Premier announces resource estimate for Red Lake Bonanza Gold Deposit



    Shares Issued: 68,647,742

    THUNDER BAY, ON, Feb. 6 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is
pleased to announce the results of a NI 43-101 compliant inferred mineral
resource estimate of the Bonanza Deposit, located on the Rahill-Bonanza
Property, a joint venture between Premier (49%) and Red Lake Gold Mines (RLGM;
51%).
    Highlights of this work show an inferred resource of 2,283,000 tonnes at
an average grade of 6.98g/t Au over an average width of 3.1 meters (diluted -
2,468,000 tonnes at an average grade of 6.46g/t Au over an average width of
3.4 meters) using a 4.0g/t cut-off grade.

    Results of the estimate, summarized in Table 1, reflect the following
basic parameters:

    
    -   A gold price of US$750 per ounce
    -   A US$-CAD$ exchange rate at par
    -   A 4.0 gram per tonne (gpt) cut-off grade
    -   A depth extending from surface to 600-metres below surface
    -   A minimum horizontal width of 2.0 metres
    -   Specific Gravity (SG) of 2.87 based on preliminary metallurgical
        test work

    The deposit remains untested beneath the current resource.

    Table 1     Bonanza Deposit at 4.0 gpt cut-off grade; tonnes, grams and
                ounces rounded
    -------------------------------------------------------------------------
                                                                  DIL_
                                 GRADE   OUNCES   HOR      DIL_  GRADE  DIL_
    ZONE     TONNES   GRAMS AU   (GPT)     AU     (m)    TONNES  (GPT)   HOR
    -------------------------------------------------------------------------
    B1       479,000  3,355,000   7.01  108,000   3.2    508,000  6.61   3.4
    B10      133,000    821,000   6.17   26,000   2.9    139,000  5.89   3.0
    B11      105,000  1,626,000  15.48   52,000   2.6    125,000 13.03   3.0
    B9        44,000    231,000   5.25    7,000   4.7     44,000  5.25   4.7
    F1       409,000  2,703,000   6.60   87,000   3.0    465,000  5.81   3.4
    F2       100,000    750,000   7.53   24,000   2.8    107,000  6.98   3.0
    F3       402,000  1,828,000   4.55   59,000   5.7    402,000  4.55   5.7
    F5         4,500    265,000  58.67    8,000   0.6     14,000 18.48   2.0
    F6       192,000    956,000   4.99   31,000   3.0    198,000  4.83   3.1
    RH1      174,000  1,312,000   7.52   42,000   2.9    191,000  6.88   3.1
    RH2      241,000  2,087,000   8.66   67,000   2.1    275,000  7.60   2.4
    -------------------------------------------------------------------------
    Grand
     Total 2,283,000 15,932,000   6.98  512,000   3.1  2,468,000  6.46   3.4
    -------------------------------------------------------------------------

    At the 4.0 gpt-cut-off, the Bonanza Deposit is made up of 11 sub-parallel,
sub-vertical mineralized zones whose grade varies between 4.55 gpt and 18.48
gpt on a diluted basis, reflecting the higher grade nature of portions of the
deposit. Overall, the Bonanza Deposit resource has a grade of 6.46 gpt after
dilution. Dilution was introduced into the estimate in order to ensure all
subzones were represented with a minimum 2.0 metre horizontal width.
    A second estimate, developed at 2.0 gpt cut-off grade, is summarized in
Table 2. It was completed in order to better understand the geometry of the
lower grade mineralization that may potentially be amenable to lower cost
mining methods. At a 2.0 gpt cut-off, individual sub zones grade up to
12.32 gpt after dilution, which ensures a minimum 3.0 metre horizontal width
with this lower grade estimate.

