Premier Provides Hardrock Exploration Update

Open Pit drilling includes 5.27 g/t Au across 22.5 metres

July 30th, 2013
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PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to provide an update for the Company’s 100%- owned Hardrock Project, which forms part of the Company’s Trans-Canada Property located in Northwestern Ontario. The program consists of confirmation and expansion drilling in the vicinity of known mineralized horizons, condemnation drilling in the vicinity of the prospective pit at Hardrock, and testing previously undrilled areas in the immediate vicinity of the primary deposit.

The 2013 drill program is expected to contain some 120,000 metres of drilling with eight drill rigs. To date, this program has achieved numerous successes including the discovery of a parallel gold-bearing horizon within the conceptual open pit shell, confirmed the potential to extend several gold zones, and returned high-grade results within several horizons. New highlight intercepts include:

  • High grade intercepts within narrow vein zones drilled to upgrade resources in the deeper portion of the conceptual pit shell include 62.54 grams per tonne gold (g/t Au) across 3.0 metres (m) in hole MM420 within the Fortune Zone and 95.32 g/t Au across 2.0 m within the NLC-Zone in hole HR180.

  • Additional results from a new zone(s) discovered (North Wall Zone) to the north of the primary resource area in the condemnation program include 3.70 g/t Au across 22.0 m in hole HR161; and 2.30 g/t Au across 21.0 m and 2.13 g/t across 15.0 m in hole HR180.

  • The potential to expand several horizons has been confirmed in step out holes including the SP Zone within the conceptual open pit resource area (See figure 1 below) - intercepts include 5.27 g/t Au across 22.5 m in hole MM429 and 1.96 g/t Au across 42.8 m in hole MM380.
Work is underway to update the gold resource at Hardrock in advance of completing a Preliminary Economic Assessment (PEA) that is expected to be completed in H2-2013. A separate PEA for the Brookbank deposit is also being conducted. The Hardrock PEA is assessing potential open pit, underground, and combined scenarios.

“Drilling continues to expand on several horizons at Hardrock and is confirming strong continuity of mineralization within a potentially larger pit shell” stated Stephen McGibbon, Executive Vice-President of Premier. “This year’s substantial drill program will aid in firming up resources for future feasibility studies”.

Open Pit Drilling

The open pit drilling is designed to upgrade resources in addition to testing for extensions of the known mineralized zones. This drilling has resulted in the extension to several horizons, most notably the SP and F Zone lenses.

Recent drilling in hole MM429 within the SP Zone suggests the potential to add near-surface resources with the deepest hole drilled on the section having returned 5.27g/t Au across 22.50 m (See figure 1 below). Additional drilling will test for further extensions.

Table 1 provides a summary of highlight results from the open pit drilling and Appendix 1 provides a full table of results. Results for holes MM358-MM429 (61 holes) are included with 23 having assays pending and 2 holes having no significant values (less than 0.5 g/t Au).

