PREMIER GOLD MINES LIMITED (“Premier”) (TSX:PG) is pleased to announce that exploration will continue at the PQ North Properties in Northwestern Ontario. Exploration to-date has included an airborne magnetics geophysical survey and a grid has been cut on the ground. An exploration camp is presently being constructed on the property and geological mapping and sampling are being completed. A 3D exploration model is being created and will be further refined for identifying high-grade targets prior to a major diamond drilling this winter.
The PQ North Property is strategically located on the PQ limb of the key iron formation that is host to Goldcorp’s Musselwhite Gold Mine. Recently, Goldcorp stated that gold mineralization has been extended to the north with intersections on structures trending in close proximity to Premier’s PQ North Property. These results include a drill intercept of 15.5 grams per tonne (gpt) gold across a true width of 4.5 metres (m) in hole 07-NSD-005 (see Fig. 1 below). Goldcorp also indicated that gold mineralization within the mine horizon is estimated to have increased from 1.0 million to 2.0 million ounces per kilometre and has been intersected as far as 6 kilometres north along strike of the main mine facilities.
The PQ North Property encompasses a major fold structure along strike from and within the main rock unit (Northern Banded Iron Formation) that hosts the gold-bearing ore zones at Musselwhite. Previous drilling has returned numerous significant intersections and has identified structural units similar to those at the mine (Fig. 1). Of particular interest are a series of quartz veins, and shear zones, in places tens of meters wide, hosted within volcanic rocks in the southern portion of the PQ North Property. It is believed that these (low-grade) veins could be related to structures that may cut the main iron formation unit at depth, and potentially become significant gold-bearing zones. Similar veins on surface on the Musselwhite Property are located up-dip from the main gold zones currently being mined. To date, the Musselwhite Mine has produced more than 2.0 million ounces of gold and has reserves and resources totaling in excess of 3.30 Million ounces at the end of 2007.
Premier owns a 100% interest in the PQ North Property subject to a 2% Net Smelter Returns Royalty of which Premier retains the right to acquire 1% by paying to the vendor $1 Million.
Premier previously announced that it had signed a Letter of Intent (LOI) with the North Caribou Lake First Nation(“NCLFN”) that paves the way for a major exploration program on the PQ North Property in Northwestern Ontario. The LOI forms the basis of a cooperative relationship between Premier and NCLFN that will guide the early phase of exploration on the property, including line cutting, geophysics and diamond drilling, as well as lead to a Memorandum of Understanding (MOU) in the near future.
Figure 1 Location of PQ North Property, Musselwhite Mine and significant exploration results.
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. Core from Rahill-Bonanza is sent 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 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.