Premier Gold - Deep Drilling at Hardrock Intersects High Grade Gold Including 10.05 g/t (0.29 oz/ton) Gold Over 24.2m (79.4 feet)

January 5th, 2010
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PREMIER GOLD MINES LIMITED (TSX:PG) announced today that multiple deep drill holes have intersected broad zones of high-grade gold mineralization below the bottom level of the historically mined North Zone at the Hardrock Project in Northwestern Ontario. Highlights include intercepts of 10.05 grams per tonne gold (g/t Au) across 24.2 metres (m) or 0.29 oz/ton across 79.4 feet; and 8.41 g/t Au across 22.9 m, or 0.25 oz/ton across 75.1 feet. This drilling confirms that the North Zone deposit is wide open at depth.

North Zone Deeps

All holes drilled to test the down-dip potential of the mine have intersected multiple zones of gold mineralization to 100 metres below the mined portion of the North Zone. Significant intercepts include:

  • 39.20 g/t Au across 4.8 m (1.14 oz/ton gold across 15.7 feet) in MM050
  • 18.86 g/t Au across 3.3m (0.55 oz/ton across 10.8 feet) in MM050A
  • 21.90 g/t Au across 1.5m (0.64 oz/ton across 4.9 feet) in MM079
  • 8.41 g/t Au across 22.9m (0.25 oz/ton across 75.1 feet) including 15.95 g/t Au across 8.1m (0.47 oz/ton across 26.6 feet) in MM079A
  • 10.05 g/t Au across 24.2m (0.29 oz/ton across 79.4 feet) including 20.76 g/t Au across 5.4 m (0.61 oz/ton across 17.7 feet) in MM079B
Stephen McGibbon, Premier’s Executive VP and COO, said, “Hardrock continues to exceed even our optimistic expectations. These solid results bode well for our forthcoming resource estimate and our ongoing aggressive drilling program. During 2010 we are eager to continue to further outline both the open pit and underground potential of Hardrock.”

Table 1 below provides a full summary of significant results from the deep drill program received to date. Ongoing drilling will continue to step out down-plunge to the west in an effort to further define the potential of the North Zone deposit.

The longitudinal section in Figure 1 profiles the location of the new deep drill intersections in relation to the bottom (2000 foot) level of the mine. The North Zone was previously mined to a depth of 610 metres (2,000 feet) with production of 2.97 million tons at a recovered grade of 0.22 oz/ton (7.54g/t Au). This drilling demonstrates that this zone remains wide open for expansion at depth.

A full presentation detailing the location of this deep drilling is available at the Company’s website www.premiergoldmines.com

Figure 1


Table 1

Hole-ID
UTM Coordinates
(m)
Dip/Azimuth
(degrees)
From
(m)
To
(m)
Interval
(m)
Grade
(g/tonne)
Interval
(ft)
Grade
(oz/ton)
Zone
MM050* 5503375 E
503714 N
-73/180 662.7 667.5 4.8 39.20 15.7 1.14 North A
681 684 3.0 3.64 9.8 0.11 North A
703.9 710.8 6.9 4.03 22.6 0.12 North B
including 703.9 706.5 2.6 7.9 8.5 0.23 North B
MM050A (wedge hole) 5503375 E
503714 N
-73/180 651.4 654.7 3.3 18.86 10.8 0.55 North A
767.5 768.5 1.0 5.46 3.3 0.16 X
MM079 5503376 E
503714 N
-78/180 716.0 717.0 1.0 21.30 3.3 0.62 X
728.0 729.4 1.4 7.58 4.6 0.22 X
740.0 753.8 13.8 3.16 45.3 0.09 North A
including 740.0 743.7 3.7 7.79 12.1 0.23 North A

782.5 784.0 1.5 21.90 4.9 0.64 X
MM079A (wedge hole) 5503376 E
503714 N
-78/180 676.6 699.5 22.9 8.41 75.1 0.25 North A
including 687.4 695.5 8.1 15.95 26.6 0.47 North A

714.6 727.0 12.4 5.66 40.7 0.17 North B
733.0 746.0 13.0 3.68 42.6 0.11 North B
including 741.7 743.2 1.5 10.70 4.9 0.31 North C
MM079B (wedge hole) 5503376 E
503714 N
-78/180 679.1 703.3 24.2 10.05 79.4 0.29 North A
including 679.1 681.3 2.2 39.69 7.2 1.16 North A
including 697.0 700.5 3.5 18.73 11.5 0.55 North A

712.5 717.2 4.7 4.79 15.4 0.14 North B

* Previously Announced Intersection - True widths estimated at 50-70% of intersection widths

Ongoing work at Hardrock is testing both open pit and underground type targets. Several potential open pit zones have been delineated to be included into a NI43-101 compliant resource estimate that is expected to be completed early in 2010 (initial open pit resource). The focus of drilling has now shifted towards defining underground-style zones that will be included in an updated resource that is expected in Q3 2010.

Significant potential exists for developing resources in several areas including:
  • Open pit-style mineralization in the main areas, the Tenacity, EP (includes NN) and Kailey Zones. Significant results to-date include 15.97g/t Au across 32.1m and 4.13g/t Au across 18.9m in the Tenacity Zone, 5.2g/t Au across 37.0m and 19.0g/t Au across 11.3m in the EP Zone, 6.4g/t Au across 22.4m and 52.9g/t Au across 7.9m in the NN Zone, and 1.47 g/t Au across 162.0 metres (m) and 2.16g/t Au across 92.2m in the Kailey Zone;
  • Underground-style mineralization in the SP Zone where drilling has returned numerous significant intercepts including 6.6g/t Au across 32.6m and 9.7g/t Au across 11.8m;
  • New high-grade vein targets, including the HGN discovery where recent drilling has intersected significant visible gold with intercepts that include 1,141.5g/t Au (33.3 oz/ton) across 2.0m and 49.8g/t Au across 6.0m; and,
  • Historical resource blocks that remain within the mine workings and the main mined zones which remain open below the 600m Level as tested by holes MM050 and MM079.
The Hardrock Project is operated under a joint venture with Goldstone Resources Inc. (TSX:GRC) (Premier owns a 70% interest). Goldstone Resources is the product of a merger between Roxmark Mines Limited, Premier’s original Hardrock Project Joint Venture Partner, and Ontex Resources Limited. 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. 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, an affiliate of Goldcorp Inc., and another, adjacent to the Red Lake Gold Mines complex, is operated on a 100% basis. The company also owns 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.