Premier Expands High-Grade Open Pit Potential at Hardrock Including 1.54 Oz/Ton Gold Over 25.9 Feet

November 11th, 2009
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PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce drill results from the NN Zone, comprising the final results from drilling that will be used for an upcoming NI43-101 resource calculation relating to open pit style deposits on the Hardrock Project in Northwestern Ontario. Drilling has delineated multiple zones potentially amenable to open pit mining, including recently identified high-grade gold mineralization within the NN Zones. Highlights from recent drilling include the following results:

  • 5.26 grams per tonne gold (g/t Au; 0.15 ounces per ton) across 11.7 metres (m; 38.4 feet) in hole MM053
  • 3.50 g/t Au (0.10 ounces per ton) across 36.5m (119.7 feet) in hole MM056
  • 52.90 g/t Au (1.54 ounces/ton) across 7.9m (25.9 feet) in hole MM062
  • 35.45 g/t Au (1.04 ounces/ton) across 3.6m (11.8 feet) in hole MM066
Recent near-surface holes drilled in the NN Zone, located west along strike from the EP Zone, suggest the potential for defining open-pit resources with multiple horizons having intersection widths of up to 36.5 metres (119.7 feet). New drill results from the NN Zone are contained in Table 1 and locations of drill holes can be found in Figure 1.

Premier intends to release the results of the initial resource estimate prior to the end of 2009. Initial drilling results during the latter stages of 2009 support Premier’s belief that additional mineral resources, amenable to underground mining methods, may be delineated at depth. It is Premier’s intention to aggressively pursue this style of drill target during 2010, with the goal of amending the initial mineral resource sometime after the end of the second quarter.

At Hardrock, significant potential exists for developing resources in several areas including:
  • Open pit-style mineralization at sites where historic resources were partially delineated by previous operators, in addition to newly defined mineralization at the Tenacity, EP and Kailey Zones;
  • Numerous surface and historic high-grade gold intercepts throughout the large property package that have received little to no follow-up;
  • Historic resource blocks reported to remain within the mine workings, including high-grade vein targets; and,
  • The main mined zones which remain open below the 600m Level.
“Since January, the focus at Hardrock has been defining open pit style mineralization, an endeavour that has exceeded our initial expectations” stated Ewan Downie, President. “With our initial mineral resource estimate now imminent, we have shifted our focus toward outlining higher grade underground style resources. This effort has already resulted in one new high grade discovery”.

Table 1 New Sub Zone Intercepts from NN Zone drilling at Hardrock
Hole-ID UTM Coordinates
(m)
Dip/Azimuth
(degrees)
From
(m)
To
(m)
Interval
(m)
Grade
(g/tonne)
Interval
(ft)
Grade
(oz/ton)
Zone
MM052 5502941N

504351E

-45/360 52.5 54.0 1.5 3.37 4.9 0.10 upper NN
104.0 117.0 13.0 1.02 42.6 0.03 NN
162.1 163.6 1.5 2.16 4.9 0.06 lower NN
MM053 5502990N
504351E
-45/360 30.0 33.0 3.0 1.53 9.8 0.04 upper NN
57.0 68.7 11.7 5.26 38.4 0.15 NN
MM054 5502964N
504217E
-45/360 61.0 62.5 1.5 2.25 4.9 0.07 upper NN
MM055 5502943N
504302E
-45/360 15.0 31.5 16.5 2.24 54.1 0.07 upper NN
157.5 160.5 3.0 3.98 9.8 0.12 NN
169.5 171.0 1.5 1.90 4.9 0.06 lower NN
MM056 5502925N
504217E
-50/360 42.0 78.5 36.5 3.50 119.7 0.10 upper NN
158.9 168.3 9.4 5.16 30.8 0.15 NN
175.7 181.0 5.3 7.44 17.4 0.22 lower NN
MM057 5502995N
504298E
-45/360


NSV

NN
MM058 5502972N
504143 E
-45/360 34.8 46.5 11.7 1.00 38.4 0.03 upper NN
134.6 137.1 2.5 3.27 8.2 0.10 NN
166.1 167.3 1.2 5.57 3.9 0.16 lower NN
MM059 5502905N
504350E
-45/360 63.0 69.2 6.2 1.00 20.3 0.03 upper NN
126.5 128.0 1.5 71.20 4.9 2.08 x
185.5 188.9 3.4 5.69 11.2 0.17 NN
217.0 222.0 5.0 2.48 16.4 0.07 lower NN
MM060 5502930N
504250E
-45/360 144.0 176.1 32.1 1.25 105.3 0.04 NN
MM061 5502981N
504116 E
-45/360 33.0 37.5 4.5 1.05 14.8 0.03 upper NN
96.0 99.0 3.0 1.20 9.8 0.04 NN
149.9 151.3 1.4 2.46 4.6 0.07 lower NN
MM062 5502885N
504217E
-47/360 110.2 111.4 1.2 1.08 3.9 0.03 upper NN
220.2 228.1 7.9 52.90 25.9 1.54 NN
245.5 247.5 2.0 3.52 6.6 0.10 lower NN
MM063 5502915N
504290E
-45/360 109.0 114.5 5.5 3.49 18.0 0.10 upper NN
158.5 160.0 1.5 18.80 4.9 0.55 NN
191.4 193.0 1.6 1.10 5.2 0.03 lower NN
MM064 5502980N
504251E
-45/360 41.0 42.0 1.0 5.60 3.3 0.16 NN
MM065 5503005N
504185E
-45/360 46.4 47.8 1.4 2.09 4.6 0.06 NN
MM066 5503005N
504250E
-45/360 4.2 6.5 2.3 13.03 7.5 0.38 upper NN
65.5 69.1 3.6 35.45 11.8 1.04 NN
MM067 5502910N
504150E
-50/360 107.0 108.5 1.5 15.30 4.9 0.45 x
121.1 123.5 2.4 4.05 7.9 0.12 upper NN
152.5 160.0 7.5 3.04 24.6 0.09 NN
180.5 182.0 1.5 2.28 4.9 0.07 lower NN
MM068 5503015N
504350E
-45/360 11.5 14.5 3.0 3.91 9.8 0.11 NN
MM069 5503030N
504250E
-45/360


NSV



True widths estimated at approximately 70% of intersection widths NSV - No Significant Values

Figure 1 Planview: Collar Locations From NN Zone Drilling at Hardrock



The Hardrock Project is operated under a joint venture with Roxmark Mines Limited (TSX-V:RMK) (Premier holds a 70% interest). The Hardrock Project is host to several past-producing mines which collectively produced nearly 3.0 Million ounces of gold primarily from relatively shallow depths (600 metres) from 1938-1968. A recent hole to test the North Zone horizon below the bottom mine level at Hardrock has intersected several mineralized zones further demonstrating the potential for the project to host a multi-million ounce resource. This hole is the first deep hole completed by the joint venture. 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 Ancaster, 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 active projects and deposits in Northwestern Ontario. 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 also owns a 100% interest in the PQ-North Project, located along strike from Goldcorp’s Musselwhite Gold Mine.

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.