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Premier discovers new poly-metallic mineralization at Cove Gold Project - Announces initial resource estimate for Helen Zone


Premier discovers new poly-metallic mineralization at Cove Gold Project - Announces initial resource estimate for Helen Zone Deposit

Shares Issued:  151,720,324

THUNDER BAY, ON, Nov. 19, 2013 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) ("Premier") is pleased to announce the discovery of high-grade poly-metallic mineralization in a new target area to the north of the historic Cove pit at the Company's Cove Gold Project, located along the Eureka-Battle Mountain Trend in Nevada.  The new target is associated with the interpreted northern extension of the "feeder" structures believed to be important for the emplacement of gold at Cove.  This new target is located approximately 400 metres to the north of the pit in an area previously untested on the property.  Highlights from the new discovery area include:


    --  New poly-metallic discovery north of the historic Cove mine
        (CND Zone)
        o 1.23 grams per tonne gold (g/t Au), 366.97 g/t silver (Ag)
          (10.72 oz/ton), 2.70% Zinc (Zn) and 3.28% Lead (Pb) across
          4.60 metres (m)
        o 4.50 g/t Au, 195.70 g/t Ag, 4.34% Zn and 0.60% Pb across 1.50
          m
    --  Initial resource estimate for Helen Zone deposit
        o 425,000  tonnes of indicated mineral resources grading 10.46
          g /t Au (0.31 oz/ton) containing 143,100 ounces of gold
        o 882,000  tonnes of inferred mineral resources grading 9.81 
          g/t Au (0.29 oz/ton) containing 278,700 ounces of gold

The Cove Project is located in Nevada, one of the most prolific gold districts 
in the world that is host to numerous "elephant-sized" gold mines and 
deposits.  Nevada is one of the world's most favourable jurisdictions for 
mine development and Cove offers substantial upside in the existing resource 
areas in addition to opportunities for the discovery of new high grade gold 
deposits within the district.

The Cove deposit was mined (primarily by open pit) between 1986 and 2001, a 
period of comparatively low metal prices, producing approximately 2.6 million 
ounces of gold, and more than 100 million ounces of silver.  Historically, 
the majority of exploration performed at Cove has been focused almost entirely 
on the Cove anticline structure that is host to both the Cove mine and the 
Helen Zone deposit.  PG-03 tested in the vicinity of a syncline structure 
approximately 400 metres to the north of the pit, and deeper than historic 
shallow condemnation holes drilled prior to mining.  This discovery elevates 
the potential for other structures throughout the entire project to host 
mineralization.

Helen Zone Deposit

At the Helen Zone, Premier has now completed an initial mineral resource 
estimate based on drilling completed to-date.  The estimate was completed by 
Mark Odell of Practical Mining LLC utilizing a 3D block model and supported 
with input from the Company's geological personnel.  The Helen Zone does not 
contain any mineral reserves at this time; Table 1 provides a deposit summary 
of the mineral resource estimate in the Helen Zone Deposit.

Table 1 - Helen Zone Mineral Resource Estimate

 __________________________________________________________________
|        |      Indicated Resources  | |      Inferred Resources   |
|________|___________________________|_|___________________________|
| Cutoff |       |           |  Au   | |       |           |       |
|        |Tonnes | Gold (Au) |       | |Tonnes | Gold (Au) |Ounces |
|Grade Au|       |           |Ounces | |       |           |       |
|        |(000's)|Grade (g/t)|       | |(000's)|Grade (g/t)|(000's)|
| (g/t)  |       |           |(000's)| |       |           |       |
|________|_______|___________|_______|_|_______|___________|_______|
|   3.43 |   618 |     8.62  | 171.4 | | 1,608 |     7.50  | 388.3 |
|________|_______|___________|_______|_|_______|___________|_______|
|   5.14 |   469 |    10.00  | 151.0 | | 1,068 |     9.07  | 311.7 |
|________|_______|___________|_______|_|_______|___________|_______|
|   5.83 |   425 |    10.46  | 143.1 | |   882 |     9.81  | 278.7 |
|________|_______|___________|_______|_|_______|___________|_______|
|   6.86 |   360 |    11.20  | 129.6 | |   675 |    10.88  | 236.5 |
|________|_______|___________|_______|_|_______|___________|_______|
|   8.57 |   265 |    12.43  | 106.0 | |   426 |    12.71  | 174.3 |
|________|_______|___________|_______|_|_______|___________|_______|
|  10.29 |   187 |    13.67  |  82.1 | |   268 |    14.65  | 126.3 |
|________|_______|___________|_______|_|_______|___________|_______|

