Premier - Sutter Drilling Expands High Grade Gold Mineralization at Santa Teresa Including 24.40 GPT (0.71 Opt) Across 2.0 Metres

November 10th, 2008
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PREMIER GOLD MINES LTD (TSX:PG) is pleased to release full assay results, including several new values, from the initial 23 holes drilled at the Santa Teresa Concession in Baja California, Mexico. These new results, with intercepts as high as 24.40 grams per tonne (g/t) or 0.71 ounces per ton (opt) gold across 2.0 metres (m), and 14.9g/t Au (0.44 opt) across 3.04m continue to demonstrate the potential of this underexplored district.

Results to date, highlighted in Table 1 below, confirm the following:
  • Drilling has discovered multiple high-grade veins up to 260 metres along strike from the historic Princessa Gold Mine, whose average production grade exceeded one ounce per ton.
  • Results include multiple intercepts in excess of 1.0 oz/ton gold and up to 13.98 oz/ton Au (479.31 g/tonne) along core widths of between one and three metres within the Princessa structure.
  • Results from hole ST005, the highest grade to date, occur some 210 metres SE of Princess, and at more than twice the depth of the deepest known mining at Princessa (possibly the entire district) and remains open at depth.
  • Gold-bearing structures remain open in all directions
The Santa Teresa Project is located adjacent to and on strike from the past-producing Princessa Mine (the district’s largest gold producer), which was mined to a maximum depth of only 110 metres, and whose orebody was known to extend close to the northern boundary of the Santa Teresa Property. Gold production at El Alamo, a 16-kilometre long district, was halted at its peak owing to technological and political circumstances early in the 20th century. Since then, only minimal exploration has taken place, presenting a unique opportunity for Premier and it’s joint venture partner Sutter Gold Mines Inc. (TSX-V:SGM).

Table 1 includes all assay results greater than 2.00 gpt gold for holes ST001 to ST023, with assay results greater than 10.0 gpt highlighted in yellow. New results are shown in the comment column to the right. Samples for a further 9 holes, primarily following up earlier intercepts, are pending. Several of these contained visible gold upon visual inspection of the core.
HOLE-ID ZONE SECTION FROM TO LENGTH GRADE (GPT) GRADE (OPT) COMMENTS
ST001 HW BORRACHA 150 SE 112.0 113.0 1.0 2.31 0.07 NEW
ST001 BORRACHA
127.4 128.6 1.2 24.60 0.72 PREVIOUSLY RELEASED
ST001 PRINCESSA
217.0 218.0 1.0 11.48 0.34 NEW
ST002 BORRACHA 150 SE 243.2 244.2 1.0 2.40 0.07 NEW
ST003 BORRACHA 150 SE 19.0 21.0 2.0 24.4 0.71 NEW
ST003

29.0 30.2 1.2 3.97 0.12 NEW
ST004
150 SE ALL ASSAYS < 2.00 GPT NEW
ST005 HW PRINCESSA 210 SE 206.7 207.7 1.0 5.92 0.17 NEW
ST005 PRINCESSA
239.0 241.0 2.0 478.87 13.98 PREVIOUSLY RELEASED
ST006 NEW 490 SE 173.8 175.3 1.5 64.42 1.88 PREVIOUSLY RELEASED
ST006

179.3 180.3 1.0 2.57 0.07 NEW
ST007 HW BORRACHA 100 SE 47.5 48.5 1.0 14.55 0.42 PREVIOUSLY RELEASED
ST007

56.5 57.5 1.0 2.19 0.06 PREVIOUSLY RELEASED
ST007 FW BORRACHA
88.8 90.0 1.2 16.46 0.48 PREVIOUSLY RELEASED
ST007 FW PRINCESSA
163.0 164.0 1.0 17.04 0.50 PREVIOUSLY RELEASED
ST008 BORRACHA 100 SE 55.0 56.0 1.0 33.87 0.99 PREVIOUSLY RELEASED
ST008 FW PRINCESSA
121.1 122.1 1.0 39.41 1.15 PREVIOUSLY RELEASED
ST008

