Premier - Sutter drilling discovers high grade gold at Santa Teresa including 479.31g/t gold (13.98 oz/ton) across 2.0 metres



    Shares Issued: 68,747,742

    THUNDER BAY, ON, June 17 /CNW/ - PREMIER GOLD MINES LTD (TSX:PG) is
pleased to announce the discovery of high-grade gold mineralization at the
Santa Teresa Project located in the historic and high grade El Alamo District
of Baja California Norte, Mexico.

    Results to date, highlighted in Table 1 below, confirm the following:

    
    -   Drilling has discovered multiple high-grade veins along strike from
        the historic Princessa Gold Mine, whose average production grade
        exceeded one ounce per ton.

    -   Results include multiple intercepts in excess of 1.0 oz/ton gold and
        up to 13.98 oz/ton Au (479.31 g/tonne) along core widths of between
        one and three metres.

    -   Results from hole ST005, the highest grade to date, occur some
        210 metres SE of Princess, at more than twice the depth of the
        deepest known mining at Princessa (possibly the entire district) and
        remains open at depth.

    -   Recent drill intersections (assays pending) confirm this high grade
        mineralization extends up to 500 metres to the southeast of the
        Princessa Mine and currently remains open in that direction.

    -   Additional discovery potential is indicated by a single drill hole,
        ST006 (assays pending), that has intersected favourable looking
        veining and mineralization in a parallel structure.
    

    Core from hole ST005 will be on display at the Company's Annual General
Meeting, being held at the Toronto Board of Trade on Tuesday, June 17, 2008.

    The Santa Teresa Project is located adjacent to and on strike from the
past-producing Princessa Mine (the district's largest gold producer), which
was mined to a maximum depth of only 110 metres, and whose orebody was known
to extend close to the northern boundary of the Santa Teresa Property. Gold
production at El Alamo, a 16-kilometre long district, was halted at its peak
owing to technological and political circumstances early in the 20th century.
Since then, only minimal exploration has taken place, presenting a unique
opportunity for Premier and its joint venture partner Sutter Gold Mining Inc.
(TSX-V:SGM).
    Results to date indicate that high grade gold mineralization, with
intersections as high as 479.31g/t Au (13.98 oz/ton) over 2.0 metres, occurs
over a minimum strike length of 150 metres, open to the south, and to a
minimum depth of over 200 metres where the horizon remains open. Table 1
includes all holes drilled to-date with significant assay results received
and/or preliminary comments listed for each.

    

    Table 1 Significant Results to Date
    -------------------------------------------------------------------------
    Hole-ID   Zone   Section  From    To  Length   AU  Length  AU     Comment
                       (m)                  (m)  (g/t)  (ft)  (opt)
    -------------------------------------------------------------------------
    ST001   QUINOTA   150 SE  127.4  128.6  1.2   26.19  3.9  0.76      VG
              NEW             133.5  134.5  1.0    2.55  3.3  0.07      VG
    -------------------------------------------------------------------------
    ST002             150 SE                                   ASSAYS PENDING
    ST003             150 SE                                   ASSAYS PENDING
    ST004             150 SE                                   ASSAYS PENDING
    -------------------------------------------------------------------------
    ST005   QUINOTA   210 SE  239.0  241.0  2.0  479.31  6.6  13.98     VG;
                                                               ASSAYS PENDING
                                                                      WITH VG
    -------------------------------------------------------------------------
    ST006     NEW     490 SE                                  ASSAYS PENDING;
                                                                     VG NOTED
    -------------------------------------------------------------------------
    ST007     NEW     100 SE   47.5   48.5  1.0   14.55  3.3  0.42
              NEW              56.5   57.5  1.0    2.35  3.3  0.07
           BORRACHA            88.8   90.0  1.2   13.90  3.9  0.41
           PRINCESSA          163.0  164.0  1.0   17.04  3.3  0.50
    -------------------------------------------------------------------------

