PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to provide an exploration update from an ongoing drill program at the Company’s Rahill-Bonanza joint venture project in Red Lake. Premier remains one of the sectors most active exploration companies, defining mineralization on multiple projects, an effort that is expected to result in at least one NI43-101 compliant gold resource estimate by year-end. Prior to year-end, exploration in Red Lake will include drilling on both the Rahill-Bonanza joint venture and the 100% held Lennie Project. This drilling will test some of the district’s most prospective targets proximal to what is considered the world’s richest gold mine.
The Rahill-Bonanza joint venture Property is being explored with Red Lake Gold Mines Limited (“RLGM”), an affiliate of Goldcorp Inc. Recent work immediately north of the Rahill-Bonanza Project suggests that Goldcorp’s Bruce Channel Deposit is hosted within a North-South fault structure that could cross onto the joint venture property. A new hole is being drilled that will test the northwestern portion of the Property potentially along strike from the Bruce Channel Deposit.
A recently completed hole (PG09068A), that did not test the Bruce Channel target, intersected high-grade mineralization within the nearby West Granodiorite Zone (WGZ) target with assays as high as 12.5 grams per tonne gold (g/t Au) across 4.5 metres (m) in a section containing numerous specks of visible gold, and 21.2g/t Au across 0.5m. This intersection is being followed-up with ongoing drilling.
Ewan Downie, President of Premier, stated that “Our drilling has intersected high grade gold mineralization within the WGZ in a 400 m step-out below where to WGZ was previously drilled and bulk sampled. This part of the Red Lake camp has seen almost no previous exploration and suggests that this deposit could have significant size potential. The grades and widths from this deep intercept are comparable to those at the Bruce Channel Deposit”.
The current drill program is focused on testing prospective exploration targets, and defining potentially significant resources, located in close proximity to Goldcorp’s Bruce Channel Deposit that is located immediately northwest of the joint venture property. The new West Granodiorite intercept is located approximately 100 metres along strike to the west of, and 400 metres below, the known WGZ Deposit, a large, near-surface, bulk-tonnage deposit that shares similarities to the Goldex Deposit that was recently brought into production by Agnico-Eagle in Northwestern Quebec. Goldex is a profitable low-grade bulk mineable gold deposit with favourable cash costs. Previous work, including test mining on the 1300 foot Level of the Cochenour-Wilmar Mine, has identified a significant (historical) resource within the WGZ that appears to be higher grade than Goldex. This work suggests a historical resource of up to 5,700,000 tons @ 0.10-0.15 oz/ton (3.4-5.1g/t) Au, that is open both along strike and at depth (a qualified person has not done sufficient work to verify the historical resource, the company is not treating the historical resource as a current resource and the historical resource should not be relied upon) . The new drill intercept, from which the high grade interval was contained within a larger mineralized section of WGZ that returned 1.5 g/t Au across 75 m, suggests excellent potential to materially increase the size of the WGZ deposit.
The joint venture property covers several kilometers of the prolific “Mine Horizon” between the Cochenour (Bruce Channel) complex to the west and the RLGM complex to the east. The RLGM has produced more than 18 Million ounces of gold, discovered nearly 10 Million additional ounces of resources, and is widely considered to be the world’s richest gold mine.
Pursuant to its press release dated May 7, 2009, Goldcorp announced several major development initiatives that are being considered on and around the Joint Venture Property. De-watering of the Cochenour mine workings has started for the potential development of the Bruce Channel Deposit. This de-watering will also allow underground access to the Wilmar and West Granodiorite Zones located on the Joint Venture Property immediately to the southeast. Additionally, Goldcorp is considering a high-speed tram system to link Bruce Channel to the Red Lake Gold Mines complex. A straight line from the RLGM complex would pass through the Joint Venture Property and would provide exploration access to several kilometres of favourable, untested, geology.
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 active drill programs at its Hardrock Project and PQ North Project that is strategically located on the main Musselwhite Gold Mine trend.