Table 1: New Assay Results from the Hardrock pit area
Hole-ID UTM Coordinates (m) Dip/Azimuth (degrees) From (m) To (m) Interval (m) Grade (g/tonne) Interval (ft) Grade (oz/ton) Zone
MM358 5502732N
503974E
-54/360 572.0 579.0 7.0 3.40 23.0 0.10 North Limb
MM359 5502850N
504430E
-63/360 301.0 314.2 13.2 1.45 43.3 0.04 South Limb
327.0 328.0 1.0 39.20 3.3 1.14 North Limb
368.0 396.1 28.1 1.16 92.2 0.03 North Limb
MM360 5502731N
503725E
-52/360 560.7 565.7 5.0 8.43 16.4 0.25 North Limb B
MM362 5502736N
503824E
-59/360 392.5 418.0 25.5 1.74 83.6 0.05 F
MM366 5502775N
503875E
-56/360 408.0 459.0 51.0 2.38 167.3 0.08 SLC
583.5 587.0 3.5 10.99 11.5 0.35 NN
MM368 5502780N
505150E
-47/360 15.5 26.0 10.5 2.68 34.4 0.09 SP
230.0 231.0 1.0 98.30 3.3 3.16 Fortune
MM370 5502630N
504100E
-67/360 16.5 18.0 1.5 36.70 4.9 1.18 X
MM371 5502690N 504574E -63/360 218.0 223.8 5.8 4.37 19.0 0.13 P
410.0 434.0 24.0 1.28 78.7 0.04 Fortune
444.5 475.0 30.5 1.51 100.0 0.04 South Limb B
486.0 488.0 2.0 6.75 6.6 0.20 South Limb C
MM373 5502660N
503775E
-62/360 412.5 414.0 1.5 30.80 4.9 0.99 F
452.5 456.0 3.5 14.52 11.5 0.47 F
538.0 542.0 6.0 4.38 19.7 0.14 SLC
MM375 5502788N
505024E
-63/360 55.0 57.0 2.0 10.62 6.6 0.31 P
MM376 5502880N
505025E
-45/360 45.0 67.0 22.0 1.62 72.2 0.05 F
MM378 5502887N
504900E
-56/360 52.0 78.0 26.0 3.38 85.3 0.10 F
MM380 5502677N
505001E
-43/360 77.5 120.3 42.8 1.96 140.4 0.06 SP
141.7 156.0 14.3 3.15 46.9 0.10 X
MM384 5502835N
504876E
-45/180 10.0 72.0 62.0 1.02 203.4 0.03 F
MM385 5503160N
504801E
-57/360 16.0 38.0 22.0 2.02 72.2 0.06 NLC
MM388 5502778N
504844E
-46/360 16.7 40.0 23.3 1.63 76.4 0.05 SP
MM393 5502725N
505099E
-44/360 37.0 89.0 52.0 0.94 170.6 0.03 SP
MM396 5502855N
504934E
-51/360 84.0 109.0 25.0 1.14 82.0 0.03 F
MM398 5502926N
504926E
-43/360 16.0 37.0 21.0 1.20 68.9 0.03 F
184.0 188.0 4.0 4.79 13.1 0.14 South Limb C
MM411 5503115N
505074E
-45/360 17.5 24.0 6.5 5.20 21.3 0.15 North Limb C
MM417 5502875N
505001E
-44/360 55.2 70.9 15.7 2.96 51.5 0.09 F
MM420 5502678N
504475/E
-58/360 450.0 453.0 3.0 62.54 9.8 1.83 Fortune
473.0 482.0 9.0 3.92 29.5 0.11 South Limb C
523.0 524.0 1.0 11.60 3.3 0.37 Fortune
MM429 5502717N
504775E
-56/360 91.0 113.5 22.5 5.27 73.8 0.17 SP
* True widths estimated at 60-70% of intercept * Assays as presented are un-cut NSV - No Significant results X - No zone assigned

Figure 1: Section 4775E - Open Pit Drilling

Click to Enlarge


Condemnation Drilling

Several drills are actively testing an area to the north of the primary zones that had previously received little to no drilling. This drilling has resulted in the recent discovery of the North Wall and several holes have been extended to intersect mineralization in the vicinity of the known resource - confirming appreciable grades within several horizons. Initial results from the North Wall Zone (see press release dated May 21, 2013) include intercepts of 132.32 g/t Au across 3.9 m (3.86 oz/t gold across 12.8 feet) in hole HR155; and 13.96 g/t Au across 6.0 m and 1.52 g/t across 17.0 m in hole HR157. New results in the North Wall Zone include 3.70 g/t Au across 22.0 m and 2.30 g/t Au across 21.0 m. These new horizons remain open for expansion and ongoing drilling is testing the potential of this new area.

Table 2 provides a summary of highlight new drill results from the condemnation program.

