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Press release from CNW Group

Premier provides Hardrock drilling update

Wednesday, April 17, 2013

Premier provides Hardrock drilling update

06:43 EDT Wednesday, April 17, 2013

Shares Issued:  149,072,712

THUNDER BAY, ON, April 17, 2013 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce additional high-grade results from ongoing drilling at the Trans-Canada Property's Hardrock Deposit located near Geraldton, Ontario. Drilling confirms the robust nature of the primary mineralized zones and the potential to expand mineralization.  New highlight intercepts include:

  • 1.90 grams per tonne gold (g/t Au) across 51.8 metres (m) and 2.14 g/t Au across 41.5 m in hole HR131, a step-out hole beneath the current 200m limit of the resource designated as potentially open-pittable .

  • 3.50 g/t Au across 20.7 m in hole MM351 drilled to upgrade current resources from the Inferred to Indicated category.

  • 12.43 g/t Au across 12.0 m in hole MM324 drilled to upgrade Inferred resources in the deeper portion of the F-Zone.

  • 22.87 g/t Au across 3.0 m in hole MM336 drilled down-plunge of the North Zone deposit.

  • 8.46 g/t Au across 5.5m in hole MM337 and 10.52 g/t Au across 2.5m in hole MM340 drilled to test the new "Mulligan Zone" at Hardrock.

A Preliminary Economic Assessment (PEA) is expected to be completed in Q3-2013 for the Hardrock and Brookbank deposits that will evaluate a range of potential open pit and underground options.  These studies will be completed following an updated mineral resource estimate that is underway incorporating data available as of April 5, 2013.  Some of the assay results reported in this release have been received subsequent to that date.

The Hardrock Deposit is regarded as having both open pit and underground mineable potential.  A recently completed mineral resource estimate (See Table 1 below) indicates 3.15 million ounces of gold in the Measured and Indicated category plus an additional 3.41 million ounces of gold in the Inferred category have been documented. The Hardrock Deposit is the largest of the four deposits that comprise the Trans-Canada Property and is the focus of the current drill program.

Table 1   2012 Measured, Indicated and Inferred Resources for Hardrock Deposit

                     
Deposit   Cut-off Category   Resource Category   Tonnes (Mt)   Gold (Au) Grade (g/t)   Au Ounces (000's)
    Open Pit (O/P)   Measured (M)   12.74   1.41   576
    (Cut-off @ 0.50 g/t)   Indicated (I)   33.92   1.55   1,685
        Subtotal M & I   46.66   1.51   2,261
Hardrock       Inferred   6.62   1.74   370
    Underground (U/G)   Measured (M)   0.32   5.84   60
    (Cut-off @ 2.80 g/t)   Indicated (I)   4.73   5.42   829
        Subtotal M & I   5.05   5.48   889
        Inferred   16.01   5.91   3,040
                     

The open pit portion of the 2012 mineral resource estimate for the Hardrock Deposit was limited to a depth of approximately 200 metres, with the remainder being reported as potentially underground mineable resources. Scoping work suggests that removing the 200-metre depth limit imposed on the previous resource may benefit the overall potential of the project. The resource update is planned prior to the completion of the PEA.

The ongoing program comprised primarily of delineation drilling at Hardrock is designed to potentially upgrade inferred resources in addition to testing previously undrilled areas.  Table 2 provides a summary of new assay results from step-out and infill drilling within the open pit target area.

Table 2: New Assay Results from the Hardrock pit area

                   
Hole-ID UTM
Coordinates
(m)
Dip/Azimuth
(degrees)
From
(m)
To (m) Interval
(m)
Grade
(g/tonne)
Interval
(ft)
Grade
(oz/ton)
Zone
HR130 5503167N
504350E
-47/180 175.0 184.0 9.0 1.91 29.5 0.06 Upper NN
  352.0 369.0 17.0 3.17 55.8 0.09 F
HR131 5503167N
504350E
  192.0 199.0 7.0 1.03 23.0 0.03 NN
  208.0 219.5 11.5 0.90 37.7 0.03 Upper NN
-67/180 328.0 350.0 22.0 0.60 72.2 0.02 South Limb C
  381.2 433.0 51.8 1.90 169.9 0.06 Fortune
  449.5 491.0 41.5 2.14 136.1 0.06 F
HR133 5503241N
504524E
  44.5 91.9 47.4 1.29 155.5 0.04 NN
  117.5 131.0 13.5 2.38 44.3 0.07 Upper NN
-50/180 146.3 158.1 11.8 2.83 38.7 0.08 South Limb C
  268.5 270.0 1.5 16.00 4.9 0.47 Fortune
HR134 5503231N
504165E
-45/180 213.0 232.0 19.0 1.76 62.3 0.05 NN
HR135 5503274N
504140E
-44/180 254.0 263.0 9.0 1.68 29.5 0.05 Lower NN
HR136 5503230N
504164E
  229.3 235.0 5.7 1.61 18.7 0.05 Lower NN
  412.0 415.1 3.1 4.07 10.2 0.12 South Limb A
  422.2 447.0 24.8 2.18 81.3 0.06 South Limb B
-67/180 488.8 493.0 4.2 1.98 13.8 0.06 South Limb C
  520.6 521.6 1.0 7.46 3.3 0.22 South Limb D
  531.5 532.5 1.0 10.40 3.3 0.30 Fortune
HR137 5503274N
504140E
-67/180 334.4 337.0 2.6 1.84 8.5 0.05 NN
  497.5 504.0 6.5 2.85 21.3 0.08 South Limb C
HR139 5503327N
504386E
-42/180 120.9 126.5 5.6 2.25 18.4 0.07 Lower NN
  296.0 298.0 2.0 2.14 6.6 0.06 South Limb C
HR140 5503271N
504435E
  54.5 70.0 15.5 1.81 50.8 0.05 Lower NN
-46/180 146.9 153.5 6.6 0.81 21.6 0.02 North B
  238.5 247.0 8.5 1.86 27.9 0.05 South Limb
HR141 5503184N
504190E
-45/180 146.0 154.0 8.0 0.70 26.2 0.02 Upper NN
  168.2 173.4 5.2 2.47 17.1 0.07 NN
MM351 5502795N
504175E
  241.0 271.6 30.6 0.47 100.4 0.01 F
-57/360 447.5 468.2 20.7 3.50 67.9 0.10 Upper NN
  492.0 511.5 19.5 0.86 64.0 0.02 NN

