Shares Issued: 148,992,712
THUNDER BAY, ON, Nov. 20, 2012 /CNW/ - PREMIER GOLD MINES LIMITED (TSX: PG) is
pleased to announce that surface drilling at the JV Project continues to
expand gold mineralization in multiple target areas proximal to the Wilmar
Mine. In addition, new gold-bearing structures have been intersected by the
haulage drift (tram) on the Company's Rahill-Bonanza Joint Venture Project in
The Rahill-Bonanza Project (PG:49% & G:51%) is strategically located in the
heart of the main Red Lake "Mine Trend" between the Red Lake Gold Mines
complex to the east, and the Cochenour (Bruce Channel) Project to the west.
The property is being explored from both surface and underground with joint
venture partner Red Lake Gold Mines Limited ("RLGM"), an affiliate of Goldcorp
Inc. (TSX: G), (NYSE: GG). Highlights from three holes recently completed in
the Wilmar area and updates from the tram include:
-- PG12110 tested the down-dip extension of the past-producing
Wilmar Mine returning an intersection of 4.01 grams per tonne
gold (g/t Au) across 20.5 metres (m), or 0.12 ounces per ton
(oz/t) across 67.3 feet, including 11.51 g/t Au across 3.0 m
(0.34 oz/t across 9.8 feet). This hole tested the horizon some
457 metres (1500 feet) below the bottom level of the mine.
-- PG12111 deviated and did not test its intended target, a
projected fold in the main unconformity to the southwest of
Wilmar. This target will be redrilled in the 2013 drill
-- PG12112 was a near vertical hole that tested the West
Granodiorite Zone (WGZ), a bulk-tonnage target located
immediately west of Wilmar. As veining within the WGZ is
flat-lying, this hole provided a good test of the horizon and
returned an interval of 1.52 g/t Au across 126.0 m (0.04 oz/t
across 413.4 feet) with higher grade intervals of up to 27.08
g/t Au across 1.0 m (0.79 oz/t across 3.3 feet).
-- Multiple gold-bearing horizons, in addition to those previously
announced, have been intersected in the tram. Eight
closely-spaced holes have been drilled to test one of these
structures hosting visible gold (assays pending).
-- The regional drill program, consisting of flat holes drilled at
regular intervals and up to 5000 feet (1,524.0 metres) in
length has commenced with the first hole having been
completed. This long-term program is designed to provide a
geological base model of the "Mine Trend" at tram depth from
the Red Lake Mine complex to the Cochenour Mine complex that
will be used to identify targets for future drilling.
The Rahill-Bonanza Project is one of Premier's core projects, representing the
only portion of the main Red Lake "Mine Trend" not 100% owned by Goldcorp.
The project is immediately west of the RLGM that is considered to be one of
the world's richest gold mines with production of more than 18 million ounces
of gold and nearly 10 million ounces of gold resources.
The Property covers approximately 4.5 kilometres of the main Red Lake "Mine
Trend" between the world class RLGM complex to the east, and the Cochenour
(Bruce Channel) complex to the west. The haulage drift is being constructed
to connect the two operations and will provide a prime underground exploration
platform to conduct a long-term exploration program to test this largely
unexplored part of the camp. Initial exploration drilling is now underway
from the tram and is expected to continue for several years.
"Solid results from the surface drilling program continue to confirm the
potential for the Wilmar area to host significant gold resources" stated
Stephen McGibbon, Executive Vice-President of Premier. "In the not too
distant future, we will have access to test the Wilmar target from
underground. The vast and highly prospective territory that will be targeted
from underground Haulage Drift has the potential to provide exciting
discoveries for many years to come. So far, several gold-bearing structures
have been identified, favourable rock units have been intersected, and early
indications from this untested area continue to be highly encouraging".
Past-production at Wilmar, over a period of four years, to 1971, resulted in
203,256 tons of ore being mined at an average grade of 0.30 oz/ton Au (10.3g/t
Au). The deposit remained open at depth (bottom level 610 metres - 2,000 feet)
when the mine shut down in 1975. Table 1 provides a summary of new drill
Table 1: Summary of Rahill-Bonanza Drill Results (uncut):
UTM Dip/Azimuth Interval Grade Interval Grade
Hole-ID Coordinates (degrees) From (m) To (m) (m) (g/tonne) (ft) (oz/ton) Zone
(m) NAD 27
-80/332.5 1240.0 1243.0 3.0 4.37 9.8 0.13 X
PG12110 444119 E 1316.0 1336.5 20.5 4.01 67.3 0.12 6E
Including 1323.0 1326.0 3.0 11.51 9.8 0.34 6E
PG12111 5656609 N -71/323 deviated No significant results
-72/327 707.0 833.0 126.0 1.52 413.4 0.04 WGZ
5656609 N Including 720.0 721.0 1.0 27.08 3.3 0.79 WGZ
PG12112 444119 E
And 732.0 735.3 3.3 6.63 10.8 0.19 WGZ
And 767.5 770.0 2.5 6.73 8.2 0.20 WGZ
-- True widths of new intercepts estimated at 40-70% of
Haulage Drift (Tram) Update
The tram has proceeded to more than 1,341 metres (4,400 feet) onto the Joint
Venture property and has now intersected multiple anomalous gold-bearing
structures, two of which have been tested by drilling from underground.
Drilling at the initially tested structure, where elevated gold values were
received from muck and chip samples, returned intermittent gold-bearing zones
with assays as high as 5.9 g/t Au across 2.4 m (0.17 oz/ton across 7.8
feet). Further along strike to the west, new structures have been cut in the
drift including visible gold having been noted locally. Drilling has been
initiated on one structure and numerous vein zones with sulphides have been
intersected including arsenopyrite and visible gold (assays pending). More
recent structures cut by the tram, along strike to the west, also contain
veining and mineralization with elevated gold grades to over 10.0 g/t Au in
muck and chip samples.
The first hole in a regional exploration program from the tram has been
completed along strike to the west of the Red Lake Mine complex. This
multi-year program will consist of flat holes drilled at approximately 400
foot (121.9 metre) intervals along the tram that will be used to build a
geological model of the lands between the two mine complexes at depth. This
model will be used to identify future drill targets.
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 are 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 one of North America's leading exploration
companies with a high-quality pipeline of projects focused in proven, safe and
accessible mining jurisdictions in Canada and the United States. The Company's
portfolio includes significant assets in world class gold mining districts
such as Red Lake, Musselwhite and Geraldton in Ontario and in Nevada the
Carlin and Eureka-Battle Mountain Trends.
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
Ewan Downie, President & CEO Phone: 807-346-1390 Fax: 807-346-0100
e-mail:Info@premiergoldmines.com Web Site:www.premiergoldmines.com
SOURCE: Premier Gold Mines Limited
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-0- Nov/20/2012 10:58 GMT
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