Premier Provides Trans-Canada Update

Drill intercepts include 431.43 g/t Au Across 2.0 metres (12.6 ounces per ton over 6.6 feet)

July 31st, 2012
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Premier Gold Mines Limited (TSX-PG) is pleased to provide an exploration update from ongoing work being performed at the Company’s 100%-owned Trans-Canada Project in Northwestern Ontario. Surface drilling continues to delineate and expand mineralization in multiple horizons and includes numerous high-grade intercepts. Work is progressing on the completion of an updated mineral resource estimate, Preliminary Economic Assessment (PEA) and permitting for advanced exploration activities on the project.

The Trans-Canada Project is host to several past-producing mines which collectively produced more than 4 million ounces of gold from depths primarily within 600 metres of surface between 1938 and 1968. The Hardrock Deposit is host to a mineral resource estimate that was completed by Micon International Limited in 2011. An updated estimate, on four deposits in the project area, will be completed in the near future and used to support the completion of a subsequent PEA. The Trans-Canada Project 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.

Surface Drill Program

The primary target of ongoing drilling is to expand the high grade Fortune Zone horizon down-plunge. The Fortune Zone is comprised of multiple, en-echelon, narrow vein zones located in close proximity to the historic Hardrock mine workings and includes extensions of the historically mined “F-Zone” from which more than 2.0 million ounces of gold was mined. High grade gold mineralization within the Fortune Zone horizon has now been delineated over a plunge length exceeding 2.5 kilometres and remains open down-plunge. The Fortune Zone has characteristics similar to the high grade past-producing Little Long Lac (600,000 ounces gold produced at a grade of 11.70 g/t) and Leitch (847,900 ounces produced at a grade of 31.50 g/t) Gold Mines that are located on the Trans-Canada Project.

Recent highlights from ongoing drilling include:

  • 431.43 grams per tonne gold (g/t Au) across 2.0 metres (m) or 12.60 ounces per ton (oz/t) across 6.6 feet (ft) in the Fortune Zone horizon in wedge hole MM307

  • 21.13 g/t Au across 8.9 m (0.62 oz/t across 29.2 ft) in the Fortune Zone horizon in hole MM298
  • 113.00 g/t Au across 1.0m (3.30 oz/t across 3.3 ft) in the Fortune Zone horizon in hole MM2293
  • 142.00 g/t across 1.5 m (4.15 oz/t across 4.9 ft) in the P Zone horizon in hole MM297
  • 21.59 g/t Au across 2.9 m (0.63 oz/t across 9.5 ft) and 11.79 g/t Au across 8.7 m (0.34 oz/t across 28.5 ft) in the North Zone horizon in hole MM292
“Importantly, high grade gold mineralization shows to be robust, coherent and continues to be extended down-plunge in the Fortune Zone horizon” stated Brian Morris, Vice-President Exploration of Premier. “This success is expanding this highly prospective horizon beyond the limits of our upcoming revised resource estimate. Drilling has also started at several additional targets on the property”.

Table 1 provides a summary of new assay results from 26 additional step-out and infill holes (of which 9 were abandoned prior to target or holes drilled for geotechnical purposes) within several horizons.

