Premier expands high grade mineralization at the Cove Gold Project

Image 1 -NW-looking 3D view of 2201 discovery and it's relationship to 2201 & CND intercepts to the north. (CNW Group/Premier Gold Mines Limited)

(Drill intercepts include 13.22 g/t Au across 10.3m and 28.05 g/t Au across 4.5m)

Shares Issued:  151,402,324

THUNDER BAY, ON, Feb. 19, 2014 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) ("Premier", "the Company") is pleased to announce significant drilling results at the Company's Cove Gold Project located along the Eureka-Battle Mountain Trend in Nevada.  The final holes drilled in 2013 confirm multiple zones of gold and poly-metallic mineralization, including massive sulphides, proximal to the historic open pit Cove gold mine.

New assay results from the final four holes drilled in 2013 confirm the discovery of "Carlin-style" mineralization in the Cove North Deep Zone, proximal to the Bay Fault structure, regarded as one of the highest priority targets on the property. Results also expand high grade poly-metallic sulphide mineralization in the recently discovered 2201 Zone and confirm the extension of gold mineralization within the Cove South Deep ('CSD') horizon.  Highlights from recent drilling include:

  • Cove North Deep Zone
    • PG-01 highlight results:
      • 28.05 grams per tonne gold (g/t Au) across 4.5 metres (m) (or 0.82 ounces per ton gold (oz/t Au) across 14.8 feet)
      • 3.74 g/t Au (0.11 oz/t) and 718.72 g/t Ag (20.99 oz/t) across 5.0 m (16.5 ft)
  • 2201 Zone Discovery
    • AX-51 highlight results:
      • 13.22 g/t Au (0.39 oz/t), 38.67 g/t Ag (1.13 oz/t), 0.69% Zn and 0.47% Pb across 10.3 m (33.8 ft)
      • 18.96 g/t Au (0.55 oz/t), 23.00 g/t Ag (0.67 oz/t), 0.28% Zn and 0.07% Pb across 4.1 m (13.3 ft)
      • 11.39 g/t Au (0.33 oz/t), 56.70 g/t Ag (1.66 oz/t), 0.18% Zn and 0.09% Pb across 3.0 m (10.0 ft)
    • PG-02 highlight results:
      • 4.75 g/t Au (0.14 oz/t), 311.07 g/t Ag (9.08 oz/t), 8.24% Zn and 4.43% Pb across 3.0 m (9.9 ft)
      • 15.83 g/t Au (0.46 oz/t), 38.95 g/t Ag (1.14 oz/t), 0.11% Zn and 0.03% Pb across 6.1 m (20.0 ft)
  • Cove South Deep Zone
    • AX-51 highlight results:
      • 5.01 g/t Au (0.15 oz/t) across 22.7 m (74.5 ft) - CSD Upper 
        • Including 7.34 g/t Au (0.21 oz/t) across 4.9 m (16.0 ft)
        • And 11.10 g/t Au (0.32 oz/t) across 3.5 m (11.5 ft)
    • PG-02 highlight results:
      • 11.95 g/t Au (0.35 oz/t) and 19.13 g/t Ag (0.56 oz/t) across 6.7 m (22.0 ft) - CSD Upper

"Targets along the Bay and Cay fault structures, believed to be the two primary feeder structures of the open pit material mined at Cove, were viewed as our top priority targets when Premier acquired the property," stated Warren Thompson, U.S. Exploration Manager for Premier. "Our first hole testing along the Bay fault structure, PG-01, confirms an extensive alteration system carrying high-grade mineralization and will be the focus of near-term drilling. Systematic testing of the 2201 Zone, where increased massive sulphide mineralization is noted towards the north, will also be a priority for 2014".

Since the receipt of permitting that allows for expanded exploration at Cove, drilling has focused entirely on new target areas, resulting in multiple discoveries.  Numerous additional targets have been identified and will be tested in the future, while drilling in the near term will focus on defining potential resources in the new discovery areas.

Cove North Deep Zone (including CND at Bay Fault)

The Cove North Deep (CND) horizon is a new discovery made by Premier with two holes located approximately 400 and 700 metres north of the historic Cove open pit mine in an area untested by previous drilling. Drilling north of the pit has intersected both "Carlin-style" and poly-metallic mineralization in the same rock formations as other zones being tested beneath the Cove pit. PG-03 (RC hole), the first hole drilled by Premier in this area, is located approximately 400 metres north of the pit and PG-05 is a twin core hole currently being drilled to confirm CND mineralization proximal to PG-03.

The CND Zone discovery at the Bay Fault target, which is considered one of the priority targets on the property, was made with PG-01, the first hole drilled to test this primary feeder structure at its intersection with the north limb of the Cove anticline beneath the historic Cove pit. PG-01 mineralization is located approximately 200 metres (650 feet) below the limits of the historic Cove pit and is hosted within the same rock units as, and 365 metres (1200 feet) along strike from, the Helen Zone deposit.  The Helen Zone and the CND Zone are "Carlin-style" mineralized horizons that are both open for expansion.

Table 1 provides a summary of results from new drilling in the CND Zone in holes PG-01, and PG-04 with results from PG-05 pending.

