Premier Hardrock Drilling Returns Best Gold Intersection To-Date Defines Strong Gold Mineralization at Tenacity Target

March 20th, 2009
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PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that ongoing drilling at the Hardrock Project in Geraldton, Northwestern Ontario: 1) has intersected the most significant mineralization to date in the EP-Zone target; 2) has defined a robust gold-bearing zone at the Tenacity target; and 3) demonstrates high-grade gold potential in the Oreo Zone. This drilling continues to identify significant near surface (open pit-style) mineralization contained within multiple zones and continues to confirm high-grade potential proximal to existing mine workings. Recent highlights include:

  • EP-Zone mineralization has been intersected over a minimum strike length of 350 metres (m) with new intersections of up to 2.37 grams per tonne gold (g/t Au) across 62.7m.
  • Tenacity mineralization (open pit and underground target) has returned near surface intersections of up to 4.13 g/t Au across 18.9 m with higher grade mineralization of up to 7.79 g/t Au across 5.5 m.
  • Oreo drilling proximal to the historic North Zone mine workings continues to intersect high-grade gold mineralization with intersections up to 8.25 g/t Au across 2.0 m.

EP-ZONE

The EP-Zone is comprised of near-surface mineralization proximal to the historic North Zone mine workings. Drilling has identified multiple sub-zones within the EP target consisting of the South Limb (SL) and North Limb (NL). Significant mineralization has been intersected over a strike length of 350 metres and remains open in all directions.


The following tables demonstrate the potential of the EP-Zone, highlighting mineralization within each horizon. These results demonstrate continuity and grade within the EP-Zone, supporting management’s belief that historic and new results will be utilized in a NI43-101 compliant resource calculation which is expected to be completed in Q4 2009.

Hole No. Grid Dip/Azimuth Intersection Int. Int. Au Au EPZone
Coordinates (m) (Degrees) From-to (m) (m) (ft) (g/t) (oz/ton)
EP023 504949E -55/180 111.0 - 122.4 11.40 37.4 1.36 0.04 North Limb

5503237N including 120.7 - 122.4 1.70 5.6 7.46 0.22



146.2 - 147.5 1.30 4.3 13.15 0.38
EP024 504900E -45/180 24.0 - 32.5 8.50 27.9 0.82 0.02

5503189N
43.0 - 55.9 12.90 42.3 1.01 0.03 North Limb
EP025 504902E -45/180 49.0 - 70.5 21.50 70.5 1.32 0.04 North Limb

5503222N
96.0 - 100.0 4.00 13.1 2.07 0.06



106.0 - 109.0 3.00 9.8 9.51 0.28
EP026 504902E -60/180 79.0 - 141.7 62.70 205.7 2.37 0.07 North Limb

5503222N including 79.0 - 88.0 9.00 29.5 7.73 0.23


including 97.7 - 119.9 22.20 72.8 2.28 0.07


including 132.6 - 141.7 9.10 29.9 2.88 0.08



198.6 - 201.0 2.40 7.9 1.92 0.06

The following holes were previously released on March 11, 2009 and are in the same cross-section as EP023, which demonstrate strong continuity of gold grade.

Hole No. Grid
Coordinates (m)
Dip/Azimuth
(Degrees)
Intersection
From-to (m)
Int.
(m)
Int.
(ft)
Au
(g/t)
Au
(oz/ton)
Zone
EP021 504948E
5503189N
-50/180
Incl.
8.90-17.90
15.40-17.90
9.00
2.50
29.5
8.2
3.07
8.06
0.09
0.23
North Limb
North Limb
EP022 504948E
5503213N
-50/180 Incl. 52.00-61.00
85.00-96.40
92.20-94.70
103.00-106.20
9.00
10.80
2.50
3.20
29.5
37.4
8.2
10.5
2.62
4.34
10.01
1.08
0.08
0.13
0.29
0.03
North Limb
North Limb
North Limb
North Limb
* True widths estimated at approximately 70% of intersection widths

TENACITY ZONE

Initial drilling at the Tenacity Zone has confirmed the potential for both open pit and underground gold mineralization. Drilling has defined a zone with a strike length of more than 400 metres and is open in all directions. To date, 20 holes have been drilled into this target with the initial 11 summarized in the following table. Of particular significance is an intersection of 4.13 g/t Au across 18.9 m in the western most down-plunge drill-hole, TN011.

