PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to provide an update
with respect to the Rahill-Bonanza Property, located in the heart of the
Red Lake Mining District in Northwestern Ontario, that is being explored
under a joint venture with Red Lake Gold Mines Limited ("RLGM"),
an affiliate of Goldcorp Inc. A summer drill program is being initiated
that will focus on testing prospective exploration targets, and defining
potentially significant resources, located in close proximity to Goldcorp's
Bruce Channel Deposit.
This program will initially test several new target areas including the
main Wilmar Gold Mine system and the West Granodiorite Deposit, in addition
to the potential on-strike extension of the Bruce Channel Deposit that is
located immediately north of the joint venture property. Several holes were
completed during the winter season to test the potential up-dip extension
of the Wilmar deposit, highlighted by intersections of 9.13 grams per tonne
(g/t) Au across 4.0 metres (m) and 10.2g/t Au across 0.5m.
BRUCE CHANNEL DEPOSIT EXTENSION
Recent work immediately north of the Rahill-Bonanza Project suggests that
the Bruce Channel Deposit is hosted within a North-South fault structure
that could cross onto the joint venture property. A new deep hole will be
drilled to test both the West Granodiorite Deposit (located on the JV
property) and the potential N-S fault structure on the northwestern portion
of the property.
The West Granodiorite Deposit ("WGD") is a large, near-surface,
bulk-tonnage deposit that could become part of the early mine planning in
this area. The WGD is host to a significant historical resource, 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 primary target will be testing a North-South fault structure along
strike from the Bruce Channel Deposit. This fault structure is believed to
host the Bruce Channel Deposit to the north of the joint venture property. Of
particular interest is a hole drilled due west from the 1300 foot Level
workings of the Wilmar Gold Mine that intersected two high-grade gold
bearing zones that assayed 10.29g/t Au across 0.6m and 23.31g/t Au across
0.2m up-dip from the target area.
PROLIFIC "MINE HORIZON" NEAR WILMAR GOLD MINE
Two of the targets are located in close proximity to the past-producing
Wilmar Gold Mine where, over a period of four years, 203,256 tons of ore
was mined at an average grade of 0.30 oz/ton Au (10.3g/t Au). The deposit
remained open at depth when the mine shutdown and drilling performed
down-dip of the mine workings by the joint venture in 2007 returned
numerous significant intersections including 18.1 g/t Au over 2.0 m and
14.2g/t Au over 5.0 m. The targets of the current program will include the
Footwall Diorite Zone ("FDZ") and the deep Wilmar target.
Initial drilling will involve extending a surface hole that was stopped
short of its target. This hole will test the main Wilmar ultramafic system
in an area of little previous drilling, in addition to testing the FDZ in
an area where a lone historic hole returned high-grade gold assays up to
72g/t Au. Pending a favourable intersection, wedge drilling is planned off
this initial hole.
Additional drilling will involve extending a deeper hole to test for the
potential projection of the Wilmar gold system intersection with the main
"Mine Horizon" at depth. A deep hole drilled by the joint venture
in 2008, which veered away from its intended target, intersected what is
interpreted to represent the prolific "Mine Horizon"
approximately 3 kilometres from the western-most occurrence of this
deformation corridor at the Red Lake Gold Mines (RLGM) complex. 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. This deformation system was encountered over a
core length of approximately 500 metres and has an estimated true width of
300-350 metres. The potential intersection of the two structures is
considered to have the potential to host high-grade gold mineralization.
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 (and Wilmar) mine
workings has started for the potential development of the Bruce Channel
Deposit. This de-watering will also provide 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.
A presentation providing an update of the Red Lake program is available on
the company's website, www.premiergoldmines.com. The Rahill-Bonanza Project
covers several kilometres of the main Red Lake "Mine Trend" that
is host to the world class Red Lake Gold Mines to the east, and Goldcorp's
"Bruce Channel" discovery to the west of the Joint Venture
Property.
Click to Enlarge
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 has active drill programs at its Hardrock Project near
Geraldton, Ontario 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
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.
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