PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to provide a summary of the
Company's 2010 Hardrock exploration program
and an update on the 2011 exploration campaign. With more than 114,000 metres of drilling completed in 2010, it was a year
that included many highlights.
Since the acquisition of the core part of the Project late in 2008,
numerous successes have been realized including new discoveries and the
delineation of significant mineralization in both open pit and
underground style gold zones. Highlights
include:
- Early
in 2010, a large resource was announced based solely on open pit
style mineralization. This resource is currently being updated,
including underground style mineralization and is expected to be
completed in late Q1 2011.
- Drilling
has expanded the footprint of the North Zone (historic production
grade of 0.22 oz/ton (7.54g/t Au)) more than 300 metres below the bottom level of the Hardrock Mine where it remains wide open for
expansion.
- Drilling
has successfully delineated and expanded the F-Zone with
intersections up to 7.92 g/t Au across 114.5 metres
(m) (0.23 oz/t across 375.6 feet) including 23.56 g/t Au across
31.0 m (0.69 oz/ton across 101.7 feet) within the historic F-Zone
resource area and 18.49 g/t Au across 20.5 m (0.54 oz/t across
67.2 feet) in step-out drilling approximately 400 metres west of the limits of previous
exploration.
- New
discoveries were made including the K-Zone, located just below the
F-Zone
- Drilling
intersected mineralization in the SP Zone over a plunge length of
more than 3.5 kilometres.
The Hardrock
Project, operated under a joint venture with Goldstone Resources Inc.
(TSX:GRC) (Premier holds a 70% interest in the project), is host to
several past-producing mines which collectively produced more than 3.0
Million ounces of gold, from shallow depths within 2000 feet (600 metres) of surface. The mined zones remained wide
open at depth at the time mining ceased and developed historic
resources were left in place within the existing mine workings.
In March of 2010, an initial NI43-101 compliant Mineral Resource
estimate was completed following one year of extensive drilling at Hardrock. This resource, calculated solely from
mineralization contained within conceptual open pit shells, is
presented in Table 1 below.
Table 1 -- Initial Resource Estimate
Indicated Resources
Cut-off Grade
|
Tonnes
(Millions)
|
Grade gpt
Au (cut)
|
Grams Au Cut
(Millions)
|
Ounces Au
Cut
|
Grade gpt
Au (uncut)
|
Grams Au uncut
(Millions)
|
Ounces Au
Uncut
|
0.6 gpt Au
|
22.9
|
1.30
|
29.7
|
955,000
|
1.65
|
37.8
|
1,215,000
|
0.8 gpt Au
|
16.1
|
1.56
|
25.0
|
805,000
|
2.03
|
32.5
|
1,045,000
|
1.0 gpt Au
|
11.6
|
1.82
|
21.1
|
675,000
|
2.43
|
28.1
|
905,000
|
1.2 gpt Au
|
8.5
|
2.08
|
17.7
|
570,000
|
2.86
|
24.3
|
780,000
|
1.4 gpt Au
|
6.3
|
2.35
|
14.9
|
475,000
|
3.33
|
21.0
|
675,000
|
Inferred Resources
Cut-off Grade
|
Tonnes
(M)
|
Grade gpt
Au (cut)
|
Grams Au Cut
(Millions)
|
Ounces Au
Cut
|
Grade gpt
Au (uncut)
|
Grams Au uncut
(Millions)
|
Ounces Au
Uncut
|
0.6 gpt Au
|
16.1
|
1.25
|
20.1
|
645,000
|
2.39
|
38.4
|
1,085,000
|
0.8 gpt Au
|
11.0
|
1.51
|
16.5
|
530,000
|
3.03
|
33.1
|
955,000
|
1.0 gpt Au
|
7.4
|
1.81
|
13.2
|
425,000
|
3.92
|
28.8
|
830,000
|
1.2 gpt Au
|
4.9
|
2.15
|
10.6
|
340,000
|
5.06
|
24.9
|
730,000
|
1.4 gpt Au
|
3.3
|
2.57
|
8.6
|
275,000
|
6.49
|
21.7
|
640,000
|
1. The
above table includes an adjustment to account for excavation voids by
subtracting 975,000 T @ 1.8 gpt (1.1M grams)
from the Indicated material reported and by subtracting 625,000 T @ 1.8
gpt (1.7 M grams) from the Inferred material
reported. All drilling used for the estimate was done subsequent to
mining and there are no drillhole intervals
used for the estimates that are from mined out areas.
