PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that a drill has been mobilized to begin drilling a minimum of 5,000 meters at the Geraldton project with joint venture partner ROXMARK MINES LIMITED (TSX-V:RMK). The “Geraldton Project” is located in 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 (km) of some of the most prospective geology in the region. In addition, it 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 (OGS Field trip notes 2007).
The first target will be testing in the vicinity of the Little Long Lac Mine that produced more than 600,000 ounces of gold during the period 1934-53 at an average grade of 11.66g/t Au (Historic Government Annual Reports). Prior to closure, drifting was carried out on the “No.10 Vein” that was discovered on the 16th Level, one of the deeper levels (675 metres below surface) of the mine. Data suggests that little exploration was carried out up-dip towards surface on this zone. Parallel structures that could be host to additional deposits will also be tested in the current program.
Premier, operator of the Project (since September 24, 2007), holds the option to earn up to a 70% interest in the Property by making cash and share payments to Roxmark, and performing exploration on the Property. The current drilling is part of a major $2.5 Million dollar exploration program that will test several prospective targets on the large property package.
With respect to Premier’s other properties, exploration continues at the Rahill-Bonanza Joint Venture Project in Red Lake where recent drilling has intersected multiple gold horizons including a new zone discovered in the hanging wall of the Wilmar Horizon with assay results of up to 14.2g/t Au across 5.0 meters including 59.09g/t Au across 1.0 meters (press release: October 22, 2007). The Rahill-Bonanza Project is being operated under a 50-50 Joint Venture with Red Lake Gold Mines, an affiliate of GOLDCORP INC. (TSX:G, NYSE:GG). Additional assays from drilling are expected in the near future.
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-Kinross).