PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that the haulage drift that is being constructed to link the Red Lake Gold Mines Complexes to the Cochenour Complex has intersected multiple mineralized quartz-carbonate vein structures since crossing onto the Rahill-Bonanza Joint Venture Project. The Rahill-Bonanza Project is located in the heart of the main Red Lake “Mine Trend” and is being explored with joint venture partner Red Lake Gold Mines Limited (“RLGM”), an affiliate of Goldcorp Inc. (TSX:G, NYSE:GG).
The Rahill-Bonanza Project (PG:49% & G:51%) covers approximately 4.5 kilometres of the main Red Lake “Mine Trend” between the Red Lake Gold Mines complex to the east, and the Cochenour Complex to the west. The haulage drift is being excavated from the 5400 foot Level of Red Lake Gold Mines and will intersect several kilometres of some of the highest potential and untested geology in the heart of the Red Lake camp. The drift has recently intersected a sequence of gold-bearing structures that are currently being core drill-tested.
Several narrow structures hosting favourable alteration and mineralization have recently returned, in muck and chip samples, encouraging gold grades from anomalous up to 16.46 grams per tonne gold (g/t Au) or 0.48 ounces per ton (oz/t Au). Additionally, a previously drilled pilot hole also returned elevated gold grades. The exploration drilling program from the drift on the Joint Venture Property is slated to commence in H2-2012. However, following the completion of the current pilot hole additional shorter holes are planned targeting an area where numerous gold-bearing structures were identified.
“A number of favourable structures have been intersected by the haulage drift on the Joint Venture Property. This continues to confirm the potential of this highly prospective, yet un-explored part of one of the world’s premier high-grade gold camps” stated Stephen McGibbon, Executive Vice-President, Project and Corporate Development for Premier. “The fact that multiple structures have been identified in the first several hundred metres since crossing onto the JV speaks to the potential that could be realized from the drift. For the balance of 2012, all underground tram construction will be on the JV Property and regular updates are being received”.
The haulage drift will connect the two operations for the development of the Cochenour Mine and will provide a prime underground exploration platform to conduct a long-term exploration program to test this largely unexplored part of the camp. In addition to the underground development, an ongoing surface drill program will continue to test the down-dip extension of the historic Wilmar Gold Mine on the Joint Venture property. This drilling will aim to compliment previous drilling that intersected significant gold mineralization mid-way between the historic workings and the depth of the haulage drift. Past-production at Wilmar, over a period of four years, resulted in 203,256 tons of ore being mined at an average grade of 10.3 g/t (0.30 oz/ton) Au. The deposit remained open at depth when the mine shutdown.
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 Ancaster, Ontario, or 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 Premier Gold Mines Limited is one of North America’s leading exploration and development companies with a high-quality pipeline of gold projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States. The Company’s portfolio includes significant assets in world class gold mining districts such as Red Lake, Musselwhite and Geraldton in Ontario and the Carlin Trend in Nevada.