Premier - Trans-canada Drilling Expands High Grade Fortune Zone Horizon Including 10.68g/t Au Across 16.0 metres

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THUNDER BAY, ON, Feb. 29, 2012 /CNW/ - Premier Gold Mines Limited (TSX-PG) is pleased to announce that ongoing drilling at the Company's 100% owned Trans-Canada Project in Northwestern Ontario continues to expand high-grade gold mineralization within targeted high-grade horizons including the Fortune and High Grade North (HGN) Zones.  The current drill program is focused in three broad areas (eastern, middle and western) delineating and expanding several high grade horizons in advance of completing an updated (NI) 43-101 compliant resource calculation (expected to be completed in Q1/Q2 2012) and a Preliminary Economic Assessment ('PEA' - expected to be completed in mid-2012) that will consider a range of possible development options to optimize the multiple deposits that comprise Trans-Canada Project including the Hardrock, Brookbank, Key Lake and Kailey Deposits.

The Fortune and HGN Zones are comprised of multiple, en-echelon, narrow-vein vein zones located in close proximity to the historic Hardrock mine workings.  The primary vein zones have now been identified over a plunge length of some 2.0 kilometres, appear to coalesce at depth, and remain open still further to the west.  The Fortune and HGN Zones have characteristics similar to the high-grade past producing Little Long Lac (600,000 ounces gold produced at a grade of 11.7 g/t) and Leitch (847,900 ounces produced at a grade of 31.5 g/t) Gold Mines that are located on the Trans-Canada Project.

Drilling is following up previous intersections that include 121.0 grams per tonne gold (g/t Au) across 1.5 metres (m) - or 3.53 ounces per ton (oz/t) across 4.9 feet (ft), 147.01 g/t Au across 2.0 m (4.29 oz/t across 6.6 ft), 251.00 g/t Au across 1.0 m (7.32 oz/t across 3.3 ft), and 54.26 g/t Au across 3.0 m (1.58 oz/t across 9.8 ft),  focused on maximizing high-grade resource ounces in advance of completing the PEA.  Recent highlights from ongoing drilling include:

  • 15.77 g/t Au across 9.0 m (0.46 oz/t across 29.5 ft) in hole MM252 including 109.00 g/t Au across 1.0m (3.18 oz/t across 3.3 feet) as well as 10.68 g/t across 16.0 m (0.31 oz/t across 52.5 ft) including 102.00 g/t Au across 1.5 m (2.98 oz/t across 4.9 feet)
  • 255.00 g/t Au across 1.0 m (7.45 oz/t across 3.3 ft) in hole MM236
  • 74.20 g/t Au across 1.5 m (2.17 oz/t across 4.9 ft) in hole EP161
  • 94.50 g/t Au across 1.3 m (2.76 oz/t across 4.3 ft) in hole MM244

Tables 1, 2 and 3 provide a summary of new assay results from step-out and infill drilling as the program delineates mineralization within several targeted high-grade horizons.  Recent interpretation suggests that previous drilling down-plunge of the Fortune Zone intersected the horizon more than 300 metres further down-plunge of the current program.  These previous results include 41.49 g/t Au across 3.0 m (1.21 oz/t across 9.8 ft) in MM182D, 11.34 g/t Au across 19.5 m (0.33 oz/t across 64.0 ft) in MM172, and 10.60 g/t Au across 7.7 m (0.31 oz/t across 25.3 ft) in MM191A.  Highlighted holes are profiled in Figure 1 below.

"Drilling has now extended multiple high-grade horizons over plunge lengths that measure in kilometres" stated Brian Morris, Vice-President Exploration of Premier.  "The ongoing program continues to see frequent sightings of visible gold demonstrating the robust nature and consistent down plunge continuity of mineralization which should allow for us to improve the economics of the project."

Fortune Zone - Eastern Area

As illustrated in Figure 1, drilling testing the interpreted up-plunge, near-surface, expression of the Fortune Zone target has intersected multiple high-grade vein zones with highlight assays of 15.77 g/t Au across 9.0 m (0.46 oz/t across 29.5 ft), and 74.20 g/t Au across 1.5 m (2.17 oz/t across 4.9 ft).  This target area is the subject of ongoing drilling.  Table 1 provides highlight intercepts from the Eastern (near surface) drilling.

