Shares Issued: 127,431,855
THUNDER BAY, ON, Feb. 6, 2012 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that it has entered into agreements to acquire
100% interest in two key patented claim groups located on the East Bay
Ultramafic Trend in Red Lake.
These claim groups are located proximal to the Footwall Zone on the East
Bay Project, one of two active joint ventures Premier has with Red Lake
Gold Mines ("RLGM"), a partnership between Goldcorp Inc. and Goldcorp
Canada Ltd., in the heart of the prolific Red Lake gold mining
district, and north of Rubicon Minerals' Phoenix Gold Project.
In 2010, Premier and Goldcorp discovered the Footwall Zone while testing
favourable geophysical structures along the East Bay Ultramafic Trend.
The mineralized zones in the Footwall discovery area consist of
narrow-vein high-grade structures with numerous intercepts grading in
excess of one ounce per ton gold (oz/ton Au) (34.29 grams per tonne
(g/t)). The partnership completed a 2011 drill program testing for
extensions of the Footwall Zone and for parallel structures. Assays
from this program are expected to be released in the near future and a
2012 drill program has now started to further define mineralization in
addition to testing new target areas along the favourable horizon.
Highlights of the Footwall Zone include:
The core area of the mineralized zones has been defined over a strike
length of 400 metres and to a depth of 400 metres where it remains wide
open for expansion.
The 2011 drill program successfully intersected mineralization on-strike
with previous drilling in addition to favourable structures parallel to
the main Footwall horizons (assays pending).
Main Footwall (MFW) Drill intercepts include 297.61 g/t Au across 1.0m
(8.68 oz/ton across 3.3 ft) and 56.54 g/t Au across 0.9m (1.65 oz/ton
across 3.0 ft).
FW2 drill intercepts include 44.82 g/t Au across 1.5m (1.31 oz/ton
across 4.9 ft).
Two claims comprising approximately 80 acres are being acquired from
Belmont Resources Inc. and International Montoro Resources Inc. (the
"Vendors"). Premier will pay the Vendors an aggregate of $20,000 Cash
and issue 5,000 Shares of Premier for the acquisition. The claims are
located to the south of the Footwall Zone. The Vendors will not retain
any royalty however the claims are subject to an underlying 3% Net
Smelter Return royalty ('NSR') of which 1% can be purchased for
Premier has also secured an Option to acquire four claims comprising
approximately 53 acres from a private vendor. Premier will pay the
vendor $20,000 Cash over a three year period and issue 4,000 Shares of
Premier and the vendor will retain a 2% NSR, half of which Premier can
purchase at any time for $500,000.
"In recent years, the East Bay Ultramafic Trend has yielded impressive
high-grade discoveries that are aggressively being advanced," said
Stephen McGibbon, Executive Vice-President of Premier. "These new
claim groups are located between the two most active areas and are
believed to have the potential to host similar mineralization."
In addition to the East Bay Project, Premier's core Red Lake Project is
the Rahill-Bonanza Project that is host to several gold deposits having
historical and NI43-101 compliant mineral resources, including the
past-producing Wilmar Gold Mine. The Rahill-Bonanza joint venture
Project (49% Premier, 51% RLGM) covers approximately 4.5 kilometres of
the main Red Lake "Mine Trend" between the world class Red Lake Gold
Mines complex to the east, and the Cochenour (Bruce Channel) complex to
the west, where an underground exploration tram designed to link the
two operations is under construction. This Project represents the last
piece of the main mine horizon in the Red Lake gold camp not 100% owned
by Goldcorp. Current drilling at Rahill-Bonanza is defining high-grade
gold mineralization within the 2E structure where recent drilling has
intersected appreciable grades including 68.87 g/t Au across 3.5 m (2.01 oz/t across 11.5 ft uncut) and 46.15 g/t
Au across 4.5m (1.35 oz/t across 14.8 ft uncut).
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
Premier Gold Mines Limited is a well-financed Canadian-based mineral exploration and development
company with several projects and deposits in Northwestern Ontario,
Nevada and a joint venture in Mexico. In the Red Lake gold mining camp,
two are operated in joint venture with Red Lake Gold Mines. The
Company holds 100% interests in the PQ North project on the main
Musselwhite Gold Mine trend, the Trans-Canada Project and the Saddle
Gold project in the heart of the Carlin Trend, Nevada. Premier has
recently signed a Letter of Intent with Newmont Mining Corporation to
consolidate lands held in the historic Rain Gold Mine area that
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.
SOURCE Premier Gold Mines Limited
For further information:
Ewan Downie, President & CEO
Web Site: www.premiergoldmines.com