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Press release from CNW Group

Premier provides Trans-Canada Project update - Focus on high grade

Thursday, September 29, 2011

Premier provides Trans-Canada Project update - Focus on high grade08:49 EDT Thursday, September 29, 2011Retains JDS for Preliminary Economic Assessment Shares Issued:  121,900,211THUNDER BAY, ON, Sept. 29, 2011 /CNW/ - Premier Gold Mines Limited (TSX-PG) is pleased to provide an exploration update for the Company's 100% owned Trans-Canada Project in Northwestern Ontario, and to announce that it has retained the services of JDS Energy & Mining Inc. to complete a Preliminary Economic Assessment (PEA).  The PEA will consider a range of possible options available to Premier in assessing how best to optimize key assets in the Trans-Canada Project including the Hardrock, Brookbank, Key Lake and Kailey Deposits.  The JDS team of experienced mining professionals will augment Premier's exploration expertise to provide, in 2012, a clear economic framework and vision to advance the project toward development.While early 2011 exploration had a focus on in-fill and step-out drilling proximal to the main resource areas, the current program has three primary goals:  to delineate previously discovered high-grade gold zones (HGN and F2); to expand new discoveries (TNS and North Shear); and delineating the Key Lake Deposit, with the intent of including it in Premier's next mineral resource update for Trans-Canada.  Positive early results in these target areas include multiple intercepts containing appreciable visible gold.  A presentation on the high-grade target zones is available on the Company's website: www.premiergoldmines.com.Initial follow-up drilling has returned some of the highest recorded assays, resulting in multiple ounce intercepts in several of the target areas.  These zones have characteristics similar to the high-grade past producing Little Long Lac (600,000 ounces gold produced at a grade of 11.7 g/t) and Leitch (847,900 ounces gold produced at a grade of 31.5 g/t) Gold Mines located on the Trans-Canada Project.  Highlights from recent drilling include:251.0 grams per tonne gold (g/t Au) across 1.0 metres (m) or 7.32 ounces per ton (oz/t) across 3.3 feet (ft) in up-dip expansion drilling in the F2 Zone.28.78 g/t Au across 3.5 m (0.84 oz/t across 11.5 ft) drilling down-plunge in the HGN Zone.44.39 g/t Au across 5.3 m (1.29 oz/t across 17.4 ft)in the recently discovered TNS Zone.Veining and mineralization intersected in the North Shear discovery horizon (assays pending)."The potential of the Trans-Canada project to host several different styles of mineralization including significant high-grade zones has been demonstrated since the acquisition of the Hardrock Property in 2008." stated Ewan Downie, President and CEO of Premier.  "With our recent acquisition of Goldstone Resources, we now have more than 60 kilometres of favourable geology to explore outside of the three deposits that are the subject of current drilling."F2 ZoneThe F2 Zone is located in close proximity below the historic F-Zone mine workings.  The results from drilling reflect the follow-up to a new discovery that was made on the bottom level of the historic Hardrock Mine just prior to closure in 1968.  The F2 horizon is characterized by parallel narrow-vein zones with strong mineralization and frequent visible gold.Initial drilling (2009) in this horizon returned intercepts of 7.21g/t Au across 3.0 m (0.21 oz/t across 9.8 ft) and 121.00 g/t Au across 1.5 m (3.53 oz/t across 4.9 ft) in hole MM051, and 17.70 g/t Au across 1.5 m (0.52 oz/t across 4.9 ft) and 8.25 g/t Au across 1.5 m (0.24 oz/t across 4.9 ft) in hole MM073.  