Premier Gold drills 19.7 ft of 1.45 opt Au at Hardrock

2009-10-27 08:29 ET - News Release

Mr. Ewan Downie reports

PREMIER EXPANDS HIGH-GRADE ZONES AT HARDROCK - 1.45 OZ/TON GOLD OVER 20 FEET

Premier Gold Mines Ltd.'s drilling continues to delineate multiple high-grade gold zones at the Hardrock project in Northwestern Ontario. Highlights from recent drilling include additional high-grade intersections in the High Grade North (HGN) zone and the discovery of near-surface high-grade vein-style mineralization in the New North (NN) zone:

• Drilling to follow up intersections of up to 1,141.5 grams per tonne (g/t) Au across 2.0 metres in the HGN zone continues to define high-grade vein-style mineralization with new intercepts of up to 49.81 g/t Au across 6.0 m.
• Drilling at the NN zone has intersected near-surface high-grade vein-style mineralization with intersections of up to 39.15 g/t Au across 3.6 m in addition to further defining potentially open-pit-style mineralization along strike from the EP zone.
• Expansion drilling at the South Porphyry (SP) zone continues to define high-grade mineralization with intersections of up to 15.68 g/t Au across 3.4 m.

Recent drilling has discovered high-grade gold mineralization (HGN zone) in close proximity to existing mine workings below and north of the main EP zone. Mineralization has been intersected over a plunge length of approximately 200 metres where it remains open up and down plunge. New intersections including 49.81 g/t Au (1.45 ounces per ton gold) across 6.0 m (19.7 feet) in hole EP119 complement previously released intersections of 1,141.54 g/t Au (33.33 ounces per ton) across 2.0 m (6.6 feet) in hole EP105 within the HGN zone, 8.84 g/t Au (0.26 ounce per ton) across 7.0 m (23.0 feet) in hole EP105 within the NL zone and 12.5 g/t Au (0.36 ounce per ton) across 6.7 m (22.0 feet) in hole OR007 within the NL zone. New drill results from the HGN zone are contained in the table.

Recent near-surface holes drilled in the NN zone, located along strike (and west of) from the EP zone, suggest the potential for defining open-pit resources with intersections up to 6.42 g/t Au (0.24 ounce per ton) across 22.4 m (73.5 feet). Follow-up drilling continues to define broad zones of near-surface mineralization in addition to a new high-grade vein zone that has returned 39.15 g/t Au (1.14 ounces per ton gold) across 3.6 m (11.8 feet) in hole MM048. New drill results from the NN zone are contained in the table.

"This is a very significant discovery for the Hardrock project," says Ewan Downie, president. "The NN zone mineralization appears to be continuous with EP zone mineralization and has the potential to expand the EP zone open-pit-type mineralization to the west, from 700-metre strike length to more than 1,100 metres in strike length."

Drilling in the SP zone has returned multiple intersections of high-grade gold mineralization over a plunge length of approximately 900 metres with new results of up to 15.68 g/t Au (0.46 ounce per ton) across 3.4 m (11.2 feet) intersected in MM048, when following up previously announced intercepts of 6.60 g/t Au (0.19 ounce per ton) across 32.6 m (107.0 feet) in hole MM014, 17.14 g/t Au (0.50 ounce per ton) across 7.0 m (23.0 feet) in hole MM005, and 9.70 g/t Au (0.28 ounce per ton) across 11.8 m (38.7 feet) in hole MM024 down plunge from the historically mined SP zone. The SP zone was partially mined in the upper levels of the mine with 264,354 tonnes (291,428 tons) of ore mined at an average grade of 8.37 g/t Au (0.244 ounce per ton). Intermittent historic drilling that tested the unmined down-plunge extension of the SP zone suggests the potential to outline mineralization over a plunge length of nearly 3.0 kilometres (8,500 feet). New drill results from the SP zone are contained in the table.

