Premier Gold Mines Ltd.

Published : April 09th, 2008

Discovers Near-surface Gold Mineralization At Geraldton Project

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Premier Gold Mines Limited



Phone:1-807-346-1390
Fax:1-807-345-0284


News Releases

 Wednesday, April 09, 2008
PREMIER PROVIDES EXPLORATION UPDATE -- NEW DISCOVERY OF POTENTIAL OPEN PIT STYLE GOLD MINERALIZATION AT GERALDTON

  Shares Issued: 68,647,742

PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to provide an exploration update for its substantial exploration programs on four active projects. In 2008, Premier expects to perform between 50,000 and 100,000 metres of drilling on these projects located in Northwestern Ontario, Canada and in Mexico. To date these programs have returned favourable results on numerous fronts including the new discovery of near-surface, potential open pit style, gold mineralization at the Geraldton Project, proximal to recently discovered high-grade gold zones adjacent to the past-producing Little Long Lac Gold Mine. The first two holes drilled into this target, PLL08-009 and PLL08-012, returned impressive intersections of 51 metres grading 1.33 grams per tonne (g/t) Au from 28.0 to 79.0 metres and 26 metres grading 1.34 g/t Au from 137.0 metres to 163.0 metres respectively.

Geraldton Project

The newly discovered "Kailey" Zone is located parallel to and north of the mine workings and consists of multiple stringer veins with minor mineralization. Holes PLL08-009 and 012 were drilled 150 metres apart (along strike), with hole 009 intersecting the zone at a depth of approximately 20 metres and hole 012 intersecting the Kailey Zone at a depth of approximately 130 metres. This horizon is open in all directions. In addition to the Kailey Zone, PLL08-012 intersected the on-strike extension of the Little Long Lac "Main" Zone with an intersection of 13.58 g/t Au (0.40 oz/ton) across 1.0 metre approximately 50 metres east of where the zone was previously mined, suggesting the potential existence of additional high-grade resources in this area.

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)

PLL08009

1400E - +75N

18.0

82.0

64.0 (210 ft)

Kailey

1.14

0.033

 

Incl.

28.0

79.0

51.0 (167 ft)

Kailey

1.33

0.039

PLL08012

1225E - 4+50N

137.0

163.0

26.0 (85 ft)

Kailey

1.34

0.039

 

 

385.0

386.0

1.0 (3.3 ft)

Main East

13.58

0.40

NOTE: True widths estimated at approximately 70% of intersection width

To date, drilling has intersected a minimum of 4 potentially important vein zones at Little Long Lac: The Kailey Zone, Main Zone, and the No.9 and No.10 Vein Zones. As announced March 3, 2008, and in addition to the new intersections contained in this release, recent drilling several hundred meters south of these zones intersected multiple high-grade vein zones (No,9, No.10 and No.11 Veins) with drill intersections including 254.8g/t Au (7.44 opt) over 0.3m, 60.88/t Au (1.78 opt) over 1.0m and 45.3g/t Au (1.32 opt) over 1.0m suggesting the potential for both bulk tonnage and high-grade mineralization at Little Long Lac.

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 minimum $2.5 Million exploration program aimed at confirming Premier's belief that previously untested sub-parallel mineralized faults occur proximal to the historic Little Long Lac Gold Mine. The mine produced more than 600,000 ounces of gold during the period 1934-53 at an average grade of 11.66g/t Au. PLL08-009 and 012 are the first two holes drilled north of the mine workings in the current program and in an effort to delineate the potential of the new zones. Drilling also continues to systematically test immediately south of the historic mine workings in an effort to build gold resources in the No.9 and No.10 Vein zones.

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.

Rahill-Bonanza (Red Lake) Project

Drilling in the current phase of exploration at the Rahill-Bonanza Project, a joint venture with Red Lake Gold Mines Limited, will continue to test 3 key target areas -- Wilmar, Bonanza, and the deep mine target.

At Wilmar, a deep hole is being drilled approximately 500 metres below the high-grade intersections returned from the 2007 program, which in turn were drilled below the workings of the past-producing Wilmar Gold Mine where 203,256 tons of ore was previously mined at an average grade of approximately 0.30 oz/ton Au (10.3g/t Au). The deposit remained open at depth when the mine shutdown. Recent drilling has intersected the Wilmar horizon in all holes drilled to a depth up to 600 metres below the historic workings and over a strike length of approximately 300 metres with assays that include 49.0g/t Au over 1.0 metre and 14.2g/t Au over 5.0 metres.

At Bonanza, the partners recently announced the results of a NI 43-101 compliant inferred mineral resource estimate of the Bonanza Deposit. This work reported an inferred resource of 2,283,000 tonnes at an average grade of 6.98g/t Au over an average width of 3.1 metres (diluted - 2,468,000 tonnes at an average grade of 6.46g/t Au over an average width of 3.4 metres) using a 4.0g/t cut-off grade. A major drill campaign has been initiated to expand and further delineate this deposit.

