Premier Expands Key Lake Deposit With High-Grade Gold Intercepts Including 21.77 G/T Au Across 5.35m

October 26th, 2011
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PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to provide an update from ongoing exploration activities at the Company’s Key Lake site that forms part of the 100%-owned Trans-Canada Project. This drilling is aimed at expanding the current footprint of the Key Lake deposit trend along strike and testing the down-plunge potential of some of the higher-grade “shoots” within the core area of the deposit. The Key Lake deposit is being evaluated to form part of the NI43-101 mineral resource estimate update for the Trans-Canada Project that will be completed for release in Q1 of 2012 and will be included in the Company’s future Preliminary Economic Assessment of the Trans-Canada Project.

The Key Lake Deposit is located approximately 10 kilometres along strike to the west of the Hardrock Deposit (see Figure 1). The current drill program has successfully extended mineralization approximately 600 metres along strike to the west of the core area, with the best results coming from the westernmost 200 metres, where it remains wide open for expansion . Recent highlights include:

  • Step-out drilling has extended mineralization along strike to the west with numerous higher grade intercepts highlighted by hole KL-11-157 that returned 3 mineralized zones assaying 17.50 grams per tonne gold (g/t Au) across 1.4 metres (m) (0.51 oz/t across 4.6 feet), 21.77 g/t Au across 5.35 m (0.63 oz/t across 17.6 feet), and 6.31 g/t Au across 7.0 m (0.18 oz/t across 23.0 feet).
  • Step-out drilling some 300 metres down-plunge of the “core area” has intersected broad mineralization that suggests excellent expansion potential at depth.

Tim Twomey, Vice-President of Exploration of Premier said, “These results are particularly exciting as they demonstrate the potential of the Key Lake deposit to host underground-type grades west of the core area, where it remains wide open down plunge. The 2011 Key Lake drilling results have the potential to materially increase the overall gold resources at the Trans-Canada Project. We will be following-up these results with drilling further west this winter.”

On June 22, 2011, Premier acquired the Key Lake Project as part of its acquisition of Goldstone Resources Inc. The combination resulted in the consolidation of 100% ownership of the Hardrock Project that is host to a multi-million ounce NI 43-101 compliant resource estimate and added extensive property holdings in the Geraldton-Beardmore Greenstone Belt with a combined strike length of more than 50 kilometres. In addition to Key Lake, new property holdings include the high-grade Brookbank Deposit, the past producing Leitch Gold Mine (historic production of 847,900 ounces of gold at an average grade of 31.5 g/t Au), and the Northern Empire Mill complex.

A complete listing of recent significant assay results at Key Lake is provided in Table 1.

