Premier Red Lake Drilling to Test Primary Target Resumes Assay Summary for Bonanza Drilling

October 30th, 2008
View PDF

PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that deep drilling on the Rahill-Bonanza Joint Venture Property in Red Lake will resume to test the recently intersected “Mine Trend” horizon as it trends towards the Wilmar Gold Mine area and then towards the Bruce Channel discovery. Additionally, results from drilling at the Bonanza Deposit and the CP Zone continue to demonstrate the near-surface potential of this area. The Rahill-Bonanza Property is located in the heart of the Red Lake Mining District in Northwestern Ontario and is being explored under a joint venture with Red Lake Gold Mines Limited (“RLGM”), an affiliate of Goldcorp Inc.

WILMAR GOLD MINE

The focus of current drilling is to test what Premier deems to be the primary target on the property - where the known mineralized zones at the Wilmar Gold Mine intersect a recently discovered deformation corridor, interpreted to represent the “Mine Horizon” and consisting of a series of variably deformed, altered and veined rocks similar to those that host the high-grade zones currently being mined at the RLGM complex. This deformation zone was encountered over a core length of approximately 500 metres and has an estimated true width of 300-350 metres and is located approximately 3 kilometres from the western-most occurrence of this deformation corridor at the RLGM complex. The RLGM has produced more than 18 Million ounces of gold, discovered nearly 10 Million additional ounces of resources, and is widely considered to be the world’s richest gold mine. The target, where the Wilmar gold system intersects the more favourable host for extremely high-grade gold mineralization, is essentially identical to the setting at the Bruce Channel discovery. In September of 2008, Goldcorp acquired Gold Eagle Mines, the discoverer of the Bruce Channel discovery, for approximately $1.2 Billion. The Rahill-Bonanza Properties is strategically located between the former Gold Eagle Property and the RLGM complex.


The past-producing Wilmar Gold Mine is located on the Rahill-Bonanza Property and from which, over a period of four years, 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 and drilling performed down-dip of the mine workings by the joint venture in 2007 returned numerous significant intersections including 18.1g/t Au over 2.0 metres and 14.2g/t Au over 5.0 metres.

BONANZA DEPOSIT - CP ZONE

Drilling also tested the Bonanza deposit that is host to a gold resource exceeding 900,000 ounces including the CP Zone that is located along strike from the Bonanza Deposit. This drilling has returned several significant intersections highlighted by the following (core lengths):
  1. Extension drilling at the Bonanza Deposit continues to demonstrate the potential to expand mineralization at depth with intersections that include 9.7 g/t Au across 3.0 metres and 21.8g/t Au across 3.0 metres in hole PG08046, and 5.4 g/t Au across 5.0 metres in hole PG08047.
  2. In-fill drilling was completed in support of potential “advanced” underground exploration in the future. This drilling is to further define higher grade “shoots” within the deposit that would be the primary targets of an underground program. Highlights from this drilling include 7.3g/t Au across 4.0 metres and 9.8g/t Au across 6.0 metres in hole PG08044, and 11.0g/t Au across 5.0 metres plus mineralization in the final three metres of the bottom of hole PG08048 which assayed 5.8g/t Au - this hole will be extended to fully test this potentially new zone at Bonanza.
  3. Drilling to test the CP Zone, located on strike from the Bonanza Deposit, has returned intersections of 7.2g/t Au across 3.0 metres in hole PG08051, 6.8g/t Au across 4.0 metres in hole PG08052, and 5.5g/t Au across 4.0 metres in hole PG08054. Several other holes were terminated short of the target due to hole deviation.
The Rahill-Bonanza Project covers several kilometres of the main Red Lake “Mine Trend” that is host to the world class Red Lake Gold Mines to the east, and the “Bruce Channel” discovery to the west of the Joint Venture Property.

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 also owns a strategic project located on the main Musselwhite Gold Mine trend and recently signed an agreement to acquire mineral properties in the 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: 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.