Premier Provides Additional Hardrock Drill Results That Include 26.30g/t Au Across 4.0m (0.77 oz/ton Across 13.1 Feet)

January 14th, 2010
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PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce drill results for the final holes drilled in 2009 testing the NN (open pit) Zone. This drilling continues to expand the NN Zone westward such that, combined with the EP Zone, mineralization in this open pit target area has been intersected over a strike length of 1,400 metres where it remains open. These results constitute the final holes that will be included in an upcoming NI43-101 mineral resource estimate for the Hardrock Project.

These holes continue to reveal multiple gold zones having broad intersections and high gold grades. Of particular note is hole MM090, the western-most (and near surface) hole in the NN Zone to-date which returned two intersections including 9.08 grams per tonne gold (g/t Au) across 12.8 metres (m) (0.27 oz/ton across 42.0 feet) and 16.72 g/t Au across 4.2m (0.49 oz/ton across 13.8 feet). The NN Zone horizon remains open for expansion to the west of MM090. Additionally, a portion of the EP Zone remains open to the northwest, and favourable structures along strike to the east of, and within the same horizon as, the EP Zone remain untested.

The Hardrock Project is operated under a joint venture with Goldstone Resources Inc. (TSX:GRC) (Premier holds a 70% interest). In 2009, more than 90,000 metres of drilling was completed at Hardrock, successfully identifying multiple open pit and underground style gold zones, with a resource estimate relating to the near-surface (open pit) zones expected in mid-February. Highlights from final 2009 drilling in the NN Zone include:

  • 26.30 g/t Au across 4.0m (0.77 oz/ton across 13.1 feet) in MM088

  • 9.08 g/t Au across 12.8m (0.27 oz/ton across 42.0 feet) including 27.59 g/t Au across 3.5m (0.81 oz/ton across 11.5 feet) in MM090

  • 16.72 g/t Au across 4.2m (0.49 oz/ton across 13.8 feet) in MM090

  • 13.55 g/t Au across 3.0m (0.40 oz/ton across 9.8 feet) in MM080

  • 11.44 g/t Au across 4.5m (0.33 oz/ton across 14.8 feet) in MM081
The Hardrock Project is host to several past-producing mines which collectively produced more than 3.0 Million ounces of gold, primarily from depths within 600 metres (2000 feet) of surface. The productive zones remained wide open at depth and existing historic resources were left in place within the workings at the time mine production ceased.

Drilling is focused on delineating both open pit and underground zones with the goal of identifying a multi-million ounce gold resource that can be advanced quickly toward development. The Project offers development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through the centre of the property. Significant potential for developing resources in several areas has been identified including: 1) Open pit-style mineralization proximal to the main zones previously mined by underground methods; 2) Discoveries including bonanza-style gold zones; 3) Down-plunge of historically mined zones including the SP and North Zones; and, 4) Mineralization along strike from historically mined zones in the NN and North Zone areas.

New results from drilling in the NN Zone, which will be part of the upcoming open pit resource relating to near-surface (open pit) gold zones at Hardrock, are presented in Table 1

Table 1 NN Zone Diamond Drilling Results

Hole-ID UTM Coordinates
(m)
Dip/Azimuth
(degrees)
From
(m)
To
(m)
Interval
(m)
Grade
(g/tonne)
Interval
(ft)
Grade
(oz/ton)
Zone
MM080 5502869 N
504024 E
-52/360 180.0 181.4 1.4 2.67 4.6 0.08 Upper NN
205.0 208.0 3.0 5.23 9.8 0.15 X
221.5 224.5 3.0 13.55 9.8 0.40 NN
MM081 5502869 N
503980 E
-50/360 196.2 200.7 4.5 11.44 14.8 0.33 Upper NN
196.2 200.7 4.5 5.82 14.8 0.17 NN
MM082 5502930 N
503950 E
-45/360 121.5 132.6 11.1 1.20 36.4 0.04 NN
205.5 210.0 4.5 3.48 14.8 0.10 X
including 205.5 206.6 1.1 10.20 3.6 0.30 X
MM084 5502872 N
503949 E
-50/360 166.5 172.8 6.3 1.66 20.7 0.05 Upper NN
201.5 204.7 3.2 2.93 10.5 0.09 Upper NN
222.0 225.0 3.0 5.67 9.8 0.17 NN
MM086 5502941 N
503900 E
-50/360 141.0 145.5 4.5 1.92 14.8 0.06 Upper NN
202.0 203.5 1.5 2.56 4.9 0.07 Upper NN
210.7 218.3 7.6 2.75 24.9 0.08 NN
MM088 5502870 N
503900 E
-50/360 210.7 213.0 2.3 2.77 7.5 0.08 Upper NN
229.5 233.5 4.0 26.30 13.1 0.77 NN
MM089 5502910 N
503850 E
-50/360 181.1 184.3 3.2 1.37 10.5 0.04 Upper NN
215.0 220.7 5.7 3.09 18.7 0.09 NN
MM090 5502970 N
504024 E
-45/360 23.8 28.0 4.2 16.72 13.8 0.49 NN
35.5 37.0 1.5 4.29 4.9 0.13 X
102.2 105.0 2.8 4.79 9.2 0.14 X
120.4 133.2 12.8 9.08 42.0 0.27 NN2
including 123.5 127.0 3.5 27.59 11.5 0.81 NN2

147.7 149.7 2.0 5.36 6.6 0.16 X
MM091 5502980 N
504100 E
-45/360 54.2 56.4 2.2 3.46 7.2 0.10 NN
- True widths estimated at 70% of intersection widths

In addition to Hardrock, Premier has several active projects in Red Lake and one along strike from Goldcorp’s Musselwhite Mine. The Company recently announced its plans to drill some 100,000 metres on five properties in 2010. In Red Lake, Premier will have active exploration programs on the Rahill-Bonanza and East Bay Joint Venture Projects (joint ventures with Red Lake Gold Mines Limited (“RLGM”), an affiliate of Goldcorp Inc., in addition to the 100%-held Lennie Project. Underground development within, or in close proximity to, the Rahill-Bonanza joint venture project is planned in 2010.

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 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 and recently signed an agreement to acquire mineral properties in Geraldton area from Barrick Gold.

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.