Premier Gold Mines Ltd.

Published : February 04th, 2009

Launches PQ-North Drill Program

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Wednesday, February 04, 2009

PG:TSX

 

Premier Launches PQ-North Drill Program

Shares Issued: 78,065,179


PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that a major drill program has been started at the Company's 100% owned PQ-North Project in Northwestern Ontario. The PQ-North Project is considered to have excellent potential to host significant gold mineralization.

  • PQ-North is located on the northern extension of the main iron formation that hosts Goldcorp's Musselwhite Gold Mine.
  • Up to $1.5 Million is earmarked for Phase One exploration in 2009.
  • Several structural breaks similar to those that host gold deposits at Musselwhite have been identified, none of which have been previously drill tested.

Goldcorp has previously indicated that gold mineralization was extended to the north along the PQ Limb with intersections on structures trending in close proximity to Premier's PQ-North Property. Goldcorp also estimates mineralization may have increased from 1.0 million to 2.0 million ounces of gold per kilometre of strike as far as 6.0 kilometres north of the main mine facilities (Goldcorp's SEC filing on July 31, 2008). To date, the Musselwhite Mine has produced more than 2.0 million ounces of gold and has reserves and resources totalling in excess of 3.30 Million ounces at the end of 2007.

The PQ-North Property encompasses a major fold structure along strike from and within the main rock unit (Northern Banded Iron Formation) that hosts the gold-bearing ore zones at Musselwhite. Previous drilling has returned numerous significant intersections and has identified structural units similar to those at the mine. Premier's recently completed airborne geophysical survey has identified major folding and several untested structures similar to those at the Musselwhite Mine. A grid has been cut and a camp has been constructed on the property. A number of shear zones containing quartz veins and hydrothermal alteration were found on the property in the fall of 2008, demonstrating that favourable structures to host gold mineralization exist at PQ-North .. These have never been followed up and represent excellent drill targets where they intersect folded iron formation at depth. Pictures of these structures in outcrop can be found on Premier's website (http://www.premiergoldmines.com/s/PhotoGallery.asp?ReportID=323076). Phase 1 drilling is now underway with an initial 5,000 metre program.

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 the near future.

"It is my opinion that the PQ-North Project is one of the most strategically located gold projects in Canada" stated Tim Twomey, Exploration Manager for Premier. "The potential for discovering auriferous structures is outstanding as the primary structural targets have not been previously tested".

Hardrock Project

A fourth diamond drill has now been activated at Premier's Hardrock Project in Geraldton, Ontario. To date, multiple intervals of veining and mineralization have been intersected in the three initial targets, the EP, Oreo and Tenacity Zones. The fourth drill will begin testing more regional exploration targets identified previously by historical drilling and a recently completed magnetic survey.

The Hardrock 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 some of the most prospective geology in the region and is host to several past-producing mines and numerous exploration targets in a district that has seen historic production of more than 4.1 Million ounces of gold.

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.

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 of these are operated in joint venture with Red Lake Gold Mines. The company also owns a strategic project located on the main Musselwhite Gold Mine trend and recently acquired mineral properties in Geraldton area from Barrick Gold.

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

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.


Associated File: http://www.premiergoldmines.com/i/pdf/2009-02-04_NR.pdf

41 KB in size, approx. 9 seconds to download at 56.6Kbps

You can also view this News Release on our website at:
http://www.premiergoldmines.com/s/NewsReleases.asp?ReportID=336726
 

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Premier Gold Mines Ltd.

EXPLORATION STAGE
CODE : PG.TO
ISIN : CA74051D1042
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Premier Gold Mines is an exploration gold 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$ 340.6 millions as of today (US$ 259.2 millions, € 233.9 millions).

Its stock quote reached its lowest recent point on October 24, 2008 at CA$ 1.05, and its highest recent level on April 08, 2011 at CA$ 8.00.

Premier Gold Mines has 201 530 000 shares outstanding.

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