Wednesday, April 22, 2009

Gold: Roxmark Mines: Premier Hardrock Drilling continues to intersect high grade gold 7.6g/t Au across 20.5 metres. RMK.v,, CDNX, HUI, XAU, GDL,

This is very impressive result 7.6g/t Au across 20.5 metres which continues to prove the model for open pit deposit. Ultimate prise is multi million oz Gold deposit in Canada with resources estimation in 4th Q 2009. This is what we call successful aggressive exploration programme in j/V format. Roxmark mines RMK.v keeps 30% of the project. Thing is to watch: what kind of price Premier Gold will be ready to pay to get this 30%.

Premier Hardrock Drilling continues to intersect high grade gold 7.6g/t Au across 20.5 metres within the EP Zone open pit target

THUNDER BAY, ON, April 22 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG - News) is pleased to announce additional high grade results from ongoing open pit delineation drilling at the Hardrock Project in Geraldton, Northwestern Ontario. Drilling into the South Limb of the highly prospective EP-Zone continues to outline high grade open pit-style mineralization with new intersections that include 7.60 grams per tonne gold (g/t Au) across 20.5 metres (m) in hole EP44, 11.96 g/t Au across 4.8m in hole EP39 and 3.02g/t Au across 18.1m in hole EP042.
Drilling at the EP-Zone target continues to expand near surface (open pit-style) mineralization within several parallel horizons. The new results compliment previously announced intersections within the North Limb that included 4.56 g/t Au across 24.5m in hole EP029, 3.04 g/t Au across 31.3m in hole EP031, 2.63 g/t Au across 43.5m in hole EP032, and 2.37 g/t Au across 62.7m in hole EP026, suggesting strong tonnage potential as drilling progresses into the heart of the EP-Zone.
The following table summarizes recent results from drilling at the EP-Zone. Please note that holes EP037-043 all intersected historically mined stopes prior to completely testing the horizon: Table
The EP-Zone is comprised of near-surface mineralization proximal to the historic North Zone mine workings from which nearly one million ounces of gold was produced to a depth of 2,000 feet. Drilling has identified multiple sub-zones within the iron formation-hosted South (SL) and North (NL) Limbs of the EP target. Significant mineralization has been intersected over a strike length of more than 500 metres, to depths of up to 150 metres, and remains open in all directions.
"Drilling at the EP and Tenacity Zones continue to return spectacular results, with both horizons having open pit and underground resource potential", stated Ewan Downie, President of Premier. "We regard results to date as meeting or exceeding our initial expectations for these target areas".
The current program at Hardrock is expected to consist of more than 50,000 metres of definition and exploration drilling. The Project is operated under a joint venture with Roxmark Mines Limited (TSX-V:RMK - News; Premier earning a 70% interest). The Hardrock Project is host to several past-producing mines which collectively produced more than 2.0 Million ounces of gold from the same deposits to shallow depths of some 2000 feet (600 metres) from 1938-1968. The mined zones remained open at depth at the time mining ceased and developed historical resources were left in place within the existing mine workings (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). Importantly, the Hardrock Project has the potential for defining several styles of mineralization capable of hosting resources, with grades and widths similar to many of Ontario's major gold mines including:
1) Open pit-style mineralization with grades exceeding 1.5 g/t Au
(Timmins, Hemlo)
2) Broad zones of mineralization with grades averaging 5.0+ g/t Au
3) Narrow vein zones with higher gold grades often exceeding 7.0g/t (Red
Lake, Pickle Lake)
Initial drilling is focusing on delineating both open pit and underground resources so that a NI43-101 compliant resource calculation can be completed in Q4 2009, with the goal of defining a multi-million ounce gold resource that can be moved quickly towards development (See references to historical resources above.). The Project offers development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through, or located proximal to, the property. Significant potential exists for developing resources in several areas including: 1) Open pit-style mineralization at the site of the original discovery where a resource containing several hundred thousand ounces of gold was partially drilled off by previous operators; 2) Several newer high-grade discoveries have been made throughout this large property package that have received little to no follow-up; 3) Resource blocks reported to remain within the mine workings; and, 4) The main mined zones which remain open below the 600m level.
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. The assay results presented are from core samples sent to Activation 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 of these are operated in joint venture with Red Lake Gold Mines and the Company has recently signed an Option Agreement to acquire a 100% interest in the strategic Lennie Red Lake Property. The company has also recently announced a potentially significant discovery on its 100% owned PQ North Project, strategically located on the main Musselwhite Gold Mine trend.
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