Premier Provides Hardrock Update - Continued High-Grade Gold in the EP Zone Target

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PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to provide an update of developments and future plans with respect to the Company’s Hardrock Project in Northwestern Ontario. The current program, consisting of delineation and exploration drilling, will continue throughout 2009 and is expected to result in an NI 43-101 compliant resource estimate by year end.

Drilling is targeting both open pit and underground style gold zones. Significant potential exists for developing resources in several areas including:

  • Open pit-style mineralization at sites where historic resources were partially delineated by previous operators, in addition to newly defined mineralization at the Tenacity, EP and Kailey Zones;
  • Numerous surface and historic high-grade gold intercepts throughout the large property package that have received little to no follow-up;
  • Historic resource blocks reported to remain within the mine workings, including high-grade vein targets; and,
  • The main mined zones which remain open below the 600m Level.

Drilling continues to identify near-surface mineralization contained within multiple zones. Results from drilling at the Kailey Zone, discovered in 2008 by Premier, and at the newly defined EP and Tenacity Zones, suggest the potential to confirm significant resources amenable to open pit mining.

Kailey Zone
The Kailey Zone was discovered by the joint venture in 2008. This zone consists of stringer-type mineralization discovered proximal to the historic Little Long Lac Gold Mine that has been traced over a strike length of several hundred metres with drill intersections that include 1.47grams per tonne gold (g/t Au) across 162.0 metres (m) and 2.16g/t Au across 92.2m. The Kailey Zone will be included in the upcoming resource estimate.

The EP-Zone has been identified as a potential high-grade open pit target in the vicinity of the historic North Zone, from which 2.97 Million tonnes of ore was mined at a recovered grade of 7.54 g/t Au. Initial drilling has intersected mineralization in multiple sub-zones within the EP target over a strike length of 600 metres where it remains open in all directions. Highlights to-date include 7.60g/t Au across 20.5m in hole EP044, 2.37g/t Au across 62.7m in hole EP026, and 4.56g/t Au across 24.5m in hole EP029.

New results that include 23.33g/t Au across 3.4m in hole EP048, 4.17g/t Au across 29.0m in hole EP053 and 5.66g/t Au across 9.8m in hole EP058 continue to expand mineralization within the confines of the target area at EP. Table 1 summarizes new assay results from drilling at the EP-Zone:

Hole-ID UTM Coordinates (m) Dip/Azimuth (degrees) From (m) To (m) Interval (m) Grade (g/tonne) Interval (ft) Grade (oz/ton) EP Zone
EP045 504811 E 5503054 N -45/360 89.9 95.0 5.1 10.66 16.7 0.31 South Limb B
123.5 135.3 11.8 5.42 38.7 0.16 North Limb
167.5 168.5 1.0 11.20 3.3 0.33 North Limb B
EP046 504811 E 5503054 N -60/360 112.4 128.0 15.6 3.66 51.2 0.11 South Limb B
151.5 172.2 20.7 2.60 67.9 0.08 North Limb
EP047 504751 E 5503178 N -50/180 21.5 37.0 15.5 1.72 50.8 0.05 North Limb
EP048 504751 E 5503178 N -63/180 34.5 38.2 3.7 3.10 12.1 0.09 North Limb B
62.8 66.2 3.4 23.23 11.2 0.68 North Limb
EP049 504752 E 5503028 N -50/360 125.7 126.2 0.5 8.30 1.6 0.24 South Limb
158.0 159.5 1.5 8.90 4.9 0.26 North Limb
EP050 504751 E 5503102 N -45/360 31.1 33.0 1.9 3.30 6.2 0.10 South Limb
80.5 87.6 7.1 3.31 23.3 0.10 North Limb
99.8 106.0 6.2 2.91 20.3 0.08 North Limb B
139.1 143.5 4.4 0.47 14.4 0.01 North Limb B
EP051A 504752 E 5503076 E -45/360 115.7 117.0 1.3 2.10 4.3 0.06 North Limb
135.0 141.9 6.9 4.09 22.6 0.12 North Limb B
161.0 162.0 1.0 11.90 3.3 0.35 North Limb C
176.3 177.0 0.7 57.00 2.3 1.66 X
EP052 504752 E 5503054 N -45/360 DDH
stoped out
EP053 including 504752 E 5503128 N -45/360 39.0 68.0 29.0 4.16 95.1 0.12 North Limb B
53.6 57.3 3.7 18.81 12.1 0.55 North Limb B
99.4 102.0 2.6 6.39 8.5 0.19 North Limb C
EP054 504751 E 5503153 N -45/360 52.0 61.0 9.0 1.22 29.5 0.04 North Limb C
EP055 504701 E 5503131 N -45/360 12.0 15.0 3.0 1.57 9.8 0.05 South Limb
31.5 37.0 5.5 1.18 18.0 0.03 North Limb
EP056 504700 E 5503102 N -45/360 assays
EP057 504702 E 5503077 N -45/360 62.0 72.0 10.0 0.80 32.8 0.02 South Limb
118.2 127.5 9.3 3.39 30.5 0.10 North Limb B
141.2 164.5 23.3 0.90 76.4 0.03 North Limb C
EP058 504699 E 5503053 N -45/360 147.6 156.4 8.8 5.81 28.9 0.17 North Limb B
165.7 176.4 10.7 3.03 35.1 0.09 North Limb C