Table 1 - Key Lake Assay Results
Hole-ID UTM Coordinates (m) Dip/Azimuth (degrees) From (m) To (m) Interval (m) Grade (g/tonne) Interval (ft) Grade (oz/ton) Zone
KL-11-127 5506366 N 491679 E -67/7 207.0 211.0 4.0 4.41 13.1 0.13 KL
234.0 239.0 5.0 3.72 16.4 0.11 KL
290.0 297.5 7.5 2.78 24.6 0.08 KL
KL-11-129 5506659 N 491538 E -45/192 61.77 62.8 1.03 3.26 3.4 0.10 KL
KL-11-130 5506663 N 491487 E -46/10 22.4 25.5 3.1 5.46 10.2 0.16 KL
KL-11-131 5506663 N 491487 E -58/10 109.5 111 1.5 2.44 4.9 0.07 KL
KL-11-132 5506738 N 491503 E -48/192 268.07 285.52 17.45 1.42 57.2 0.04 KL
KL-11-133 5506705 N 491497 E -47/195 207.0 209.0 2.0 3.59 6.6 0.10 KL
KL-11-134 5506705 N 491497 E -65/195 NSV
KL-11-135 5506518 N 491404 E -48/7 103.9 104.5 0.6 2.78 2.0 0.08 KL
KL-11-136 5506518 N 491404 E -58/7 NSV
KL-11-137 5506697 N 491441 E -47/192 37.9 41.9 4.0 4.22 13.1 0.12 KL
KL-11-138 5506697 N 491441 E -78/192 No assays yet
KL-11-139 5506723 N 491423 E -45/192 69.87 79.45 9.6 3.42 31.4 0.10 KL
KL-11-140 5506723 N 491423 E -66/192 146.5 152 5.5 5.31 18.0 0.16 KL
KL-11-141 5506609 N 491374 E -46/12 125 126 1.0 3.00 3.3 0.09 KL
KL-11-142 5506609 N 491374 E -63/12 146.0 150.0 4.0 3.60 13.1 0.11 KL
159.0 161.0 2.0 4.33 6.6 0.13 KL
KL-11-143 5506758 N 491405 E -47/195 assays Pending
KL-11-144 5506650 N 491332 E -45/12 assays Pending
KL-11-145 5506650 N 491332 E -69/12 93.15 95.2 2.1 3.89 6.7 0.11 KL
KL-11-146 5506752 N 491353 E -47/195 assays Pending
KL-11-147 5506584 N 491266 E -50/12 109.5 116.0 6.5 2.79 21.3 0.08 KL
KL-11-148 5506584 N 491266 E -65/12 208.0 211.0 3.0 1.38 9.8 0.04 KL
KL-11-149 5506561 N 491261 E -56/12 93.15 95.2 2.1 3.89 6.7 0.11 KL
KL-11-150 5506825 N 491266 E -60/192 assays Pending
KL-11-151 5506568 N 491186 E -47/10 118.9 122.4 3.4 1.52 11.3 0.04 KL
178.8 180.5 1.6 3.04 5.4 0.09 KL
KL-11-152 5506568 N 491186 E -60/10 163.5 164.5 1.0 4.94 3.3 0.14 KL
KL-11-153 5506604 N 491168 E -46/10 112.0 113.0 1.0 1.75 3.3 0.05 KL
KL-11-154 5506686 N 491077 E -45/12 121.0 125.0 4.0 2.07 13.1 0.06 KL
KL-11-155 5506614 N 491068 E -47/10 210.5 212.5 2.0 6.59 6.6 0.19 HGKL
KL-11-156 5506614 N 491068 E -59/10 260.0 261.7 1.7 0.98 5.6 0.03 HGKL
KL-11-157 5506786 N 491002 E -45/12 33.0 40.0 7.0 6.31 23.0 0.18 KL
55.6 57.0 1.4 17.50 4.6 0.51 KL
75.2 80.5 5.3 21.77 17.5 0.64 HGKL
KL-11-158 5506701 N 490984 E -47/12 163.0 173.2 10.2 2.44 33.5 0.07 KL
KL-11-159 5506831 N 490910 E -45/12 115.85 117.3 1.5 2.20 4.8 0.06 KL
KL-11-160 5506785 N 490900 E -45/12 103.5 110.54 7.0 5.73 23.1 0.17 HGKL
KL-11-161 5506785 N 490900 E -60/12 81.0 82.0 1.0 5.96 3.3 0.17 HGKL
132.0 135.8 3.8 1.60 12.5 0.05 KL
KL-11-162 5506852 N 490813 E -45/12 Not Drilled Yet
KL-11-163 5506852 N 490813 E -64/12 Not Drilled Yet
KL-11-164 5506803 N 490803 E -59/12 Not Drilled Yet
KL-11-165 5506862 N 490764 E -64/12 Not Drilled Yet
KL-11-166 5506895 N 491332 E -65/202 assays Pending
KL-11-167 5507220 N 491000 E -50/190 assays Pending
KL-11-168 5507125 N 491275 E -50/190 assays Pending
KL-11-169 5506675 N 492400 E -50/190 Not Drilled Yet
KL-11-170 5506900 N 492550 E -50/190 Not Drilled Yet
KL-11-171 5506880 N 491020 E -50/190 59.9 64.9 5.0 5.96 16.4 0.17 KL
192.0 193.0 1.0 18.70 3.3 0.55 HGKL

True widths are estimated at approximately 70% to 80% of drilled interval width KL - Key Lake Horizon
HGKL - High-Grade Key Lake (West)


Figure 1 - Trans-Canada Project


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, or to Accurassay 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 one of North America’s leading exploration companies with a high-quality pipeline of projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States. The Company’s portfolio includes significant assets in world class gold mining districts such as Red Lake, Musselwhite and Geraldton in Ontario, and the Carlin Trend in Nevada.

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.