Table 2: New Assay Results from the Hardrock pit area
Hole-ID UTM Coordinates (m) Dip/Azimuth (degrees) From (m) To (m) Interval (m) Grade (g/tonne) Interval (ft) Grade (oz/ton) Zone
HR161 5503389N
504198E
-55/180 459.2 481.2 22.0 3.70 72.2 0.11 North Wall Zone
HR162 5503369N
504749E
-46/180 103.0 104.5 1.5 99.30 4.9 2.90 HGN Zone
HR164 5503449N
504474E
-63/180 303.5 304.5 1.0 71.90 3.3 2.10 HGN Zone
559.0 581.0 22.0 3.18 72.2 0.09 North Limb C
HR165 5503389N
504198E
-63/180 288.5 309.5 21.0 1.55 68.9 0.05 North Wall Zone
HR167 5503389N
504198E
-70/180 560.0 561.5 1.5 46.20 4.9 1.35 HGN Zone
HR172 5503485N
504278E
-50/180 359.5 371.0 11.5 2.89 37.7 0.08 North Wall Zone
HR176 5503579N
504300E
-49/180 532.0 549.0 17.0 0.81 55.8 0.02 North Limb
HR178 5503385N
504330E
-45/180 190.5 207.5 17.0 1.41 55.8 0.05 North Wall Zone
328.1 332.1 4.0 1.51 13.1 0.05 X
374.0 381.0 7.0 3.80 23.0 0.12 NN
433.2 447.0 13.8 0.45 45.3 0.01 SLC
574.2 581.1 6.9 2.07 22.6 0.07 F
HR180 5503385N
504330E
-60/180 175.0 196.0 21.0 2.30 68.9 0.07 North Wall Zone
216.0 231.0 15.0 2.13 49.2 0.07 North Wall Zone
302.5 308.0 6.5 1.21 21.3 0.04 X
327.5 343.5 16.0 0.30 52.5 0.01 X
427.5 476.0 48.5 1.26 159.1 0.04 North Limb
478.0 480.0 2.0 95.32 6.6 3.06 NLC
* True widths estimated at 60-70% of intercept * Assays as presented are un-cut

Hardrock is one of four gold deposits that make up the Trans-Canada Property. The four deposits have both open pit and underground potential and comprise a multi-million ounce gold resource (technical report filed February 1, 2013). The Hardrock Deposit is the largest of the four deposits and is the focus of the current drill program. The Trans-Canada Property benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through, or in close proximity to, the Project sites. Significant services and a skilled labour pool exist with several communities located in close proximity.

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 one of North America’s leading exploration and development companies with a high-quality pipeline of gold projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States. The Company is fully financed with a portfolio of advanced-stage assets in world class gold mining districts such as Red Lake and Geraldton in Ontario and the most prolific gold trends 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.