Table 1 - Select Assay Results from the Cove North Deep Zone in hole PG-01, PG-04

                                                   
Hole-ID Dip/Az
(degrees)
  From
(m)
  To
(m)
  Interval
(m)
  Au
(g/t)
  Ag
(g/t)
  From
(ft)
  To
(ft)
  Interval
(ft)
  Au
(oz/t)
  Ag
(oz/t)
  Zn
%
  Pb
%
PG-01 -45/080   618.5   623.5   5.0   3.74   718.72   2029.0   2045.5   16.5   0.11   20.99   0.96   0.80
      632.5   637.0   4.5   28.05   15.81   2075.2   2090.0   14.8   0.82   0.46   NSV   NSV
PG-04 -70/270 No Significant Values

 - Gravimetric assays used when available   - true widths are estimated at 70-80% of intersection width  - assays provided are un-cut and rounded to nearest tenth

2201 Discovery

The 2201 Zone was discovered when drilling (hole AX-46) intersected massive, semi-massive, sheeted veins and stringer mineralization in the deeper Dixie Valley formation, which was not previously known to be a significant ore host on the property.  Mineralization within the 2201 Zone occurs in the vicinity of several "feeder" structures that were mined within the Cove pit, confirming Premier's belief that these structures could also serve as conduits for mineralization in the little-tested rock units beneath the pit.

Step-out hole AX-51 (approximately 50m south of AX-46) and PG-02 (approximately 50m north of AX-46) have intersected multiple zones of significant gold-silver and poly-metallic (Au-Ag-Zn-Pb) mineralization.  Table 2 provides a summary of new results from follow-up drilling in the 2201 Zone.

Table 2 - Select Assay Results for the 2201 Zone in holes AX-51 and PG-02

                                                     
Hole-
ID
  Dip/Az
(degrees)
  From
(m)
  To
(m)
  Interval
(m)
  Au
(g/t)
  Ag
(g/t)
  From
(ft)
  To
(ft)
  Interval
(ft)
  Au
(oz/t)
  Ag
(oz/t)
  Zn
%
  Pb
%
AX-51   -50/311   765.7   776.0   10.3   13.22   38.67   2512.0   2545.8   33.8   0.39   1.13   0.69   0.47
  including   771.8   776.0   4.2   24.72   33.56   2532.0   2545.8   13.8   0.72   0.98   0.68   0.20
      792.1   796.2   4.1   18.96   23.00   2598.7   2612.0   13.3   0.55   0.67   0.28   0.07
      816.2   816.8   0.6   11.21   72.70   2677.7   2679.7   2.0   0.33   2.12   0.16   0.02
      832.7   833.3   0.6   7.23   87.00   2732.0   2734.0   2.0   0.21   2.54   9.74   0.07
      873.9   876.9   3.0   11.39   56.70   2867.0   2877.0   10.0   0.33   1.66   0.18   0.09
PG-02   -48/313   637.6   640.6   3.0   4.75   311.07   2092.0   2101.9   9.9   0.14   9.08   8.24   4.43
        665.9   669.0   3.1   0.27   112.63   2184.7   2195.0   10.3   0.01   3.29   6.41   0.89
        695.5   701.6   6.1   15.83   38.95   2282.0   2302.0   20.0   0.46   1.14   0.11   0.03
        772.7   773.3   0.6   9.74   564.5   2535.0   2537.0   2.0   0.28   16.48   0.79   0.16

-Gravimetric assays used when available    - true widths are unknown for this zone     - assays provided are un-cut and rounded to nearest tenth

Cove South Deep Target

The Cove South Deep ('CSD') horizon is located approximately 50 metres (160 feet) below the limits of the historic Cove open pit mine and is similar to the Carlin-style mineralization in the Helen Zone.  The CSD Zone was discovered near the end of mining at Cove in an area that had received very little previous exploration drilling. AX-51 intersected the CSD horizon approximately 50 metres south of hole AX-46, and PG-02 intersected CSD approximately 50 metres north of AX-46 that intersected 7.27 g/t Au across 8.0 m. AX-51 is currently the furthest south intercept on CSD and is the focus of further south extension.  Table 3 provides a summary of results from the CSD Zone in holes AX-51 and PG-02.

Table 3 - Select assay results for Cove South Deep Zone in holes AX-51 and PG-02

                                             
Hole-
ID
Dip/Az
(degrees)
  From
(m)
  To
(m)
  Interval
(m)
  Au
(g/t)
  Ag
(g/t)
  From
(ft)
  To
(ft)
  Interval
(ft)
  Au
(oz/ton)
  Ag
(oz/ton)
Zone
AX-51 -50/311   456.6   479.3   22.7   5.01   NSV   1498.0   1572.5   74.5   0.15   NSV CSD
including   456.6   461.5   4.9   7.34   NSV   1498.0   1514.0   16.0   0.21   NSV CSD Upper
and   475.8   479.3   3.5   11.10   NSV   1561.0   1572.5   11.5   0.32   NSV CSD Upper
PG-02 -48/313   451.1   457.8   6.7   11.95   19.13   1480.0   1502.0   22.0   0.35   0.56 CSD Upper

-Gravimetric and Screen Metallic assays used when available   - true widths estimated at approximately 80% of core intercept    - assays provided are un-cut

A presentation updating the new results at Cove can be found on the Company's website www.premiergoldmines.com.

The Cove Project is held under lease from 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.

The Cove Gold Project is located along the Eureka-Battle Mountain Trend that is host to numerous multi-million ounce producing and past-producing mines.  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 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 making Cove the 4th largest producer of silver in Nevada.

OTHER PROJECTS

Premier holds several projects that are subject to major exploration programs in 2014.  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%).  Two 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 and on work following positive Preliminary Economic Assessments for the Hardrock and Brookbank deposits.

PDAC CONVENTION

Members of the Premier Gold Mines team will be showcasing the Company at the PDAC Convention on March 2 and 3, 2014 at booth 2201A. The Company cordially invites all shareholders and interested people to visit management at the booth to get a detailed update on Premier's current and future plans.

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 fully 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

Image with caption: "Image 1 -NW-looking 3D view of 2201 discovery and it's relationship to 2201 & CND intercepts to the north. (CNW Group/Premier Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20140219_C4835_PHOTO_EN_36818.jpg

For further information:

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