Premier adds third drill to Hardrock Gold Project



    Shares Issued: 78,065,179

    THUNDER BAY, ON, Jan. 20 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is
pleased to announce that a third drill has been added at the company's
Hardrock Project in Northwestern Ontario. This program is expected to consist
of more than 50,000 metres of drilling leading to NI43-101 compliant resources
in 2009.
    To date, multiple intervals of veining and mineralization have been
intersected in the two initial targets, the EP and Oreo Zones. The third drill
will begin testing a new style of target in the Geraldton District, the
Tenacity Zone, where mineralization is closely associated with a folded
ultramafic rock unit.
    The EP-Zone is a near-surface, potential high-grade open pit, target
consisting of mineralization up-dip and adjacent to the previously mined North
Zone from which 2.97 Million tonnes of ore was mined at a grade of 7.54 g/t
Au. The potential of the EP-Zone is highlighted by previous drill intercepts
that include 4.06g/t Au across 25.6 metres and 7.34g/t Au across 15.2 metres.
Initial drilling in the current drill program has intersected strong
mineralization both north and south of the previously stoped out area.
    Drilling at the Oreo Zone is testing a "gap" between the two main
producing horizons at Hardrock, an area that has received little previous
attention despite the fact that numerous interesting gold intersections have
been returned from the limited underground drilling in this area. The first
hole of the current program has intersected several vein and mineralized
zones, in addition to strong mineralization adjacent to, and down-dip from,
the North Zone.

    
    Hardrock Project
    ----------------
    
    The Hardrock Project is operated under a joint venture with Roxmark Mines
Limited (TSX-V:RMK) (Premier earning a 70% interest). The Hardrock Project is
host to several past-producing mines which collectively produced more than 2.0
Million ounces of gold from the same deposits to relatively shallow depths of
approximately 2000 feet (600 metres) from 1938-1968. The mined zones remained
open at depth at the time mining ceased and developed historical resources
were left in place within the existing mine workings (a qualified person has
not done sufficient work to verify the historical resource, the company is not
treating the historical resource as a current resource and the historical
resource should not be relied upon). Importantly, the Hardrock Project has the
potential for defining several styles of mineralization capable of hosting
resources, with grades and widths similar to many of Ontario's major gold
mines including:

    
    1)  Open pit-style mineralization with grades exceeding 1.5 g/t Au
        (Timmins, Hemlo)

    2)  Broad zones of mineralization with grades averaging 5.0+ g/t Au
        (Musselwhite)

    3)  Narrow vein zones with higher gold grades often exceeding 7.0g/t (Red
        Lake, Pickle Lake)
    

    Initial drilling will focus on delineating both open pit and underground
resources with the goal of defining a multi-million ounce gold resource that
can be moved quickly towards development (Although existing historical
resources have been used as a basis for confirming target potential, there has
been insufficient exploration data to define a mineral resource and it is not
certain that further exploration will result in discovery of a mineral
resource.). The Project offers development advantages with the Trans-Canada
Highway, Trans-Canada Pipeline, and major power lines running through the
center of the property. Significant potential exists for developing resources
in several areas including: 1) Open pit-style mineralization at the site of
the original discovery where a resource containing several hundred thousand
ounces of gold was partially drilled off by previous operators; 2) Several
newer high-grade discoveries have been made throughout this large property
package that have received little to no follow-up; 3) Resource blocks reported
to remain within the mine workings; and, 4) The main mined zones which remain
open below the 600m Level.
    The Hardrock Project is located in the heart of the Beardmore-Geraldton
Greenstone Belt, a highly prospective high-grade gold district that has seen
relatively little exploration over the past several decades. The Project area
covers some of the most prospective geology in the region and is host to
several past-producing mines and numerous exploration targets in a district
that has seen historic production of more than 4.1 Million ounces of gold.
    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. The GH results are from core samples sent to
Activation 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 a well financed Canadian-based mineral
exploration and development company with several projects and deposits in
Northwestern Ontario and a joint venture in Mexico. In the Red Lake gold
mining camp, two of these are operated in joint venture with Red Lake Gold
Mines. The company also owns a strategic project located on the main
Musselwhite Gold Mine trend and recently acquired mineral properties in
Geraldton area from Barrick Gold.

    
    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:
www.premiergoldmines.com


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