Premier provides exploration update - New discovery
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Apr 09, 2008 05:10PM
Red Lake and Geraldton are Canada's PREMIER addresses for gold
Shares Issued: 68,647,742
THUNDER BAY, ON, April 9 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to provide an exploration update for its substantial exploration programs on four active projects. In 2008, Premier expects to perform between 50,000 and 100,000 metres of drilling on these projects located in Northwestern Ontario,Canada<... and in MexicoMarch 3, 2008 , and in addition to the new intersections contained in this release, recent drilling several hundred meters south of these zones intersected multiple high-grade vein zones (No,9, No.10 and No.11 Veins) with drill intersections including 254.8g/t Au (7.44 opt) over 0.3m, 60.88/t Au (1.78 opt) over 1.0m and 45.3g/t Au (1.32 opt) over 1.0m suggesting the potential for both bulk tonnage and high-grade mineralization at Little Long Lac.
Premier holds the option to acquire up to a 70% interest in the Geraldton Project from Roxmark Mines Limited (TSX-V:RMK) by making cash and share payments to Roxmark, and performing exploration on the Project. The current drilling is part of an ongoing minimum$2.5 Million exploration program aimed at confirming Premier's belief that previously untested sub-parallel mineralized faults occur proximal to the historic Little Long Lac Gold Mine. The mine produced more than 600,000 ounces of gold during the period 1934-53 at an average grade of 11.66g/t Au. PLL08-009 and 012 are the first two holes drilled north of the mine workings in the current program and in an effort to delineate the potential of the new zones. Drilling also continues to systematically test immediately south of the historic mine workings in an effort to build gold resources in the No.9 and No.10 Vein zones.
The "Geraldton 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 approximately 10 kilometres of some of the most prospective geology in the region and is host to three past-producing mines and numerous exploration targets in a district that has seen historic production of more than 4.1 Million ounces of gold. Several slides of the Little Long Lac area can be viewed on the Premier Gold Mines Limited website,Santa Teresa Project
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Initial drilling has intersected multiple mineralized vein systems at the Santa Teresa Concession (STC), a joint venture between Premier and Sutter Gold Mining Inc. (TSX-V:SGM) in the historic and high grade El Alamo District of Baja California Norte,Mexico<!-... . The current exploration effort will consist of a minimum of 14-hole diamond drill program to test the extent, continuity and grade of known gold-bearing vein structures previously evaluated only within 20 metres of surface.
The STC is located adjacent to and on strike from the past-producing Princessa Mine (the district's largest gold producer), whose orebody was known to extend close to the STC boundary. Data suggests that potential extensions of the Princessa Mine along strike and at depth have not been tested. The El Alamo District was acquired owing to it's history of high mined grades (Historical data indicates that mined grades within the district are between 1.00 and 2.00 ounces gold per ton), with little modern exploration. Assays from the first several holes are expected to be released in the near future.
PQ North Project
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The PQ North Property is strategically located on the PQ limb of the key iron formation that is host to Goldcorp's Musselwhite Gold Mine. A recently completed airborne geophysical survey has identified several strong structures that cross-cut the iron formation. These structures have the potential to host gold mineralized systems similar to those currently being mined at Musselwhite. Premier anticipates conducting a diamond drill program to follow up on these favourable targets in the near future.
The PQ North Property encompasses a major fold structure along strike from and within the main iron formation unit that hosts the gold-bearing ore zones at Musselwhite. Previous drilling on the property has returned several significant intersections and has identified structural units similar to those at the mine. Recently, Goldcorp indicated that gold mineralization has been intersected in close proximity to Premier's PQ North Properties with results that include a drill intercept of 15.5 grams per tonne gold across a true width of 4.5 metres in hole 07-NSD-005.
Premier holds the right to earn a 100% interest in the PQ North Property subject to a 2% Net Smelter Returns Royalty of which Premier retains the right to acquire 1% by paying to the vendor$1 Million.
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 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 fully financed Canadian-based mineral exploration and development company with several projects and deposits in Northwestern Ontario and a joint venture inMexico<!--/lo... . In the Red Lake gold mining camp, two of these are operated in joint venture with Red Lake Gold Mines. A strategic project is also located on the main Musselwhite Gold Mine trend.
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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For further information: Ewan Downie, President & CEO, Phone: (807) 346-1390, Fax: (807) 345-0284, E-mail: info@premiergoldmines.com, Web Site: http://www.premiergoldmines.com