In 2010, 114,611 metres
of drilling was completed at Hardrock. This
drilling was focused on further defining open pit style resource in
addition to defining underground style resources in preparation for an
updated resource estimate that is in the process of being completed and
is expected to be released late in Q1 2011.
The primary focus of the 2010 drilling campaign, and the ongoing
program, was to delineate significant underground resources in
preparation for advanced exploration including underground definition
drilling. Mineralization is being defined in multiple zones including
below the historic mine workings. Since the acquisition, several new
discoveries have been made including the recent discovery of the K
Zone.
The K Zone represents a new discovery in an area that has
no previous drilling below, and parallel to, the historic F Zone. Early
indications suggest mineralization over a plunge length of some 750 metres and the zone is open both up and down dip.
Highlights from drilling to-date include 13.59 g/t Au across 3.0 metres (m) (0.40 oz/t across 9.8 feet) and 10.92 g/t Au across 5.8 m (0.32 oz/ton across 19.0 feet).
Further K Zone results are presented in Table 2.
Table 2 -- Selected Recent K Zone Results
Hole-ID
|
UTM Coordinates
(m)
|
Dip/Azimuth
(degrees)
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Grade
(g/tonne)
|
Interval
(ft)
|
Grade
(oz/ton)
|
Zone
|
MM179D
|
5502965 N 502300 E
|
-82/360
|
783.7
|
790.0
|
6.3
|
4.87
|
20.7
|
0.14
|
K
|
MM184
|
5502950 N 502100 E
|
-80/360
|
844.8
|
847.8
|
3.0
|
13.59
|
9.8
|
0.40
|
K
|
MM184B
|
5502950 N 502100 E
|
-80/360
|
882.0
|
886.0
|
4.0
|
6.34
|
13.1
|
0.19
|
K
|
MM187E
|
5502945 N 502000E
|
-81/360
|
881.4
|
887.2
|
5.8
|
10.92
|
19.0
|
0.32
|
K
|
MM192C
|
5502957 N 502200 E
|
-75/360
|
857.0
|
861.0
|
4.0
|
6.19
|
13.1
|
0.18
|
K
|
*
True widths are estimated at approximately 60-70% of intersection
widths
The SP Zone was partially mined in the upper levels at Hardrock with 264,354 tonnes
(291,428 tons) of ore extracted at an average grade of 8.37g/t Au
(0.244 oz/t). Recent drilling has intersected multiple lenses
down-plunge from this, with highlights including 55.80 g/t Au across
4.5 meters (1.63 oz/ton across 14.8 feet) and 6.14 g/t Au across 12.0
meters (0.18 oz/ton across 39.4 feet). Table 3 details some
previously unreleased intercepts from the SP Zone.
Table 3 -- Selected Recent SP Zone Results
Hole-ID
|
UTM Coordinates
(m)
|
Dip/Azimuth
(degrees)
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Grade
(g/tonne)
|
Interval
(ft)
|
Grade
(oz/ton)
|
Zone
|
MM182C
|
5502790 N 503430 E
|
-80/360
|
522.0
|
526.3
|
4.3
|
7.42
|
14.1
|
0.22
|
SP
|
MM184C
|
5502949 N 502100 E
|
-78/360
|
651.5
|
656.0
|
4.5
|
55.80
|
14.8
|
1.63
|
SP
|
MM189C
|
5502941 N 501900 E
|
-80/360
|
738.0
|
747.0
|
9.0
|
5.47
|
29.5
|
0.16
|
SP
|
MM192F
|
5502957 N 502200 E
|
-75/360
|
659.9
|
668.4
|
8.5
|
6.04
|
27.9
|
0.18
|
SP
|
MM192G
|
5502957 N 502200 E
|
-75/360
|
629.0
|
641.0
|
12.0
|
6.14
|
39.4
|
0.18
|
SP
|
*
True widths are estimated at approximately 60-70% of intersection
widths
The F-Zone was the most prolific of the past-producing
mine zones at Hardrock with more than 1.4
million ounces produced utilizing bulk underground mining methods with
widths often exceeding 30 metres (100 feet).
Importantly, when the mine closed in 1960's, a 600-metre plunge length
of ore was left unmined. Numerous holes have
been drilled to confirm this mineralization and upgrade it to NI43-101
resource standards. Highlight results from recent drilling include 8.43g/t
Au across 22.5 meters (0.25 oz/ton across 73.8 feet) and 4.22 g/t Au
across 62.8 meters (0.12 oz/ton across 206.0 feet) including 6.22 g/t
across 27.2 meters (0.18 oz/ton across 89.2 feet). Table 4 provides
selected, previously unreleased results from the F Zone.
