Premier Gold Hardrock Drilling Update - New Zones Discovered, Continued Success at Depth

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PREMIER GOLD MINES LIMITED (TSX:PG) announced today that drilling has discovered two new gold zones at the Company’s Hardrock Project in Northwestern Ontario. The “83” and “93” Zones were discovered to the south of the main mined horizons in an area where no previous drilling had been completed. Initial intersections include 9.78 grams per tonne gold (g/t Au) across 5.0 metres (m) (0.29 ounces per ton (oz/ton) across 16.4 feet) in the 83 Zone and 12.3 g/t Au across 4.0 m (0.36 oz/ton across 13.1 feet) in the 93 Zone.

In addition to the new discoveries, hole MM093 was extended to target other known horizons at depth, intersecting 9.28 g/t Au across 28.4 m (0.27 oz/ton across 93.2 feet) including 43.50 g/t Au across 3.0 m (1.27 oz/ton across 9.8 feet) down plunge from the historically mined F-Zone.

Tim Twomey, Exploration Manager for Premier, said, “Our recent initial resource estimate for the near surface mineralization suggests the potential for Hardrock to become a significant development project. These recent results, together with others not incorporated into the resource estimate, further demonstrate Hardrock’s potential. We are particularly pleased to encounter such strong results in new areas that were never drilled before, bolstering Premier’s view that Hardrock is a highly prospective but still vastly underexplored property.”

These new zones are within 200 m of surface, located west of, and to the south of, all previously mined zones at Hardrock (see Figure 1). The “83 Zone” is located at a favourable Porphyry-Iron Formation contact, similar to some of the main zones mined historically at the nearby Hardrock Mine including the “F Zone” from which approximately 1.4 million ounces of gold was mined. The “93 Zone” is located within the southern conglomerate suite of rocks and represents a new target area for the Property. Drilling to date suggests a strike length of some 200 metres and the zones remain wide open at depth. Owing to the continued success at Hardrock, additional drills have been added with five now active delineating this new discovery and expanding other mineralized zones on the Property. Table 1 provides a summary of significant results from initial assays received from drilling at the new discovery:

Table 1 - Assay Results For 83 and 93 Zones

Hole-ID UTM Coordinates (m) Dip/Azimuth (degrees) From (m) To (m) Interval (m) Grade (g/tonne) Interval (ft) Grade (oz/ton) Zone
MM083 * 5502724 N
503300 E
-66/360 60.2 61.5 1.3 2.36 4.3 0.07 93
255.7 258.1 2.4 11.43 7.9 0.33 83
MM093 5502754 N
503397 E
-66/360 52.0 56.0 4.0 12.32 13.1 0.36 93
including 200.5 204.0 3.5 8.14 11.5 0.24 83
564.1 592.5 28.4 9.28 93.2 0.27 F
including 588.0 591.0 3.0 43.50 9.8 1.27 F
MM098 5502775 N
503400 E
-65/360 5.5 10.0 4.5 1.67 14.8 0.05 93
171.0 176.0 5.0 9.78 16.4 0.29 83
True widths estimated at approximately 70% of the intersection width * - Previously released hole

The surface plan in Figure 1 profiles the location of the 83 and 93 zones in relation to other zones at Hardrock.
Figure 1
Hardrock Project Surface Plan - Multiple Gold Zones

The Hardrock Project is operated under a joint venture with Goldstone Resources Inc. (TSX:GRC) (Premier owns a 70% interest). The Hardrock Project is host to several past-producing mines, which collectively produced nearly 3.0 Million ounces of gold from depths within 600 metres of surface between 1938 and 1968. The Hardrock Project benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through, or proximal to, the centre of the property. Significant potential exists for developing resources in several areas including; Open pit-style mineralization; high-grade, narrow-vein targets, such as the new discoveries; and, mineralization below the historically mined zones (below the 600m Level).

On March 4, 2010 Premier announced an initial resource, containing significant indicated and inferred resources for the near-surface (open pit style) zones at Hardrock based on drilling completed as of the end of 2009. The joint-venture expects to complete more that 70,000 metres of drilling in 2010 following which a revised resource will be completed for both the open pit and underground zones.

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, for preparation and analysis utilizing both fire assay and 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 addition to Hardrock, Premier has two joint ventures in the Red Lake camp with Red Lake Gold Mines, an affiliate of Goldcorp Inc. and a 100% interest in PQ North, a property located immediately north of Goldcorp’s Musselwhite Gold Mine.