The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

PREMIER - DRILLING CONTINUES TO EXPAND NEAR-SURFACE GOLD ZONES AT HARDROCK

Wednesday, August 25, 2010

PREMIER - DRILLING CONTINUES TO EXPAND NEAR-SURFACE GOLD ZONES AT HARDROCK10:11 EDT Wednesday, August 25, 2010Shares Issued: 102,333,413THUNDER BAY, ON, Aug. 25 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that ongoing drilling continues to delineate significant near-surface gold mineralization in multiple zones at the Hardrock Project in Northwestern Ontario. Current drilling is focused on expanding and defining near-surface, open pit style, mineralization in addition to defining multiple zones of higher grade mineralization that are expected to comprise resources amenable to underground mining methods. Highlights from recent drilling include: << - The identification of two primary high-grade lenses within the NN Zone horizon. Intersections in the newly identified "East Lense" have returned up to 13.05 grams per tonne Gold (g/t Au) across 4.1 metres (m) or 0.38 ounces per ton (oz/t) across 13.5 feet. - Infill and expansion drilling further defines the EP Zone (open- pit) target with intersections of up to 3.16 g/t Au across 16.5 m (0.09 oz/t across 54.1 feet), 7.10 g/t Au across 9.0 m (0.21 oz/t across 29.5 feet) and 5.43 g/t Au across 10.2 m (0.16 oz/t across 33.5 feet). - Deep drilling in the North and F-Zone continues to intersect impressive gold values suggesting excellent resource potential proximal to and below existing mine workings. Further results from this drilling are expected in the near future. NN Zone Drilling ---------------- >> The near-surface portion of the NN Zone has now attained a strike length of approximately 600 metres. Recent drilling has been focused on defining narrower, underground style mineralization down-plunge and at depth below the previously announced, near-surface, NI43-101 resource estimate at Hardrock. Of particular significance, drilling has identified two lenses of higher-grade gold mineralization, both of which remain wide open for expansion (see Figure 1). Highlight intersections include 13.05 g/t Au across 4.1 m (0.38 oz/t across 13.5 feet) in hole MM160 from the new eastern high-grade lense that was identified when following-up a previously drilled intersection of 4.93 g/t Au across 10.5 m (0.14 oz/t across 34.4 feet), and previously announced intersections within the main NN zone that returned 22.97 g/t Au across 24.8 m (0.67 oz/t across 81.4 feet) and 8.14 g/t Au across 9.0 m (0.24 oz/t across 29.5 feet). Follow-up drilling down-plunge of these intersections is underway. New drill results from the NN Zone are contained in Table 1. << Table 1 New Sub Zone Intercepts from NN Zone ------------------------------------------------------------------------- Hole- UTM ID Coordi- Dip/ Inter- Inter- Grade nates Azimuth From To val Grade val (oz/ (m) (degrees) (m) (m) (m) (g/tonne) (ft) ton) Zone ------------------------------------------------------------------------- MM143 5502849 N 503650 E -50/360 265.0 267.0 2.0 3.29 6.6 0.10 NN ------------------------------------------------------------------------- MM146 5502802 N 325.0 330.0 5.0 3.23 16.4 0.09 NN 503649 E -50/360 --------------------------------------------- including 326.0 327.0 1.0 11.20 3.3 0.33 NN ------------------------------------------------------------------------- MM148 5502850 N 503600 E -55/360 367.0 369.2 2.2 3.05 7.2 0.09 NN ------------------------------------------------------------------------- MM160 5502852 N 291.7 322.8 31.1 2.74 102.0 0.08 Upper 504249 E NN -50/360 --------------------------------------------- including 309.0 313.1 4.1 13.05 13.4 0.38 Upper NN ------------------------------------------------------------------------- MM165 5502818 N 360.3 367.5 7.2 1.57 23.6 0.05 Upper 504246 E NN -56/360 --------------------------------------------- 403.0 405.2 2.2 13.15 7.2 0.38 NN ------------------------------------------------------------------------- True widths estimated at approximately 70% of intersection widths Missing holes can be considered to carry no significant value or will be included with other zones. >> Figure 1 NN Zone Longitudinal Section (Looking North)http://files.newswire.ca/598/Figure1NN.pdf << EP Zone Drilling ---------------- >> Infill and expansion drilling in the EP Zone continues to define high-grade, open-pit style and underground style gold mineralization. The EP Zone comprises much of the current near-surface gold resource at Hardrock and drilling is aimed at converting inferred resources to indicated status. A highlighted selection of drill results deemed to be significant from the EP Zone is contained in Table 2. << Table 2 New Sub Zone Intercepts from the EP Zone ------------------------------------------------------------------------- Hole- UTM ID Coordi- Dip/ Inter- Inter- Grade nates