PREMIER
GOLD MINES LIMITED (TSX:PG) is pleased to provide an exploration update from an ongoing drill
program at the Company's Rahill-Bonanza joint venture project in Red Lake. Premier
remains one of the sectors most active exploration companies, defining
mineralization on multiple projects, an effort that is expected to result
in at least one NI43-101 compliant gold resource estimate by year-end. Prior
to year-end, exploration in Red Lake will include drilling on both the
Rahill-Bonanza joint venture and the 100% held Lennie Project. This
drilling will test some of the district's most prospective targets proximal
to what is considered the world's richest gold mine.
The Rahill-Bonanza joint venture Property is being explored with Red Lake
Gold Mines Limited ("RLGM"), an affiliate of Goldcorp Inc. Recent
work immediately north of the Rahill-Bonanza Project suggests that
Goldcorp's Bruce Channel Deposit is hosted within a North-South fault
structure that could cross onto the joint venture property. A new hole is
being drilled that will test the northwestern portion of the Property
potentially along strike from the Bruce Channel Deposit.
A recently completed hole (PG09068A), that did not test the Bruce Channel
target, intersected high-grade mineralization within the nearby West
Granodiorite Zone (WGZ) target with assays as high as 12.5 grams per tonne
gold (g/t Au) across 4.5 metres (m) in a section containing numerous specks
of visible gold, and 21.2g/t Au across 0.5m. This intersection is being
followed-up with ongoing drilling.
Ewan Downie, President of Premier, stated that "Our drilling has
intersected high grade gold mineralization within the WGZ in a 400 m
step-out below where to WGZ was previously drilled and bulk sampled. This
part of the Red Lake camp has seen almost no previous exploration and
suggests that this deposit could have significant size potential. The
grades and widths from this deep intercept are comparable to those at the
Bruce Channel Deposit".
The current drill program is focused on testing prospective exploration
targets, and defining potentially significant resources, located in close
proximity to Goldcorp's Bruce Channel Deposit that is located immediately
northwest of the joint venture property. The new West Granodiorite
intercept is located approximately 100 metres along strike to the west of,
and 400 metres below, the known WGZ Deposit, a large, near-surface, bulk-tonnage
deposit that shares similarities to the Goldex Deposit that was recently
brought into production by Agnico-Eagle in Northwestern Quebec. Goldex is a
profitable low-grade bulk mineable gold deposit with favourable cash costs.
Previous work, including test mining on the 1300 foot Level of the
Cochenour-Wilmar Mine, has identified a significant (historical) resource
within the WGZ that appears to be higher grade than Goldex. This work
suggests a historical resource of up to 5,700,000 tons @ 0.10-0.15 oz/ton
(3.4-5.1g/t) Au, that is open both along strike and at depth (a
qualified person has not done sufficient work to verify the historical
resource, the company is not treating the historical resource as a current
resource and the historical resource should not be relied upon). The
new drill intercept, from which the high grade interval was contained
within a larger mineralized section of WGZ that returned 1.5 g/t Au across
75 m, suggests excellent potential to materially increase the size of the
WGZ deposit.
The joint venture property covers several kilometers of the prolific
"Mine Horizon" between the Cochenour (Bruce Channel) complex to
the west and the RLGM complex to the east. The RLGM has produced more than
18 Million ounces of gold, discovered nearly 10 Million additional ounces
of resources, and is widely considered to be the world's richest gold mine.
Pursuant to its press release dated May 7, 2009, Goldcorp announced several
major development initiatives that are being considered on and around the
Joint Venture Property. De-watering of the Cochenour mine workings has
started for the potential development of the Bruce Channel Deposit. This
de-watering will also allow underground access to the Wilmar and West
Granodiorite Zones located on the Joint Venture Property immediately to the
southeast. Additionally, Goldcorp is considering a high-speed tram system
to link Bruce Channel to the Red Lake Gold Mines complex. A straight line
from the RLGM complex would pass through the Joint Venture Property and would
provide exploration access to several kilometres of favourable, untested,
geology.
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 from Rahill-Bonanza 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 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 active drill programs at its Hardrock Project and PQ
North Project that is strategically located on the main Musselwhite Gold
Mine trend.
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