Table 4 -- Selected Recent F Zone Results
Hole-ID
|
UTM Coordinates
(m)
|
Dip/Azimuth
(degrees)
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Grade
(g/tonne)
|
Interval
(ft)
|
Grade
(oz/ton)
|
Zone
|
MM182D
|
5502790 N 503430 E
|
-80/360
|
750.0
|
772.5
|
22.5
|
8.43
|
73.8
|
0.25
|
F
|
including
|
768.0
|
772.5
|
4.5
|
28.09
|
14.8
|
0.82
|
MM187D
|
5502945 N 502000 E
|
-80/360
|
805.0
|
814.0
|
9.0
|
4.23
|
29.5
|
0.12
|
F
|
MM189G
|
5502941 N 501900 E
|
-80/360
|
737.5
|
759.0
|
21.5
|
5.53
|
70.5
|
0.16
|
F
|
MM192D
|
5502957 N 502200 E
|
-75/360
|
727.5
|
745.5
|
18.0
|
3.56
|
59.0
|
0.10
|
F
|
including
|
727.5
|
730.0
|
2.5
|
16.79
|
8.2
|
0.49
|
MM192F
|
5502957 N 502200 E
|
-75/360
|
698.8
|
761.6
|
62.8
|
4.22
|
206.0
|
0.12
|
F
|
including
|
698.8
|
726.0
|
27.2
|
6.22
|
89.2
|
0.18
|
*
True widths are estimated at approximately 60-70% of intersection
widths
The North Zone was previously mined to a depth of 610 metres (2,000 feet) with production of 2.97 million
tons at a recovered grade of 0.22 oz/ton (7.54g/t Au). The 2010
drilling has demonstrated that the North Zone continues up to 300
meters below the historical mine workings, intersecting mineralization
over a strike length of 700 meters down plunge. This zone remains wide
open at depth for expansion. Recent highlights include 6.97g/t Au
across 22.5 meters (0.20 oz/ton across 73.8 feet). Table 5 provides
selected, previously unreleased results from the North Zone.
Table 5 -- Selected Recent North Zone Results
Hole-ID
|
UTM Coordinates
(m)
|
Dip/Azimuth
(degrees)
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Grade
(g/tonne)
|
Interval
(ft)
|
Grade
(oz/ton)
|
Zone
|
MM164F
|
5503409 N 503289 E
|
-82/180
|
838.5
|
843.0
|
4.5
|
9.09
|
14.8
|
0.27
|
North
|
MM171A
|
5503400 N 503430 E
|
-82/180
|
1017.0
|
1021.5
|
4.5
|
10.10
|
14.8
|
0.29
|
North
|
MM175E
|
5503388 N 503357 E
|
-83/180
|
811.0
|
814.0
|
3.0
|
11.75
|
9.8
|
0.34
|
North
|
MM182D
|
5502790 N 503430 E
|
-80/360
|
845.0
|
867.5
|
22.5
|
6.97
|
73.8
|
0.20
|
North
|
MM190A
|
5503400 N 503430 E
|
-79/180
|
896.2
|
903.0
|
6.8
|
4.99
|
22.3
|
0.15
|
North
|
*
True widths are estimated at approximately 60-70% of intersection
widths
Drilling continues to intersect narrow, high-grade vein zones as
highlighted in drill hole MM192G that intersected 199.0 g/t Au across
1.0 m (5.80 oz/ton across 3.3 feet) and hole MM204 that intersected
251.0 g/t Au across 1.0m (7.32 oz/ton across 3.3 feet). Full results
from 2010 drilling can be seen on the Company's website www.premiergoldmines.com.
In addition to Hardrock, Premier will be
actively exploring on six of the Company's projects in North America
including all four projects in the Red Lake District, the PQ North
Property strategically located on the PQ limb of the key iron formation
that is host to Goldcorp's Musselwhite Gold
Mine, and the Saddle Gold Project located in the heart of the prolific
Carlin Trend.
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 a well financed Canadian-based mineral
exploration and development company with several projects and deposits
in Northwestern Ontario and a joint venture in Mexico. In the Red Lake
gold mining camp, two are operated in joint venture with Red Lake Gold
Mines. The company also owns strategic projects located in the heart of
the Carlin Trend, Nevada, on the main Musselwhite
Gold Mine trend, and holds a 70% interest in the Hardrock
Project.
For further information, please contact:
Ewan Downie, President & CEO
Phone: 807-346-1390
Fax: 807-346-0100
e-mail: Info@premiergoldmines.com
Web Site: www.premiergoldmines.com
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.