Shares Issued: 149,072,712
THUNDER BAY, ON, Feb. 25, 2013 /CNW/ - Premier Gold Mines Limited (TSX-PG) is
pleased to announce that it has acquired a 100% interest in the Broulan Reef
Project located immediately adjacent to Goldcorp Inc.'s (TSX:G, NYSE:GG) Bruce
Channel deposit and Premier/Goldcorp's Rahill-Bonanza Joint Venture.
Premier has acquired the Broulan Reef Project from Cypress Development Corp.
(TSX-V:CYP) and Skyharbour Resources Ltd. (TSX-V:SYH) (the "Vendors") in
exchange for a payment to the Vendors $1.75 million in cash, the issuance of
160,000 common shares of Premier and the retention of a 0.5% net smelter
royalty (NSR). The property is also subject to an existing 2.0% NSR. Under
the terms of the Rahill-Bonanza Joint Venture Agreement between Premier and
Goldcorp, Goldcorp has the 30 day right to acquire a 51% interest in the
Broulan Reef Project by funding 51% of acquisition costs. The closing of the
acquisition is subject to standard conditions, including regulatory and stock
Based on previous work completed by Cypress and Skyharbour, Premier management
believes that this project has excellent potential to host economic gold
mineralization. The property is located adjacent to the south and west of
Goldcorp's Cochenour / Bruce Channel Deposit and adjacent to the west of the
Rahill Bonanza Joint Venture. The property is situated on strike with the
Bruce Channel Deposit and Finn Zone, and is ideally located to test for the
potential extension of the new mine horizon currently being developed by
Goldcorp. Furthermore, the potential intersection of the North-South
striking Bruce Channel structure with the East-West striking structural
corridor of the Wilmar deposit provides an important structural intersection
target similar to that at the High Grade Zone at RLGM. Figure 1 demonstrates
the favourable location of the Broulan Reef Project projected to tram depth.
Figure 1 - Broulan Reef Project Location, and Potential Deposits, Projected to
Tram Depth http://files.newswire.ca/598/PG_BroulanReef.pdf
The final drill programs completed by Cypress and Skyharbour intersected
alteration, mineralization, and veining similar to that at Bruce Channel and
many of the main mines in Red Lake. This drilling intersected strongly
anomalous gold grades, visible gold, altered ultramafic rock units, and
increased faulting that will provide excellent targets for future exploration.
These results can be found on SEDAR filed under Cypress Development Corp's
December 1, 2011 News Release.
The Rahill-Bonanza Project is a joint venture located in the heart of the main
Red Lake "Mine Trend" and is being explored with partner and operator Red Lake
Gold Mines Limited ("RLGM"), an affiliate of Goldcorp Inc. Tram development
through the Joint Venture and underground drilling continues to intersect
favourable alteration, mineralization and structure as construction heads
west. The tram development is expected to provide an ideal platform from
which to test the Broulan Reef claims in the future.
"Over the past several years, our strong treasury has allowed Premier to
capitalize on weak market conditions and acquire strategic property packages
in several of North America's most prolific gold camps" stated Ewan Downie,
President and Chief Executive Officer of Premier. "The Broulan Reef claims
represent an important consolidation of key lands located along the
stratigraphic horizon that is host to some of the world's major high-grade ore
The orebodies hosted within the main Red Lake "Mine Trend", including the
prolific HGZ, are often spatially associated with a regional unconformity that
trends through the southern portion of the Project area for several
kilometres. Broulan Reef is situated in an important fold-closure location
at tram depth that represents a potentially important area of deformation and
structural complexity similar to that at the infamous High-Grade Zone at the
Red Lake Gold Mines. A significant goal for the joint venture has long been
to establish an underground exploration platform from which systematic diamond
drilling could be undertaken to test this prospective target horizon - this
underground drill program is now underway. The tram drift that is currently
being excavated by RLGM to support mine development of its Cochenour Project
(Bruce Channel Deposit), will serve as an invaluable exploration platform for
the Joint Venture. It is located approximately 1,650 metres (5,400 feet) below
surface, at an elevation where exploration for HGZ-style mineralization has
been most successful in the past. Because the HGZ footprint can be very
compact, drilling from surface can be expensive and difficult to intersect
projected target areas due to hole deviation.
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 one of North America's leading exploration
companies with a high-quality pipeline of gold 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 the
Carlin Trend in Nevada.
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 the closing of the acquisition and strategic plans.
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 risks inherent to the mining
industry, adverse economic and market developments and the risks identified in
Premier Gold'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 Gold 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.
Ewan Downie, President & CEO Phone: 807-346-1390 Fax: 807-346-1381
e-mail:Info@premiergoldmines.com Web Site:www.premiergoldmines.com
PDF available at:
SOURCE: Premier Gold Mines Limited
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-0- Feb/25/2013 12:09 GMT
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