“We are pleased with the progress of Phase-Four Exploration; drilling has intersected favourable zones, gold-in-soil sampling is underway, and additional claims have been staked making our property package one of the largest in Idaho.” Stated Michael Ostenson, P.Geo., VP Exploration of Premium Exploration. “Drills will be mobilized shortly to the promising Deadwood Zone to begin another year of making new discoveries”.

Premium’s strategy of drilling structures identified by geophysics and gold-in soil trends has led to three gold discoveries and significant resource development; 343,000 indicated and 779,000 inferred gold ounces are hosted in just 0.8 km of structure at the Idaho Gold Project to date. This represents less than 1% of the +60 km of parallel and cross-cutting structures identified on the property.

Drilling Update:

Buffalo Gulch Zone

The target zone at Buffalo Gulch is 4 km of the 12 km correlating Gold-in-Soil and Airborne Geophysical anomalies along the main 30 km trend.

Drilling at Buffalo Gulch is designed to test the same geological model tested at the Friday Zone, 20 km south along the 30 km trend, which resulted in 100% success in drilling and increased the Friday-Petsite deposit from 549,000 oz inferred to 880,000 inferred and 343,000 oz indicated gold in Phase-Three.

A historic indicated resource of 110,000 oz gold in 4.8 Mt at 0.8 g/t with 0.4 g/t Au cut-off is hosted along 0.5 km of the 4 km trend and remains open. The last operator in the 1990’s focused on defining near-surface oxide mineralization. Targeting gold-in-soil anomalies, they defined the near-surface oxide deposit via shallow, vertical RC drilling and did not investigate potential high-grade structural mineralization at depth; Premium’s new geological model.

Friday Zone

Drilling is designed to locate and intersect the Friday Fault at depth, along strike to the north and south to test 5km of potential strike length identified by gold-in-soils and geophysics.

The first 7 holes are located within the current Friday-Petsite resource footprint. Upon successfully locating the Friday Fault at depth (Lower Block), Premium intends to continue stepping out along strike, out of the resource footprint.

343,000 oz gold Indicated (11.8 Mt @ 0.90 g/t Au with 0.5 g/t Au cut-off) and 879,000 oz gold Inferred (26.4 Mt @ 1.04 g/t Au with 0.5 g/t Au cut-off) are hosted along 1.4 km of structure to date; 343,000 oz gold Indicated and 779,000 oz inferred in just 0.8 km.


Field Season Update:

Gold-In-Soil Sampling:

A total of 550 gold-in-soil samples in the +10,000 sampling program have been taken along the western portion of the Deadwood Zone to further refine drill targets planned for the Phase-Four drill program.

This first stage of sampling is focused on the new “Lucky Strike Structure” previously announced March 29th 2011. The second stage of the gold-in-soil sampling program will be focused to the west and south of the Friday-Petsite resource following the OSZ south to the X Zone.

In-situ gold-in-soil sampling along the Idaho Gold Project has been shown to be a key exploration tool and an excellent representation of the underlying bedrock as the region is un-glaciated.

Claim Staking:

A total of 623 new claims have been staked bringing the Idaho Gold Project land position to 2,127 un-patented lode claims and 5 patented claims for a total of 2,132 claims. The total area has been increased by 30% to 172.6 square km.

Please click on the map to enlarge it.

Buffalo Gulch Zone Friday Zone New Land Position &
Drill Plan Map Drill Plan Map Soil Campaign along Lucky Strike

Disclaimer: All estimates of historic gold resources are historical in nature, predate and are noncompliant with NI 43-101. Premium is not treating the historical estimate as current mineral resources or reserves. Premium has not undertaken any independent investigation of the resource estimates nor has it independently analyzed the results of the previous exploration work in order to verify the resources, and therefore the historical estimates should not be relied upon. The historical classes used by Idaho Gold Corporation, a subsidiary of Bema Gold, are different from current CIM classes, however, they might be comparable to the CIM inferred or indicated resource classes.