Premier
to Acquire Claims to Expand Carlin Trend Land Holdings
NOT
FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
PREMIER GOLD MINES LIMITED
(TSX:PG) ("Premier") is pleased to announce that
it has entered into a definitive acquisition agreement with arm's
length third parties pursuant to which Premier has agreed to indirectly
acquire the Blue Sage mineral claim rights within the Rain Sub-district
of the Carlin Trend, in Elko County, Nevada. The transaction will
result in the expansion of Premier's mineral interests along the
"Rain Fault" strike extension.
The Blue Sage claims are located to the northwest of and adjoin the
Sections that comprise Premier's Saddle Gold Project, covering
approximately 4500 feet (1.37 kilometres) of
the projected "Rain Fault" strike extension. The Rain
Fault is host to the past producing Rain Gold Mine, and the Saddle/NW
Tess Gold Deposit (Premier holds a 100% interest in the majority of the
Saddle Deposit). The Saddle Gold Deposit is one of several deposits
discovered by Newmont Mining Corporation during the 1990's to the
northwest of, and down plunge from, its Rain
Gold Mine. Recent drilling by Premier at Saddle has returned
significant gold intersections including 0.25 ounce per ton gold (oz/t
Au) across 40.0 feet (8.46 grams per tonne
gold (g/t Au) across 12.2 metres) including
0.31 oz/t Au across 22.9 feet (10.70 g/t Au across 6.98 m). Ongoing
drilling continues to intersect favourable
structures and mineralization.
The Nevada acquisitions represent a new chapter in Premier's strategy
to build a significant presence in proven, accessible and low-risk
jurisdictions that offer opportunities for the discovery of potentially
high grade gold deposits.
"The acquisitions of Saddle and Blue Sage represents our ongoing
commitment to expand our US-based presence, particularly on the Carlin
Trend, one of the world's most productive gold districts"
commented Ewan Downie, President and CEO of Premier
Gold Mines Ltd.
The acquisition of the Blue Sage mineral claims includes the assumption
by Premier of a US$400,000 promissory note. The purchase price for the
acquisition will be satisfied by the issue of an aggregate of 350,000
common shares of Premier. The Blue Sage mineral claim rights are
subject to a one percent (1.0%) net smelter return royalty. The
transaction is subject to conditions normal for a transaction of its
nature, including the approval of the Toronto Stock Exchange.
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 a well financed Canadian-based mineral
exploration and development company with several projects and deposits
in Northwestern Ontario, Nevada 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 a strategic project located on
the main Musselwhite Gold Mine trend and
holds a 70% interest in the Hardrock Project.
Ewan Downie, President & CEO
Phone: 807-346-1390
Fax: 807-346-0100
e-mail: Info@premiergoldmines.com
Web Site: www.premiergoldmines.com
This
Press Release contains certain information that may constitute
"forward-looking information" under applicable Canadian
securities legislation. Forward-looking information includes, but is
not limited to, statements about strategic plans, including, future
operations, future work programs, capital expenditures, discovery and
production of minerals, price of gold and currency exchange rates,
timing of geological reports, corporate and technical objectives and
closing of the acquisition of the Blue Sage mineral claims.
Forward-looking information is necessarily based upon a number of
assumptions that, while considered reasonable, are subject to known and
unknown risks, uncertainties, and other factors which may cause the
actual results and future events to differ materially from those
expressed or implied by such forward-looking information, including the
risk that regulatory approvals for the acquisition of the Blue Sage mineral
claims will not be obtained, risks inherent to the mining industry,
adverse economic and market developments and the risks identified in
Premier's annual information form under the
heading "Risk Factors". There can be no assurance that such
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance on
forward-looking information. All forward-looking information contained
in this press release is given as of the date hereof and is based upon
the opinions and estimates of management and information available to
management as at the date hereof. Premier disclaims any intention or
obligation to update or revise any forward-looking information, whether
as a result of new information, future events or otherwise, except as
required by law.
View this News Release in PDF:
Associated File: http://www.premiergoldmines.com/i/pdf/2011-05-03_NR.pdf
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