Appendix 1 - full table of significant assays

Hole-ID UTM Coordinates (m) Dip/Azimuth (degrees) From (m) To (m) Interval (m) Grade (g/tonne) Interval (ft) Grade (oz/ton) Zone
MM358 5502732N 503974E -54/360 572.0 579.0 7.0 3.40 23.0 0.10 North Limb
MM359 5502850N 504430E -63/360 301.0 314.2 13.2 1.45 43.3 0.04 South Limb
327.0 328.0 1.0 39.20 3.3 1.14 North Limb
368.0 396.1 28.1 1.16 92.2 0.03 North Limb
MM360 5502731N 503725E -52/360 560.7 565.7 5.0 8.43 16.4 0.25 North Limb B
MM361 5502895N 504976E -61/360 10.0 11.1 1.1 11.40 3.6 0.33 P
47.5 62.0 14.5 1.45 47.6 0.04 F
150.0 159.0 9.0 1.66 29.5 0.05 Fortune
MM362 5502736N 503824E -59/360 392.5 418.0 25.5 1.74 83.6 0.05 F
481.0 493.1 12.1 0.98 39.7 0.03 Fortune
MM366 5502775N 503875E -56/360 311.0 317.0 6.0 0.97 19.7 0.03 X
355.5 361.0 5.5 1.26 18.0 0.04 F
408.0 459.0 51.0 2.38 167.3 0.08 SLC
583.5 587.0 3.5 10.99 11.5 0.35 NN
MM367 5502780N 505150E -47/360 28.5 32.2 3.7 0.77 12.1 0.02 SP
MM368 5502780N 505150E -47/360 15.5 26.0 10.5 2.68 34.4 0.09 SP
47.0 55.5 8.5 0.70 27.9 0.02 X
230.0 231.0 1.0 98.30 3.3 3.16 Fortune
MM369 5502734N 503925E -61/360 337.0 341.0 4.0 1.52 13.1 0.04 F
MM370 5502630N 504100E -67/360 16.5 18.0 1.5 36.70 4.9 1.18 X
MM371 5502690N 504574E -63/360 218.0 223.8 5.8 4.37 19.0 0.13 P
254.6 265.0 10.4 1.49 34.1 0.04 F
410.0 434.0 24.0 1.28 78.7 0.04 Fortune
444.5 475.0 30.5 1.51 100.0 0.04 South Limb B
486.0 488.0 2.0 6.75 6.6 0.20 South Limb C
MM372 5502645N 504345E -52/360 Assays Pending
MM373 5502660N 503775E -62/360 293.3 322.0 27.2 0.50 89.2 0.02 SP
355.0 365.5 10.5 0.61 34.4 0.02 P
412.5 414.0 1.5 30.80 4.9 0.99 F
452.5 456.0 3.5 14.52 11.5 0.47 F
538.0 542.0 6.0 4.38 19.7 0.14 SLC
MM374 5502722N 505025E -45/360 41.0 72.0 31.0 0.53 101.7 0.02 SP
MM375 5502788N 505024E -63/360 55.0 57.0 2.0 10.62 6.6 0.31 P
MM376 5502880N 505025E -45/360 45.0 67.0 22.0 1.62 72.2 0.05 F
MM377 5502716N 504850E -54/360 64.5 126.0 61.5 0.59 201.7 0.02 SP
MM378 5502887N 504900E -56/360 52.0 78.0 26.0 3.38 85.3 0.10 F
MM379 5502967N 504806E -51/360 83.9 91.2 7.3 0.70 23.9 0.02 Fortune
MM380 5502677N 505001E -43/360 77.5 120.3 42.8 1.96 140.4 0.06 SP
141.7 156.0 14.3 3.15 46.9 0.10 X
MM381 5502780N 502525E -49/360 Assays Pending
MM382 5502586N 504000E -49/360 377.0 382.8 5.8 4.20 19.0 0.14 SP
MM383 5502944N 504899E -53/360 14.0 20.0 6.0 0.88 19.7 0.03 SP
76.0 87.0 11.0 0.73 36.1 0.02 F
MM384 5502835N 504876E -45/180 10.0 72.0 62.0 1.02 203.4 0.03 F
85.0 109.0 24.0 0.76 78.7 0.02 SP
MM385 5503160N 504801E -57/360 16.0 38.0 22.0 2.02 72.2 0.06 NLC
MM386 5503195N 504801E -44/360 Assays Pending
MM387 5502744N 504876E -46/360 28.0 36.0 8.0 0.46 26.2 0.01 SP
41.0 76.0 35.0 0.67 114.8 0.02 P
92.0 100.0 8.0 1.02 26.2 0.03 F
179.9 181.0 1.1 9.38 3.6 0.27 Fortune
