PREMIER
GOLD MINES LIMITED (TSX:PG) is pleased to announce initial results from drilling in
the EP-Zone, one of several targets currently being drilled on the
company's Hardrock Project in Northwestern Ontario. This program is
expected to consist of more than 50,000 metres of definition and
exploration drilling leading to NI 43-101 compliant gold resources in 2009.
The Hardrock Project is being operated by Premier under joint venture with
Roxmark Mines Limited (TSX-V:RMK).
The EP-Zone has been identified as a potential high-grade open pit
target in the vicinity of the historic North Zone, from which 2.97 Million
tonnes of ore was mined at a grade of 7.54 grams per tonne gold (g/t Au).
Initial drilling has identified 3 sub-zones within the EP target consisting
of the South Limb, North Limb and HGV horizons. Significant mineralization
has been intersected in the first nine holes within all three horizons
including 11.83g/t Au across 11.4 metres (m) in the South Limb, 2.24 g/t Au
across 21.0 m in the North Limb, and 2870.00 g/t Au across 0.3 m within the
HGV horizon.
The following tables demonstrate the potential of the EP-Zone and include
historic results that help to highlight the mineralization within each
horizon intersected in limited previous drilling in the area. Note that
true widths of the intercepts are estimated at approximately 70% of the
intervals provided.
HGV (High-Grade Vein)
High-grade, narrow vein, mineralization was identified in numerous areas of
the mine which operated from 1938-1968. This mineralization received little
attention as most mining was from low-cost bulk tonnage, moderate grade
horizons. Drilling has intersected high-grade mineralization within the
confines of the historic proposed pit area (although existing
historical resources have been used as a basis for confirming target
potential, there is been insufficient exploration data to define a mineral
resource and it is not certain that further exploration will result in
discovery of a mineral resource.) at the EP-Zone, highlighted by the
following results:
Table 1: HGV Subzone Results in EP-Zone
South Limb
Drilling in the South Limb, south of the historic mine workings, has
returned numerous broad intercepts of significant gold mineralization
including:
Table 2: South Limb Subzone Results in EP-Zone
North Limb
Drilling in the North Limb, north of the historic mine workings, has
returned the following intercepts of mineralization in a third horizon
within the EP-Zone:
Table 3: North Limb Subzone Results in EP-Zone
The Hardrock Project is operated under a joint venture with Roxmark Mines
Limited (TSX-V:RMK) (Premier earning a 70% interest). The Hardrock Project
is host to several past-producing mines which collectively produced more
than 2.0 Million ounces of gold from the same deposits to relatively
shallow depths of approximately 2000 feet (600 metres) from 1938-1968. The
mined zones remained open at depth at the time mining ceased and developed
historical resources were left in place within the existing mine workings (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).
Importantly, the Hardrock Project has the potential for defining several
styles of mineralization capable of hosting resources, with grades and
widths similar to many of Ontario's major gold mines including:
- Open pit-style
mineralization with grades exceeding 1.5 g/t Au (Timmins, Hemlo)
- Broad zones of
mineralization with grades averaging 5.0+ g/t Au (Musselwhite)
- Narrow vein zones
with higher gold grades often exceeding 7.0g/t (Red Lake, Pickle Lake)
Initial
drilling with four drills is focusing on delineating both open pit and
underground resources with the goal of defining a multi-million ounce gold
resource that can be moved quickly towards development (See references
to historical resources above.). The Project offers development
advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major
power lines running through the center of the property. Significant
potential exists for developing resources in several areas including: 1)
Open pit-style mineralization at the site of the original discovery where a
resource containing several hundred thousand ounces of gold was partially
drilled off by previous operators; 2) Several newer high-grade discoveries
have been made throughout this large property package that have received
little to no follow-up; 3) Resource blocks reported to remain within the
mine workings; and, 4) The main mined zones which remain open below the
600m Level.
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.
PQ-North Project Drilling Underway
Drilling recently got underway at Premier's 100%-owned PQ North Property.
The PQ-North Project is strategically located on the PQ limb of the key
iron formation that is host to Goldcorp's Musselwhite Gold Mine.
In a July 31, 2008 SEC filing, Goldcorp indicated that gold mineralization
had been extended as far as six kilometres north along strike of the main
mine facilities, with intersections on structures trending in close proximity
to Premier's PQ North Property,. These results include a drill intercept of
15.5 g/t Au across a true width of 4.5 m in hole 07-NSD-005. 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. Exploration to-date has included an airborne
geophysical survey, which has identified major folding and several untested
structures similar to those at the Musselwhite Mine.
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, as well as lead to a Memorandum of Understanding (MOU) in the
near future.
Premier expects to drill up to 5000 metres of NQ-sized core by early- to
mid-April.
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 Hardrock is sent to
Activation Laboratories Ltd., 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 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.