A longitudinal section of the Tenacity Zone, including historic intercepts in this area, is available on the Premier website www.premiergoldmines.com.

Follow-up drilling continues to intersect strong vein zones including several occurrences of visible gold. These intercepts demonstrate significant gold mineralization within the Tenacity Zone, which remains open down-plunge of TN011:
Hole No. Grid Dip/Azimuth Intersection Int. Int. Au Au Zone
Coordinates (m) (Degrees) From-to (m) (m) (ft) (g/t) (oz/ton)
TN001 505749E -50/360 58.6 - 82.0 23.40 76.8 1.72 0.05 Tenacity

5502617N
88.5 - 89.5 1.00 3.3 2.68 0.08 TB



107.0 - 108.0 1.00 3.3 16.60 0.48 South HGV
TN002 505749E -70/360 95.6 - 99.5 3.90 12.8 2.35 0.07 Tenacity

5502617N
124.5 - 127.5 3.00 9.8 1.73 0.05 TB
TN003 505648E -45/360 80.0 - 97.0 17.00 55.8 1.02 0.03 Tenacity

5502605N






TN004 505647E -55/360 169.0 - 170.4 1.40 4.6 1.20 0.04 TA

5502557N
176.0 - 180.2 4.20 13.8 1.30 0.04 Tenacity
TN005 505549E -50/360 174.1 - 190.5 16.40 53.8 2.25 0.07 Tenacity

5502558 N
196.5 - 198.0 1.50 4.9 2.55 0.07 TB
TN006 505551E -50/360 26.8 - 29.5 2.70 8.9 1.77 0.05 Upper Tenacity

5502504N
226.5 - 228.0 1.50 4.9 3.73 0.11 Tenacity



237.0 - 238.5 1.50 4.9 4.62 0.13 Tenacity



254.0 - 255.5 1.50 4.9 1.65 0.05 TB
TN007 505600E -55/360 NSV





5502485N






TN008 505651E -45/360 31.5 - 42.7 11.20 36.8 2.15 0.06 Tenacity

5502656N
53.0 - 78.3 25.30 83.0 2.25 0.07 Tenacity
TN009 505553E -50/360 91.0 - 110.0 19.00 62.3 1.71 0.05 Tenacity

5502605N
138.0 - 152.0 14.00 45.9 4.77 0.14 Tenacity



183.5 - 186.5 3.00 9.8 2.11 0.06 East Pit
TN010 505642E -55/360 226.5 - 228.7 2.20 7.22\ 1.41 0.04 Tenacity

5502497N






TN011 505450E -50/360 257.8 - 276.7 18.90 62.0 4.13 0.12 Tenacity

5502508N






* True widths estimated at approximately 70% of intersection widths
** NSV - No significant assay values


OREO ZONE

The Oreo Zone was identified in historic drilling between the two main producing horizons at Hardrock, namely the North Iron Formation and the Porphyry Hill horizons. The historic drilling, testing for mineralization between these horizons returned numerous high-grade intercepts in the area currently being tested. The current program has intersected gold mineralization within the Oreo Zone and proximal to the North Zone mine workings. The following table provides results from the continued drilling at the Oreo and North Zones:


Hole No. Grid Dip/Azimuth Intersection Int. Int. Au Au Zone
Coordinates (m) (Degrees) From-to (m) (m) (ft) (g/t) (oz/ton)
OR004 504601E -60/360 NSV





