Premier-Red Lake Summer Drill Program Underway
PREMIER GOLD MINES LIMITED (TSX:PG)
is pleased to announce that a summer drill program at the Rahill-Bonanza
joint venture Project has commenced. The program will focus on
delineating the recently identified PG70 Gold Zone, the West
Granodiorite Deposit and will test the projected north-south fault
structures that are host to the main gold zones at the adjoining
Cochenour (Bruce Channel) Mine complex. The Rahill-Bonanza Project
(PG:49%) is strategically located in the heart of the prolific Red Lake
gold mining district between the world class Red Lake Gold Mines complex
to the east, and the Cochenour (Bruce Channel) complex to the west and
is being explored with joint venture partner Red Lake Gold Mines Limited
(“RLGM”), an affiliate of Goldcorp Inc.
The PG70 Zone is associated with a favourable ultramafic rock unit similar to, and in close proximity to the Bruce Channel Deposit that is currently being developed by RLGM (See Figure 1 below). To-date, wide spaced drilling has intersected the PG70 Zone over approximately 125 metres along strike and 400 metres at depth and it remains open in all directions. Highlights from earlier drilling include:
- 23.70 g/t Au across 2.0 m (0.69 oz/ton across 6.6 feet) in hole PG10071
- 4.31 g/t Au across 25.0 m (0.13 oz/ton across 82.0 feet) including 9.53 g/t Au across 6.0 m (0.28 oz/ton across 19.7 feet) in hole PG10072B
Click to enlarge
Ongoing drilling will focus on expanding the PG70 Zone, which remains open in all directions, and infill drilling to delineate a potential future gold resource.
West Granodiorite Zone
The West Granodiorite Zone (WGZ) is a large, near-surface, bulk-tonnage deposit that shares similarities to the Goldex Deposit, a profitable low-grade bulk mineable gold deposit with favourable cash costs that was recently brought into production by Agnico-Eagle in Northwestern Quebec. Previous work at the WGZ included test mining on the 1300 foot Level of the Cochenour-Wilmar Mine (average grade mined - 3.42 g/t Au) and the deposit remained open both along strike and at depth. The current program will consist of infill and expansion drilling.
Bruce Channel Extension
One of the primary targets on the Property is to test for possible extensions of the Cochenour (Bruce Channel) Mine deposit that is currently being developed by RLGM. Recent work immediately north of the Rahill-Bonanza Project boundary suggests that the Bruce Channel Deposit is hosted within a North-South fault structure that could cross onto the joint venture property. A new hole is being drilled that will test the northwestern portion of the Property, potentially along strike from the Bruce Channel Deposit.
In addition to the joint venture projects, Premier holds several highly prospective projects that will be subject to exploration programs in 2010. Drilling has recently discovered a new gold horizon on the East Bay Project (PG 35% and 50% - JV with RLGM) in Red Lake that is located on the East Bay ultramafic trend along strike to the north of Rubicon’s F2 Zone discovery at its Phoenix Gold Project. Five drills will be active throughout the year on the Company’s Hardrock Project (Premier holds a 70% interest) where approximately 70,000 metres of drilling is planned. In 2009, drilling at Hardrock successfully identified multiple open pit and underground style gold zones including the discovery of the High-Grade North Zone with intercepts as high as 1,141.5 g/t Au (33.3 oz/ton) across 2.0 metres (6.6 feet). Premier recently announced a NI43-101 compliant resource estimate relating to the near-surface (open pit) zones at Hardrock and expects a revised resource estimate for both the near-surface and underground zones following the completion of the current drill program.
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. Initial assays reported here are primarily from fire assay methods with an AA finish — some intercepts listed in this release will also be run with 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 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 holds a 70% interest in the Hardrock Project.
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.