Premier expands high-grade gold zones at Hardrock 12.5g/t gold across 6.7m
NEW OPEN PIT TARGET RETURNS 6.4g/t Au ACROSS 22.4m
Shares Issued: 82,657,779
THUNDER BAY, ON,
- Drilling at the NN Zone suggests the potential to expand the proposed
EP Zone pit envelope west by as much as 300 metres; significant
intercepts include results up to 6.42g/t Au across 22.4m.
- Recent drilling has defined two gold-bearing zones proximal to, and
north of, the EP Zone with grades up to 12.5 grams per tonne gold
(g/t Au) across 6.7 metres (m) in the NL Zone and 1,141.5g/t Au
across 2.0m in the HGN Zone.
- Expansion drilling at the South Porphyry (SP) Zone continues to
define high-grade mineralization with intersections up to 16.72g/t Au
across 3.0m.
NN Zone
-------
The NN Zone is located along strike from and within the same iron formation that hosts the North and West Zones at the historic mine. 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 reported 532,000 tons with a recovered grade of 0.23 oz/ton (7.85 g/t Au). Numerous intercepts into the NN Zone have now outlined a zone displaying consistent grades over a plunge length of approximately 400 metres. Recent near-surface holes suggest the potential for defining open-pit resources within the zone as demonstrated by new intersections up to 6.42g/t Au (0.24 oz/ton) across 22.4m at a depth of only 70m in the nearest-surface hole drilled to-date. Follow-up drilling continues to define strong near-surface mineralization including veining with visible gold. Table 1 summarizes new drill results from the NN Zone.
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
-------------------------------------------------------------------------
MM010 5502940 N 94.5 117.0 22.5 2.28 73.8 0.07 NN*
-45/360 ---------------------------------------------
504124 E 129.5 131.0 1.5 8.56 4.9 0.25 NN
-------------------------------------------------------------------------
MM034 5502909 N
504129 E -45/360 172.5 179.9 7.4 1.69 24.3 0.05 NN
-------------------------------------------------------------------------
MM036 5502940 N
504150 E -45/360 112.4 145.4 33.0 2.13 108.2 0.06 NN
-------------------------------------------------------------------------
MM038 5502940 N
504215 E -45/360 83.0 97.5 14.5 2.19 47.6 0.06 NN
-------------------------------------------------------------------------
MM040 5502955 N
504250 -45/360 99.3 121.7 22.4 6.42 73.5 0.19 NN
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* Previously Announced
True widths estimated at approximately 70% of intersection widths
NN - New North
EP North Zone
-------------
Drilling to define the EP Zone, an open pit target, has intersected high-grade gold mineralization below and north of the EP Zone in close proximity to existing mine workings. Drilling has intersected sulphide rich mineralization in the NL Zone (which was partially defined within the mine) and a high-grade, narrow vein style, gold mineralization in the new HGN Zone. Ten holes have now confirmed mineralization in this area over a plunge length of some 200 metres, where it remains open up and down plunge. Hole EP105 has returned one of the highest-ever gold results from drilling in the entire district with an intersection of 1,141.54g/t Au (33.33oz/ton) across 2.0m (6.6 feet) within the HGN Zone (previously announced) and 8.84g/t Au across 7.0m within the NL Zone. Follow-up drilling has returned intersections up to 12.5g/t Au across 6.7m in the NL Zone and 10.6g/t Au across 1.5m in the HGN Zone. Table 2 provides a summary of drilling in the EP North area.
Table 2 New Sub Zone Intercepts within the EP North 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
-------------------------------------------------------------------------
OR001 5502920 N 397.6 398.7 1.1 5.27 3.6 0.15 NL
-60/360 ---------------------------------------------
504649 E 412.4 414.0 1.6 6.30 5.2 0.18 HGN
-------------------------------------------------------------------------
OR002 5502864 N 388.6 394.6 6.0 7.59 19.7 0.22 NL*
-60/360 ---------------------------------------------
504648 E 469.5 471.0 1.5 10.60 4.9 0.31 HGN
-------------------------------------------------------------------------
OR005 5502917 N 346.2 347.6 1.4 2.70 4.6 0.08 NL*
-60/360 ---------------------------------------------
504701 E 414.5 416.0 1.5 12.99 4.9 0.38HGN*
-------------------------------------------------------------------------
OR007 5502869 N 382.3 389.0 6.7 12.46 22.0 0.36 NL
-60/360 ---------------------------------------------
504602 E 472.5 474.0 1.5 2.38 4.9 0.07 HGN
-------------------------------------------------------------------------
OR009 5502931 N
504552 E -60/360 372.5 374.0 1.5 5.25 4.9 0.15 NL*
-------------------------------------------------------------------------
EP064 5503027 N
504653 E -60/360 316.3 317.0 0.7 20.10 2.3 0.59HGN*
-------------------------------------------------------------------------
EP105 282.5 289.5 7.0 8.84 23.0 0.26 NL
5502939 N ---------------------------------------------
-60/360 311.5 318.0 6.5 2.57 21.3 0.08 NL
504700 E ---------------------------------------------
382.1 384.1 2.0 1141.50 6.6 33.33HGN*
-------------------------------------------------------------------------
EP113 5503228 N
504701 E -78/360 297.0 298.5 1.5 6.89 4.9 0.20 HGN
-------------------------------------------------------------------------
EP114 5502940 N 302.8 306.0 3.2 8.95 10.5 0.26 NL
-60/360 ---------------------------------------------
504726 E 384.0 385.5 1.5 2.06 4.9 0.06 HGN
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EP117 5502940 N
504675 E -60/360 374.0 374.4 0.4 9.59 1.3 0.28 HGN
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* Previously Announced
True widths estimated at approx. 70% of intersection widths
NL - North Limb
HGN - High Grade North
SP Zone
-------
Drilling in the SP Zone has returned multiple intersections of high-grade gold mineralization including recently announced intercepts of 6.60g/t Au across 32.6m (MM014) and 17.14g/t Au across 7.0m (MM005) down-plunge from the historically mined SP Zone.