Table 1 - Selected Assay Results from Eastern Area

                   
Hole-ID UTM Coordinates
(m)
Dip/Az
(degrees)
From
(m)
To
(m)
Interval
(m)*
Grade
(g/tonne)
Interval
(ft)
Grade
(oz/ton)
Zone
EP157 5502646N
504300E
-58/360 258.0 259.0 1.0 14.50 3.3 0.42 P
EP161 5502929N
504901E
  20.0 21.0 1.0 21.70 3.3 0.63 F
-60/360 101.0 102.5 1.5 74.20 4.9 2.17 F2
  213.5 215.0 1.5 11.70 4.9 0.34 F1
  323.4 324.4 1.0 8.12 3.3 0.24 HGN2
EP163 5502788N
505102E
  152.0 153.0 1.0 25.70 3.3 0.75 F
-55/360 184.0 191.5 7.5 3.45 24.6 0.10 F2
  411.5 413.0 1.5 13.00 5.0 0.38 F1
EP164 5502929N
504901E
-60/360 37.0 38.0 1.0 34.30 3.3 1.00 SP
EP165 5502825N
504950E
-64/360 46.5 53.5 7.0 2.52 23.0 0.07 SP
  240.0 241.0 1.0 3.23 3.3 0.09 F2
EP167 5502846N
504575E
-60/360 507.2 508.2 1.0 31.30 3.3 0.91 HGN1
MM244 5502820N
504500E
  84.2 85.5 1.3 94.50 4.3 2.76 SP
-65/360 155.5 156.7 1.2 12.60 3.9 0.37 F
  219.0 220.0 1.0 15.10 3.3 0.44 F
  366.0 367.0 1.0 77.20 3.3 2.25 F2
MM247 5502715N
504400E
-63/360 477.0 478.0 1.0 14.2 3.3 0.41 F2
MM251 5502849N
504825E
-65/360 233.0 235.9 2.9 9.1 9.5 0.27 F2
MM252 5502775N
504401E
-64/360 193.0 209.0 16.0 10.68 52.5 0.31 F
  368.0 376.0 9.0 15.77 29.5 0.46 F2
* Horizontal widths of zone are 60-80% of drilled intervals        

Fortune Zone - Middle Area

The Fortune Zone was initially drill tested by Premier between the 400-600 metre levels of the historic Hardrock Mine, to assess the down-dip potential of a high-grade stringer zone that was evaluated, but not mined, on the 7th Level of the mine (at some 325 metres depth). This deeper Middle Area drilling continues to intersect multi-ounce gold intercepts and several drills are now focused on delineating this horizon.

Multiple high-grade vein zones continue to suggest excellent potential for significant gold mineralization.  Recent assay results include 255.00 g/t Au across 1.0 m (7.45 oz/t across 3.3 ft), 30.50 g/t Au across 1.0m (0.89 oz/t across 3.3 ft, and 5.26 g/t Au across 8.1m (0.15 oz/t across 26.6 feet).  This zone remains wide open for expansion and is the subject of ongoing drilling.  Table 2 provides highlight intercepts from Middle Area drilling.

Table 2 - Selected Assay Results from Middle Area

                   
Hole-ID UTM Coordinates
(m)
Dip/Az
(degrees)
From
(m)
To
(m)
Interval
(m)*
Grade
(g/tonne)
Interval
(ft)
Grade
(oz/ton)
Zone
MM236 5502626N
504251E
  268.8 272.0 3.2 3.08 10.5 0.09 SP
  309.0 310.5 1.5 5.20 4.9 0.15 P
  410.5 422.5 12.0 2.12 39.4 0.06 F
-58/360 498.0 499.0 1.0 255.00 3.3 7.45 F2
  579.5 581.0 1.5 6.81 4.9 0.20 F1
  623.0 624.0 1.0 9.67 3.3 0.28 HGN2
  752.4 753.4 1.0 12.70 3.3 0.37 HGN1
MM237A 5502551N
504050E
  460.8 461.8 1.0 9.37 3.3 0.27 P
-65/360 743.3 744.3 1.0 11.70 3.3 0.34 F2
  781.5 783.5 2.0 6.87 6.6 0.20 F1
MM239A 5502599N
504149E
-68/360 415.7 416.7 1.0 64.50 3.3 1.88 P
MM241 5502648N
504050E
  422.0 425.0 3.0 5.27 9.8 0.15 F
  448.0 449.8 1.8 8.19 5.9 0.24 F
  535.0 543.1 8.1 5.26 26.6 0.15 F2
-64/360 548.0 550.0 2.0 6.84 6.6 0.20 F2
  655.5 657.0 1.5 8.51 4.9 0.25 F1
  771.7 776.9 5.2 9.89 19.4 0.29 HGN1
MM242 5502599N
504200E
-57/360 486.5 487.5 1.0 11.00 3.3 0.32 F
  497.5 498.5 1.0 79.40 3.3 2.32 F
MM243 5502600N
503900E
  573.0 574.0 1.0 16.70 3.3 0.49 F
  613.0 622.0 9.0 7.09 29.5 0.21 F2
-64/360 640.0 643.0 3.0 8.66 9.8 0.25 SLC
  658.0 662.0 4.0 10.91 13.1 0.32 SLB
  677.5 679.0 1.5 7.50 4.9 0.22 F1
MM250 5502633N
503950E
  625.5 626.5 1.0 14.70 3.3 0.43 SLC
-65/360 652.0 653.0 1.0 30.50 3.3 0.89 F2
  737.5 738.7 1.2 10.50 3.9 0.31 F1
* Horizontal widths of zone are 60-80% of drilled intervals        