* Values greater than 34.2857 g/t Au are used in the estimation but are 
restricted by an area of influence based on a search radius of 6.1m X 6.1m X 
6.1m or 20 ft X 20 ft X 20 ft 
* Compositing was done on drill hole sections falling within the mineralized 
zones (composite = 3.05 metres or 10 ft).
* Resources were evaluated from drill hole using a 3-pass ID3 interpolation 
method in a block model (block size = 3.05 x 3.05 x 3.05 metres or 10 ft X 10 
ft X 10ft)
* The inferred category is only defined within the areas where blocks were 
interpolated during pass 3
* The indicated category is only defined within the areas where blocks were 
interpolated during pass 1 and 2
* Ounce (troy) = Metric Tonnes x Grade / 31.10348. Calculations used imperial 
units (feet, short tons and ounce troy/short tons).
* The number of metric tonnes was rounded to the nearest thousand. Any 
discrepancies in the totals are due to rounding effects; rounding followed 
the   recommendations in Regulation 43-101.
* Practical Mining is not aware of any known environmental, permitting, legal, 
title-related, taxation, socio-political, marketing or other relevant issue 
that could materially affect the Mineral Resource Estimate. 
* Mineral resources have been estimated at a cut-off grade of 0.17 opt or 5.83 
g/t Au calculated with a US $1,300 per ounce gold price;
* Mining parameters used: Mining cost=100 US$/t, milling cost=60.0 US$/t, 
Haulage=30.0 US$/t G&A=10.00 US$/t, Refining and Sales costs= 5.0 US$/oz. 
mining recovery=100%, mining dilution=10%, milling recovery=90%

The mineral resource estimate used the Canadian Institute of Mining, 
Metallurgy and Petroleum (CIM), Standards on Mineral Resources and Reserves, 
Definitions and Guidelines prepared by CIM Standing Committee on Reserve 
Definitions and adopted by CIM Council on November 27, 2010.  The mineral 
resource estimate is classified as "indicated", or "inferred" as defined by 
CIM. The Company intends to file a National Instrument 43-101 ("NI 43-101") 
compliant technical report in respect of the updated mineral resource estimate 
on SEDAR and on the Company's website within 45 days of this news release.

Additional Details on Mineral Resource Estimate

The mineral resource estimate of the Helen gold deposit is based on 
interpolation of sample composites (approximately 3m each) constrained within 
sixteen grade shell wireframes which honor the drillhole database. The 
resource has been established using a 5.83 g/t Au COG.  Key assumptions of 
the updated mineral resource estimate are summarized in Table 2.

The Inverse Distance Cubed (ID3) method, paired with the 1.52 m sub-block size 
at the boundaries gives a high level of resolution in the resource estimate to 
ensure that zones with internal waste remained distinct. The resource models 
were validated visually by sectioning, and running a parallel estimate using 
Nearest Neighbor method (NN). The Practical Mining staff with responsibility 
for this resource estimate is Mr. Mark Odell, P.E. (Nevada 13708) and Mr. Karl 
Swanson, P.Geo (SME 4043076). All are Qualified Persons as defined in NI 
43-101, and are independent of Premier Gold Mines Ltd. Mr. Odell and Mr. 
Swanson acknowledge that they have read this press release and the Helen Zone 
mineral resource estimate is accurately portrayed.

Table 2 - Data & Key Assumptions of Helen Zone Resource Estimate
                                      

Data or Assumption                         Helen Zone

Date of Data Used                          09-Aug-13

Number of Drillholes in Block Model              66

Metres of Drilling in Block Model             93,646

Number of Raw Assays                            718

Long Term Gold Price                         US$1300

Currency Exchange Rate                  US$1=CAD$1.03

Cut-off Grade U/G (g/t)                        5.83

Processing $/tonne U/G                     CAD$ 60.0

Mining $/tonne U/G                         CAD$ 100.0

Haulage $/tonne U/G                        CAD$ 30.0

Administration                             CAD$ 10.0

Refining and Sales                          CAD$ 5.0

Specific Gravity (SG)                          2.31

Block Model & Interpolation Software          Vulcan

Interpolation Method                            ID3

Maximum Block Sizes (m x m x m)      3.05 x 3.05 x 3.05

Minimum Block Size(m x m x m)        1.52 x 1.52 x 1.52

The database used for this mineral resource estimate reflects fully complete 
drillhole assay and survey data as of September 30th, 2013.  At that time, 
Premier had completed some 18,149 metres of diamond drilling during 2013.  It 
is estimated that by the end of 2013, some 21,149 metres of diamond drilling 
will have been completed.

