PREMIER GOLD MINES LIMITED
(TSX:PG) ("Premier" or the
"Company") is pleased to announce that it has initiated
exploration at the Saddle Gold Project, located within the prolific
"Carlin Trend" in Nevada. The Phase I exploration program is
the first step toward a goal of completing a NI 43-101 compliant
mineral resource estimate on the Saddle Deposit and includes initially
some 11 drillholes designed to expand the
known size of the deposit and also confirm its internal grade and
geometry. A ground-based gravity geophysical survey is also underway.
Premier regards the potential to delineate a significant resource at
its Saddle Gold Project as excellent and believes the Rain Subdistrict will "re-emerge" as an
important gold-producing enclave in the future as it remains an
under-explored part of the Carlin Trend.
The Saddle Gold Project is 100%-held by Premier's wholly-owned
subsidiary (Premier Gold Mines USA Inc.) and includes the mineral
rights in respect of a majority portion of the Saddle/NW Tess Gold
Deposit ("Saddle Deposit" or "Saddle") and a 1.5%
production royalty on the nearby Emigrant Springs Gold Deposit
("Emigrant Springs" or "Emigrant"). Both Emigrant
Springs and the minority portion of the Saddle Deposit are owned by
Newmont Mining Corporation ("Newmont"). The Saddle Gold
Project is located in Elko County, Nevada (See Figure 1 below), some eleven miles southeast of Newmont's 25
million ounce Gold Quarry/Tusc operation, two
miles west of Emigrant Springs and adjacent to Evolving Gold
Corporation's high grade "Carlin Project".
Up to 80% of the Saddle Deposit, regarded as one of the highest grade
undeveloped gold deposits in the United States, is located on Premier's
Saddle Gold Project. The Saddle Deposit was previously estimated to
host some 1,475,000 ounces of gold within 3.99 million short tons (3.59
million tonnes) of material at a grade of
0.37 oz/ton (12.7 g/t)* and remains open. (Readers are cautioned that
while the resource estimate and analysis were undertaken by competent
professionals, a qualified person has not done sufficient work to
classify the historical estimate as a current mineral resource. While
viewed as relevant, Premier is not treating the historical estimate as
current mineral resource and the historical estimate should not be relied
upon.)
The Saddle Deposit is located down-plunge of Newmont's Rain Gold
Deposit, which was mined by both open pit and underground methods and
resulted in underground infrastructure being developed proximal to
Saddle. The Saddle Deposit was discovered by Newmont in the early
1990's, who later had to relinquish a majority
of the asset when historically low gold prices precluded the deposit
from being developed on a timely basis. The acquisition of the Saddle
Gold Project, including the Saddle Deposit, is consistent with
Premier's strategy to build a significant presence in proven,
accessible, and low-risk mining jurisdictions.
In addition to Saddle, Premier holds a 1.5% production royalty in
Newmont's Rain Mine Gold Deposit and, as noted above, Emigrant Springs,
located in close proximity to the Saddle Deposit. Emigrant Springs is
an advanced-stage project that represents a portion of Newmont's
potential future production from its Carlin operations. Newmont's
published ore reserve for Emigrant includes some 1.2 million ounces of
gold (Newmont's 2009 Annual Report).
"Our initial program at Saddle represents a new chapter in
Premier's aggressive growth strategy" commented Ewan Downie, President and CEO of Premier Gold Mines
Ltd. "Acquiring this much sought-after asset in the heart of one
of the world's top gold regions reflects Premier's commitment in
securing and advancing undervalued, but high quality, gold
projects".
(*Source: Geologic Overview of the Rain Subdistrict,
by Longo, Thompson and Harlan, in the Nevada Bureau of Mines and
Geology Bulletin 111, Gold Deposits of the Carlin Trend, dated 2002,
referencing estimates and analysis reported by Mallette,
P.M., 2001, Rain Folio, 2000 Annual Report: Newmont Mining Corporation
internal report, GQ Geology Trailers.)
OTHER PROJECTS
Premier holds several projects that are the subject of exploration
programs in 2010. Recent drilling in Red Lake has resulted in new
high-grade gold discoveries on the Rahill-Bonanza
(Premier 49% and Red Lake Gold Mines 51%) and East Bay Projects
(Premier 35% and 50% - JV with RLGM). The Rahill-Bonanza
Project is located in close proximity to Goldcorp's Red Lake Gold Mines
infrastructure, with new intersections that include 68.89 g/t Au
across 3.5 metres (m). At East Bay, recent
drilling returned 297.61 g/t Au across 1.0 m. The Company has
eleven drills operating at the Hardrock
Project (Premier holds a 70% interest), where drilling has successfully
identified multiple open pit and underground style gold zones including
recent intersections of up to 7.92 g/t Au across 114.5 m including
23.56 g/t Au across 31.0 m. Earlier in 2010, Premier announced a NI
43-101 compliant mineral resource estimate relating to the near-surface
(open pit) mineralization at Hardrock. An
updated resource estimate, designed to include both the near-surface
and deeper (underground) mineralization, will be based on results that
include analysis of the entire 2010 drill program.
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.
Assay results for Hardrock are from core
samples sent to Activation Laboratories, an accredited mineral analysis
laboratory in Ancaster, Ontario, or 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 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
holds a 70% interest in the Hardrock Project.
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
This
Press Release contains certain information that may constitute
"forward-looking information" under applicable Canadian
securities legislation. Forward-looking information includes, but is
not limited to, statements about strategic plans, future operations,
future work programs, capital expenditures, discovery and production of
minerals, ,timing of geological reports and corporate and technical
objectives and expectations regarding the Rain Subdistrict.
. Forward-looking information is necessarily based upon a number of
assumptions that, while considered reasonable, are subject to known and
unknown risks, uncertainties, and other factors which may cause the
actual results and future events to differ materially from those
expressed or implied by such forward-looking information, including,
risks inherent to the mining industry, adverse economic and market
developments and the risks identified in Premier's annual information form under the heading "Risk Factors".
There can be no assurance that such information will prove to be
accurate, as actual results and future events could differ materially
from those anticipated in such information. Accordingly, readers should
not place undue reliance on forward-looking information. All
forward-looking information contained in this press release is given as
of the date hereof and is based upon the opinions and estimates of
management and information available to management as at the date
hereof. Premier disclaims any intention or obligation to update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by law.