Premier Signs Final Lennie Property Acquistion Agreement
PREMIER GOLD MINES LIMITED (TSX:PG)
is pleased to announce that it has entered into an Option and Purchase
Agreement to acquire a 100% interest in ten patented mining claims,
“Lennie Property”, located in the Red Lake district in the Province of
Ontario.
The Lennie Project is strategically located northeast of the Red Lake
Gold Mines complex along the same geological contact that hosts the
major gold mines in Red Lake. The Property covers the important
unconformity between the ore-hosting Balmer volcanic rocks and the
overlying sedimentary rocks. Folded ultramafic rocks and conjugate
fault structures, similar to those at the mine, are interpreted to be
located on the Lennie claims and will be the focus of an exploration
program that will begin immediately on the property, including diamond
drilling.
It is anticipated that a drill program, that will include deep drilling,
will begin in the spring to test these high-potential faults as well as
other targets, where they are interpreted to intersect Balmer-aged
ultramafic rocks in a setting similar to that which hosts Goldcorp’s
High-grade Zone. That zone is considered to be one of the largest and
highest grade gold deposits in the world.
Upon completing the Option, as previously announced on February 18,2009,
Premier will hold a 100% interest in the Property, subject to a 3.0%
Net Smelter Return royalty (“NSR”) payable to the vendor, Newcastle
Resources Ltd. (OTCBB: NCSLF). Premier retains the right to purchase
one-third of the NSR (1% NSR) at any time for the sum of $1.0 Million. A
finders’ fee is payable to an arm’s length party in relation to this
transaction.
The Lennie Project is Premier’s second strategic property, in addition
to the Rahill-Bonanza Joint Venture Project, located in the heart of the
prolific Red Lake district and within the core of Red Lake Gold Mines’
land holdings. The Rahill-Bonanza Project covers several kilometres of
the main Red Lake “Mine Trend” and is strategically located between the
world class Red Lake Gold Mines to the east, and the “Bruce Channel”
discovery to the west.
A Presentation detailing the Lennie Project is available on the Premier Gold Mines Limited website at www.premiergoldmines.com.
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.
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 projects are operated in joint venture
with Red Lake Gold Mines, and another, adjacent to the Red Lake Gold
Mines complex, is operated on a 100% basis. The company also owns a
strategic project located on the main Musselwhite Gold Mine trend and is
acquiring a 70% interest in the Hardrock Project, an advanced-stage
gold project in the Geraldton area.
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.