The Helen Zone deposit remains open for expansion in several directions.  
Current drilling is testing the north side of the Cove anticline where the 
Helen Zone is located, an area that has seen very little previous drilling.

Poly-Metallic Discovery

A new zone of poly-metallic mineralization was discovered in Premier's first 
pure exploration hole completed at the Cove property.  This discovery occurs 
approximately 400 metres north of the historic Cove (open pit) mine along the 
interpreted northern strike extension of the "feeder" structures at the Cove 
mine within the [Dixie Valley] formation, a deeper rock unit not previously 
tested in this area of the property. The discovery was made in an area 
previously condemned by shallow reverse circulation drilling for mine waste 
dumps.

Mineralization consists of stockwork to semi-massive polymetallic veins of 
primarily pyrite, sphalerite, galena, and arsenopyrite as well as lesser 
chalcopyrite and pyrrhotite. PG-03 returned two horizons of widespread base 
and precious metal mineralization. Table 2 highlights select assay composites 
from the first hole into this new area.

Table 2 - Highlight Assay Results From PG-03

 __________________________________________________________________________________________
|Hole |      |From | To  |Interval|Grade|Grade |Interval| Grade | Grade |    |    |        |
|     |Dip/Az|     |     |        |     |      |        |       |       |% Zn|%Pb |   Zone |
| ID  |      | (m) | (m) |  (m)   |(Au -|(Ag - |  (ft)  | (Au - | (Ag - |    |    |        |
|     |      |     |     |        |g/t) | g/t) |        |oz/ton)|oz/ton)|    |    |        |
|_____|______|_____|_____|________|_____|______|________|_______|_______|____|____|________|
|     |  -   |     |     |        |     |      |        |       |       |    |    |        |
|PG-03|      |463.3|553.2|   89.9 |0.82 |54.78 |  295.0 |  0.02 |  1.60 |0.05|0.05|   CND  |
|     |70/270|     |     |        |     |      |        |       |       |    |    |        |
|_____|______|_____|_____|________|_____|______|________|_______|_______|____|____|________|
|PG-03|Incl. |493.8|496.8|   3.1  |3.17 |60.15 |   10.0 |  0.09 |  1.76 |0.06|0.07|   CND  |
|_____|______|_____|_____|________|_____|______|________|_______|_______|____|____|________|
|PG-03|      |582.2|623.3|   41.1 |0.68 |140.19|  135.0 |  0.02 |  4.09 |0.83|0.80|CDN/2201|
|_____|______|_____|_____|________|_____|______|________|_______|_______|____|____|________|
|PG-03|Incl. |582.2|586.7|   4.5  |1.23 |366.97|   15.0 |  0.04 | 10.72 |2.70|3.28|   CND  |
|_____|______|_____|_____|________|_____|______|________|_______|_______|____|____|________|
|PG-03|      |612.6|614.2|   1.6  |4.50 |195.70|   5.0  |  0.13 |  5.71 |4.34|0.60|   2201 |
|_____|______|_____|_____|________|_____|______|________|_______|_______|____|____|________|

"This represents the second discovery of deep-seated poly-metallic sulphide 
veining at Cove in the initial exploration holes drilled into this previously 
untested area" stated Warren Thompson, U.S. Exploration Manager for Premier. 
"These discoveries reflect the potential of our large land package located in 
the heart of one of the world's most prolific precious metal districts.  The 
high-grade silver is particularly interesting given the fact that the Cove 
mine, which operated only for a period of 14 years up until 2001, was the 
fourth largest producer of silver in the history of Nevada".

Further discovery of Au with strong Ag mineralization within PG-03 occurs 
within the same carbonate host rock as the Helen Zone and CSD (Cove South 
Deep) Zone and is now referred to as the "CND" (Cove North Deep) Zone due to 
its great distance northward. The newly discovered CND Zone is hosted in Home 
Station dolostone and Favret limestone and is believed to be stratabound, 
Carlin-type replacement with very strong potential for lateral continuity.

