Premier Gold - Deep Drilling At Hardrock Returns Best Intercept To-Date 5.37 g/t Gold Over 57.1 m (0.16 oz/ton over 187.3 feet)

February 22nd, 2010
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PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that step-out drilling at depth, which includes the deepest hole ever drilled to test the North Zone horizon, has returned multiple zones of gold mineralization including the best intercept drilled to date. This drilling continues to define high-grade gold within several sub-zones of the main North Zone below the bottom level that was historically mined.

Drillhole MM092, representing the initial hole from which additional wedge holes will be drilled, and hole MM092A (the first wedge hole) have intersected multiple lenses of gold mineralization. Combined, the three zones assayed 5.37 grams per tonne gold (g/t Au) across 57.1 metres (m) or 0.16 oz/ton across 187.3 feet, with sub-zone intervals that include 7.79 g/t Au (0.23 oz/ton) across 13.9 m (45.6 feet), 8.92 g/t Au (0.26 oz/ton) across 6.0 m (19.7 feet) and 7.56 g/t Au (0.22 oz/ton) across 16.0 m (52.5 feet). Hole MM092A intersected multiple zones including 7.59 g/t Au (0.22 oz/ton) across 23.3m (76.4 feet) with a higher grade interval of 11.36 g/t Au (0.33 oz/ton) across 9.4m (30.8 feet). This drilling tested the North Zone deeper and along strike from initial deep drilling that returned multiple high-grade intersections that included 39.20 g/t Au across 4.8 m, 8.41 g/t Au across 22.9 m and 10.05 g/t Au across 24.2 m, further confirming that the North Zone is wide open for expansion at depth.

The first seven holes drilled by Premier to test the down plunge potential of the mined portion of the North Zone have all intersected multiple zones of gold mineralization to 125 metres below the bottom mine level and are profiled on longitudinal section in Figure 1.

Figure 1 Results For First Seven Holes Drilled



The North Zone was previously mined to a depth of 616 metres (2,022 feet) with production of 3 million tons at a recovered grade of 0.22 oz/ton (7.54g/t Au). The North Zone had been mined along a total plunge length of one kilometre (km) and mineralization has now been extended another 250 m along that plunge below the bottom of the McLeod Mine. For comparison, the F Zone is also open at depth and is indicated in mining and historic underground drilling for over 3.5 km along it’s plunge.

Table 1 summarizes the gold intercepts in holes MM092 and 092A in addition to previously announced results from the first section drilled some 50 metres to the east

Table 1 - Detailed Results of Deep North Zone Drilling

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
681.0 684.0 3.0 3.64 9.8 0.11 X
703.9 710.8 6.9 4.03 22.6 0.12 North B
including 703.9 706.5 2.6 7.90 8.5 0.23 North B

742.5 744.0 1.5 3.06 4.9 0.09 North D
MM050A* (wedge hole) 5503375 E
503714 N
-73/180 651.4 654.7 3.3 18.86 10.8 0.55 North A
667.5 669.8 2.3 2.58 7.5 0.08 North B
737.5 739.0 1.5 3.63 4.9 0.11 North C
767.5 768.5 1.0 5.46 3.3 0.16 North D
MM079* 5503376 E
503714 N
-78/180 716.0 717.0 1.0 21.30 3.3 0.62 North A
728.0 729.4 1.4 7.58 4.6 0.22 North B
740.0 743.7 3.7 7.79 12.1 0.23 North C
767.0 768.5 1.5 6.55 4.9 0.19 North D
782.5 784.0 1.5 21.90 4.9 0.64 North E
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 C
including 741.7 743.2 1.5 10.70 4.9 0.31 North C

759.0 760.5 1.5 5.17 4.9 0.15 North D
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

727.5 729.0 1.5 3.83 4.92 0.11 North C

751.5 753.0 1.5 2.62 4.92 0.08 North D
MM092 503650E
5503375N
-78/180 719.6 776.7 57.1 5.37 187.3 0.16 North
including 719.6 733.5 13.9 7.79 45.6 0.23 North A
including 744.0 750.0 6.0 8.92 19.7 0.26 North B
including 760.7 776.7 16.0 7.56 52.5 0.22 North C

783.0 784.5 1.5 7.62 4.9 0.22 North D
MM092A (wedge hole) 503650E
5503375N
-78/180 712.7 736.0 23.3 7.59 76.4 0.22 North A
including 712.7 722.1 9.4 11.36 30.8 0.33 North A

742.9 754.8 11.9 8.71 39.0 0.25 North B
including 742.9 748.8 5.9 13.58 19.4 0.40 North B

759.5 762.0 2.5 12.52 8.2 0.37 North C

770.9 774.1 3.2 8.84 10.5 0.26 North D

778.0 783.0 5.0 5.13 16.4 0.15 North E
* Previously Released - True widths estimated at 50-70% of intersection widths

Four drills are currently active at Hardrock, testing both open pit and underground type targets. Several potential open pit zones have been delineated and will be included into a NI43-101 compliant resource estimate that is expected to be completed in the near future (initial open pit resource). Drilling will continue to expand the open pit zones and delineate underground-style zones of mineralization that will be included in an updated resource at the end of the 2010 drill program.

At Hardrock, 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, narrow-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 potentially three new recently intersected zones where assays are pending; and,

  • Historical (non NI 43-101 compliant) resource blocks that reside within the mine workings;

  • Main mined zones which are open below the 600m Level as tested by holes MM050, MM079 and MM092.
The Hardrock Project is operated under a joint venture with Goldstone Resources Inc. (TSX:GRC) (Premier owns a 70% interest in the project). Goldstone Resources is the product of a merger between Roxmark Mines Limited, Premier’s original Hardrock Project Joint Venture Partner, and Ontex Resource Limited. The Hardrock Project is host to several past-producing mines, which collectively produced nearly 3.0 Million ounces of gold primarily from shallow depths within 600 metres of surface between 1938 and 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 strategic project located on the main Musselwhite Gold Mine trend as well as 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.