag across 2.7 m (0.77 oz/t Au and 1.16 oz/t Ag across 9 feet).
  • Follow-up drilling to AX-46 has intersected mineralization in similar horizons (assays pending). Continued step-out drilling is underway.
“The discovery of deep-seated polymetallic sulfide veining in basal Triassic Dixie Valley formation rocks is significant not only due to the high grade tenor of the mineralization, but also this host horizon is essentially virgin ground at the Cove property” stated Warren Thompson, U.S. Exploration Manager for Premier. “While it gives rise to many questions, this discovery opens up substantial exploration possibilities on our large land package”.

The Cove Project is located in the heart of the Battle Mountain/Eureka gold trend in Nevada, one of the most prolific gold districts in the world that is host to numerous “elephant” gold mines and deposits. Nevada is one of the world’s most favourable jurisdictions for mine development and Cove offers substantial upside in the existing resource areas in addition to opportunities for the discovery of new high grade gold deposits within the district.

The Cove deposit was mined (primarily by open pit) between 1986 and 2001, a period of comparatively low metal prices, producing approximately 2.6 million ounces of gold, and more than 100 million ounces of silver making Cove the 4th largest producer of silver in the history of Nevada. Towards the end of mining at Cove, a ramp was developed to access high grade “Carlin-style” mineralization (Cove South Deep) in the limestone rock units below the pit, but ceased due to lack of water inflow preparation and low gold prices.

Image 1 - 3D Longitudinal View of the Cove/Helen Area Looking North


The Cove Project is held under lease from Newmont McCoy Cove Limited, a wholly owned subsidiary of Newmont Mining Corporation. Newmont has the option at any time to earn back 51% under a joint venture arrangement by paying venture expenditures in an amount equal to 250% of all exploration expenditures on the project since March of 2006. If Premier submits a positive feasibility study containing 500,000 ounces gold or greater, Newmont has a window of 90 days in order to confirm its participation.

Cove South Deep Target

The Cove South Deep (‘CSD’) horizon is located approximately 50 metres (160 feet) below the limits of the historic Cove open pit mine. CSD is similar to the Helen Zone deposit which has been the primary target since exploration resumed at the Cove property in 2006 by Victoria Gold. Both Helen and CSD represent prospective, high grade, Carlin-style, gold deposits that are both open for expansion.

In May, the Bureau of Land Management (BLM) approved the Company’s Plan of Operation (POO) that allows Premier up to 100 acres of surface disturbance for exploration and development purposes. These key approvals position the Company to aggressively pursue expansion of its mineral resources within the Helen Zone from new surface platforms, and to test many new target areas that have been identified by Premier’s geological team.

The first of these targets is the CSD, a zone discovered near the end of mining at Cove in an area that had received very little exploration drilling. Hole AX-46 was designed to test the CSD horizon to the southeast of historic workings (ramp) and successfully intersected the target horizon over a core interval of 49.1 metres and contains higher grade sub-intervals of gold mineralization. Table 1.0 provides a summary of results from the CSD Zone in hole AX-46 and Image 1 provides a 3D longitudinal view of drilling in the pit area and at the Helen Zone.

Table 1.0 - Select assay results for Cove South Deep Zone in hole AX-46
UTM Coordinates (m) Dip/Azimuth (degrees) From (m)* To (m)* Interval (m)* Au (g/t) From (ft) To (ft) Interval (ft) Au (oz/ton)* Zone
4464741N
483110E
-52/310 393.04 442.11 49.1 3.08 1289.5 1450.5 161.0 0.09 U/L CSD
including
393.04 397.31 4.3 5.75 1289.5 1303.5 14.0 0.17 CSD Upper
and
434.10 442.11 8.0 7.27 1424.2 1450.5 26.3 0.21 CSD Lower
- Gravimetric assays used when available - true widths estimated at approximately 80% of core intercept - assays provided are un-cut

*Metric lengths converted from original Imperial data *oz/t values converted from original g/t assay data


2201 Discovery

The 2201 Zone was discovered when drilling intersected massive, semi-massive and stringer mineralization in the deeper Dixie Valley formation, which is not previously known to be a significant ore host on the property. Mineralization, consisting of pyrite, sphalerite, galena, arsenopyrite, chalcopyrite, pyrrhotite, electrum and rare visible gold, was intersected throughout the Dixie Valley formation.

This mineralization occurs in the vicinity of the Omega dike, Lighthouse and Cay fault structures, several of the numerous “feeder” structures for the polymetallic veins that occurred within the Cove pit. This discovery confirms Premier’s belief that the primary feeder structures at the Cove Mine are also conduits for mineralization in multiple horizons, providing key targets beneath the previously mined area. The Dixie Valley formation in the pit area had never been tested by drilling prior to the current exploration program. Table 2.0 provides a summary of results from the 2201 Zone and Images 1 & 2 provide 3D longitudinal and oblique views of drilling in the pit area and at the Helen Zone.

Table 2.0 - Assay results for the 2201 Zone in hole AX-46

- Gravimetric assays used when available - true widths estimated at approximately 80% of core intercept - assays provided are un-cut

*Metric lengths converted from original Imperial data *oz/t values converted from original g/t assay data


Image 2 - Section AX-46


Helen Zone Drilling

An additional step-out drill hole completed at the Helen Zone deposit to the northwest of the Cove pit intersected high grade mineralization. AX-47 intersected the Upper Helen Zone to the southeast of high grade intercepts in AX-35, returning an interval assaying 26.30 g/t Au and 39.79 g/t Ag across 2.7 m (0.77 oz/t Au and 1.16 oz/t Ag across 9.0 feet) further demonstrating expansion potential and confirming the high grade nature of the deposit.

Premier’s management team believes that the Cove Gold Project represents one of the most under-explored projects in Nevada. It is located along the Eureka-Battle Mountain Trend that is host to numerous multi-million ounce producing and past-producing mines. The property is located in close proximity to excellent infrastructure (including paved roads & power) and is permitted for an expanded surface drill campaign and underground access.

OTHER PROJECTS

Premier holds several projects that are subject to major exploration programs in 2013. Underground drilling, testing priority target areas is underway from the haulage drift in Red Lake on the Rahill-Bonanza Project (PG 49% and Red Lake Gold Mines 51%). Several drills are active on the Company’s 100%-owned Trans-Canada Property with activity focussed in preparation for a revised mineral resource estimate at Hardrock and work continues on Preliminary Economic Assessments for the Hardrock and Brookbank deposits.

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 were sent to Inspectorate America Laboratories prep facility located in Elko, Nevada and analysis was performed at their Sparks, Nevada analytical facility utilizing 30 gram fire assay with an AA finish for RC samples and 30 gram fire assay with AA finish and ICP-MS 30 element scan from 4-acid digestion for Core samples.

Premier Gold Mines Limited is one of North America’s leading exploration and development companies with a high-quality pipeline of gold projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States. The Company is fully financed with a portfolio of advanced-stage assets in world class gold mining districts such as Red Lake and Geraldton in Ontario and the most prolific gold trends in Nevada.

For further information, please contact:

Ewan Downie, President & CEO
Phone: 807-346-1390
Fax: 807-346-1381
e-mail: Info@premiergoldmines.com
Web Site: www.premiergoldmines.com

This Press Release contains certain information that may constitute “forward-looking information” under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans, including future operations, future work programs, capital expenditures, discovery and production of minerals, price of gold and currency exchange rates, timing of geological reports and corporate and technical objectives.. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks inherent to the mining industry, adverse economic and market developments and the risks identified in Premier’s annual information form under the heading “Risk Factors”. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Premier disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.