Drilling toward the Joint Venture project from the Campbell Complex of Red Lake Gold Mines, located immediately east of the property, has reached a depth of 1239 metres and has been temporarily suspended while additional drill equipment is ordered. The primary target of this hole, collared on the 41 Level (approximately 1,875 meters or 6,150 feet below surface) is located approximately 1200 to 1650 metres downhole. Drilling is expected to resume in the near future. Prior to reaching the main target area, a narrow gold-bearing zone was intersected, returning an assay of 6.80 gpt Au (0.20 oz/ton) over 1.0 metre.

Santa Teresa Project

Initial drilling has intersected multiple mineralized vein systems at the Santa Teresa Concession (STC), a joint venture between Premier and Sutter Gold Mining Inc. (TSX-V:SGM) in the historic and high grade El Alamo District of Baja California Norte, Mexico. The current exploration effort will consist of a minimum of 14-hole Diamond drill program to test the extent, continuity and grade of known gold-bearing vein structures previously evaluated only within 20 metres of surface.

The STC is located adjacent to and on strike from the past-producing Princessa Mine (the district's largest gold producer), whose orebody was known to extend close to the STC boundary. Data suggests that potential extensions of the Princessa Mine along strike and at depth have not been tested. The El Alamo District was acquired owing to it's history of high mined grades (Historical data indicates that mined grades within the district are between 1.00 and 2.00 ounces gold per ton), with little modern exploration. Assays from the first several holes are expected to be released in the near future.

PQ North Project

The PQ North Property is strategically located on the PQ limb of the key iron formation that is host to Goldcorp's Musselwhite Gold Mine. A recently completed airborne geophysical survey has identified several strong structures that cross-cut the iron formation. These structures have the potential to host gold mineralized systems similar to those currently being mined at Musselwhite. Premier anticipates conducting a Diamond drill program to follow up on these favourable targets in the near future.

The PQ North Property encompasses a major fold structure along strike from and within the main iron formation unit that hosts the gold-bearing ore zones at Musselwhite. Previous drilling on the property has returned several significant intersections and has identified structural units similar to those at the mine. Recently, Goldcorp indicated that gold mineralization has been intersected in close proximity to Premier's PQ North Properties with results that include a drill intercept of 15.5 grams per tonne gold across a true width of 4.5 metres in hole 07-NSD-005.

Premier holds the right to earn a 100% interest in the PQ North Property subject to a 2% Net Smelter Returns Royalty of which Premier retains the right to acquire 1% by paying to the vendor $1 Million.

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 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.

For further information, please contact:
Ewan Downie, President & CEO Phone: 807-346-1390 Fax: 807-345-0284
E-mail: info@premiergoldmines.com Web Site: http://www.premiergoldmines.com
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

 

Data and Statistics for these countries : Canada | Mexico | All
Gold and Silver Prices for these countries : Canada | Mexico | All

Premier Gold Mines Ltd.

EXPLORATION STAGE
CODE : PG.TO
ISIN : CA74051D1042
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Premier Gold Mines is a gold exploration company based in Canada.

Premier Gold Mines holds various exploration projects in Canada and in Mexico.

Its main exploration properties are HARDROCK, GERALDTON, ARGOSY, EAST BAY, RAHILL-BONANZA, SADDLE GOLD, RAIN and NEWMAN-MADSEN in Canada and SANTA TERESA in Mexico.

Premier Gold Mines is listed in Canada. Its market capitalisation is CA$ 596.5 millions as of today (US$ 474.8 millions, € 399.1 millions).

Its stock quote reached its highest recent level on April 08, 2011 at CA$ 8.00, and its lowest recent point on March 20, 2020 at CA$ 0.85.

Premier Gold Mines has 201 530 000 shares outstanding.

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Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
KEFIKEFI.L
Reduced Funding Requirement
GBX 0.60+3.28%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.05-9.09%Trend Power :
Imperial(Ag-Au-Cu)III.TO
Closes Bridge Loan Financing
 2.23-0.89%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
 14.42+3.30%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
 0.32+1.59%Trend Power :
Havilah(Cu-Le-Zn)HAV.AX
Q A April 2017 Quarterly Report
 0.21+5.00%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
 2.11+5.50%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 42.42+1.51%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
Terramin(Ag-Au-Cu)TZN.AX
2nd Quarter Report
AU$ 0.04+0.00%Trend Power :
Sun Res.(Oil)SUR.AX
Released ASX Announcement: Quarterly Activities Report
AU$ 0.00+0.00%Trend Power :
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