* True widths estimated at 60-70% of intercept  * Assays as presented are un-cut

The Trans-Canada Property 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 sites.  Significant services and a skilled labour pool exist within several nearby communities.

Exploration drilling at Hardrock continues to target potentially higher grade underground mineralization within the F, SP and Fortune Zones and also in new target areas including the Mulligan Zone and the TAZ (North Shear) Zone.

The Mulligan Zone is hosted in the main iron formation unit at Hardrock parallel to the historic mine, and the TAZ (North Shear) Zone discovery that is located midway between the historic McLeod-Cockshutt Mine and the Little Long Lac Mine from which 605,449 ounces of gold were mined at an average grade of 11.7g/t Au (0.34oz/st).

Drilling also continues to test extensions of some of the known zones of the Hardrock Deposit with recent highlights including extensions of the North Limb Zone, F-Zone, SP Zone and the A-Zone.  Significant intercepts are summarized in Table 3 below.

Table 3: Assay Results from Hardrock Exploration Drilling

                   
Hole-ID UTM
Coordinates
(m)
Dip/Azimuth
(degrees)
From
(m)
To (m) Interval
(m)
Grade
(g/tonne)
Interval
(ft)
Grade
(oz/ton)
Zone
HR106 5503930N
502400E
-72/360 301.7 303.8 2.1 7.04 6.9 0.21 North Shear
HR107 5503895N
502389E
-74/010 452.5 456.7 4.2 8.77 13.8 0.26 North Shear
HR109 5503995N
502500E
-84/360 397.0 398.0 1.0 24.60 3.3 0.72 North Shear
HR128 5503799N
502501E
-69/360 482.0 483.0 1.0 13.20 3.3 0.39 North Shear
HR113 5502528N
505000E
-52/360 361.5 365.5 4.0 5.62 13.1 0.16 A Zone
HR124 5502561N
504900E
-55/360 378.0 379.0 1.0 10.20 3.3 0.30 A Zone
HR116 5502539N
504900E
-54/360 424.0 426.0 2.0 9.15 6.6 0.27 A Zone
MM311 5502749N
502598E
-65/360 619.0 622.0 3.0 9.47 9.8 0.28 SP
  854.0 855.0 1.0 9.50 3.3 0.28 Fortune
MM314 5502740N
502404E
-69/360 718.0 722.0 4.0 7.07 13.1 0.21 SP
MM316 5502721N
502076E
-68/360 852.0 884.0 32.0 3.52 105.0 0.10 F
  818.4 820.3 1.9 15.32 6.2 0.45 SP
MM319 5502725N
501875E
-69/360 973.6 974.6 1.0 6.28 3.3 0.18 Fortune
MM324 5502699N
501605E
-77/360 918.2 930.2 12.0 12.43 39.4 0.36 F
MM325A 5502667N
502000E
-75/360 920.0 927.2 7.2 8.53 23.6 0.25 SP
MM336 5502650N
503125E
-68/360 839.5 841.8 2.3 8.04 7.5 0.23 Fortune
  924.0 927 3.0 22.87 9.8 0.67 North C
MM337 5503480N
503339E
-68/180 656.8 662.3 5.5 8.46 18.0 0.25 Mulligan
MM340 5503481N
503288E
-72/180 734.2 736.7 2.5 10.52 8.2 0.31 Mulligan
MM344B 5503430N
503200E
-79/180 693.3 696.7 3.4 4.71 11.2 0.14 Mulligan
  762.0 763.0 1.0 83.10 3.3 2.43 Fortune

* True widths estimated at 60-70% of intercept * Assays as presented are un-cut

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 one of North America's leading exploration and development companies with a high-quality pipeline of gold projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States.  The Company is fully financed with a portfolio of advanced-stage assets in world class gold mining districts such as Red Lake and Geraldton in Ontario and the most prolific gold trends 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.

SOURCE: Premier Gold Mines Limited

For further information:

Ewan Downie, President & CEO             
Phone: 807-346-1390                    
Fax: 807-346-0100
e-mail: Info@premiergoldmines.com
Web Site: www.premiergoldmines.com

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