PREMIER GOLD MINES LIMITED (TSX:PG) is
pleased to provide an update on planned activities for the Company's
2011 exploration campaign, including seven currently active or
mobilizing drill programs. Drilling is now underway at Premier's
wholly-owned Saddle Project in Nevada, and at the Hardrock
Project in Ontario. In the near future, Ontario drilling will also
commence at the PQ North (Musselwhite
District), Rahill-Bonanza (Red Lake), East
Bay (Red Lake), Newman-Madsen (Red Lake) and the Redgold
(Red Lake) Project. Highlights for 2011 include:
than 120,000 metres of planned drilling.
has begun a new chapter in its growth with three drill rigs
activated at Saddle. Additional projects
have also been acquired
updated NI43-101 resource estimate for the Hardrock
Project is expected late Q1 2011.
in Red Lake will focus on delineating new high-grade gold
discoveries made at the Rahill-Bonanza
and East Bay joint venture projects in 2010.
high-speed tram could reach the Rahill-Bonanza
Joint Venture ground by late 2011, with drilling expected
North drilling will test for mineralization along strike from the
new Lynx Zone discovery at Goldcorp's Musselwhite
enters 2011 with more than $50 million in cash.
President and CEO of Premier said, "Premier experienced
unprecedented growth in 2010, highlighted by ongoing exploration
successes and new high-grade gold discoveries. This resulted in strong
share price performance throughout the year. We expect 2011 to be no
different and have approved the largest exploration budget in Company
history. Our strategy to maximize shareholder value by growing gold
resources on numerous projects is supported by no less than five active
drill programs in the first quarter".
The Hardrock Project, operated under a joint
venture with Goldstone Resources Inc. (TSX:GRC)
(Premier holds a 70% interest in the project), saw more than 110,000 metres of drilling in 2010. This drilling was
successful in identifying and delineating multiple open pit and
underground style gold zones with the following highlights:
in 2010, a large NI43-101 compliant open pit resource was
announced. It is anticipated that this resource will be updated in
latter portion of Q1 2011 and include all drilling to the end of
has expanded the footprint of the North Zone, which hosted an
historic production grade of 7.54 grams per tonne
of gold (g/t Au) or 0.22 ounces per short ton (oz/ton) more than
600 metres down-plunge below the bottom
level of the Hardrock Mine where it
remains wide open for expansion.
successfully delineated and expanded the F-Zone deposit with
intersections such as 7.92 g/t Au across 114.5 metres
(m) (0.23 oz/t across 375.6 feet) including 23.56 g/t Au across
31.0 m (0.69 oz/ton across 101.7 feet) within the historic F-Zone
resource area and 18.49 g/t Au across 20.5 m (0.54 oz/t across
67.2 feet) in step-out drilling approximately 400 metres west of the limits of previous
discoveries were made including the K-Zone, located just below the
F-Zone. A full summary of results will be released in the near
submittals will be made for Advanced Exploration (de-watering and
In 2011, eight drills will be active, further
delineating resources at Hardrock. The Hardrock Project is host to several past-producing
mines which collectively produced more than 3.0 million ounces of gold,
primarily from shallow depths of 2000 feet or less (600 metres). The mined zones remained wide open at
depth at the time mining ceased. Additionally, developed but unmined historic resources were left in place
within the existing mine workings.
Projects - 4 Drill Programs
In 2011, all four of Premier's Red Lake area projects will be active.
The two primary projects, the Rahill-Bonanza
and East Bay Joint Ventures, are both operated by Red Lake Gold Mines
Limited ("RLGM"), an affiliate of Goldcorp Inc.
The Rahill-Bonanza Project
(PG:49%) is strategically located in the heart of the prolific Red Lake
gold mining district between the Red Lake Gold Mines complex to the
east, and the Cochenour (Bruce Channel)
complex to the west. The East Bay Project (PG 35%) is located on
the East Bay ultramafic trend along strike to
the north of Rubicon's Phoenix Gold Project with 2010 drilling having
focused on testing structures similar to those at the F2 Deposit that
is currently being developed by Rubicon. Highlights
for 2011 include:
drilling at the PG70 Zone discovery at Rahill-Bonanza
proximal to new mine infrastructure being developed by Goldcorp at
Cochenour (Bruce Channel).
drilling proximal to a 200 metre
step-out hole drilled down-plunge of the past-producing Wilmar Gold Mine that returned 68.87 g/t Au
across 3.5 m (2.01 oz/t across 11.5 feet), including 207.43 g/t
across 1.15 m (6.06 oz/t across 3.8 feet) in hole PG10082.
drilling at a new high-grade gold zone discovered at East Bay with
drill results as high as 297.61 g/t Au across 1.0 m (8.68 oz/ton
across 3.3 feet).
drilling onto the Rahill-Bonanza JV from
a high-speed tram that is being constructed to connect the Red
Lake Gold Mines complex and the Cochenour
(Bruce Channel) Mine complex. A portion of this tram is expected to pass through, or come in
close proximity to, the joint venture project, providing an
excellent exploration platform. This tram will intersect several kilometres of some of the highest potential
and untested geology along the main Red Lake "Mine
Trend". The Red Lake Gold Mine is considered to be one of the
world's richest gold mines with production of more than 18 million
ounces of gold and nearly 10 million ounces of resources.
The acquisition of Saddle Gold represents a new chapter in Premier's
strategy to build a significant presence in proven, accessible and
low-risk jurisdictions that offer opportunities for the discovery of
high grade gold deposits. Highlights
for Saddle exploration will
drill rigs currently active focused on expansion and confirmation
drilling of the Saddle deposit
test targets generated by a recently completed gravity geophysical
survey at Saddle. This survey has confirmed the potential for
additional discoveries, similar to the Saddle Deposit, to be made.
The Saddle Project is
located proximal to Newmont's Rain Gold Mine, which was previously
mined by open pit and underground methods, and Newmont's Emigrant Springs deposit (where Premier holds a 1.5%
production royalty). Emigrant Springs is an advanced-stage open pit
project host to 1.5 million ounces of gold. Importantly, the Bureau of
Land Management recently released the final EIS (Environmental Impact
Statement) on Emigrant, which could potentially pave the way for
development of the mine to begin in 2011.
Premier's 100%-owned PQ North Property is strategically located on the
PQ limb of the key iron formation that is host to Goldcorp's Musselwhite Gold Mine. In 2010, Goldcorp announced
a new discovery at Musselwhite (the Lynx
Zone) where early indications suggest that it could be the largest and
highest grade deposit discovered at Musselwhite.
To date, Premier has discovered several gold zones in a geological
setting nearly identical to that at Musselwhite
but has yet to test the deeper portions of the host iron formation
where the more significant gold deposits are located at Musselwhite. In 2011, two drills will be active at
PQ North further delineating existing zones and focusing on testing the
deeper portions of the host iron formation. The Musselwhite
Mine has produced more than 2.0 million ounces of gold and has reserves
and resources totalling in excess of 3.0
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 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
Premier Gold Mines Limited is a well-financed Canadian-based
mineral exploration and development company with several projects and
deposits in Northwestern Ontario and Nevada. In the Red Lake gold
mining camp, two of these are operated in joint venture with Red Lake
For further information, please contact:
Ewan Downie, President & CEO
Web Site: www.premiergoldmines.com
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.