Premier - Trans-Canada Drilling Expands High Grade Fortune Zone Horizon Including 64.14 g/t Au Across 4.5 metres

April 30th, 2012
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Premier Gold Mines Limited (TSX-PG) is pleased to provide an exploration update from ongoing drilling at the Company’s 100% owned Trans-Canada Project in Northwestern Ontario. Drilling continues to delineate and expand mineralization in several high-grade horizons including numerous high-grade intercepts within the primary target, the Fortune Zone. Due to the continued success in this highly prospective horizon, the completion of an updated (NI) 43-101 compliant mineral resource estimate has been delayed such that the majority of intercepts contained in this release will be included. The resource update is expected to be completed during the current quarter.

The updated resource will include the multiple deposits that comprise Trans-Canada Project including the Hardrock, Brookbank, Key Lake and Kailey Deposits. All deposits are being assessed for both underground and open pit potential.

The Fortune Zone horizon is comprised of multiple, en-echelon, narrow vein zones located in close proximity to the historic Hardrock mine workings. The horizon has now been delineated over a substantial plunge length and remains open down-plunge. The Fortune Zone has characteristics similar to the high-grade past producing Little Long Lac (600,000 ounces gold produced at a grade of 11.7 g/t) and Leitch (847,900 ounces produced at a grade of 31.5 g/t) Gold Mines that are located on the Trans-Canada Project.

Recent highlights from ongoing drilling include:

  • 14.30 grams per tonne gold (g/t Au) across 4.0 metres (m) or 0.42 ounces per ton (oz/t) across 13.1 feet (ft) in the Fortune Zone horizon in wedge hole MM172A
  • 21.26 g/t Au across 5.1 m (0.62 oz/t across 16.7 ft) in the Fortune Zone horizon, and 18.20 g/t Au across 9.7 m (0.53 oz/t across 31.8 ft) and 10.77 g/t Au across 8.3 m (0.31 oz/t across 27.2) within the North Zone horizon in wedge hole MM191B
  • 62.80 g/t Au across 3.0m (1.83 oz/t across 9.8 ft) in the Fortune Zone horizon in hole MM254
  • 13.66 g/t across 7.0 m (0.40 oz/t across 23 ft) and 64.14 g/t Au across 4.5 m (1.87 oz/t across 14.8 ft) in the Fortune Zone horizon in hole MM268
  • 116.00 g/t Au across 1.0 m (3.39 oz/t across 3.3 ft) in the Fortune Zone horizon in hole MM270
  • 16.31 g/t Au across 2.2 m (0.48 oz/t across 7.2 ft) in the Fortune Zone horizon in hole MM274
  • 12.95 g/t Au across 2.7 m (0.38 oz/t across 8.9 ft) in the K-Zone and 12.84 g/t Au across 3.6 m (0.38 oz/t across 11.8 ft) in the Fortune Zone in hole MM276
“Drilling continues to demonstrate the high-grade nature of recent vein zones being targeted at Hardrock” stated Brian Morris, Vice-President Exploration of Premier. “Owing to the ongoing success in delineating the recently identified Fortune Zone, the revised resource estimate is delayed to maximize resources in this horizon as well as to potentially optimize the economics in a PEA. Going forward, we will continue to define the Fortune Zone but also begin exploration on several other prospective high-grade targets”

Table 1 provides a summary of new assay results from step-out and infill drilling within several targeted high-grade horizons.

Table 1: New Assay Results from the Fortune Zone
Hole-ID UTM Coordinates (m) Dip/Azimuth (degrees) From (m) To (m) Interval (m) Grade (g/tonne) Interval (ft) Grade (oz/ton) Zone
MM172A 5502657N
503600E
-67/360 663.0 668.0 5.0 4.14 16.4 0.12 F
732.0 735.0 3.0 13.70 9.8 0.40 F2
741.0 745.0 4.0 14.30 13.1 0.42 F3
781.5 783.0 1.5 41.90 4.9 1.22 F1
868.5 873.3 4.8 7.07 15.7 0.21 NLC
937.5 940.5 3.0 7.41 9.8 0.22 HGN1
MM191B 5502649N
503699E
-66/360 628.5 635.0 6.5 3.13 21.3 0.09 F
665.9 671.0 5.1 21.26 16.7 0.62 F2
including 669.0 670.0 1.0 82.10 3.3 2.40