128.5 129.5 1.0 2.95 0.09 PREVIOUSLY RELEASED
ST009
100 SE ALL ASSAYS < 2.00 GPT PREVIOUSLY RELEASED
ST010 BORRACHA 100 SE 142.1 143.0 0.9 2.46 0.07 PREVIOUSLY RELEASED
ST010 PRINCESSA
214.0 217.0 3.0 8.17 0.24 PREVIOUSLY RELEASED
ST011
50 SE ALL ASSAYS < 2.00 GPT PREVIOUSLY RELEASED
ST012 QUINOTA 50 SE 52.6 53.6 1.0 2.01 0.06 PREVIOUSLY RELEASED
ST012

141.5 142.5 1.0 3.54 0.10 PREVIOUSLY RELEASED
ST012

149.5 150.5 1.0 2.78 0.08 PREVIOUSLY RELEASED
ST012 PRINCESSA
201.5 202.5 1.0 29.11 0.85 PREVIOUSLY RELEASED
ST012 FW PRINCESSA
203.0 204.0 1.0 2.34 0.07 PREVIOUSLY RELEASED
ST012

258.5 259.5 1.0 2.61 0.08 PREVIOUSLY RELEASED
ST013 BORRACHA 50 SE 25.0 26.4 1.4 6.37 0.19 PREVIOUSLY RELEASED
ST013

42.0 43.0 1.0 2.24 0.07 PREVIOUSLY RELEASED
ST013 PRINCESSA
83.1 84.1 1.0 125.91 3.68 PREVIOUSLY RELEASED
ST013 FW PRINCESSA
110.5 113.7 3.2 6.04 0.17 PREVIOUSLY RELEASED
ST014
00 SE ALL ASSAYS < 2.00 GPT PREVIOUSLY RELEASED
ST015
490 SE ALL ASSAYS < 2.00 GPT NEW
ST016
00 SE ALL ASSAYS < 2.00 GPT NEW
ST017 QUINOTA 210 SE 161.0 162.2 1.2 3.14 0.09 NEW
ST018 PRINCESSA 260 SE 219.0 220.0 1.0 2.98 0.09 NEW
ST019
260 SE 90.0 91.3 1.3 2.31 0.07 NEW
ST020
310 SE ALL ASSAYS < 2.00 GPT NEW
ST021 PRINCESSA 190 SE 134.1 135.2 1.1 11.71 0.34 NEW
ST022 CRUDA 100 SE 59.4 62.5 3.04 14.9 0.44 NEW
ST023

ALL ASSAYS < 2.00 GPT NEW
ALL SIGNIFICANT ASSAYS GREATER THAN 2.00 GPT
INTERCEPTS GREATER THAN 10.00 GPT
PREVIOUSLY RELEASED HOLES MAY BE ADJUSTED DUE TO REPLICATE ASSAYING
* True widths estimated between 50-75% of intersection width

The Santa Teresa Project is accessible by road, and is located approximately 100 kms southeast of Ensenada and about 250 kms south of San Diego, California, USA. A total of some 7,000 metres (22,800 feet) in 32 holes were drilled on Santa Teresa in 2008 up to the end of October.

Premier is attracted to the El Alamo District because of a unique history of high mined grades, but little modern exploration. The properties being explored by Premier and Sutter are:
  • Located within a proven (some 220,000 ounces of past production) gold district.
  • Historical data indicates that mined grades within the district are between 1.00 and 2.00 ounces per ton (opt).
  • The majority of district production occurred within 120 metres of surface, but remains open at depth.
  • Geologically similar to the historic Mother Lode District of California.
“We are seeing the Princessa structure emerge as a significant mineralized horizon several hundred metres southeast of the original mine.” commented Ewan Downie, President & CEO of Premier, “Recent drilling included more tightly patterned holes in order to better understand the nature and distribution of gold within this system.”

Premier has secured the right to earn up to a 65% interest in the joint venture with SGMI at Santa Teresa. Recently, Premier announced that it had signed a Memorandum of Understanding (“MOU”) with Compania Minera Quasaro SA DE CV (“Quasaro”), a private, arms-length company, to purchase the “La Victoria Concession” located within the Santa Teresa Concession for the joint venture. Veins currently being explored in the Phase One program may extend along strike into La Victoria.

Stephen McGibbon, P.Geo., Executive Vice-President and Chief Operating Officer of Premier, 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. A stringent QAQC program utilizing blanks, standards and replicates has been developed by Mark Payne, Consulting Geologist, for the STC joint venture. All sample prep and analysis is being conducted by American Assay Laboratories Inc. of Sparks, Nevada utilizing conventional 1 assay-ton fire assay and 500-gram 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.

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.