Premier - Sutter releases additional high grade gold at Santa Teresa including 16.68 gpt (0.49 opt) across 3.1 metres



    Shares Issued: 77,565,179

    THUNDER BAY, ON, Jan. 7 /CNW/ - PREMIER GOLD MINES LTD (TSX:PG) is
pleased to release the remaining assay results from its initial 32-hole Phase
One program drilled at the Santa Teresa Concession in Baja California, Mexico.
These new results, with intercepts as high as 21.10 grams per tonne (gpt) or
0.62 ounces per ton (opt) gold across 1.35 metres (m), and 16.68g/t across
3.1m continue to demonstrate the potential of this underexplored district.
    Results to date confirm the following:

    
    -   Drilling has discovered multiple high-grade veins up to 260 metres
        along strike from the historic Princessa Gold Mine, whose average
        production grade exceeded one ounce per ton.

    -   Results include multiple intercepts in excess of 34.00 gpt (about
        1.00 oz/ton) gold between one and three metres within the Princessa
        structure.

    -   Twenty-three significant intercepts with length weighted average in
        excess of 35.00 gpt.

    -   Structures remain open in all directions
    

    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 ore body 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 Mines Inc.
(TSX-V:SGM). Premier has secured the right to earn up to a 65% interest in the
Santa Teresa Project from Sutter.
    "In all, our Phase One program had 23 intercepts drilled that were
greater than 5.00 grams per tonne across no less than one metre, and the
length weighted average of those exceeded 35.00 grams per tonne," commented
Stephen McGibbon, Executive Vice-President & COO of Premier. "Recent drilling
with more tightly patterned holes helped us better understand the nature and
distribution of gold within this system."
    Premier and joint venture partner Sutter Gold Mines Inc. (TSX-V:SGM)
continue to regard expansion of their interests at El Alamo as a priority for
2009.
    Table 1 includes all assay results greater than 2.00 gpt gold for holes
ST024 to ST032, with assay results greater than 10.00 gpt highlighted in
astericks. Several of these contained visible gold upon visual inspection of
the core. Drill holes ST024-029 were drilled to test the South structure,
while holes ST030-032 tested the main Princessa structure.

    
    Table 1 Significant Results ST024 To ST032
    -------------------------------------------------------------------------
                                                        GRADE  GRADE
    HOLE-ID     ZONE    SECTION   FROM    TO   LENGTH   (GPT)  (OPT) COMMENTS
    -------------------------------------------------------------------------
    ST024               190 SE   205.3   206.3   1.00    4.50   0.13
    -------------------------------------------------------------------------
    ST024                        212.3   213.4   1.10    5.43   0.16
    -------------------------------------------------------------------------
    ST025               490 SE  ALL ASSAYS less than 2.00 GPT
    -------------------------------------------------------------------------
    ST026               440 SE   142.0     143   1.00    8.90   0.26
    -------------------------------------------------------------------------
    ST027               490 SE    50.0      51   1.00    4.38   0.13    VG
    -------------------------------------------------------------------------
    ST028               540 SE    45.0      46   1.00    3.46   0.10
    -------------------------------------------------------------------------
    ST028                        101.0     102   1.00    2.40   0.07
    -------------------------------------------------------------------------
    ST029               540 SE  ALL ASSAYS less than 2.00 GPT
    -------------------------------------------------------------------------
    ST030                50 SE    81.2    82.2   1.00    2.60   0.08
    -------------------------------------------------------------------------
    (*)(*)ST030 PRINCESSA        101.4   104.5   3.10   16.68   0.49    VG
    -------------------------------------------------------------------------
    ST031               50 SE   ALL ASSAYS less than 2.00 GPT
    -------------------------------------------------------------------------
    ST032               75 SE    127.2   128.2   1.00    3.08   0.09
    -------------------------------------------------------------------------
    ST032                        132.0     133   1.00    3.97   0.12
    -------------------------------------------------------------------------
    (*)(*)ST032 PRINCESSA       152.65   154.0   1.35   21.10   0.62    VG
    -------------------------------------------------------------------------
    ALL SIGNIFICANT ASSAYS GREATER THAN 2.00 GPT
    (*)(*)INTERCEPTS GREATER THAN 10.00 GPT
    (*) True widths estimated between 50-75% of intersection width
    


    The Santa Teresa Project is accessible by road, and is located
approximately 100 kilometres southeast of Ensenada and about 250 kilometres
south of San Diego, California, USA. A total of some 7,000 metres (22,800
feet) in 32 holes were drilled on Santa Teresa in 2008.
    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.
    

    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.

    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


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890