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Premier Gold Announces $15M in Exploration Plans

Wednesday, Jan 07, 2009

Ewan Downie President and CEO of Premier Gold announced his companies’ exploration plans for 2009 at a press conference given at the Valhalla in this morning. A total amount of $15 million will be spent on defining and exploration of advanced gold prospects in northwestern Ontario.

One claim in the Red Lake area is adjacent the richest gold mine in the world. It is the last parcel of land on the Red Lake “Mine Trend” that is not entirely owned or controlled by Goldcorp. This property holds high prospects for Premier Gold and beginning in January 2009 a resource definition-drilling program will begin. Eventually two drill rigs will be working this claim.

While the Red Lake Claim is exciting it is still distant. The company is most excited about their near term projects in the former gold producing town of Geraldton. Dina Quenneville of the Greenstone Economic Development Corporation was present and anxious to hear the news. The Greenstone area has a rich history of mining and they were happy to hear that over $8 million will be spent defining and exploring the companies’ assets in the Geraldton area. It gets exciting when the dream of a mine re-opening or a new development beginning becomes a reality. The economic development corporation will be ready to deal not only with the needs of the mine, but also the increased needs of the community.

Minister of Mines and Development, Michael Gravelle says mining will be the key to economic prosperity for many communities. The current efforts to revise the Mining Act are critical to attracting more mining activity to our area. “It is important that we get this right”. In choosing to be a locally based company, buying and using local resources Premier Gold has made a statement about their confidence in mining exploration and development in northwestern Ontario. They are not only a premier gold company, but a premier corporate citizen as well.

Other work done by the province in the past is paying big dividends for miners. Flow through shares make it easier to for junior explorers to raise capital. Ontario Geologic surveys done in the past have enticed exploration companies to come here to explore for minerals.

Junior mining exploration companies create wealth by discovering and developing potential mines. While doing this they employ local geologists, as well as a team of expert mining specialists. Premier Gold does all this from its’ base here in Thunder Bay. Many times when the time comes for production, the property will be sold to a company with the deep pockets needed to develop and get the environmental approval for a producing mine.

Success comes not only from the talent of the mining team but also from cooperation with local communities. In northwestern Ontario this means collaborative deals with First Nations Communities such as the letter of intent Premier Gold has signed with North Caribou First Nation. “We are looking to develop and utilize as much local mining talent as we can”, says CEO Ewan Downie.

Premier Gold is a fully financed company with over $20 million in working capital. There is no corporate debt. The company has major shareholders who account for 25% of the companies issued stock. They are Inmet Mining, Barrick Gold, and Goldcorp Inc. Premier Gold is listed on the TSX under the symbol PG. Dan Mechis manager of Investor Relations for the company is optimistic. Currently there are approximately 77 million shares trading in the $1.70 range. “Many investors are anxious to buy back into stocks before price inflation of stocks reduces the return on their money.”

Canadian Mining Projects attract international attention because there is security of land and corporate holdings. Canada is seen as a political stable place for business. In Canada the mining regulations are solid creating a stable environment for growth. Canada has become the world’s primary supplier of mining service companies and professional personnel.

At present the Geraldton project is the number one focus of Premier Gold. It is unique in that there is high quality ore in abundance, existing infrastructure of the community of Geraldton, schools hospitals and shopping are in place. There is also a developed and experienced work force in the area ready for work. Other dreams for mining companies are the local presence of a natural gas pipeline; a major hydro transmission line services the community. Then there is the rail line and the Trans-Canada highway. It is clear to see that the Greenstone Economic Development corporation has celebrated the areas mining past, they are also realistically hopeful that mining will soon be a part of their future as well. It is estimated that given the current proven resources, a 4000-ton per day mill could run for 12 years. Ewan Downie will be working had to prove that there is much more gold in those hills. "

Source: Lake Superior News