PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that development plans and permitting studies have been initiated for the Cochenour-Wilmar Project in Red Lake. The “Rahill-Bonanza Project”, that includes the past-producing Wilmar Gold Mine, is being operated under a 50/50 exploration joint venture between Premier and Red Lake Gold Mines, an affiliate of GOLDCORP INC. (TSX:G, NYSE:GG).
The permitting process is being initiated in order to ensure that future, potentially advanced exploration, can be conducted on a timely and uninterrupted schedule. Advanced exploration may include dewatering and rehabilitation of the Cochenour-Willans Gold Mine, which would provide underground access for delineation drilling at Wilmar on the joint venture property. The Wilmar Gold Mine, accessed through the workings of the Cochenour mine workings, was brought into production during the final years of operations at Cochenour, resulting in the mining of 203,256 Tons at an average grade of at least 0.3 oz/ton Au (10.3g/t Au). The Wilmar Mine carried a resource at closure and the deposit remained open at depth. Definition drilling of the mined horizons and of mineralized zones intersected in the current drill program can be carried out from underground, in addition to potential bulk sampling. Recent drilling at Wilmar has intersected the main horizon in all holes drilled over an area of more than 600 meters below the historic workings and over a strike length of approximately 300 meters with assays that include 49.0g/t Au over 1.0m, 14.2g/t Au over 5.0 meters and 18.1g/t Au over 2.0m.
At the Bonanza deposit, diamond drilling has recommenced with the goal of completing delineation drilling within 600 metres of surface and deeper exploration designed to extend the deposit to depth. The target horizons are: 1) the Bonanza Zone where previous drilling has returned intersections including 13.27 g/t Au across 19.00 meters (05WB-69) and 13.30 g/t Au across 7.0 meters (05WB-28); and, 2) the Follansbee Zone where previous drilling has returned intersections including 8.66 g/t Au across 22.0 meters (SWF-05-27) and 6.21 g/t Au across 25.0 meters (05WB-47). Modeling of the Bonanza Deposit is underway, with the intent of issuing a NI 43-101 compliant resource estimate early in 2008.
The Rahill-Bonanza Project is strategically located along the main Red Lake “Mine Trend” between the prolific Red Lake Gold Mines complex to the east and the Cochenour Gold Mine and Bruce Channel discovery to the west (See Figure 1 & 2). The partners are in the process of completing a major, two year, exploration program that will continue until the end of 2008 and will test several prospective targets on the Property. At the far eastern part of the joint venture property, an initial hole drilled from the adjacent Red Lake Gold Mines complex has been completed to 1239.6 meters and was stopped due to squeezing of the drill rods. This hole, designed to test the mine horizon along strike from the existing mine workings, was collared on the 41 Level (approximately 1,875 meters or 6,150 feet below surface) of the Campbell Complex (formerly Campbell Mine) of Red Lake Gold Mines, and intersected several mineralized vein zones. Results are pending. A presentation with more detailed slides can be viewed at the Company’s web site: http://www.premiergoldmines.com
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).