The first follow-up hole completed in 2011 (MM204) has returned multiple high-grade intercepts including 6.83 g/t Au across 3.5 m (0.20 oz/t across 11.5 ft) and 251.00 g/t Au across 1.0 m (7.32 oz/t across 3.3 ft). Table 1 provides a summary of significant results in the F2 Zone.Table 1 - F2 Zone Assay ResultsHole-IDUTM Coordinates (m)Dip/Azimuth (degrees)From (m)To (m)Interval (m)Grade (g/tonne)Interval (ft)Grade (oz/ton)Zone*MM0515502600N504049E-66/360540.0546.06.05.4119.70.16F2including544.8546.01.218.703.90.55F2and621.4624.02.68.308.50.24F2and660.5661.00.541.001.61.20F2and680.0681.51.5121.004.93.53F2*MM0735502600N504000E-47/360684.0685.51.517.704.90.52F2and745.0746.51.58.254.90.24F2MM2045502660N504094E-65/360499.0502.53.56.8311.50.20F2and548.0549.01.0251.003.37.33F2* - Previously released hole  Note:  True widths estimated at approximately 55-70% of intersection widthHGN ZoneThe High Grade North (HGN) Zone is located immediately north of the historic mine workings and was discovered in 2009 while drilling off the EP-Zone open pit.  The discovery hole contained appreciable visible gold and returned an impressive 1,141.50 g/t Au across 2.0 m (33.29 oz/t across 6.6 ft).Previously drilled holes in the EP-Zone are being extended to test the down-plunge extension of this horizon.  The first three holes drilled during the current program (OR015, EP149 and EP152) have all returned visible gold.  Assay results have been received for two of these holes with composite intervals of 17.80 g/t Au across 1.0 m (0.52 oz/t across 3.3 ft) in OR015 and 28.78 g/t Au across 3.5 m (0.84 oz/t across 11.5 ft) in EP149 - assays for additional holes remain outstanding.  Table 2 provides a summary of significant results in the HGN Zone.Table 2 - HGN Zone Assay ResultsHole-IDUTM Coordinates (m)Dip/Azimuth (degrees)From (m)To (m)Interval (m)Grade (g/tonne)Interval (ft)Grade (oz/ton)Zone*EP0645503025N504653E-60/360316.3317.00.720.102.30.59HGN*EP1055502939N504700E-60/360382.1384.12.01141.506.633.33HGN*EP1185502910N504725E-61/360364.5370.56.049.8119.71.45HGNincluding364.5366.01.5194.004.95.66HGNEP1495502840N504450E-65/360513.5517.03.528.7811.50.84HGNEP1525502815N504400E-67/360Assays pendingEP1535502800N504350E-65/360Assays pending*OR0015502920N504649E-60/360412.4414.01.66.305.20.18HGN*OR0025502864 N504648 E-60/360469.5471.01.510.604.90.31HGN*OR0055502917N504701E-60/360414.5416.01.512.994.90.38HGN*OR0075502868N504601E-60/360464.4468.03.66.4011.80.19HGN*OR0145502898N504500E-66/360491.0492.01.08.943.30.26HGNOR0155502835N504590E-60/360504.0505.01.017.803.30.52HGN*PIT0225502766N504551E-55/260552.9553.20.317.801.00.52HGN* - Previously released hole  Note:  True widths estimated at approximately 55-70% of intersection widthTNS ZoneThe Tenacity South (TNS) Zone was discovered in 2011 while exploring for potential gold zones parallel to the historic mine workings.  A mineralized shear zone was discovered to the south of Hardrock containing high-grade intercepts including 37.49 g/t Au across 2.1 m (1.09 oz/t across 6.9 ft) in HR053 and 10.89 g/t Au across 10.0 m (0.32 oz/t across 32.8 ft) in HR054.Follow-up drilling has defined pods of high-grade mineralization within this target horizon with results that include 44.39 g/t Au across 5.3 m (1.29 oz/t across 17.4 ft) in HR058, the highest grade intercept to-date in this horizon.  Table 3 provides a summary of significant results in the TNS Zone.Table 3 - TNS Zone Assay ResultsHole-IDUTM Coordinates (m)Dip/Azimuth (degrees)From (m)To (m)Interval (m)Grade (g/tonne)Interval (ft)Grade (oz/ton)Zone*HR0535502370 N504950 E-55/360149.9152.02.137.496.91.09TNS*HR0545502320 N504950 E-55/360268.2285.016.86.8155.10.20TNSincluding275.0285.010.010.8932.80.32TNSincluding276.0278.02.045.406.61.33TNS*HR0565502270 N504950 E-55/360338.7346.78.05.4926.20.16TNSincluding340.1343.63.58.0311.50.23TNSHR0585502320 N505000 E-55/360298.1303.45.344.3917.41.30TNSincluding298.1301.83.762.8912.11.84TNSHR0595502267 N504850E-55/360382.1383.00.96.602.950.19TNSHR0605502217 N504950 E-55/360384.0385.51.52.304.920.07TNSHR0615502664 N505010 E-55/180282.9283.91.05.823.30.17TNSHR0625502317 N505199E-55/360NSVHR0635502214 N504850 E-55/360517.8519.21.42.754.590.08TNSHR0645502318 N505099 E-55/360NSVHR0655502270 N505000 E-55/360395.0396.01.017.103.30.50TNSHR0665502319 N505050 E-55/360301.3302.31.03.873.280.11TNSHR0675502368 N505100E-55/360292.8293.60.84.632.620.14TNSHR0685502500 N505000 E-55/360NSVHR0695502396N505001E-55/360NSVHR0705502368N504800E-55/360Assays pendingHR0715502448N504898E-55/360210.0211.51.52.184.90.06TNSHR0725502300 N504700E-55/360532.0536.44.49.0014.40.26TNSincluding535.4536.41.032.103.30.94TNS* - Previously released hole  Note:  True widths estimated at approximately 55-70% of intersection width North Shear HorizonThe North Shear Horizon was discovered while drilling a previously untested area between the Hardrock and Little Long Lac Mines on the Property.  