PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to
announce that potentially significant gold discoveries have been made at
the Company's 100%-owned PQ-North Project in Northwestern Ontario. Based on
the early success of this initial drill program, Premier will expand the
budget originally earmarked to the program such that drilling will continue
throughout the summer.
The discoveries, based on assay results from only 7 holes, are located
along strike from Goldcorp's multi-million ounce Musselwhite Mine. Initial
drilling at PQ-North has identified mineralization and visible gold in
multiple structures including:
- Musselwhite-style mineralization grading up
to 10.24 grams per tonne gold (g/t Au) across 5.1 metres (m) hosted in
a structure not previously tested by diamond drilling and within 100
metres of surface.
- Numerous drill intercepts grading greater
than 1.0 g/t Au and up to 28.64 g/t Au within structures up to 4.0
metres in width.
- Widespread anomalous mineralization,
including 0.94 g/t Au across 24.9 m, with styles and intensity of
alteration similar to those at Musselwhite.
- A mineralized shear zone proximal to the
PQ-limb of the main iron formation. This unit hosts the primary gold
zones at the adjacent Musselwhite Gold Mine - assays for this
initial intersection are pending.
Ten holes have been drilled to date to test only three of the many target
areas at PQ-North. Gold mineralization has been intersected at every
target. The primary focus of the current program is to test major
structures interpreted to cross the Property and confirm they contain the
Musselwhite signature.
The first hole drilled to test a magnetic anomaly identified as a target
from an airborne geophysical survey, is now interpreted to represent a
previously unknown "upper" iron formation. Hole PQ09006 has
intersected a broad biotite-garnet altered mineralized zone consisting of
folded and laminated iron formation containing pyrrhotite, chalcopyrite and
visible gold. This discovery hole returned an impressive 10.24g/t Au across
5.1m with a higher grade core grading 21.33g/t Au across 2.1m. This
near-surface intersection is now being followed up by additional diamond
drilling.
Drilling performed by a previous operator identified a zone of gold
mineralization at the crest of the main PQ-Limb. This zone, which remains
wide open for expansion, has now been tested at 100m and 200m step-outs
with intersections of 2.42g/t Au across 4.5m in the 100m step-out and
28.64g/t Au across 1.0m and 15.00g/t Au across 1.0m in the 200m step-out
section.
Deeper drilling is now underway to evaluate a 400m wide magnetic disrupted
zone (interpreted as a major structural break) that is expected to
intersect the main PQ-Limb at depth. This target is regarded as the primary
target on the Property and is located along strike from, and within the
same host rock as Goldcorp's Musselwhite Gold Mine. The first hole has
intersected a 3.0m wide mineralized shear zone that is strongly
biotite-garnet altered and contains pyrrhotite, chalcopyrite and visible
gold in addition to a mineralized zone contained within the PQ-Limb. Assays
for these zones are pending. A presentation of the PQ-North Project can be
viewed on Premier's website www.premiergoldmines.com.
"The early success of this program confirms management's belief that
significant gold zones, similar to those at Musselwhite, could exist on the
PQ-North Property," stated Tim Twomey, Regional Exploration Manager
for Premier. "The Upper discovery has a width similar to typical
Musselwhite zones, but has a grade nearly twice the average mine
grade". "Given the tremendous continuity of mineralized zones
along strike at Musselwhite, and our experience with similar mineralization
at Premier's Hardrock Project in Geraldton, these early results at PQ-North
have to be regarded as significant," Twomey concluded.
Drill holes PQ09001 and 002 were drilled for geological purposes to
calibrate the down-dip orientation of the iron formation, PQ09003-005
tested the known mineralized zone, and PQ09006 tested the "Upper"
iron formation target. The following table summarizes initial results
obtained from drilling:
Click to Enlarge
The PQ-North Project is located within Goldcorp's Musselwhite Property
holdings and is strategically located along the PQ-Limb of the key iron
formation that is host to the majority of the ore zones at Musselwhite (in
2008, Musselwhite produced 210,500 ounces of gold at an average grade of
5.56g/t Au). The location of PQ-North, potentially down plunge from
Musselwhite, is particularly important when considering the following
facts:
- The apparent mine grade at the Musselwhite
Mine is increasing as mineralized zones are mined down-plunge to the
north (toward PQ-North).
- The frequency of new discoveries (some closer
to surface than current mining) at Musselwhite is increasing as
exploration migrates to the north (toward PQ-North).
- The 2007 Goldcorp Annual Report confirmed,
"Drilling on the North Shore [in close proximity to
PQ-North].....indicate high potential for resource expansion. This
strong potential has led to a study to test the economics of
constructing a new shaft at Musselwhite."
Premier
previously announced that it had signed a Letter of Intent (LOI) with the
North Caribou Lake First Nation ("NCLFN") that paves the way for
a major exploration program on the PQ-North Property in Northwestern
Ontario. The LOI forms the basis of a cooperative relationship between
Premier and NCLFN that will guide the early phase of exploration on the property,
including line cutting, geophysics and diamond drilling, as well as lead to
a Memorandum of Understanding (MOU).
In addition to PQ-North, Premier has three drills currently operating at
the Hardrock Property and one at the Rahill Bonanza Project in Red Lake
which is operated by Red Lake Gold Mines Limited, an affiliate of Goldcorp
Inc.
Matt Long, 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. The assay results presented are from split core
samples 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. Presentations detailing the
Company's activities on its active projects are available on the Premier
Gold Mines Limited website www.premiergoldmines.com.
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.
For further information, please contact:
Ewan Downie, President & CEO
Phone: 807-346-1390
Fax: 807-346-0100
e-mail: Info@premiergoldmines.com
Web Site: www.premiergoldmines.com