5502925N






OR005 504701E -60/360 414.5 - 416.0 1.50 4.9 12.99 0.38 North

5502921 N






OR006 504653E -55/360 96.0 - 109.0 13.00 42.6 2.03 0.06 West Pit

5502729N including 96.0 - 97.0 1.00 3.3 11.89 0.35 West Pit


including 107.5 - 109.0 1.50 4.9 5.02 0.15 West Pit



121.1 - 125.5 4.40 14.4 1.44 0.04 PHP
OR007 504602E -60/360 110.5 - 112.0 1.50 4.9 2.68 0.08 DS

5502865N






OR008 504700E -60/360 57.2 - 58.7 1.50 4.9 1.70 0.05 PHP

5502865N
98.7 - 111.3 12.60 41.3 1.75 0.05 PHP



129.0 - 129.8 0.80 2.6 13.30 0.39 PHP



156.1 - 157.6 1.50 4.9 5.54 0.16 DS



225.1 - 226.6 1.50 4.9 6.02 0.18 DS
OR009 504553E -60/360 230.5 - 235.0 4.50 14.8 1.30 0.04 DS

5502927N
263.5 - 271.0 7.50 24.6 1.48 0.04 Oreo



316.2 - 318.2 2.00 6.6 8.25 0.24 Oreo



349.7 - 350.7 1.00 3.3 10.20 0.30 Oreo



367.4 - 374.0 6.60 21.7 2.10 0.06 North



368.3 - 369.5 1.20 3.9 3.46 0.10 North



372.5 - 373.0 0.50 1.6 10.60 0.31 North



379.4 - 379.9 0.50 1.6 10.10 0.29 North
*True widths are estimated at approximately 70% of intersection widths

The current program at Hardrock is expected to consist of more than 50,000 metres of definition and exploration drilling. The Project is operated under a joint venture with Roxmark Mines Limited (TSX-V:RMK) (Premier earning a 70% interest). The Hardrock Project is host to several past-producing mines which collectively produced more than 2.0 Million ounces of gold from the same deposits to relatively shallow depths of approximately 2000 feet (600 metres) from 1938-1968. The mined zones remained open at depth at the time mining ceased and developed historical resources were left in place within the existing mine workings (a qualified person has not done sufficient work to verify the historical resource, the company is not treating the historical resource as a current resource and the historical resource should not be relied upon). Importantly, the Hardrock Project has the potential for defining several styles of mineralization capable of hosting resources, with grades and widths similar to many of Ontario’s major gold mines including:

  1. Open pit-style mineralization with grades exceeding 1.5 g/t Au (Timmins, Hemlo)
  2. Broad zones of mineralization with grades averaging 5.0+ g/t Au (Musselwhite)
  3. Narrow vein zones with higher gold grades often exceeding 7.0g/t (Red Lake, Pickle Lake)

Initial drilling with four drills is focusing on delineating both open pit and underground resources with the goal of defining a multi-million ounce gold resource that can be moved quickly towards development (See references to historical resources above.). The Project offers development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through the center of the property. Significant potential exists for developing resources in several areas including: 1) Open pit-style mineralization at the site of the original discovery where a resource containing several hundred thousand ounces of gold was partially drilled off by previous operators; 2) Several newer high-grade discoveries have been made throughout this large property package that have received little to no follow-up; 3) Resource blocks reported to remain within the mine workings; and, 4) The main mined zones which remain open below the 600m Level.

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. The assay results are from core samples sent to Activation 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 a well financed Canadian-based mineral exploration and development company with several projects and deposits in Northwestern Ontario and a joint venture in Mexico. In the Red Lake gold mining camp, two of these are operated in joint venture with Red Lake Gold Mines. The company also owns a strategic project located on the main Musselwhite Gold Mine trend.



For further information, please contact:
Ewan Downie, President & CEO
E-mail: info@premiergoldmines.com
Phone: 807-346-1390
Fax: 807-346-0100
Web Site: http://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.