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Press release from CNW Group

Premier - Drilling returns high-grade in multiple zones at Hardrock

Tuesday, June 22, 2010

Premier - Drilling returns high-grade in multiple zones at Hardrock08:32 EDT Tuesday, June 22, 2010Shares Issued: 98,790,220THUNDER BAY, ON, June 22 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce successful ongoing delineation of high-grade gold mineralization in multiple zones at the Hardrock Project in Northwestern Ontario. Highlights from recent drilling include extensions of the SP Zone down-plunge and significant step-out intersections in one of the primary resource targets, the NN Zone: << - Drilling has defined several lenses within the SP Zone over a plunge length of some 1,100 metres with recent step-out holes returning up to 11.69 grams per tonne Gold (g/t Au) across 6.7 metres (m) - or 0.34 ounces per ton (oz/t) across 22.0 feet and 9.09 g/t Au across 12.3m (0.27 oz/t across 40.3 feet). - Drilling at the NN Zone has expanded near-surface mineralization with open-pit style intersections of up to 8.14 g/t Au across 9.0m (0.24 oz/t across 29.5 feet) at depth. Drilling in the NN Zone is now focusing on testing for higher-grade, underground style mineralization and has returned intersections of up to 15.09 g/t Au across 3.8 m (0.44 oz/t across 12.5 feet) up to 100 metres down- plunge from previous drilling. - Expansion drilling at depth in the historically mined North Zone has confirmed additional high-grade mineralization with intersections a further 100 metres down plunge returning multiple zones and assays of up to 10.97 g/t Au across 3.7m (0.32 oz/t across 12.1 feet). >> "Drilling at Hardrock is delivering strong results in multiple zones and, with continued success, has the potential to materially add to our current resource. After only one year of drilling, we presently have 1.2 million indicated ounces of gold as well as 1 million inferred ounces, using a 0.6 gram cut-off with no capping." stated Tim Twomey, Exploration Manager for Premier. "This is an impressive rate of discovery". << NN Zone ------- >> Recent drilling in the NN Zone validates potentially open-pit style mineralization, along strike and at depth below the previously announced NI43-101 resource at Hardrock. Current drilling in the NN Zone is focused on delineating narrower, underground style resources, and has successfully extended the zone a further 100 metres down plunge with multiple high-grade intersections.Highlights include 15.09 g/t Au across 3.8 m (0.44 oz/t across 12.5 feet) in the underground target area 100 metres down-plunge from previous drilling and 8.14 g/t Au across 9.0m (0.24 oz/t across 29.5 feet) approximately 100 metres down-plunge from previously announced hole MM117 that returned an impressive 22.97 g/t Au across 24.8m (0.67 oz/t across 81.4 feet).Follow-up drilling down-plunge continues to intersect mineralization within the NN Zone. New drill results from the NN Zone are contained in Table 1. << Table 1 New Sub Zone Intercepts from NN Zone ------------------------------------------------------------------------- UTM Coord- Dip/ Inter- Grade Inter- Hole- inates Azimuth From To val (g/ val Grade ID (m) (degrees) (m) (m) (m) tonne) (ft) (oz/ton) Zone ------------------------------------------------------------------------- MM119 5502858 N Upper 503950 E -50/360 230.8 234.5 3.7 8.00 12.1 0.23 NN ----------------------------------------------- 254.0 266.1 12.1 7.45 39.7 0.22 NN ----------------------------------------------- including 254.0 255.5 1.5 31.60 4.9 0.92 NN ----------------------------------------------- including 261.7 264.5 2.8 11.70 9.2 0.34 NN ------------------------------------------------------------------------- MM120 5502850 N 503850 E -50/360 263.8 268.5 4.7 1.24 15.4 0.04 NN ------------------------------------------------------------------------- MM121 5502831 N Upper 504158 E -50/360 175.5 177.0 1.5 6.56 4.9 0.19 NN ------------------------------------------------------------------------- MM126 5502909 N Upper 503800 E -45/360 51.0 52.0 1.0 4.46 3.3 0.13 NN ----------------------------------------------- 173.8 174.5 0.7 6.18 2.3 0.18 NN ------------------------------------------------------------------------- MM128 5502820 N 504050 E -50/360 318.0 319.5 1.5 11.10 4.9 0.32 NN ------------------------------------------------------------------------- MM131 5502820 N 503950 E -55/360 332.0 341.0 9.0 8.14 29.5 0.24 NN ----------------------------------------------- including 335.0 336.5 1.5 29.10 4.9 0.85 NN ------------------------------------------------------------------------- MM134 5502839 N 503900 E -55/360 352.3 353.8 1.5 9.71 4.9 0.28 UNN ----------------------------------------------- 