Azimuth From To val Grade val (oz/ (m) (degrees) (m) (m) (m) (g/tonne) (ft) ton) Zone ------------------------------------------------------------------------- EP121 5503061 N 140.2 146.0 5.8 1.77 19.0 0.05 NLB 504450 E -45/360 --------------------------------------------- 173.7 176.0 2.3 8.28 7.5 0.24 NLC ------------------------------------------------------------------------- EP122 5503060 N 504400 E -45/360 201.9 207.1 5.2 4.36 17.1 0.13 X ------------------------------------------------------------------------- EP123 5503031 N 218.5 229.5 11.0 2.19 36.1 0.06 NLB 504399 E --------------------------------------------- including -45/360 218.5 219.6 1.1 16.80 3.6 0.49 NLB --------------------------------------------- 237.2 244.5 7.3 1.75 23.9 0.05 X ------------------------------------------------------------------------- EP127 5503111 N 49.6 60.5 10.9 0.91 35.8 0.03 NL 504550 E -38/360 --------------------------------------------- 127.5 136.5 9.0 2.32 29.5 0.07 X ------------------------------------------------------------------------- EP131 5502887 N 240.8 247.8 7.0 1.37 23.0 0.04 SLB 504400 E --------------------------------------------- 261.4 264.6 3.2 1.63 10.5 0.05 SL --------------------------------------------- -50/360 294.0 305.7 11.7 1.04 38.4 0.03 NL --------------------------------------------- 369.6 371.0 1.4 6.48 4.6 0.19 NLB --------------------------------------------- 382.0 382.8 0.8 12.20 2.6 0.36 NLC ------------------------------------------------------------------------- EP134 5502910 N 303.0 319.5 16.5 3.16 54.1 0.09 NL 504449 E --------------------------------------------- -50/360 327.9 331.5 3.6 3.82 11.8 0.11 NLC --------------------------------------------- 357.7 360.0 2.3 11.00 7.5 0.32 X ------------------------------------------------------------------------- EP139 5502990 N 111.5 113.0 1.5 5.28 4.9 0.15 SLC 504500 E --------------------------------------------- 156.5 166.7 10.2 5.43 33.5 0.16 SLB -60/360 --------------------------------------------- 246.0 249.0 3.0 2.98 9.8 0.09 NLB --------------------------------------------- 400.8 402.0 1.2 47.80 3.9 1.40 X ------------------------------------------------------------------------- EP141 5502990 N 152.0 154.0 2.0 3.46 6.6 0.10 SLC 504600 E --------------------------------------------- -60/360 268.0 270.6 2.6 11.67 8.5 0.34 NLB --------------------------------------------- 288.0 303.0 15.0 3.11 49.2 0.09 NLC ------------------------------------------------------------------------- EP142 5503000 N 190.5 192.0 1.5 7.00 4.9 0.20 SL 504700 E --------------------------------------------- 202.5 208.5 6.0 3.25 19.7 0.09 NL -60/360 --------------------------------------------- 219.0 240.0 21.0 2.37 68.9 0.07 NLB --------------------------------------------- 253.5 254.5 1.0 9.55 3.3 0.28 NLC ------------------------------------------------------------------------- EP143 5502940 N 289.5 314.2 24.7 2.94 81.0 0.09 NLC 504750 E -60/360 --------------------------------------------- including 310.4 314.2 3.8 8.42 12.5 0.25 NLC ------------------------------------------------------------------------- EP145 5504980 N 204.0 213.0 9.0 7.10 29.5 0.21 SL 504900 E -60/360 --------------------------------------------- 281.0 282.0 1.0 22.80 3.3 0.67 NLB ------------------------------------------------------------------------- True widths estimated at approximately 70% of intersection widths Missing holes can be considered to carry grades and widths consistent with management's expectations or contain no significant values. Hardrock Deeps -------------- >> Three drills are currently defining mineralization in several areas below the limits of historical mining at Hardrock, from which more than 2.1 Million ounces of gold was mined to a maximum depth of 600 metres, shallow for an Archean gold deposit. Results from this drilling are expected to be released in the near future."Our drilling both proximal to and below the historic mine workings is returning impressive results in multiple areas. This is very significant for the project because it confirms that the historic zones extend to depth and several targeted resource blocks remain wide open for expansion," stated Tim Twomey, Exploration Manager for Premier. "Our drilling continues to identify gold mineralization in new areas with consistent plunges to depth. This continued success has the potential to add materially to our current mineral resource."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 mineral resource estimate is expected to be completed following the 2010 drill program, potentially 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 recently announced the acquisition of Saddle Gold Inc. and now holds the Saddle Project on the prolific Carlin Trend, in Northeastern Nevada, and a royalty in Newmont's Emigrant Springs Project.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