A strong looking, mineralized, shear structure was intersected in holes drilled 250 metres apart and that assayed 6.15 g/t Au across 2.8 m (0.18 oz/t across 9.2 ft) and 4.30 g/t Au across 2.3 m (0.13 oz/t across 7.5 ft). Follow-up drilling is now underway to examine the potential of this horizon to host resources.The Trans-Canada Project is host to several past-producing mines which collectively produced more than 4 million ounces of gold from depths within 600 metres of surface between 1938 and 1968, and several deposits that are being explored by Premier including the Hardrock Deposit.  The Hardrock Deposit is host to a NI43-101 compliant mineral resource estimate that was completed by Micon International Limited earlier in 2011. The estimate is based on drilling completed up to February 28, 2011 on multiple near surface and deeper zones, many of which remain open for expansion and are the subject of the ongoing drill program.  The Trans-Canada Project 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 site.  Significant services and a skilled labour pool exist with several local communities.Highlights of the Hardrock Project mineral resource estimate are set out in Table 4 below.  They have been subdivided into potentially underground or open pit mineable resources and reported using different cut-off grades.Table 4 - Hardrock Project Indicated & Inferred Mineral ResourcesMaterialClassificationCutoff (Au g/t)Grade Estimate (Au g/t)Resource TonnesContained Au OzsOpen PitOpen PitOpen PitOpen PitMeasuredIndicatedMeasured + IndicatedInferred0.830.830.830.832.4462.2802.3702.4836,865,0005,833,00012,698,000615,000540,000427,500967,50049,200UndergroundUndergroundUndergroundUndergroundMeasuredIndicatedMeasured + IndicatedInferred2.802.802.802.805.9935.8275.8755.3972,312,0005,757,0008,069,0006,187,000445,8001,078,5001,524,3001,073,500OP + UGOP + UGOP + UGOP + UGMeasuredIndicatedMeasured + IndicatedInferred------------3.3404.0423.7325.1339,177,00011,590,00020,767,0006,802,000985,8001,506,0002,491,8001,122,700(i) Resources estimated using inverse distance cubed(ii) Figures may not sum due to rounding(1)Mineral resources which are not mineral reserves do not have demonstrated economic viability.  The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing, or other relevant issues.(2)The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.(3)The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council November 27, 2010.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.Premier Gold Mines Limited is one of North America's leading exploration companies with a high-quality pipeline of projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States.  The Company's portfolio includes significant assets in world class gold mining districts such as Red Lake, Musselwhite and Geraldton in Ontario and the Carlin Trend 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.  Image with caption: "Figure 1 - Long Section of F2 Zone (CNW Group/Premier Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20110929_C7657_PHOTO_EN_4015.jpgImage with caption: "Figure 2 - Long Section of HGN Zone (CNW Group/Premier Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20110929_C7657_PHOTO_EN_4016.jpgFor further information: Ewan Downie, President & CEO               Phone: 807-346-1390                      Fax: 807-346-0100 e-mail: Info@premiergoldmines.com Web Site: www.premiergoldmines.com