383.0 387.5 4.5 4.75 14.8 0.14 NN ------------------------------------------------------------------------- MM135 5502898 N 503754 E -50/360 205.5 208.5 3.0 5.32 9.8 0.16 NN ----------------------------------------------- 219.5 231.0 11.5 3.16 37.7 0.09 NN ----------------------------------------------- including 226.5 228.0 1.5 9.88 4.9 0.29 NN ------------------------------------------------------------------------- MM137 502850 N 503751 E -50/360 251.1 263.1 12.0 3.48 39.4 0.10 NN ----------------------------------------------- 286.5 293.7 7.2 2.06 23.6 0.06 NN ------------------------------------------------------------------------- MM138 5502757 N 503797 E -52/360 362.8 363.7 0.9 12.40 3.0 0.36 UNN ----------------------------------------------- 444.2 445.2 1.0 5.06 3.3 0.15 NN ------------------------------------------------------------------------- MM139 5502801 N 503750 E -50/360 359.5 361.0 1.5 8.55 4.9 0.25 NN ------------------------------------------------------------------------- MM140 5502770 N 503250 E -65/360 288.2 292.0 3.8 15.09 12.5 0.44 NN ----------------------------------------------- including 289.1 290.0 0.9 49.60 3.0 1.45 NN ------------------------------------------------------------------------- True widths estimated at approximately 70% of intersection widths SP Zone ------- >> Drilling in the SP Zone has now intersected high-grade gold mineralization over a plunge length of approximately 1,100 metres with new results of up to 11.69 g/t Au across 6.7m (0.34 oz/t across 22.0 feet). This drilling is expanding on previously announced intersections that included 15.68g/t Au (0.46 oz/ton) across 3.4m (0.46 oz/t across 11.2 feet), 6.60g/t Au across 32.6m (0.19 oz/t across 107.0 feet), and 17.14g/t Au across 7.0m (0.50 oz/t across 23.0 feet) down-plunge from the historically mined SP Zone.The SP Zone was partially mined in the upper levels at Hardrock with 264,354 tonnes (291,428 tons) of ore extracted at an average grade of 8.37g/t Au (0.244 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).New drill results from the SP Zone are contained in Table 2. << Table 2 New Sub Zone Intercepts from SP Zone ------------------------------------------------------------------------- UTM Coord- Dip/ Inter- Grade Inter- Hole- inates Azimuth From To val (g/ val Grade ID (m) (degrees) (m) (m) (m) tonne) (ft) (oz/ton) Zone ------------------------------------------------------------------------- MM045 5502676 N 503751 E -60/360 415.4 421.7 6.3 4.56 20.7 0.13 SP ------------------------------------------------------------------------- MM046 5502652 N 503749 E -60/360 392.0 398.5 6.5 4.94 21.3 0.14 SP ----------------------------------------------- including 393.7 395.0 1.3 16.50 4.3 0.48 SP ------------------------------------------------------------------------- MM087 5502729 N 503091 E -64/360 543.5 545.0 1.5 3.85 4.9 0.11 SP ------------------------------------------------------------------------- MM118 5502774 N 503300 E -60/360 453.0 465.3 12.3 9.09 40.3 0.27 SP ----------------------------------------------- including 460.0 465.3 5.3 17.68 17.4 0.52 SP ----------------------------------------------- 489.8 502.0 12.2 7.90 40.0 0.23 SP ----------------------------------------------- including 491.0 493.7 2.7 23.88 8.9 0.70 SP ------------------------------------------------------------------------- MM136 5502720 N 503250 E -65/360 528.5 531.0 2.5 2.05 8.2 0.06 SP ------------------------------------------------------------------------- MM141 5502770 N 503250 -65/360 488.0 494.7 6.7 11.69 22.0 0.34 SP ----------------------------------------------- including 492.6 493.9 1.3 56.90 4.3 1.66 SP ------------------------------------------------------------------------- True widths estimated at approximately 70% of intersection widths North Zone Deeps ---------------- >> One drill is focused on expanding mineralization below the bottom level of the Hardrock Mine in the historically mined North Zone. Hardrock was mined to a depth of 600 metres, shallow for an Archean gold deposit, and remained open at the time of closure. The new drilling is located approximately 100 metres down plunge from previously announced intersections that included 10.05 g/t Au across 24.2 m (0.29 oz/ton across 79.4 feet) in hole MM079B and 7.59 g/t Au across 23.3 m (0.22 oz/t across 76.4 feet) in hole MM092A. New drill results from the North Zone Deeps are contained in Table 3. << Table 3 New Sub Zone Intercepts from North Zone Deeps ------------------------------------------------------------------------- UTM Coord- Dip/ Inter- Grade Inter- Hole- inates Azimuth From To val (g/ val Grade ID (m) (degrees) (m) (m) (m) tonne) (ft) (oz/ton) Zone ------------------------------------------------------------------------- MM092B 