Premier discovers high-grade gold zone at Hardrock - 1141.54 g/t Au (33.33
ounces per ton) across 2.0m
Shares Issued: 78,510,179
THUNDER BAY, ON,
High Grade Intercept
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A new structure containing high-grade gold mineralization has recently been identified immediately north of the EP Zone, and in close proximity to existing mine workings. This new intercept is marked by high grade, narrow vein-style, gold mineralization similar to several of the high grade mines located in the Beardmore-Geraldton Greenstone Belt, including the Little Long Lac and Magnet Gold Mines that are located on the Hardrock Project.
Hole EP105 has returned one of the highest ever gold results from drilling in the entire district with an intersection of 1,141.54 g/t Au (33.33oz/ton) across 2.0m (6.6 feet) including 2,535 g/t Au (74.02 oz/ton) across 0.9m (3.0 feet) (True widths estimated at approximately 70% of intersection widths). Several additional holes are believed to have intersected this structure including OR005, located approximately 35 metres down-dip of EP105, which assayed 12.99g/t Au (0.38 oz/ton) across 1.5m (4.9 feet), EP107 (located approximately 100 metres along strike to the east and up plunge EP105) with assays pending, EP108 (located approximately 150 metres along strike to the east and up-plunge of EP105) with assays pending, EP064 (located 50 metres along strike to the west) which assayed 20.10 g/t Au (0.59 oz/ton) over 0.7m (2.3 feet), and OR002 (located 50 metres along strike to the west and down plunge) with assays pending. Detailed drilling of this new discovery is now underway.
"Intersecting such high grade mineralization is always encouraging." stated Stephen McGibbon, Premier's Executive VP and COO. "We know that this camp has a history of high grade mineralization and an intercept like this can have important implications for us if we can confirm some continuity to this structure."
NN Zone
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The NN Zone is located along strike from, and within the same iron formation, that hosted the North and West Zones at the historic mine. Numerous intercepts into the NN Zone have now defined a zone displaying similar grades over a plunge length of approximately 350 metres with intersections up to 8.25g/t Au (0.24 oz/ton) across 7.3m (23.9 feet).
During production, the North Zone was mined to a depth of 610 metres (2,000 feet) resulting in the recovery of 2.97 million tons with a recovered grade of 0.22 oz/ton (7.54g/t Au), while mining at the West Zone resulted in the recovery of 532,254 tons with a recovered grade of 0.23 oz/ton (7.85 g/t Au).
Table 1 New Sub Zone Intercepts within the NN Zone Target Area
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UTM Dip/ Grade Grade
Coordinates Azimuth From To Interval (g/ Interval (oz/
Hole-ID (m) (degrees) (m) (m) (m) tonne) (ft) ton) Zone
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215.8 216.7 0.9 9.16 3.0 0.27 NN
MM019 5502880 N --------------------------------------------
503849 E -50/360 235.4 236.5 1.1 1.23 3.6 0.04 NN
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242.9 244.2 1.3 6.98 4.3 0.20 NN
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MM022 5502862 N
503806 E -50/360 245.4 251.6 6.2 8.20 20.3 0.24 NN
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MM023 5502901 N
504027 E -50/360 186.0 193.3 7.3 8.25 23.9 0.24 NN
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* True widths estimated at approximately 70% of intersection widths
Ongoing work at Hardrock is testing both open pit and underground-type targets. The SP Zone is an underground target where recent drilling has returned intersections that include 6.60g/t Au across 32.6m and 6.63g/t Au across 28.1m. The EP Zone is one of several potential open pit zones that is being detailed in preparation for the completion of a NI43-101 compliant resource calculation which is expected to be completed in Q4 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; and,
- The main mined zones which remain open below the 600m Level.
Open pit style mineralization has been, and is being intersected in several areas including the Kailey Zone where drilling has intersected up to 1.47 g/t Au across 162.0 metres (m) and 2.16g/t Au across 92.2m, the EP-Zone where drilling has intersected up to 7.60 g/t Au across 20.5m and 2.37g/t Au across 62.7m, and the Tenacity Zone where drilling has intersected up to 15.97g/t Au across 32.1m and 4.13g/t Au across 18.9m.
Additional potential exists to define high grade, narrow vein-style, gold zones similar to the EP105 intercept. Historic work indicates that a second high grade, narrow vein style gold zone was identified in the mine, and intermittently delineated over a plunge length of some 1,100 metres (3,800 feet) with drill intercepts that include 112.5g/t Au (3.28 oz/ton Gold) across 1.2m and 88.5g/t Au (2.58 oz/ton Gold) across 1.5m. This style of mineralization is similar to that mined at two of the nearby mines that exist on the Hardrock Property; the Little Long Lac Mine (past production of more than 600,000 ounces of gold at an average milled grade of 11.66g/t Au) and the Magnet Mine (past production of more than 150,000 ounces of gold at an average milled grade of 14.4g/t Au), and the Leitch Mine (past production of more than 920,00 ounces of gold was recovered at an average milled grade of 31.54g/t Au (0.92 oz/ton).
The Hardrock Project is operated under a joint venture with Roxmark Mines Limited (TSX-V:RMK; PG 70%) 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 1938-1968. 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), and narrow vein zones with higher gold grades often exceeding 7.0g/t (Red Lake, Pickle Lake). 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, 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. Assay results are from core samples sent to Activation Laboratories, an accredited mineral analysis laboratory in Ancaster, 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 active projects and deposits in Northwestern Ontario. In the Red Lake gold mining camp, two projects are operated in joint venture with Red Lake Gold Mines, and another, adjacent to the Red Lake Gold Mines complex, is operated on a 100% basis. The company also owns a 70% interest in the Hardrock Project, an advanced-stage gold project in the Geraldton area.
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.
%SEDAR: 00024152E
For further information: Ewan Downie, President & CEO, Phone: (807) 346-1390, Fax: (807) 346-0100, e-mail: [email protected], Web Site: www.premiergoldmines.com
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