Premier Adds Second Drill at PQ-North – Intersects Mineralized Zones
Mon Mar 2, 2009
PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that it will be adding a second drill following the intersection of significant mineralized structures at the Company’s 100% owned PQ-North in Northwestern Ontario.Initial drilling at PQ-North is designed to test two key target horizons:
1. Down-plunge of previously identified gold mineralization within a major fold nose
2. Fold structures along the PQ limb of the main iron formation of gold zones at the adjacent Musselwhite Gold Mine (Goldcorp)
The first hole drilled to test the fold nose has intersected mineralized shear zones in the volcanic rocks above the iron formation in addition to a mineralized zone within the iron formation. The primary target occurs where the shear zones cut the main iron formation at depth, which will be tested by the next hole. A broad mineralized zone was intersected down-plunge from the known mineralized zone on the property and consists of folded, laminated and strongly biotite-garnet altered iron formation containing pyrrhotite, chalcopyrite and rare visible gold.
The PQ-North Project is located within Goldcorp’s Musselwhite Property holdings and is strategically located on the PQ limb of the key iron formation that is host to the majority of the ore zones at Musselwhite. Recently, Goldcorp stated that gold mineralization at the mine has been extended to the north with intersections on structures that could trend in close proximity to Premier’s PQ North Property (Goldcorp’s SEC filing on July 31, 2008). These results include a drill intercept of 15.5 grams per tonne (gpt) gold across a true width of 4.5 metres (m) in hole 07-NSD-005 located approximately 6 kilometres north along strike of the main mine facilities. To date, the Musselwhite Mine has produced more than 2.0 million ounces of gold and has reserves and resources totalling in excess of 3.30 Million ounces at the end of 2007.
The PQ North Property encompasses a major fold structure along strike from and within the Northern Banded Iron Formation, which hosts the gold-bearing ore zones at Musselwhite. Previous drilling has returned numerous significant intersections and has identified structural units similar to those at the mine. Exploration to date has included an airborne geophysical survey, which identified major folding and several untested structures similar to those at the mine.
Premier previously announced that it had signed a Letter of Intent (LOI) with the North Caribou Lake First Nation (“NCLFN”) that paves the way for a major exploration program on the PQ North Property in Northwestern Ontario. The LOI forms the basis of a cooperative relationship between Premier and NCLFN that will guide the early phase of exploration on the property, including line cutting, geophysics and diamond drilling, as well as lead to a Memorandum of Understanding (MOU) in the near future.
In addition to PQ-North, Premier has 4 drills currently operating at the Hardrock Property and one at the Rahill Bonanza Project which is operated by Red Lake Gold Mines Limited, an affiliate of Goldcorp Inc.
Matt Long, 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. Presentations detailing the Company’s activities on its active projects are available on the Premier Gold Mines Limited website www.premiergoldmines.com.
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
Web Site: http://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.