5503375 N 503650 E -78/180 699.5 714.0 14.5 4.67 47.6 0.14 North A ---------------------------------------------- including 712.5 714.0 1.5 25.90 4.9 0.76 North A ---------------------------------------------- 717.0 718.5 1.5 3.70 4.9 0.11 North B ---------------------------------------------- 756.0 757.5 1.5 3.92 4.9 0.11 North C ---------------------------------------------- 763.0 766.3 3.3 4.45 10.8 0.13 North D ------------------------------------------------------------------------- MM092C 5503375 N 503650 E -78/180 752.9 762.0 9.1 3.86 29.9 0.11 North E ---------------------------------------------- including 755.5 759.0 3.5 7.85 11.5 0.23 North E ------------------------------------------------------------------------- MM092D 5503375 N 503650 E -78/180 774.0 775.0 1.0 4.76 3.3 0.14 North A ---------------------------------------------- 781.6 791.0 9.4 3.49 30.8 0.10 North B ---------------------------------------------- including 786.0 789.0 3.0 6.23 9.8 0.18 North B ---------------------------------------------- 837.0 838.0 1.0 4.46 3.3 0.13 North D ---------------------------------------------- 862.5 864.0 1.5 3.37 4.9 0.10 North E ------------------------------------------------------------------------- MM106 5503391 N 503578 E -80/180 880.2 881.8 1.6 4.55 5.3 0.13 North E ------------------------------------------------------------------------- MM106A 5503391 N 503578 E -80/180 832.0 833.5 1.5 3.93 4.9 0.11 North A ---------------------------------------------- 838.0 839.0 1.0 4.21 3.3 0.12 North B ---------------------------------------------- 849.7 850.6 0.9 5.35 3.0 0.16 North C ---------------------------------------------- 853.0 855.5 2.5 3.13 8.2 0.09 North D ------------------------------------------------------------------------- MM106B 5503391 N 503578 E -80/180 789.5 798.8 9.3 3.20 30.5 0.09 North A ---------------------------------------------- including 796.5 798.8 2.3 8.57 7.5 0.25 North A ---------------------------------------------- 805.7 806.9 1.2 14.20 3.9 0.41 North B ---------------------------------------------- 817.3 825.2 7.9 4.42 25.9 0.13 North C ---------------------------------------------- including 821.0 822.2 1.2 14.20 3.9 0.41 North C ------------------------------------------------------------------------- MM106C 5503391 N 503578 E -80/180 797.4 807.1 9.7 5.13 31.8 0.15 North B ---------------------------------------------- including 797.4 801.1 3.7 10.97 12.1 0.32 North B ---------------------------------------------- 815.3 823.2 7.9 3.70 25.9 0.11 North C ---------------------------------------------- including 817.5 818.0 0.5 28.60 1.6 0.84 North C ------------------------------------------------------------------------- MM106D 5503391 N 503578 E -80/180 769.0 783.6 14.6 3.60 47.9 0.11 North A ---------------------------------------------- including 779.6 783.6 4.0 9.18 13.1 0.27 North A ---------------------------------------------- 797.2 806.8 9.6 4.93 31.5 0.14 North B ---------------------------------------------- including 805.6 806.8 1.2 11.60 3.9 0.34 North B ---------------------------------------------- 814.3 824.5 10.2 3.14 33.5 0.09 North C ---------------------------------------------- including 818.8 819.5 0.7 16.20 2.3 0.47 North C ------------------------------------------------------------------------- True widths estimated at approximately 70% of intersection >> The Hardrock Project is operated under a joint venture with Goldstone Resources Inc. (TSX:GRC) (Premier holds a 70% interest in the project). The Hardrock Project is host to several past-producing mines which collectively produced nearly 3.0 Million ounces of gold primarily from shallow depths within 600 metres of surface from 1938-1968. 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. A revised resource calculation is expected to be completed following the 2010 drill program containing both open pit and underground style resources.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 projects and deposits in Northwestern Ontario and Nevada, and a joint venture in Mexico. In the Red Lake gold mining camp, two projects are operated in joint venture with Red Lake Gold Mines, an affiliate of Goldcorp Inc. The company also owns a strategic project located on the main Musselwhite Gold Mine trend and a 70% interest in the Hardrock Project. The company recently acquired Saddle Gold Inc. and now holds the Saddle Project and a royalty in Newmont's Emigrant Springs Project, both on the prolific Carlin Trend, in northeast 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.%SEDAR: 00024152EFor further information: Ewan Downie, President & CEO, Phone: 807-346-1390, Fax: 807-346-0100, e-mail: Info@premiergoldmines.com, Web Site: www.premiergoldmines.com