PREMIER
GOLD MINES LIMITED (TSX:PG) is pleased to announce that it has signed a Letter of
Intent to secure a 100% interest in ten key patented mining claims, the
Lennie Property, contained internal to Goldcorp's Red Lake Gold Mines
(RLGM) land holdings, immediately northeast of the world class Red Lake
Gold Mines complex.
Lennie Project
The Lennie Project is strategically located northeast of the Red Lake Gold
Mines complex along the same geological contact that hosts the major gold
mines in Red Lake. It covers the important unconformity between the
ore-hosting Balmer volcanic rocks and the overlying sedimentary rocks.
Folded ultramafic rocks and conjugate fault structures, similar to those at
the mine, are interpreted to be located on the Lennie claims and will be
the focus of an exploration program that will begin immediately on the
property, including diamond drilling.
The last exploration to occur on the Lennie property was a small, shallow
drill program in 1996. That program intersected faults containing
mineralized quartz-carbonate veins in Balmer rocks. It is anticipated that
deep drilling will begin in the spring to test these high-potential faults
as well as other targets, where they are interpreted to intersect
Balmer-aged ultramafic rocks in a setting similar to that which hosts
Goldcorp's High-grade Zone. That zone is considered to be one of the
largest and highest grade gold deposits in the world.
For this acquisition, Premier will pay $400,000 in cash payments over three
years and 160,000 shares of Premier, including $100,000 and 40,000 shares
on signing. A 3.0% Net Smelter Return royalty ("NSR") is payable
to the vendor, of which one-third (1% NSR) can be purchased at any time for
the sum of $1.0 Million. A finders' fee is payable to an arm's length party
in relation to this transaction.
Rahill-Bonanza Project The Rahill-Bonanza Project is
located in the heart of the prolific Red Lake district, within the core of
RLGM's land holdings. The 2009 exploration program will include a
delineation drill program proximal to the workings of the Wilmar Gold Mine,
and deep exploration holes to test primary targets at depth. The Wilmar
Gold Mine is a near surface past-producer on the joint venture property.
During the final years of operations at Cochenour, some 203,000 tons of ore
was mined at a grade of 0.30 oz/ton Au (10.3 g/t). This Phase I Program
will provide support for both previously announced shaft de-watering and a
planned advanced-exploration program on several known deposits in the
vicinity of the workings of the Cochenour-Wilmar Gold Mines. At the time of
closure in 1971, significant historical resources (a qualified person
has not done sufficient work to verify the historical resource, the company
is not treating the historical resource as a current resource and the
historical resource should not be relied upon) were reported to remain at
Wilmar. According to a report completed by Wilmar Mines Limited in 1973
(authored by D.A. Hutton), the deposit had the potential to host resources
(Although existing historical resources have been used as a basis for
confirming target potential, there is insufficient exploration data to
define a mineral resource and it is not certain that further exploration
will result in discovery of a mineral resource) as follows:
- 431,000 tons @ 0.21
oz/ton (7.2 g/t) Au within the 1300-2050 level workings.
- 822,000 tons @ 0.24
oz/ton (8.2 g/t) Au -- surface to the 1300-foot level.
- 5,700,000 tons @
0.10-0.15 oz/ton (3.4-5.1 g/t) Au -- Wilmar West (Granodiorite).
This Phase I drill program will test several of these areas in addition to
potential down-plunge extensions.
Additional drilling will test a target which passes through favourable
ultramafic rock units. This deep drilling is designed to test down-dip from
Wilmar where a major zone of deformation was previously intersected. This
deformation is interpreted to represent the RLGM "Mine Horizon",
where rock units similar to those at the RLGM complex and the Bruce Channel
Zone were identified.
The Rahill-Bonanza Project covers several kilometres of the main Red Lake
"Mine Trend" and is strategically located between the world class
Red Lake Gold Mines to the east, and the "Bruce Channel"
discovery to the west.
Presentations detailing the Lennie and Rahill Bonanza projects are
available on the Premier Gold Mines Limited website at
www.premiergoldmines.com.
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 and a joint venture in Mexico. In the Red Lake gold
mining camp, two of these 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 recently signed an agreement to acquire
mineral properties in Geraldton area from Barrick Gold.
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.</div></htmL>
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