PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that it has entered into an Option and Purchase Agreement to acquire a 100% interest in ten patented mining claims, “Lennie Property”, located in the Red Lake district in the Province of Ontario.
The Lennie Project is strategically located northeast of the Red Lake Gold Mines complex along the same geological contact that hosts the major gold mines in Red Lake. The Property covers the important unconformity between the ore-hosting Balmer volcanic rocks and the overlying sedimentary rocks. Folded ultramafic rocks and conjugate fault structures, similar to those at the mine, are interpreted to be located on the Lennie claims and will be the focus of an exploration program that will begin immediately on the property, including diamond drilling.
It is anticipated that a drill program, that will include deep drilling, will begin in the spring to test these high-potential faults as well as other targets, where they are interpreted to intersect Balmer-aged ultramafic rocks in a setting similar to that which hosts Goldcorp’s High-grade Zone. That zone is considered to be one of the largest and highest grade gold deposits in the world.
Upon completing the Option, as previously announced on February 18,2009, Premier will hold a 100% interest in the Property, subject to a 3.0% Net Smelter Return royalty (“NSR”) payable to the vendor, Newcastle Resources Ltd. (OTCBB: NCSLF). Premier retains the right to purchase one-third of the NSR (1% NSR) at any time for the sum of $1.0 Million. A finders’ fee is payable to an arm’s length party in relation to this transaction.
The Lennie Project is Premier’s second strategic property, in addition to the Rahill-Bonanza Joint Venture Project, located in the heart of the prolific Red Lake district and within the core of Red Lake Gold Mines’ land holdings. The Rahill-Bonanza Project covers several kilometres of the main Red Lake “Mine Trend” and is strategically located between the world class Red Lake Gold Mines to the east, and the “Bruce Channel” discovery to the west.
A Presentation detailing the Lennie Project is available on the Premier Gold Mines Limited website at www.premiergoldmines.com.
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.
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 projects are operated in joint venture with Red Lake Gold Mines, and another, adjacent to the Red Lake Gold Mines complex, is operated on a 100% basis. The company also owns a strategic project located on the main Musselwhite Gold Mine trend and is acquiring a 70% interest in the Hardrock Project, an advanced-stage gold project in the Geraldton area.