The SP Zone was partially mined in the upper levels of the mine with 264,000 tonnes (291,000 tons) of ore mined at an average grade of 8.37g/t Au (0.24 oz/t). 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). Highlights from new drilling include 9.70g/t Au across 11.8m in hole MM024 and 16.72g/t Au across 3.0m in hole MM039. Table 3 summarizes new drill results from the SP Zone.
Ongoing work at Hardrock is testing both open pit and underground type targets. The EP Zone is one of several potential open pit zones that are 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).
Table 3 New Sub Zone Intercepts within the SP 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
-------------------------------------------------------------------------
MM017 5502680 N
503900 E -55/360 379.5 390.6 11.1 3.48 36.4 0.10 SP
-------------------------------------------------------------------------
MM020 5502628 N
503897 E -61/360 hole abandoned SP
-------------------------------------------------------------------------
MM021 5502628 N
503897 E -55/360 390.5 395.0 4.5 7.30 14.8 0.21 SP
-------------------------------------------------------------------------
MM024 388.9 400.7 11.8 9.70 38.7 0.28 SP
inc- ---------------------------------------------
luding 5502657 N 388.9 390.6 1.7 11.10 5.6 0.32 SP
inc- -55/360 ---------------------------------------------
luding 503807 E 398.0 399.7 1.7 50.28 5.6 1.47 SP
---------------------------------------------
424.0 431.0 7.0 4.63 23.0 0.14 F
-------------------------------------------------------------------------
MM025 5502721 N
503500 E -65/360 NSV SP
-------------------------------------------------------------------------
MM026 5502706 N 163.1 172.7 9.6 2.25 31.5 0.07 SP
inc- -65/360 ---------------------------------------------
luding 504449 E 163.9 164.9 1.0 10.40 3.3 0.30 SP
-------------------------------------------------------------------------
MM027 5502725 N
504350 E -65/360 223.0 225.3 2.3 3.88 7.5 0.11 SP
-------------------------------------------------------------------------
MM028 5502744 N
504302 E -55/360 NSV SP
-------------------------------------------------------------------------
MM029 5502726 N
504250 E -55/360 NSV SP
-------------------------------------------------------------------------
MM030 5502623 N 73.4 76.4 3.0 11.13 9.8 0.32 x
-55/360 ---------------------------------------------
504152 E 300.5 305 4.5 3.29 14.8 0.10 SP
-------------------------------------------------------------------------
MM031 5502701 N
504101 E -55/360 NSV SP
-------------------------------------------------------------------------
MM032 276.5 278 1.5 43.1 4.9 1.26 SP
5502669 N ---------------------------------------------
-55/360 305.3 311.7 6.4 4.16 21.0 0.12 SP
504049 E ---------------------------------------------
351.8 354.8 3.0 8.31 9.8 0.24 F
-------------------------------------------------------------------------
MM033 247.2 262 14.8 3.73 48.5 0.11 SP
inc- 5502691 N ---------------------------------------------
luding -55/360 247.2 248.5 1.3 18.7 4.3 0.55 SP
504306 E ---------------------------------------------
318.2 321 2.8 9.88 9.2 0.29 F
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MM035 5502670 N
504350 E -60/360 NSV SP
-------------------------------------------------------------------------
MM039 5502647 N 247.0 250.0 3.0 16.72 9.8 0.49 SP
-55/360 ---------------------------------------------
504250 E 356.8 361.4 4.6 3.22 15.1 0.09 F
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* True widths estimated at approximately 70% of intersection widths
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.
The Hardrock Project is operated under a joint venture with Roxmark Mines Limited (TSX-V:RMK) (Premier holds a 70% 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 1938-1968. 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 1.5g/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 center 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 100% interest in the PQ-North Project, located along strike from Goldcorp's Musselwhite Gold Mine.
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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