The PG-03 discovery is located approximately 1 km  north of the recently 
announced "2201" discovery at Cove where drilling intersected multiple zones 
of poly-metallic mineralization including 6.74 g/t Au, 13.00 g/t Ag, 0.32% Zn 
and 0.06% Pb across 9.1 m in hole AX-46.  Recent follow-up drilling in the 
2201 Zone has intersected strong poly-metallic veining and mineralization 
including visible gold.

Mr. Thompson further stated that "exploration hole PG-03 was a reverse 
circulation hole in an area of high groundwater flow with potential for sample 
contamination.  It is possible that the water flow could have the effect of 
washing away fine sulphides that could understate precious metal grades and 
overestimate base metal grades.  As a result, wedging of PG-03 with core is 
planned."

Image 2 represents a 3D section showing eastern quarter of drill holes of Cove 
Pit with view direction due east. This section highlights location of CSD 
Zone, the new CND Zone discovery and 2201 Zone discovery. Intercepts are 
illustrated on both discovery holes AX-46 and PG-03. The location of historic 
underground working of the CSD Zone is circled and shows potential of zone 
extension with additional drilling. AX-51 is currently being core drilled and 
has encountered strong poly-metallic veins.

In May, the Bureau of Land Management (BLM) approved the Company's Plan of 
Operation (PoO) that allows Premier up to 100 acres of surface disturbance for 
exploration and development purposes.  These key approvals position the 
Company to aggressively pursue expansion of its mineral resources within the 
Helen Zone from new surface platforms, and to test many new target areas that 
have been identified by Premier's geological team.  The first drill holes 
from these new target areas have successfully intersected numerous new zones 
that have the potential to become future contiguous mineral resources.

Premier's management team believes that the Cove Gold Project represents one 
of the most under-explored projects in Nevada. The property is located in 
close proximity to excellent infrastructure (including paved roads & power) 
and is permitted for an expanded surface drill campaign and underground access.

The Cove Project is held under lease from Newmont McCoy Cove Limited, a wholly 
owned subsidiary of Newmont Mining Corporation. Newmont has the option at any 
time to earn back 51% under a joint venture arrangement by paying venture 
expenditures in an amount equal to 250% of all exploration expenditures on the 
project since March of 2006.  If Premier submits a positive feasibility study 
containing 500,000 ounces gold or greater, Newmont has a window of 90 days in 
order to confirm its participation.

OTHER PROJECTS

Premier holds several projects that are subject to major exploration programs 
in 2013.  Underground drilling, testing priority target areas, is underway 
from the haulage drift in Red Lake on the Rahill-Bonanza Project (PG 49% and 
Red Lake Gold Mines 51%).  Several drills are active on the Company's 
100%-owned Trans-Canada Property with activity focussed in preparation for a 
final mineral resource estimate at Hardrock. Work continues on Preliminary 
Economic Assessments for the Hardrock and Brookbank deposits.

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 were sent to Inspectorate 
America Laboratories prep facility located in Elko, Nevada and analysis was 
performed at their Sparks, Nevada analytical facility utilizing 30 gram fire 
assay with an AA finish for RC samples and 30 gram fire assay with AA finish 
and ICP-MS 30 element scan from 4-acid digestion for Core samples.

Premier Gold Mines Limited is one of North America's leading exploration and 
development 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 is well financed with a portfolio of advanced-stage 
assets in world class gold mining districts such as Red Lake and Geraldton in 
Ontario and the most prolific gold trends 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 strategic plans, including future operations, future work 
programs, capital expenditures, discovery and production of minerals, price of 
gold and currency exchange rates, timing of geological reports and corporate 
and technical objectives.. 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'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 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.

 

SOURCE Premier Gold Mines Limited

Ewan Downie, President & CEO Phone: 807-346-1390 Fax: 807-346-1381 e-mail: Info@premiergoldmines.com  Web Site: www.premiergoldmines.com

Image with caption: "Image 1 - Plan of Cove Pit area showing historic drill hole collars (black dots) in spatial relation to discovery of CND Zone and expanded 2201 Zone 400m north of the pit. Yellow stars show discovery intercepts along PG-03 hole trace projected to the surface. (CNW Group/Premier Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20131119_C8439_PHOTO_EN_33447.jpg

Image with caption: "Image 2 - 3D section of CND Zone and 2201 Zone (CNW Group/Premier Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20131119_C8439_PHOTO_EN_33448.jpg

To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/November2013/19/c8439.html

CO: Premier Gold Mines Limited ST: Ontario NI: MNG FIELD

-0- Nov/19/2013 11:04 GMT

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