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Press release from CNW Group

Premier expands Key Lake Deposit with high-grade gold intercepts including 21.77 g/t Au across 5.35m

Wednesday, October 26, 2011

Premier expands Key Lake Deposit with high-grade gold intercepts including 21.77 g/t Au across 5.35m08:20 EDT Wednesday, October 26, 2011Shares Issued:  121,900,211THUNDER BAY, ON, Oct. 26, 2011 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to provide an update from ongoing exploration activities at the Company's Key Lake site that forms part of the 100%-owned Trans-Canada Project.  This drilling is aimed at expanding the current footprint of the Key Lake deposit trend along strike and testing the down-plunge potential of some of the higher-grade "shoots" within the core area of the deposit. The Key Lake deposit is being evaluated to form part of the NI43-101 mineral resource estimate update for the Trans-Canada Project that will be completed for release in Q1 of 2012 and will be included in the Company's future Preliminary Economic Assessment of the Trans-Canada Project.The Key Lake Deposit is located approximately 10 kilometres along strike to the west of the Hardrock Deposit. The current drill program has successfully extended mineralization approximately 600 metres along strike to the west of the core area, with the best results coming from the westernmost 200 metres, where it remains wide open for expansion (see Figure 1). Recent highlights include:Step-out drilling has extended mineralization along strike to the west with numerous higher grade intercepts highlighted by hole KL-11-157 that returned 3 mineralized zones assaying 17.50 grams per tonne gold (g/t Au) across 1.4 metres (m) (0.51 oz/t across 4.6 feet), 21.77 g/t Au across 5.35 m (0.63 oz/t across 17.6 feet), and 6.31 g/t Au across 7.0 m (0.18 oz/t across 23.0 feet).Step-out drilling some 300 metres down-plunge of the "core area" has intersected broad mineralization that suggests excellent expansion potential at depth.Tim Twomey, Vice-President of Exploration of Premier said, "These results are particularly exciting as they demonstrate the potential of the Key Lake deposit to host underground-type grades west of the core area, where it remains wide open down plunge. The 2011 Key Lake drilling results have the potential to materially increase the overall gold resources at the Trans-Canada Project.  We will be following-up these results with drilling further west this winter."On June 22, 2011, Premier acquired the Key Lake Project as part of its acquisition of Goldstone Resources Inc.  The combination resulted in the consolidation of 100% ownership of the Hardrock Project that is host to a multi-million ounce NI 43-101 compliant resource estimate and added extensive property holdings in the Geraldton-Beardmore Greenstone Belt with a combined strike length of more than 50 kilometres.  In addition to Key Lake, new property holdings include the high-grade Brookbank Deposit, the past producing Leitch Gold Mine (historic production of 847,900 ounces of gold at an average grade of 31.5 g/t Au), and the Northern Empire Mill complex.A complete listing of recent significant assay results at Key Lake is provided in Table 1.Table 1 - Key Lake Assay ResultsHole-IDUTM Coordinates (m)Dip/Azimuth (degrees)From (m)To (m)Interval (m)Grade (g/tonne)Interval (ft)Grade (oz/ton)ZoneKL-11-1275506366 N491679 E-67/7207.0211.04.04.4113.10.13KL234.0239.05.03.7216.40.11KL290.0297.57.52.7824.60.08KLKL-11-1295506659 N491538 E-45/19261.7762.81.033.263.40.10KLKL-11-1305506663 N 491487 E-46/1022.425.53.15.4610.20.16KLKL-11-1315506663 N491487 E-58/10109.51111.52.444.90.07KLKL-11-1325506738 N491503 E-48/192268.07285.5217.451.4257.20.04KLKL-11-1335506705 N491497 E-47/195207.0209.02.03.596.60.10KLKL-11-1345506705 N491497 E-65/195NSVKL-11-1355506518 N491404 E-48/7103.9104.50.62.782.00.08KLKL-11-1365506518 N491404 E-58/7NSVKL-11-1375506697 N491441 E-47/19237.941.94.04.2213.10.12KLKL-11-1385506697 N491441 E-78/192No assays yetKL-11-1395506723 N491423 E-45/19269.8779.459.63.4231.40.10KLKL-11-1405506723 N 491423 E-66/192146.51525.55.3118.00.16KLKL-11-1415506609 N491374 E-46/121251261.03.003.30.09KLKL-11-1425506609 N491374 E-63/12146.0150.04.03.6013.10.11KL159.0161.02.04.336.60.13KLKL-11-1435506758 N491405 E-47/195assays PendingKL-11-1445506650 N491332 E-45/12assays PendingKL-11-1455506650 N491332 E-69/1293.1595.22.13.896.70.11KLKL-11-1465506752 N491353 E-47/195assays PendingKL-11-1475506584 N491266 E-50/12109.5116.06.52.7921.30.08KLKL-11-1485506584 N491266 E-65/12208.0211.03.01.389.80.04KLKL-11-1495506561 N491261 E-56/1293.1595.22.13.896.70.11KLKL-11-1505506825 N491266 E-60/192assays PendingKL-11-1515506568 N491186 E-47/10118.9122.43.41.5211.30.04KL178.8180.51.63.045.40.09KLKL-11-1525506568 N491186 E-60/10163.5164.51.04.943.30.14KLKL-11-1535506604 N491168 E-46/10112.0113.01.01.753.30.05KLKL-11-1545506686 N491077 E-45/12121.0125.04.02.0713.10.06KLKL-11-1555506614 N 491068 E-47/10210.5212.52.06.596.60.19HGKLKL-11-1565506614 N491068 E-59/10260.0261.71.70.985.60.03HGKLKL-11-1575506786 N 491002 E-45/1233.040.07.06.3123.00.18KL55.657.01.417.504.60.51KL75.280.55.321.7717.50.64HGKLKL-11-1585506701 N490984 E-47/12163.0173.210.22.4433.50.07KLKL-11-1595506831 N490910 E-45/12115.85117.31.52.204.80.06KLKL-11-1605506785 N 490900 E-45/12103.5110.547.05.7323.10.17HGKLKL-11-1615506785 N 490900 E-60/1281.082.01.05.963.30.17HGKL132.0135.83.81.6012.50.05KLKL-11-1625506852 N490813 E-45/12Not Drilled YetKL-11-1635506852 N490813 E-64/12Not Drilled YetKL-11-1645506803 N490803 E-59/12Not Drilled YetKL-11-1655506862 N490764 E-64/12Not Drilled YetKL-11-1665506895 N491332 E-65/202assays PendingKL-11-1675507220 N491000 E-50/190assays PendingKL-11-1685507125 N491275 E-50/190assays PendingKL-11-1695506675 N492400 E-50/190Not Drilled YetKL-11-1705506900 N492550 E-50/190Not Drilled YetKL-11-1715506880 N 491020 E-50/19059.964.95.05.9616.40.17KL192.0193.01.018.703.30.55HGKLTrue widths are estimated at approximately 70% to 80% of drilled interval widthKL - Key Lake Horizon HGKL - High-Grade Key Lake (West)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, or to Accurassay Laboratories, an accredited mineral analysis laboratory in Thunder Bay, 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 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.PDF with caption: "Figure 1 - Trans-Canada Project". PDF available at: http://stream1.newswire.ca/media/2011/10/26/20111026_C7592_DOC_EN_5488.pdfFor further information: Ewan Downie, President & CEO                     Phone: 807-346-1390                            Fax: 807-346-0100 e-mail: Info@premiergoldmines.com        Web Site: www.premiergoldmines.com