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Press release from CNW Group

PREMIER - DRILLING EXPANDS DEEP GOLD ZONES AT HARDROCK 5.49 g/t Au ACROSS 53.0 m INCLUDING 11.34 g/t Au ACROSS 19.5 m

Tuesday, September 28, 2010

PREMIER - DRILLING EXPANDS DEEP GOLD ZONES AT HARDROCK 5.49 g/t Au ACROSS 53.0 m INCLUDING 11.34 g/t Au ACROSS 19.5 m09:45 EDT Tuesday, September 28, 2010Shares Issued: 102,333,413THUNDER BAY, ON, Sept. 28 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that deep drilling continues to delineate significant gold mineralization in multiple horizons below historically mined zones where more than 2.1 million ounces was produced to maximum depths of only 600 metres at the Hardrock Project in Northwestern Ontario. Because of continued success, additional drills are being added such that eleven (11) drill rigs will be operational on the property in the coming weeks. Recent highlights include: << - Deep drilling in the F-Zone, following up a previously released intersection of 9.28 g/t gold (Au) across 28.4 metres (m) (0.27 oz/t across 93.2 feet) in MM093, has returned 5.49 g/t Au across 53.0 m (0.16 oz/t across 173.9 feet) including 11.34 g/t Au across 19.5 m (0.33 oz/ton across 64.0 feet) in MM172. - Deep drilling to the west of historical mine workings in the F-Zone returned multiple gold intersections including 4.36 g/t Au across 17.8 m (0.13 oz/t across 58.4 feet) and including 8.36 g/t Au across 4.3 m (0.24 oz/t across 14.1 feet) in MM157. Of note, this intersection is located 300 metres west of, and 50 metres below the deepest and western-most mining. - Deep drilling in the North Zone and F-Zone continues to intersect strong gold values suggesting excellent resource potential proximal to and below existing mine workings. >> "Our deep drilling below the historic mine workings is returning impressive results in three separate areas. This is very significant for the project because it confirms that the historic zones extend to depth and are wide open for expansion" stated Tim Twomey, Exploration Manager for Premier. "Drilling at Hardrock continues to deliver strong results in multiple zones that are expected to add materially to our current gold resource". << F Zone ------ >> The F-Zone is the largest of the past-producing mine zones at Hardrock which produced more than 1.4 million ounces utilizing bulk underground methods with widths often exceeding 30 metres (100 feet). Importantly, hole MM172 tested up-plunge of an area where high grade gold mineralization was identified below the F-Zone on the bottom mine level (Level 13) but was never mined (shown as the light-red target in Figure 1 named the F-Zone Target (F2 Zone)). This target, which is interpreted to represent a second lens of the F-Zone, remains wide open for expansion. Current drilling is focused on defining mineralization proximal to and below the lower levels of the mine. To-date, five holes have been drilled over a 250-metre strike length (complete results presented in Table 1), successfully intersecting high-grade gold mineralization including: << - 9.28 g/t Au across 28.4 m (0.27 oz/ton across 93.2 feet) including 43.50 g/t Au across 3.0 m (1.27 oz/ton across 9.8 feet) in hole MM093. - 5.49 g/t Au across 53.0 m (0.16 oz/t across 173.9 feet) including 11.34 g/t Au across 19.5 m (0.33 oz/ton across 64.0 feet) in hole MM172. This intercept is located approximately 100 metres below the limits of mining of the F-Zone on this section. Table 1 New Sub Zone Intercepts from F-Zone Deeps - * denotes previously released drill holes ------------------------------------------------------------------------- UTM Dip/ Inter- Inter- Hole-ID Coordin- Azimuth From To val Grade val Grade Zone ates (m) (degrees) (m) (m) (m) (g/tonne) (ft) (oz/ton) ------------------------------------------------------------------------- MM093* 5502754 N 564.1 592.5 28.4 9.28 93.2 0.27 F 503397 E -66/360 -------------------------------------------- including 588.0 591.0 3.0 43.50 9.8 1.27 F ------------------------------------------------------------------------- MM100* 5502754 N 660.0 694.5 34.5 2.10 113.2 0.06 F 503189 E -65/360 -------------------------------------------- 750.2 759.5 9.3 4.71 30.5 0.14 F ------------------------------------------------------------------------- MM116 5502675 N 503300 E -65/360 extension 816.0 817.5 1.5 9.70 4.9 0.28 F ------------------------------------------------------------------------- MM025 extension 709.1 732.4 23.3 2.08 76.4 0.06 F 5502721 N -------------------------------------------- including 503500 E -65/360 709.1 710.3 1.2 8.49 3.9 0.25 F -------------------------------------------- including 728.6 732.4 3.8 5.31 12.5 0.16 F ------------------------------------------------------------------------- MM172 5502660 N 640.5 693.5 53.0 5.49 173.8 0.16 F 503600 E -66/360 -------------------------------------------- including 674.0 693.5 19.5 11.34 64.0 0.33 F ------------------------------------------------------------------------- True widths estimated at approximately 60-70% of intersection Note that gaps in hole numbers in these tables are due to 10 different drill rigs assigned the next sequential drill-hole number as each hole is completed. These are being drilled in five separate areas within the Hardrock Project. Other hole numbers can be considered to carry no significant values or are included in other zones, some of which may have already been released. >> Figure 1: Longitudinal Section of recent drill-hole pierce points, within F-Zone only (http://files.newswire.ca/598/PremierHardrock_Sep28.DOC) << Hardrock Western Deeps (F Zone) ------------------------------- >> One drill is currently testing for mineralization to the west of, and below the limits of historical mining at Hardrock which was mined to a maximum depth of 600 metres. This is considered to be shallow for an Archean gold deposit, with more than 2.1 million ounces having been recovered. The new drilling is located approximately 300 metres to the west of, and 50 metres below, the western-most mined area at Hardrock. Two gold zones were intersected in hole MM157 with assays of 4.36 g/t Au across 17.8 m (0.13 oz/ton across 58.4 feet) including 8.36 g/t Au across 4.3 m (0.24 oz/t across 14.1 feet) and a second zone that returned 5.44 g/t Au across 4.5 m (0.16 oz/t across 14.8 feet). Additional drilling in this new area is ongoing. New drill results from the western extension area are contained in Table 2. << Table 2 New Sub Zone Intercepts from Western Extension drilling ------------------------------------------------------------------------- UTM Dip/ Inter- Inter- Hole-ID Coordin- Azimuth From To val Grade val Grade Zone ates (m) (degrees) (m) (m) (m) (g/tonne) (ft) (oz/ton) ------------------------------------------------------------------------- MM157 899.5 924.0 24.5 3.21 80.4 0.09 F -------------------------------------------- including 5502887 N 904.7 922.5 17.8 4.36 58.4 0.13 F 501427 E -80/360 -------------------------------------------- including 904.7 909.0 4.3 8.36 14.1 0.24 F -------------------------------------------- 938.5 943.0 4.5 5.44 14.8 0.16 F ------------------------------------------------------------------------- True widths estimated at approximately 60-70% of intersection. North Zone ---------- >> Drilling is also focused on expanding mineralization below the bottom level of the historically mined North Zone which remained open at the time of closure. New drill results from the North Zone are contained in Table 3. Of note, hole MM164A, which represents the deepest hole drilled to-date within the North Zone target approximately 570 metres down plunge of the bottom level of the mine (13th Level), has returned 12.25 g/t Au across 2.4 m (0.36 oz/t across 7.9 feet). Ongoing drilling with four drill rigs is continuing to expand mineralization in this area. An X-Zone in MM155D grading 29.10 g/t over 1.5 m is a quartz vein that will require close-spaced drilling likely from underground to measure it's potential. It is located near MM073 which returned 17.70 g/t over 1.5 m. << Table 3 New Sub Zone Intercepts from North Zone ------------------------------------------------------------------------- UTM Dip/ Inter- Inter- Grade Hole-ID Coordin- Azimuth From To val Grade val (oz/ Zone ates (m) (degrees) (m) (m) (m) (g/tonne) (ft) ton) ------------------------------------------------------------------------- MM106E 776.5 781.9 5.4 3.61 17.7 0.11 North A -------------------------------------------- including 781.0 781.9 0.9 7.29 3.0 0.21 North A 5503397 N -------------------------------------------- 503577 E -80/180 790.5 792.7 2.2 4.24 7.2 0.12 North B -------------------------------------------- 799.8 801.0 1.2 5.17 3.9 0.15 North C -------------------------------------------- 807.4 811.7 4.3 4.53 14.1 0.13 North D ------------------------------------------------------------------------- MM155 5503404 N -82/180 551.3 554.8 3.5 42.00 11.5 1.23 X 503500 E ------------------------------------------------------------------------- 722.0 724.0 2.0 10.66 6.6 0.31 X MM155A 5503404 N -------------------------------------------- 503500 E -82/180 908.5 911.5 3.0 5.97 9.8 0.17 North D -------------------------------------------- 917.5 919.2 1.7 3.84 5.6 0.11 North E ------------------------------------------------------------------------- MM155B 5503404 N -82/180 hole North 503500 E abandoned ------------------------------------------------------------------------- MM155C 839.8 840.9 1.1 5.12 3.6 0.15 North A -------------------------------------------- 5503404 N 853.5 855.0 1.5 4.05 4.9 0.12 North B 503500 E -82/180 -------------------------------------------- 877.5 885.5 8.0 4.83 26.2 0.14 North C -------------------------------------------- including 882.5 884.0 1.5 15.90 4.9 0.46 North C ------------------------------------------------------------------------- 534.0 535.5 1.5 29.10 4.9 0.85 X MM155D 5503404 N -------------------------------------------- 503500 E -82/180 849.3 850.4 1.1 6.41 3.6 0.19 North A -------------------------- --------------- 863.8 865.5 1.7 6.68 5.6 0.20 North C ------------------------------------------------------------------------- 800.0 801.5 1.5 5.38 4.9 0.16 North A -------------------------------------------- MM155E 5503404 N 849.1 850.5 1.4 6.72 4.6 0.20 North C 503500 E -82/180 -------------------------------------------- 857.7 858.3 0.6 7.66 2.0 0.22 North D -------------------------------------------- 862.0 865.5 3.5 4.71 11.5 0.14 North E ------------------------------------------------------------------------- 825.7 829.1 3.4 5.95 11.2 0.17 North B MM155F 5503404 N -------------------------------------------- 503500 E -82/180 840.4 844.5 4.1 3.21 13.4 0.09 North C -------------------------------------------- 854.4 855.4 1.0 12.40 3.3 0.36 North D ------------------------------------------------------------------------- MM164A 951.4 953.8 2.4 12.25 7.9 0.36 North A 5503409 N -------------------------------------------- including 503289 E -82/180 951.4 952.8 1.4 19.94 5.2 0.58 North A -------------------------------------------- 962.5 964.0 1.5 14.00 4.9 0.41 North B ------------------------------------------------------------------------- MM165 5502820 N 403.0 406.7 3.7 8.23 12.1 0.24 North A 504250 E -56/360 -------------------------------------------- 513.0 517.0 4.0 16.66 13.1 0.49 North D ------------------------------------------------------------------------- True widths estimated at approximately 60-70% of intersection Missing holes can be considered to carry no significant value or will be included with other zones NN Zone Drilling ---------------- >> Recent drilling continues to define mineralization within the NN Zone, down-plunge and at depth below the previously announced, near-surface, NI43-101 resource estimate at Hardrock. Drilling in the NN Zone is shifting from a focus on open-pit style mineralization to defining narrower, underground style resources. Recent drilling has returned numerous significant intersections (previously released) including 9.62 g/t Au across 5.8 m (0.28 oz/t across 19.0 feet) in hole MM160, 4.93 g/t Au across 10.5 m (0.14 oz/t across 34.4 feet), 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.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 from 1938-1968 primarily from shallow depths within 600 metres of surface. 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 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