813.3 831.5 9.7 18.20 31.8 0.53 NLC
840.6 848.9 8.3 10.77 27.2 0.31 NLB
including 844.5 845.5 1.0 34.60 3.3 1.01
MM253 5502694N
504550E
-58/360 428.0 429.0 1.0 4.89 3.3 0.14 F2
MM254 5502823N
504700E
-61/360 197.5 199.0 1.5 26.80 4.9 0.78 F
246.0 249.0 3.0 6.23 9.8 0.18 F2
273.5 276.5 3.0 62.80 9.8 1.83 F1
MM255 5502876N
504900E
-60/360 83.5 89.0 5.5 2.49 18.0 0.07 F
166.0 167.5 1.5 2.70 4.9 0.08 F2
MM256 5502595N
504300E
-56/360 525.5 526.5 1.0 48.60 3.3 1.42 F2
MM257 5502748N
50449E
-56/360 324.0 325.5 1.5 3.61 4.9 0.11 F2
MM258 5502550N
504200E
-57/360 407.0 408.0 1.0 4.02 3.3 0.12 P
MM259 5502828N
504895E
-60/360 NSV
MM260 5502850N
504650E
-65/360 102.5 111.0 8.5 6.52 27.9 0.19 F
MM261 5502825N
504750E
-55/360 383.5 385.0 1.5 7.99 4.9 0.23 F1
MM262 5502676N
504350E
-59/360 Hole abandoned due to deviation
MM263 5502850N
505025E
-58/360 99.0 100.0 1.0 15.00 3.3 0.44 F
177.2 178.6 1.4 8.76 4.6 0.26 F2
MM264 5502675N
504350E
-61/360 218.5 219.0 0.5 49.90 1.6 1.46 SP
MM265 5502525N
504175E
-59/360 651.0 653.0 2.0 5.29 6.6 0.15 K
MM266 5502760N
504630E
-63/360 Hole abandoned due to workings
MM267 5502800N
504800E
-60/360 14.0 24.0 10.0 3.79 32.8 0.11 SP
305.0 306.5 1.5 5.41 4.9 0.16 F2
MM268 5502823N
504850E
-62/360 156.0 158.0 2.0 14.26 6.6 0.42 P
167.0 174.0 7.0 13.66 23.0 0.40 F
including 168.0 169.0 1.0 70.80 3.3 2.07

244.0 248.5 4.5 64.14 14.8 1.87 F2
including 247.5 248.5 1.0 199.00 3.3 5.81
MM269 5502630N
504150E
-60/360 69.5 71.0 1.5 10.10 4.9 0.29 F2
MM270 5502525N
503829E
-60/360 654.0 657.0 3.0 6.84 9.8 0.20 F2
691.5 692.5 1.0 116.00 3.3 3.39 F2
789.1 790.3 1.2 8.18 3.9 0.24 F1
MM271 5502630N
504150E
-63/360 310.0 311.0 1.0 21.00 3.3 0.61 SP
430.8 431.8 1.0 10.20 3.3 0.30 F
497.5 498.5 1.0 23.50 3.3 0.69 F2
507.0 508.0 1.0 20.00 3.3 0.58 F2
582.0 584.0 2.0 7.95 6.6 0.23 F1
647.0 649.5 2.5 14.78 8.2 0.43 HGN2
MM272 5502448N
503799E
-59/360 Hole abandoned due to deviation
MM273 5502450N
503800E
-62/360 882.0 883.0 1.0 5.70 3.3 0.17 SLC
MM274 5502575N
503500E
-64/360 699.8 702.0 2.2 16.31 7.2 0.48 F
726.0 727.0 1.0 8.25 3.3 0.24 F
745.0 746.5 1.5 6.47 4.9 0.19 F2
MM275 5502500N
504000E
-54/360 720.0 723.0 3.0 4.10 9.8 0.12 SLC
750.0 752.0 2.0 3.38 6.6 0.10 F2
MM276 5502525N
503600E
-61/360 669.7 670.3 0.6 22.40 2.0 0.65 F
714.9 715.9 1.0 15.50 3.3 0.45 F2
755.0 759.0 4.0 7.94 13.1 0.23 K1
767.3 770.0 2.7 12.95 8.9 0.38 K2
826.5 827.6 1.1 10.50 3.6 0.31 F1
831.0 834.6 3.6 12.84 11.8 0.38 F1
941.0 944.5 3.5 6.61 11.5 0.19 NLC
MM277 5502650N
504295E
-63/360 Hole abandoned due to deviation
MM278 5502650N
504295E
-60/360 883.0 884.0 1.5 2.75 4.9 0.08 F2 (VG to rerun)
MM279 5502575N
503900E
-64/360 440.3 441.5 1.2 6.52 3.9 0.19 SP
735.0 736.0 1.0 35.50 3.3 1.04 F1
MM280 5502524N
503400E
-60/360 827.8 829.2 1.4 6.59 4.6 0.19 K
947.0 949.0 2.0 4.76 6.6 0.14 NLB

Figure 1 Fortune Zone

Click to Enlarge


Trans-Canada Project

The Trans-Canada Project is host to several past-producing mines which collectively produced more than 4 million ounces of gold from depths primarily within 600 metres of surface between 1938 and 1968. The Hardrock Deposit is host to a (NI) 43-101 compliant mineral resource estimate that was completed by Micon International Limited earlier in 2011. An updated mineral resource estimate will be completed in the near future and a Preliminary Economic Assessment will be released following a second mineral resource estimate that will be completed later in 2012 following additional drilling in the Fortune Zone horizon and any further drilling to be completed on other zones. The Trans-Canada Project benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through, or in close proximity to, the Project sites. Significant services and a skilled labour pool exist with several communities located in close proximity.

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.

Premier Gold Mines Limited is one of North America’s leading exploration companies with a high-quality pipeline of gold projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States. The Company’s portfolio includes significant assets in world class gold mining districts such as Red Lake, Musselwhite and Geraldton in Ontario and the Carlin Trend in Nevada.

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.