The High Grade North Zone (HGN) was discovered by Premier in 2009 immediately north of the historic mine workings and below the proposed EP-Zone open pit.  The discovery hole contained appreciable visible gold and returned one of the most impressive holes ever drilled at Hardrock - 1,141.50 g/t Au across 2.0 m (33.29 oz/t across 6.6 ft).  Several holes in the current drill program are being extended beyond the Fortune Zone to test the HGN Zone.  Selected results from recent drilling are provided in table 2 above with assays as high as 77.20 g/t Au across 1.0 m (2.25 oz/t across 3.3 ft).

Western Area

Table 3 shown below profiles holes drill in the western end of the Hardrock deposit, at depth, where drilling within the F, SP and K Zones continues to demonstrate the robust nature of the Hardrock Deposit.

Table 3 - Selected Assay Results from Western Area

                   
Hole-ID UTM Coordinates
(m)
Dip/Azi
(degrees)
From
(m)
To
(m)
Interval
(m)*
Grade
(g/tonne)
Interval
(ft)
Grade
(oz/ton)
Zone
      668.5 670.0 1.5 46.60 4.9 1.36 SP
MM232 5502790 N
-70/360 747.6 769.0 21.6 5.04 70.8 0.15 F
  502400 E   819.0 820.0 1.0 16.00 3.3 0.47 F2
      673.0 674.0 1.0 13.40 3.3 0.39 SP
MM233B 5502775N
-70/360 696.0 697.0 1.0 93.30 3.3 2.72 P
  502550E   944.0 945.5 1.5 22.40 4.9 0.65 K
MM233C 5502775N
-70/360 658.0 659.0 1.0 12.60 3.3 0.37 SP
  502550E   919.2 921.4 2.2 4.38 7.2 0.13 K
MM240 5502775N
502500E
-68/360 633.4 634.4 1.0 6.24 3.3 0.18 SP
MM240A 5502775N
502500E
-68/360 681.0 692.5 11.5 5.47 37.7 0.16 SP
* Horizontal widths of zone are 60-80% of drilled intervals        

These results support management's belief that the grade of the Hardrock Deposit has upside potential that may be more fully delineated and understood with in-fill drilling eventually completed from underground platforms.

Trans-Canada Project

The Trans-Canada Project is host to several past-producing mines which collectively produced more than 4 million ounces of gold from depths primarily within 600 metres of surface between 1938 and 1968. The Hardrock Deposit is host to a (NI) 43-101 compliant mineral resource estimate that was completed by Micon International Limited earlier in 2011.  An updated resource estimate is being completed utilizing final results of the 2011 drill program, and is expected to be released late in Q1 or early Q2 2012. The Trans-Canada Project benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through, or in close proximity to, the Project sites.  Significant services and a skilled labour pool exist with several communities located in close proximity.

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 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 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.

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. 

PDF with caption: "Figure 1 - Long Section of Fortune Zone Target & Potential". PDF available at: http://stream1.newswire.ca/media/2012/02/29/20120229_C8320_DOC_EN_10590.pdf

SOURCE Premier Gold Mines Limited

For further information:

Ewan Downie, President & CEO             
Phone: 807-346-1390                    
Fax: 807-346-0100
e-mail: Info@premiergoldmines.com
Web Site: www.premiergoldmines.com


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