PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that it has begun diamond drilling in the historic and high grade El Alamo District of Baja California Norte, Mexico. The Santa Teresa Concession (STC) is accessible by road, located 10 kilometres (kms) west of Highway 3, some 100 kms southeast of Ensenada and about 250 kms from San Diego, California, USA.
Premier has prepared an initial 14-hole diamond drill program of 3,650 metres on the STC in order to test the extent, continuity and grade of known gold-bearing vein structures previously evaluated only within 20 metres of surface.
The STC is located adjacent to and on strike from the past-producing Princessa Mine (the district’s largest gold producer), whose orebody was known to extend close to the STC boundary. Data suggests that potential extensions of the Princessa Mine along strike and at depth have not been tested. The El Alamo District’s gold production halted at its peak owing to technological and political circumstances early in the 20th century, thus presenting a unique opportunity to the JV today.
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 its joint venture partner Sutter Gold Mining Inc (SGMI; SGM.V):
- 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.
- Has characteristics similar to the historic Mother Lode District of California.
- The upcoming initial phase of exploration on the STC will conclude late in Q1 2008 and be followed up by a second phase that expands into the recently acquired STC2 concessions.
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.
Premier Gold Mines Limited is a Canadian-based mineral exploration and development company with diverse property holdings that include 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 Goldcorp Inc. (TSX:G). A strategic project is also located on the main Musselwhite Gold Mine trend (Goldcorp).