PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that drilling has again returned the best results to-date in the recently discovered Kailey Zone at the Geraldton Project in Northwestern Ontario. Drilling in the central part of the Kailey Zone has returned gold intersections well in excess of 100 meters where the two broad parallel stringer horizons converge to the east.
The Kailey zone is a bulk tonnage target proximal and parallel to the historic Little Long Lac Gold Mine from which more than 600,000 ounces of gold was produced during the period 1934-53 at an average grade of 11.66g/t Au. Highlights from ongoing drilling include 1.32g/t Au across 191.2 metres, 2.16g/t Au across 92.2 metres, 1.47g/t Au across 162.0 metres and 1.15gt Au across 140.2 metres.
Drilling in the Kailey Zone has identified parallel horizons (K1 - North & K2 - South) which converge in the central and eastern sections. The latest three intersections have true widths approaching 100 metres. Drilling has cut off the horizon to the east with mineralization remaining open primarily down-plunge where drilling is currently focused. The following table provides a summary of recent assay results received from drilling the Kailey Zone on Section 12+75E (dip angles: 50, 60, 70 degrees respectively):
Table 1 - Significant Results at Stringer Zone - Little Long Lac Target Area
|Hole-ID||Section||From||To||Length (m)||Zone||AU (g/t)||AU (opt)|
|PLL08043||1275E — 3+30N||6.8||147.0||140.2 (460 ft)||K1-K2||1.15||0.034|
|Incl.||6.8||68.0||62.2 (204 ft)||K2||1.23||0.036|
|Incl.||85.0||147.0||62.0 (203 ft)||K1||1.33||0.039|
|PLL08045||1275E — 3+30N||6.0||168.0||162.0 (531 ft)||K1-K2||1.47||0.043|
|Incl.||27.0||72.0||45.0 (148 ft)||K2||1.61||0.047|
|Incl.||91.5||168.0||76.5 (251 ft)||K1||1.93||0.056|
|PLL08048||1275E — 3+30N||5.8||197.0||191.2 (627 ft)||K1-K2||1.32||0.038|
|Incl.||5.8||98.0||92.2 (302 ft)||K2||2.16||0.063|
|Incl.||212.0||215.0||3.0 (9.84 ft)||K1a||7.06||0.206|
NOTE: True widths estimated at approximately 50-70% of intersection width
It is management’s belief that these horizons could also direct future exploration towards discovering and delineating higher-grade mineralization potentially amenable to underground mining methods. Higher grade intersections of 6.14g/t Au across 3.0 metres in hole PLL08045 and 7.06g/t Au across 3.0 metres in hole PLL08048 demonstrate this potential. In order to test this theory, drilling is currently being performed to test the K1 horizon at depth.
Premier holds the option to acquire up to a 70% interest in the Geraldton Project from Roxmark Mines Limited (TSX-V:RMK) by making cash and share payments to Roxmark, and performing exploration on the Project. The current drilling is part of an ongoing program aimed at confirming Premier’s belief that previously untested sub-parallel mineralized faults occur proximal to the historic Little Long Lac Gold Mine. In addition to the Kailey Zone, drilling is currently testing two of the program’s other primary targets believed to have high potential to host gold mineralization, “TAZ” and “Mine Repetition”. Veining and mineralization has been identified in both target areas and assays are expected in the near future.
The “Geraldton Project” is located in the heart of the Beardmore-Geraldton greenstone belt, a highly prospective high-grade gold district that has seen relatively little exploration over the past several decades. The Project area covers approximately 10 kilometres of some of the most prospective geology in the region and is host to three past-producing mines and numerous exploration targets in a district that has seen historic production of more than 4.1 Million ounces of gold. Several slides of the Little Long Lac area can be viewed on the Premier Gold Mines Limited website, www.premiergoldmines.com.
Other Projects - Red Lake & Santa Teresa
Premier is one of the industry’s most active exploration companies, with 9 drills active on three of four major projects. In Red Lake, drilling continues at the Rahill-Bonanza Project, a joint venture with Red Lake Gold Mines Limited, where 3 key target areas are being tested - Wilmar, Bonanza, and the deep mine target. Ongoing drilling at the Santa Teresa Project in Mexico, a joint venture between Premier and Sutter Gold Mining Inc. (TSX-V:SGM), has intersected numerous mineralized quartz vein zones along strike the past-producing Princessa Gold Mine (Historical data indicates that mined grades within the district average better than 1.00 ounce gold per ton). Initial assays from Santa Teresa included extremely high-grade drill results including 479.31g/t Au (13.98 oz/ton gold) over 2.0 metres. Additional assays are expected to be released in the near future.
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 Geraldton 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 fully 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. A strategic project is also located on the main Musselwhite Gold Mine trend.