Table 1: New Assay Results from Hardrock deposit drilling
SP Zone
Hole-ID UTM
Coordinates
(m)
Dip/Azimuth
(degrees)
From
(m)
To
(m)
Interval
(m)
Grade
(g/tonne)
Interval
(ft)
Grade
(oz/ton)
Zone
MM302 5502650N
502800E
65/360 667.0 668.9 1.9 14.49 6.2 0.42 SP
MM304 5502650N
502900E
-63/360 618.0 619.5 1.5 38.70 4.9 1.13 SP
MM305A 5502750N
502700E
-64/360 643.5 645.5 2.0 6.57 6.6 0.19 SP
MM307 5502750N
502500E
-64/360 690.8 691.8 1.0 47.00 3.3 1.37 SP
and 706.6 709.3 2.7 6.38 8.9 0.19 SP
P Zone
Hole-ID UTM
Coordinates
(m)
Dip/Azimuth
(degrees)
From
(m)
To
(m)
Interval
(m)
Grade
(g/tonne)
Interval
(ft)
Grade
(oz/ton)
Zone
MM284 5502550N
504250E
-60/360 399.3 400.5 1.2 8.14 3.9 0.24 P
MM297 5502701N
502901E
-64/360 645.3 646.8 1.5 142.00 4.9 4.15 P
MM304 5502650N
502900E
-63/360 676.0 677.0 1.0 8.37 3.3 0.24 P
Fortune Zone
Hole-ID UTM
Coordinates
(m)
Dip/Azimuth
(degrees)
From
(m)
To
(m)
Interval
(m)
Grade
(g/tonne)
Interval
(ft)
Grade
(oz/ton)
Zone
MM284 5502550N
504250E
-60/360 548.5 550.0 1.5 12.60 4.9 0.37 F
MM286 5502600N
503200E
-61/360 774.0 778.0 4.0 5.08 13.1 0.15 F
824.0 825.0 1.0 8.42 3.3 0.25 F2
MM287 5502550N
503300E
-66/360 928.9 930.0 1.1 3.22 3.6 0.09 F2
MM290 503399N
503275E
-72/360 785.0 786.0 1.0 62.70 3.3 1.83 F2
MM291 5502548N
503200E
-62/360 989.0 991.3 2.3 6.32 7.5 0.18 F1
MM293 5502760N
503000E
-69/360 690.0 691.0 1.0 113.00 3.3 3.30 F
796.5 798.0 1.5 11.40 4.9 0.33 F2
MM295 5503424N
503264E
-71/360 701.0 702.0 1.0 26.30 3.3 0.77 F2
789.3 790.3 1.0 10.10 3.3 0.29 F1
MM296 5502800N
503425E
-62/360 819.3 820.3 1.0 21.8 3.3 0.64 F2
MM297 5502900N
502700E
-64/360 801.0 802.5 1.5 4.86 4.9 0.14 F2
MM298 5502490N 503651E -58/360 711.0 735.0 24.0 3.48 78.7 0.10 F
767.1 776.0 8.9 21.13 29.2 0.62 F2
810.5 812.0 1.5 16.30 4.9 0.48 F1
MM302 5502650N 502800E -65/360 942.0 943.0 1.0 14.00 3.3 0.41 F1
MM303A 5503425N
503150E
-73/180 631.0 632.0 1.0 3.70 3.3 0.11 F2
676.5 678.5 2.0 8.22 6.6 0.24 F
and 838.0 839.0 1.0 3.63 3.3 0.11 F2
MM305A 5502750N
502700E
-64/360 712.0 715.7 3.7 6.61 12.1 0.19 F
727.7 743.5 15.8 8.12 51.8 0.24 F
783.0 784.0 1.0 4.74 3.3 0.14 F2
MM307 5502750N
502500E
-64/360 758.8 760.8 2.0 431.43 6.6 12.60 F
K Zone
Hole-ID UTM
Coordinates
(m)
Dip/Azimuth
(degrees)
From
(m)
To
(m)
Interval
(m)
Grade
(g/tonne)
Interval
(ft)
Grade
(oz/ton)
Zone
MM286 5502600N 503200E -61/360 883.0 884.0 1.0 3.48 3.3 0.10 K
MM291 5502548N 503200E -62/360 861.1 862.0 0.9 14.5 2.9 0.42 K
and 978.2 980.1 1.9 5.8 6.2 0.17 K
North Zone
Hole-ID UTM
Coordinates
(m)
Dip/Azimuth
(degrees)
From
(m)
To
(m)
Interval
(m)
Grade
(g/tonne)
Interval
(ft)
Grade
(oz/ton)
Zone
MM285 5503400N
503275E
-79/180 744.0 745.0 1.0 18.00 3.3 0.53 North A

and
869.0 871.0 2.0 3.27 6.6 0.10 North C
MM292 5502510N
503500E
-63/360 950.0 952.9 2.9 21.59 9.5 0.63 North D
including
951.9 952.9 1.0 62.59 3.3 1.83 North D
and 969.3 978.0 8.7 11.79 28.5 0.34 North C
including 976.7 978.0 1.3 31.70 4.3 0.93 North C
and 997.3 1005.5 8.2 4.57 26.9 0.13 North B
including 1001.9 1002.9 1.0 27.30 3.3 0.80 North B
and 1011.5 1013.5 2.0 6.64 6.6 0.19 North A
* - Drill intercepts shown in core interval, true widths are estimated between 50-70%

Resource Update

The updated mineral resource estimate will evaluate multiple deposits that comprise Trans-Canada Project including the Hardrock, Brookbank, Key Lake and Kailey Deposits. All deposits are being assessed for both underground and open pit potential. Much of the work has been completed for Brookbank, Key Lake and Kailey, and a final model for the more complex Hardrock deposit is nearing completion. The PEA will consider a range of development options for the deposits that comprise the project to ensure optimal economic returns.

Permitting

Premier is also carrying out the permitting process. The Ontario Ministry of Northern Development and Mines (MNDM) has accepted the Company’s Advanced Exploration Closure Plan as filed for the Hardrock deposit which allows Premier to begin preparing certain areas of the site for planned Advanced Exploration activities.

The Advanced Exploration Closure Plan reflects Premier’s commitment to carry out the Advanced Exploration activities in a manner that safeguards environmental sustainability, respects and considers the various communities in the area, during and after the life of the operation. While the acceptance of the Advanced Exploration Closure Plan allows for certain activities to commence, Premier cannot begin the dewatering until two (2) additional approvals from the Ontario Ministry of Environment (MOE) are received. Currently, these permit applications are under review by the MOE; the Permit to Take Water, and the Environmental Compliance Approval. Premier anticipates that all remaining permit approvals will be received in 2012.

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, or to Accurassay 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 one of North America’s leading exploration 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’s portfolio includes significant assets in world class gold mining districts such as Red Lake, Musselwhite and Geraldton in Ontario and the Carlin Trend in Nevada.

For further information, please contact:

Ewan Downie, President & CEO
Phone: 807-346-1390
Fax: 807-346-1381
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.