Premier provides Hardrock drilling update

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THUNDER BAY, ON, April 17, 2013 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce additional high-grade results from ongoing drilling at the Trans-Canada Property's Hardrock Deposit located near Geraldton, Ontario. Drilling confirms the robust nature of the primary mineralized zones and the potential to expand mineralization.  New highlight intercepts include:

• 1.90 grams per tonne gold (g/t Au) across 51.8 metres (m) and 2.14 g/t Au across 41.5 m in hole HR131, a step-out hole beneath the current 200m limit of the resource designated as potentially open-pittable .
  
  
• 3.50 g/t Au across 20.7 m in hole MM351 drilled to upgrade current resources from the Inferred to Indicated category.
  
  
• 12.43 g/t Au across 12.0 m in hole MM324 drilled to upgrade Inferred resources in the deeper portion of the F-Zone.
  
  
• 22.87 g/t Au across 3.0 m in hole MM336 drilled down-plunge of the North Zone deposit.
  
  
• 8.46 g/t Au across 5.5m in hole MM337 and 10.52 g/t Au across 2.5m in hole MM340 drilled to test the new "Mulligan Zone" at Hardrock.

A Preliminary Economic Assessment (PEA) is expected to be completed in Q3-2013 for the Hardrock and Brookbank deposits that will evaluate a range of potential open pit and underground options.  These studies will be completed following an updated mineral resource estimate that is underway incorporating data available as of April 5, 2013.  Some of the assay results reported in this release have been received subsequent to that date.

The Hardrock Deposit is regarded as having both open pit and underground mineable potential.  A recently completed mineral resource estimate (See Table 1 below) indicates 3.15 million ounces of gold in the Measured and Indicated category plus an additional 3.41 million ounces of gold in the Inferred category have been documented. The Hardrock Deposit is the largest of the four deposits that comprise the Trans-Canada Property and is the focus of the current drill program.

Table 1   2012 Measured, Indicated and Inferred Resources for Hardrock Deposit

Deposit		Cut-off Category		Resource Category		Tonnes (Mt)		Gold (Au) Grade (g/t)		Au Ounces (000's)
		Open Pit (O/P)		Measured (M)		12.74		1.41		576
		(Cut-off @ 0.50 g/t)		Indicated (I)		33.92		1.55		1,685
				Subtotal M & I		46.66		1.51		2,261
Hardrock				Inferred		6.62		1.74		370
		Underground (U/G)		Measured (M)		0.32		5.84		60
		(Cut-off @ 2.80 g/t)		Indicated (I)		4.73		5.42		829
				Subtotal M & I		5.05		5.48		889
				Inferred		16.01		5.91		3,040

The open pit portion of the 2012 mineral resource estimate for the Hardrock Deposit was limited to a depth of approximately 200 metres, with the remainder being reported as potentially underground mineable resources. Scoping work suggests that removing the 200-metre depth limit imposed on the previous resource may benefit the overall potential of the project. The resource update is planned prior to the completion of the PEA.

The ongoing program comprised primarily of delineation drilling at Hardrock is designed to potentially upgrade inferred resources in addition to testing previously undrilled areas.  Table 2 provides a summary of new assay results from step-out and infill drilling within the open pit target area.

Table 2: New Assay Results from the Hardrock pit area

Hole-ID	UTM Coordinates (m)	Dip/Azimuth (degrees)	From (m)	To (m)	Interval (m)	Grade (g/tonne)	Interval (ft)	Grade (oz/ton)	Zone
HR130	5503167N 504350E	-47/180	175.0	184.0	9.0	1.91	29.5	0.06	Upper NN
			352.0	369.0	17.0	3.17	55.8	0.09	F
HR131	5503167N 504350E		192.0	199.0	7.0	1.03	23.0	0.03	NN
			208.0	219.5	11.5	0.90	37.7	0.03	Upper NN
		-67/180	328.0	350.0	22.0	0.60	72.2	0.02	South Limb C
			381.2	433.0	51.8	1.90	169.9	0.06	Fortune
			449.5	491.0	41.5	2.14	136.1	0.06	F
HR133	5503241N 504524E		44.5	91.9	47.4	1.29	155.5	0.04	NN
			117.5	131.0	13.5	2.38	44.3	0.07	Upper NN
		-50/180	146.3	158.1	11.8	2.83	38.7	0.08	South Limb C
			268.5	270.0	1.5	16.00	4.9	0.47	Fortune
HR134	5503231N 504165E	-45/180	213.0	232.0	19.0	1.76	62.3	0.05	NN
HR135	5503274N 504140E	-44/180	254.0	263.0	9.0	1.68	29.5	0.05	Lower NN
HR136	5503230N 504164E		229.3	235.0	5.7	1.61	18.7	0.05	Lower NN
			412.0	415.1	3.1	4.07	10.2	0.12	South Limb A
			422.2	447.0	24.8	2.18	81.3	0.06	South Limb B
		-67/180	488.8	493.0	4.2	1.98	13.8	0.06	South Limb C
			520.6	521.6	1.0	7.46	3.3	0.22	South Limb D
			531.5	532.5	1.0	10.40	3.3	0.30	Fortune
HR137	5503274N 504140E	-67/180	334.4	337.0	2.6	1.84	8.5	0.05	NN
			497.5	504.0	6.5	2.85	21.3	0.08	South Limb C
HR139	5503327N 504386E	-42/180	120.9	126.5	5.6	2.25	18.4	0.07	Lower NN
			296.0	298.0	2.0	2.14	6.6	0.06	South Limb C
HR140	5503271N 504435E		54.5	70.0	15.5	1.81	50.8	0.05	Lower NN
		-46/180	146.9	153.5	6.6	0.81	21.6	0.02	North B
			238.5	247.0	8.5	1.86	27.9	0.05	South Limb
HR141	5503184N 504190E	-45/180	146.0	154.0	8.0	0.70	26.2	0.02	Upper NN
			168.2	173.4	5.2	2.47	17.1	0.07	NN
MM351	5502795N 504175E		241.0	271.6	30.6	0.47	100.4	0.01	F
		-57/360	447.5	468.2	20.7	3.50	67.9	0.10	Upper NN
			492.0	511.5	19.5	0.86	64.0	0.02	NN