    ST008   BORRACHA  100 SE   55.0   56.0  1.0   33.87  3.3  0.99
           PRINCESSA          121.1  122.1  1.0   39.41  3.3  1.15
          FW PRINCESSA        128.5  129.5  1.0    3.07  3.3  0.09      VG
    -------------------------------------------------------------------------
    ST009             100 SE                       nsv             ALL ASSAYS
                                                                  (less than)
                                                                    1.0 GPT
    -------------------------------------------------------------------------
    ST010   QUINOTA   100 SE  142.1  143.0  0.9    2.56  3.0  0.07
             CRUDA            214.0  217.0  3.0    8.17  9.8  0.24
                   including  215.0  216.0  1.0   13.00  3.3  0.38
    -------------------------------------------------------------------------
    ST011   QUINOTA    50 SE   83.0   84.0  1.0    1.82  3.3  0.05
    -------------------------------------------------------------------------
    ST012   QUINOTA    50 SE   52.6   53.6  1.0    2.01  3.3  0.06
              NEW             141.5  142.5  1.0    3.06  3.3  0.09
              NEW             149.5  150.5  1.0    3.00  3.3  0.09
             CRUDA            201.5  204.0  2.5   12.58  8.2  0.37
                   including  201.5  202.5  1.0   29.11  3.3  0.85
          HW PRINCESSA        249.0  250.0  1.0    1.78  3.3  0.05
           PRINCESSA          258.5  259.5  1.0    1.84  3.3  0.05
    -------------------------------------------------------------------------
    ST013   BORRACHA   50 SE   25.0   26.4  1.4    6.73  4.6  0.20
              NEW              42.0   43.0  1.0    2.25  3.3  0.07
             CRUDA             83.1   84.1  1.0  102.89  3.3  3.00      VG
           PRINCESSA          110.5  113.7  3.2    6.89 10.5  0.20
                   including  112.7  113.7  1.0   18.84  3.3  0.55
    -------------------------------------------------------------------------
    ST014    CRUDA     00 SE  183.0  184.0  1.0    1.54  3.3  0.04
    -------------------------------------------------------------------------
    ST015             490 SE                                   ASSAYS PENDING
    -------------------------------------------------------------------------
    ST016              00 SE                       nsv             ALL ASSAYS
                                                                  (less than)
                                                                    1.0 GPT
    -------------------------------------------------------------------------
    ST017             210 SE                                  ASSAYS PENDING;
                                                                   VG NOTED
    -------------------------------------------------------------------------
    (*) True widths estimated between 65-85% of intersection width

    The Santa Teresa Project is accessible by road, and is located
approximately 100 kms southeast of Ensenada and about 250 kms south of San
Diego, California, USA. Premier's initial Phase One 5,000 metre drill program
was designed to test the extent, continuity and grade of known gold-bearing
vein structures previously evaluated only within 20 metres of surface. The
program has since been expanded to a minimum of 21 holes in Phase One due to
current results and continued quartz vein-hosted mineralization (including
visible gold, pyrite, chalcopyrite and galena) noted in holes recently
drilled, but not yet assayed. Of particular note is the mineralized vein
intersection in drill hole ST006, a single hole drilled to test a structure
parallel to "main zone" which is the currently the focus of ongoing drilling.
Follow-up drilling will be performed in this area in the near future.

    Premier is attracted to the El Alamo District because of a unique history
of high mined grades, but little modern exploration. The properties, being
explored by Premier and Sutter are:

    -   Located within a proven (some 220,000 ounces of past production) gold
        district.
    -   Historical data indicates that mined grades within the district are
        between 1.00 and 2.00 ounces per ton (opt).
    -   The majority of district production occurred within 120 metres of
        surface, but remains open at depth.
    -   Geologically similar to the historic Mother Lode District of
        California.
    

    "We are extremely satisfied and excited with the drill results received
to date." commented Ewan Downie, President & CEO of Premier, "Our goal is to
develop a high grade resource at Santa Teresa and these initial results
indicate that this potential is real".
    Premier has secured the right to earn up to a 65% interest in the joint
venture with SGMI at Santa Teresa. Recently, Premier announced that it had
signed a Memorandum of Understanding ("MOU") with Compania Minera Quasaro SA
DE CV ("Quasaro"), a private, arms-length company, to purchase the "La
Victoria Concession" located within the Santa Teresa Concession for the joint
venture. Veins currently being explored in the Phase One program may extend
along strike into La Victoria.
    Stephen McGibbon, P.Geo., Executive Vice-President and Chief Operating
Officer of Premier, 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. A stringent QAQC program utilizing blanks, standards and
replicates has been developed by Mark Payne, Consulting Geologist, for the STC
joint venture. All sample prep and analysis is being conducted by American
Assay Laboratories Inc. of Sparks, Nevada utilizing conventional 1 assay-ton
fire assay and 500-gram screen metallic methods.

    Premier Gold Mines Limited is a Canadian-based mineral exploration and
development company with a strong treasury and has diverse property holdings
that include several projects and deposits in Northwestern Ontario and a joint
venture in Mexico.

    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.
    %SEDAR: 00024152E




For further information:

For further information: Ewan Downie, President & CEO, Phone: (807)
346-1390, Fax: (807) 346-0100, E-mail: info@premiergoldmines.com, Web Site:
http://www.premiergoldmines.com


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