NEW SUBZONE INTERCEPTS FROM HARDROCK

                     Inter- Grade          Grade
           From  To   val   (g/   Interval (oz/
Hole ID    (m)   (m)  (m)  tonne)   (ft)   ton) Zone

EP117     286.5 300.4 13.9   0.90    45.6  0.03  NLB
          305.7 322.6 16.9   1.80    55.4  0.05  NLC
          374.0 374.4  0.4   9.59     1.3  0.28  HGN
EP118     364.5 370.5  6.0  49.81    19.7  1.45  NLC
including 364.5 366.0  1.5 291.00     4.9  8.50  NLC
MM047      66.0  86.0 20.0   1.54    65.6  0.04  NN
MM048      26.8  30.4  3.6  39.16    11.8  1.14  HGV
          106.9 112.2  5.3   3.09    17.4  0.09  NN
EP119     139.5 142.5  3.0   1.20     9.8  0.04  NN
          208.8 219.0 10.2   5.67    33.5  0.17  SLA
          337.8 339.6  1.8   9.40     5.9  0.27   x
          346.2 355.4  9.2   1.80    30.2  0.05  HGN
including 353.5 355.4  1.9   3.95     6.2  0.12  HGN
EP120      47.5  49.0  1.5   1.79     4.9  0.05  NN
MM041     264.5 267.3  2.8   4.74     9.2  0.14  SP
          330.5 334.5  4.0   4.47    13.1  0.13   F
including 330.5 331.0  0.5  24.60     1.6  0.72   F
MM042     285.7 286.7  1.0   3.84     3.3  0.11  SP
          369.6 384.5 14.9   1.50    48.9  0.04   F
          394.0 399.9  5.9   3.23    19.4  0.09   F
MM043     338.0 375.4 37.4   3.73   122.7  0.11  SP
including 348.2 352.0  3.8   9.49    12.5  0.28  SP
including 362.5 365.2  2.7  10.43     8.9  0.30  SP
including 372.0 375.4  3.4  15.68    11.2  0.46  SP
MM044     352.5 381.0 28.5   3.39    93.5  0.10  SP
including 363.5 369.9  6.4   6.48    21.0  0.19  SP
including 374.0 381.0  7.0   6.75    23.0  0.20  SP
          409.0 417.0  8.0   8.57    26.2  0.25   F
MM045        Assays pending
MM046        Assays pending
PIT022     60.5  80.0 19.5   1.85   63.96  0.05  PIT
           97.0 146.5 49.5   0.87  162.36  0.03  SP
including  97.0 101.0  4.0   5.75   13.12  0.17  SPA
          213.7 247.5 33.8   0.69 110.864  0.02  PIT
          490.0 491.0  1.0   7.27    3.28  0.21   X
          552.9 553.2  0.3   17.8   0.984  0.52  HGN

True widths estimated at approximately 70 per cent of 
intersection widths.

SL -- South Limb EP zone, NL -- North Limb EP zone, HGN 
-- High Grade North zone, HGV -- High Grade vein, NN -- 
New North zone, SP -- South Porphyry zone, PIT -- Porphyry 
Hill

Continuing work at Hardrock is testing both open pit and underground type targets. The EP and NN zones are two of several potential open pit zones that are being detailed in preparation for the completion of an NI 43-101-compliant resource calculation which is expected to be completed in the fourth quarter of 2009 (initial open pit resource).

Significant potential exists for developing resources in several areas including:

• Open-pit-style mineralization at sites where historic resources were partially delineated by previous operators, in addition to newly defined mineralization at the Tenacity, EP and Kailey zones;
• Numerous surface and historic high-grade gold intercepts throughout the large property package that have received little to no follow-up;
• Historic resource blocks reported to remain within the mine workings, including high-grade vein targets;
• The main mined zones which remain open below the 600 m level.

The Hardrock project is operated under a joint venture with Roxmark Mines Ltd. (Premier holds a 70-per-cent interest). The Hardrock project is host to several past-producing mines which collectively produced nearly 3.0 million ounces of gold primarily from relatively shallow depths (600 metres) from 1938 to 1968. A recent hole to test the North zone horizon below the bottom mine level at Hardrock has intersected several mineralized zones further demonstrating the potential for the project to host a multimillion-ounce resource. This hole is the first deep hole completed by the joint venture. The Hardrock project benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline and major power lines running through the centre of the property.

Stephen McGibbon, PGeo, 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, Ont., for preparation and analysis utilizing both fire assay and screen metallic methods.

We seek Safe Harbor.