* True widths estimated at 60-70% of intercept  * Assays as presented are un-cut

The Trans-Canada Property benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through, or in close proximity to, the Project sites.  Significant services and a skilled labour pool exist within several nearby communities.

Exploration drilling at Hardrock continues to target potentially higher grade underground mineralization within the F, SP and Fortune Zones and also in new target areas including the Mulligan Zone and the TAZ (North Shear) Zone.

The Mulligan Zone is hosted in the main iron formation unit at Hardrock parallel to the historic mine, and the TAZ (North Shear) Zone discovery that is located midway between the historic McLeod-Cockshutt Mine and the Little Long Lac Mine from which 605,449 ounces of gold were mined at an average grade of 11.7g/t Au (0.34oz/st).

Drilling also continues to test extensions of some of the known zones of the Hardrock Deposit with recent highlights including extensions of the North Limb Zone, F-Zone, SP Zone and the A-Zone.  Significant intercepts are summarized in Table 3 below.

Table 3: Assay Results from Hardrock Exploration Drilling

Hole-ID	UTM Coordinates (m)	Dip/Azimuth (degrees)	From (m)	To (m)	Interval (m)	Grade (g/tonne)	Interval (ft)	Grade (oz/ton)	Zone
HR106	5503930N 502400E	-72/360	301.7	303.8	2.1	7.04	6.9	0.21	North Shear
HR107	5503895N 502389E	-74/010	452.5	456.7	4.2	8.77	13.8	0.26	North Shear
HR109	5503995N 502500E	-84/360	397.0	398.0	1.0	24.60	3.3	0.72	North Shear
HR128	5503799N 502501E	-69/360	482.0	483.0	1.0	13.20	3.3	0.39	North Shear
HR113	5502528N 505000E	-52/360	361.5	365.5	4.0	5.62	13.1	0.16	A Zone
HR124	5502561N 504900E	-55/360	378.0	379.0	1.0	10.20	3.3	0.30	A Zone
HR116	5502539N 504900E	-54/360	424.0	426.0	2.0	9.15	6.6	0.27	A Zone
MM311	5502749N 502598E	-65/360	619.0	622.0	3.0	9.47	9.8	0.28	SP
			854.0	855.0	1.0	9.50	3.3	0.28	Fortune
MM314	5502740N 502404E	-69/360	718.0	722.0	4.0	7.07	13.1	0.21	SP
MM316	5502721N 502076E	-68/360	852.0	884.0	32.0	3.52	105.0	0.10	F
			818.4	820.3	1.9	15.32	6.2	0.45	SP
MM319	5502725N 501875E	-69/360	973.6	974.6	1.0	6.28	3.3	0.18	Fortune
MM324	5502699N 501605E	-77/360	918.2	930.2	12.0	12.43	39.4	0.36	F
MM325A	5502667N 502000E	-75/360	920.0	927.2	7.2	8.53	23.6	0.25	SP
MM336	5502650N 503125E	-68/360	839.5	841.8	2.3	8.04	7.5	0.23	Fortune
			924.0	927	3.0	22.87	9.8	0.67	North C
MM337	5503480N 503339E	-68/180	656.8	662.3	5.5	8.46	18.0	0.25	Mulligan
MM340	5503481N 503288E	-72/180	734.2	736.7	2.5	10.52	8.2	0.31	Mulligan
MM344B	5503430N 503200E	-79/180	693.3	696.7	3.4	4.71	11.2	0.14	Mulligan
			762.0	763.0	1.0	83.10	3.3	2.43	Fortune

* True widths estimated at 60-70% of intercept * Assays as presented are un-cut

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 one of North America's leading exploration and development companies with a high-quality pipeline of gold projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States.  The Company is fully financed with a portfolio of advanced-stage assets in world class gold mining districts such as Red Lake and Geraldton in Ontario and the most prolific gold trends in Nevada.

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.

SOURCE: Premier Gold Mines Limited

Ewan Downie, President & CEO             
Phone: [phone]                    
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e-mail: [email protected]
Web Site: www.premiergoldmines.com