MM388 5502778N 504844E -46/360 16.7 40.0 23.3 1.63 76.4 0.05 SP
MM389 5502928N 504975E -50/360 8.3 31.0 22.7 0.92 74.5 0.03 F
MM390 5502876N 505100E -46/360 Assays Pending
MM391 5502678N 504651E -54/360 Assays Pending
MM392 5502822N 504981E -51/180 70.0 85.0 15.0 1.32 49.2 0.04 P
118.0 162.0 44.0 0.69 144.3 0.02 SP
MM393 5502725N 505099E -44/360 37.0 89.0 52.0 0.94 170.6 0.03 SP
MM394 5502717N 504901E -46/360 Assays Pending
MM395 5502687N 505090E -45/360 81.0 109.0 28.0 0.69 91.8 0.02 SP
137.0 139.0 2.0 7.88 6.6 0.23 F
MM396 5502855N 504934E -51/360 84.0 109.0 25.0 1.14 82.0 0.03 F
MM397 5502655N 505090E -44/360 102.0 115.0 13.0 0.75 42.6 0.02 SP
MM398 5502926N 504926E -43/360 16.0 37.0 21.0 1.20 68.9 0.03 F
184.0 188.0 4.0 4.79 13.1 0.14 South Limb C
MM399 5502936N 505050E -54/360 NSV
MM400 5502730N 505075E -42/360 Assays Pending
MM401 5502760N 505075E -42/360 Assays Pending
MM402 5502885N 505050E -65/360 NSV
MM403 5502788N 505083E -42/360 36.0 43.0 7.0 2.34 23.0 0.07 P
MM404 5502820N 505050E -45/360 27.0 35.0 8.0 1.07 26.2 0.03 SP
63.0 65.0 2.0 2.20 6.6 0.06 P
110.0 116.0 6.0 0.73 19.7 0.02 F
153.0 159.5 6.5 1.45 21.3 0.04 Fortune
MM405 5502899N 505074E -46/360 Assays Pending
MM406 5502768N 505051E -53/180 Assays Pending
MM407 5502799N 502625E -51/360 Assays Pending
MM408 5502668N 504800E -62/360 Assays Pending
MM409 5502739N 505047E -44/360 25.0 48.0 23.0 0.55 75.4 0.02 SP
MM410 5502920N 505074E -45/360 15.0 21.0 6.0 1.72 19.7 0.05 F
MM411 5503115N 505074E -45/360 17.5 24.0 6.5 5.20 21.3 0.15 North Limb C
MM412 5503355N 503765E -45/180 Assays Pending
MM413 5502931N 504999E -43/360 Assays Pending
MM414 5502716N 504949E -46/360 56.0 102.0 46.0 0.47 150.9 0.01 SP
MM415 5503320N 503700E -45/180 Assays Pending
MM416 5502858N 504799E -59/360 Assays Pending
MM417 5502875N 505001E -44/360 55.2 70.9 15.7 2.96 51.5 0.09 F
MM418 5502840N 505000E -47/180 66.0 133.0 67.0 0.54 219.8 0.02 SP
MM419 5502750N 502725E -48/360 Assays Pending
MM420 5502678N 504475E -58/360 174.0 227.0 53.0 0.52 173.8 0.02 SP
372.0 381.0 9.0 0.78 29.5 0.02 F
450.0 453.0 3.0 62.54 9.8 1.83 Fortune
473.0 482.0 9.0 3.92 29.5 0.11 South Limb C
523.0 524.0 1.0 11.60 3.3 0.37 Fortune
628.0 629.0 1.0 10.30 3.3 0.33 X
MM421 5502650N 504950E -47/360 Assays Pending
MM422 5502748N 504999E -49/360 22.0 74.0 52.0 0.48 170.6 0.01 SP
161.0 180.0 19.0 0.77 62.3 0.02 F
219.0 221.0 2.0 1.41 6.6 0.04 Fortune
MM423 5502680N 504900E -51/360 Assays Pending
MM424 5502665N 504550E -55/360 Assays Pending
MM425 5503380N 503765E -60/180 Assays Pending
MM426 5502718N 504850E -57/360 Assays Pending
MM427 5503113N 505112E -45/360 31.0 44.0 13.0 0.65 42.6 0.02 North Limb
MM428 5502830N 502925E -52/360 Assays Pending
MM429 5502717N 504775E -56/360 91.0 113.5 22.5 5.27 73.8 0.17 SP
174.0 182.0 8.0 1.20 26.2 0.04 P