Premier: Red Lake And PQ-North Drill Programs Underway
PREMIER GOLD MINES LIMITED (TSX:PG)
is pleased to announce that summer drill programs at the Company’s
Rahill-Bonanza and PQ-North Projects have started. These programs will
focus on confirming recent discoveries, expanding mineralization in
known gold zones, and testing new target areas on the properties.
The Rahill-Bonanza Project is located in the heart of the Red Lake Mining District and is being explored under a joint venture with operator Red Lake Gold Mines Limited (“RLGM”), an affiliate of Goldcorp Inc. The summer drill program will focus on testing prospective exploration targets, and defining potentially significant resources, located in close proximity to Goldcorp’s Bruce Channel Deposit.
This program will test several new target areas associated with the main Wilmar Gold Mine system and the West Granodiorite Deposit, in addition to the potential on-strike extension of the Bruce Channel Deposit that is located immediately north-west of the joint venture property.
Initial drilling in a “gap” area between the workings of the Wilmar Gold Mine and the West Granodiorite Deposit (“WGD”) has intersected a broad zone of mineralized and veined granodiorite similar to that at the WGD located some 300 metres to the west of the deposit. The WGD is a large, near-surface, bulk-tonnage deposit that contains some of the nearest-to-surface mineralization in the area and is host to a significant historical resource, 5,700,000 tons @ 0.10-0.15 oz/ton (3.4-5.1g/t) Au, that is open both along strike and at depth (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). This deposit could become part of the early mine planning in this area.
In addition to testing the Wilmar area, exploration will test for possible extensions to the Bruce Channel Deposit on the joint venture property. Recent work immediately north of the Rahill-Bonanza Project suggests that the Bruce Channel Deposit is hosted within a north-south (N-S) fault structure that could cross onto the joint venture property. A new, deep hole will be drilled to test both the West Granodiorite Deposit (located on the JV property) and the potential N-S fault structure on the northwestern portion of the property. Limited previous drilling in this area from the 1300 foot Level workings of the Wilmar Gold Mine intersected high-grade gold bearing zones that assayed 10.29g/t Au across 0.6m and 23.31g/t Au across 0.2m up-dip from the primary target area.
The Rahill-Bonanza Project is host to the past-producing Wilmar Gold Mine, the primary source of ore at the adjoining Cochenour Gold Mine in the final years of production, from which 203,256 tons of ore was mined at an average grade of 0.30 oz/ton Au (10.3g/t Au). The deposit remained open at depth when the mine shutdown. Drilling performed down-dip of the mine workings by the joint venture in 2007 returned numerous significant intersections including 18.1 g/t Au over 2.0 m and 14.2g/t Au over 5.0 m.
Pursuant to its press release dated May 7, 2009, Goldcorp announced several major development initiatives that are being considered on and around the Joint Venture Property. De-watering of the Cochenour (and Wilmar) mine workings has started for the potential development of the Bruce Channel Deposit. This de-watering will also provide underground access to the Wilmar and West Granodiorite Zones located on the Joint Venture Property immediately to the southeast. Additionally, Goldcorp is considering a high-speed tram system to link Bruce Channel to the Red Lake Gold Mines complex. A straight line from the RLGM complex would pass through the Joint Venture Property and would provide exploration access to several kilometres of favourable, untested, geology.
The PQ-North Project is located within Goldcorp’s Musselwhite Property holdings and is strategically located along the PQ-Limb of the key iron formation that is host to the majority of the ore zones at the Musselwhite Mine. In 2008, Musselwhite produced 210,500 ounces of gold at an average grade of 5.56g/t Au. The Property encompasses a major fold structure along strike (to the north) from and within the main rock unit (Northern Banded Iron Formation) that hosts the majority of the gold-bearing ore zones at the mine.
During the 2009 winter drill program, where only one of four main targets on the property was tested, Premier discovered “Musselwhite-style” gold mineralization in two areas. High grade mineralization was discovered in an “Upper” iron formation unit located within 100 metres of surface with intersections up to 10.24 grams per tonne gold (g/t Au) across 5.1 metres (m). Additionally, initial drilling to test the PQ-limb of the main iron formation that hosts the primary gold zones at Musselwhite returned assays of up to 10.25g/t Au across 1.8m and 20.65g/t Au across 1.0m.
Phase II drilling, with two drills, will continue to evaluate the potential of the new discoveries in addition to other priority targets on the Property. The primary targets include a 400m wide magnetic disrupted zone (interpreted as a major structural break) that is expected to intersect the main PQ-Limb at depth, located along strike from, and within the same host rock as, the Musselwhite Gold Mine. Recently, Goldcorp announced that gold grades at Musselwhite are increasing at depth as the deposit continues to be extended to the northwest along the PQ limb.
ANNUAL GENERAL MEETING
Premier Gold Mines Limited will be hosting its Annual General Meeting of shareholders on Wednesday, June 17th at 4:00pm EDT at the Toronto Board of Trade located at 1 First Canadian Place, Toronto, Ontario.
At this meeting President and CEO Ewan Downie will be giving an updated presentation profiling the company, its projects and future milestones. In addition, there will be a webcast of the event which can be listened to via a link from the Premier Gold Mines website.
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. Core from Rahill-Bonanza is sent 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 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 active drill programs at its Hardrock Project and PQ North Project that is strategically located on the main Musselwhite Gold Mine trend.
For further information, please contact:
Ewan Downie, President & CEO
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.