* True widths estimated at approximately 70% of intersection widths

The EP Zones are modeled in 3D and the present interpretation shows good continuity in plan and section for three separate sub-zones on the North Limb as well as three on the South Limb EP Zone. These sub-zones occur as replacement mineralization conformable to individual iron formation units and remain open on-strike.

Tenacity Zone
Drilling at the Tenacity Zone has defined potentially open pit-style mineralization over a minimum strike length of 500 metres. The Tenacity Zone, which remains open at depth (down-plunge), contains “shoots” of higher-grade mineralization that could be amenable to underground mining and will be the focus of future drilling on this zone. Highlights to date include 15.97g/t Au across 32.1m in hole TN026, 4.13g/t Au across 18.9m in hole TN011, and 16.86g/t Au across 5.5m in hole TN025. A full table of new assay results from Tenacity is expected in the near future.

Company representatives have recently completed a compilation of known data from the Project area, resulting in the identification of numerous highly prospective drill targets. Drilling has moved towards delineating potential resources in close proximity to existing mine workings. These targets include the South Porphyry Zone (“SPZ”), the “F2 Zone” and High Grade Vein Zones (“HGV”) identified on several mine levels.

The South Porphyry Zone was mined at Hardrock between the 3rd and 6th Levels, with 264,354 tonnes (291,428 Tons) of ore mined at a recovered grade of 8.37g/t Au (0.244 oz/t) between the 3rd and 6th mine Levels. Significant potential to define resources exists within the unmined down-plunge extension of the SPZ. This is indicated by numerous underground drill intersections of up to 14.06g/t Au across 11.2m, 13.03g/t Au across 15.7m, and 8.91g/t Au across 8.2m over a plunge length of nearly 3 kilometres (8,500 feet).

F2 Zone
The F2 Zone is located under the Main F Zone from which 1.438 Million ounces of gold was mined. Intermittent underground drill intercepts over a plunge length of some 600 metres (2,000 feet) partially define this zone with intercepts that include 14.74g/t Au across 7.6m, and 7.30g/t Au across 11.0m.

HGV Zone
Little effort was given to define narrow vein high-grade mineralization because the primary historic mining method at Hardrock was from underground longhole, Production cost pressures in a low gold price era rendered these zones less favourable despite the fact that high-grade intersections were realized in numerous areas. Recent compilation work has identified the potential to define what appears to be continuous veining over a plunge length of some 1,100 metres (3,800 feet). Intersections up to 112.5g/t Au (3.28 oz/ton gold) across 1.2m on the 7th Mine Level, 39.1g/t Au (1.14 oz/ton gold) across 1.2m on the 10th Mine Level, 12.7g/t Au (0.37 oz/ton Gold) across 2.9m on the 11th Mine Level and 88.5g/t Au (2.58 oz/ton gold) across 1.5m on the 13th Mine Level all demonstrate the potential for high-grade vein-style mineralization at Hardrock. This style of mineralization is similar to that mined at two nearby mines located on the Hardrock Property; the Little Long Lac Mine (past production of more than 600,000 ounces of gold at an average recovered grade of 11.66g/t Au) and the Magnet Mine (past production of more than 150,000 ounces of gold at an average recovered grade of 14.4g/t Au).

The Hardrock Project is operated under a joint venture with Roxmark Mines Limited (TSX-V:RMK) (Premier earning a 70% interest). The Hardrock Project is host to several past-producing mines which collectively produced nearly 3.0 Million ounces of gold primarily from relatively shallow depths (600 metres) from 1938-1968. Importantly, the Hardrock Project has the potential for defining several styles of mineralization capable of hosting resources, with grades and widths similar to many of Ontario’s major gold mines including Open pit-style mineralization with grades exceeding 1.5 g/t Au (Timmins, Hemlo), broad zones of mineralization with grades averaging 5.0+ g/t Au (Musselwhite), and narrow vein zones with higher gold grades often exceeding 7.0g/t (Red Lake, Pickle Lake). The Hardrock Project benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through the center of the property.
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 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 and recently acquired mineral properties in Geraldton area from Barrick Gold.