    Table 2     Bonanza Deposit at 2.0 gpt cut-off grade; tonnes, grams and
                ounces rounded
    -------------------------------------------------------------------------
                                                                  DIL_
                                 GRADE            HOR     DIL_   GRADE  DIL_
    ZONE     TONNES      GRAMS   (GPT)   OUNCES   (m)   TONNES   (GPT)   HOR
    -------------------------------------------------------------------------
    B1     1,328,000   5,625,000  4.24  181,000   4.6  1,470,000  3.83   5.1
    B10      152,000     911,000  5.98   29,000   2.5    206,000  4.42   3.4
    B11      143,000   1,689,000 11.81   54,000   3.5    170,000  9.94   4.1
    B4       279,000     735,000  2.63   24,000   5.6    285,000  2.58   5.7
    B9       273,000     930,000  3.40   30,000   5.1    297,000  3.13   5.6
    F1     1,546,000   6,105,000  3.95  196,000   5.1  1,699,000  3.59   5.6
    F2       239,000   1,096,000  4.59   35,000   4.6    272,000  4.03   5.3
    F3       537,000   2,210,000  4.12   71,000   7.6    552,000  4.01   7.8
    F5         5,000     265,000 58.67    9,000   0.6     21,000 12.32   3.0
    F6       993,000   3,102,000  3.12  100,000   7.5  1,002,000  3.10   7.6
    RH1      643,000   2,705,000  4.21   87,000   4.8    710,000  3.81   5.3
    RH2      520,000   2,972,000  5.72   96,000   2.9    679,000  4.38   3.8
    -------------------------------------------------------------------------
    Grand
     Total 6,657,000  28,344,000  4.26  911,000   4.9  7,364,000  3.85   5.4
    -------------------------------------------------------------------------


    Figure 1    B1 Sub Zone Longitudinal Section - 4.0 gpt Cut Off

    To view this Figure, please click here:
    http://www.premiergoldmines.com/i/maps/Bonanza/2008-02-06_NRM.gif

    

    Both estimates were completed utilizing a polygonal estimation
methodology. Intercepts were projected onto vertical longitudinal sections for
each sub zone. Mineralized zones were contoured manually with careful regard
for the geological limitations of the deposit as defined by diamond drilling.
Polygons were expanded up to, but not beyond, the contoured outlines of the
deposit (See Figure 1). The full report is being completed by Gerald A. Harron
of G.A. Harron and Associates Inc., an independent qualified person, as
defined by National Instrument 43-101.
    For 2008, the Joint Venture plans to conduct, a substantial diamond drill
program at the Bonanza Deposit in order to increase the confidence of the
estimate to a minimum "indicated resource" designation as well as expand the
resource at depth.

    Wilmar Deposit
    --------------
    In late 2007, Premier announced that the permitting process for
potentially advanced exploration had been initiated for the Cochenour-Wilmar
Project. Advanced exploration may include dewatering and rehabilitation of the
Cochenour-Willans Gold Mine, which would provide underground access for
delineation drilling at Wilmar on the joint venture property. The Wilmar Gold
Mine is accessed through the Cochenour mine workings. During the final years
of operations at Cochenour, 203,256 tons were mined from the Wilmar Mine at an
average grade of at least 0.30 oz/ton Au (10.3 gpt Au). The Wilmar Mine
carries a resource at closure and the deposit remains open at depth.
Definition drilling of the mined horizons and of mineralized zones intersected
in the current drill program can be carried out from underground, in addition
to potential bulk sampling. Recent drilling at Wilmar has intersected the main
horizon in all holes drilled at a depth up to 600 metres below the historic
workings and over a strike length of 300 metres with assays that include
49.0 gpt Au over 1.0m, 14.2 gpt Au over 5.0m and 18.1 gpt Au over 2.0m.

    Level 41 Drilling
    -----------------
    Drilling toward the Joint Venture project from RLGM's Campbell Complex
has reached a depth of 1,239.6 metres and has been temporarily suspended while
additional drill equipment is ordered. The primary target of this hole,
collared on the 41 Level (approximately 1,875 meters or 6,150 feet below
surface) is from approximately 1200-1650 metres. Drilling is expected to
resume in the near future. Prior to reaching the main target area, a narrow
gold-bearing zone was intersected, returning an assay of 6.80 gpt Au
(0.20 oz/ton) over 1.0 metre.

    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.

    Premier Gold Mines Limited is a fully financed Canadian-based mineral
exploration and development company with diverse property holdings that
include 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. A strategic project is also located
on the main Musselwhite Gold Mine trend (Goldcorp).

    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) 345-0284, e-mail: info@premiergoldmines.com, Web Site:
www.premiergoldmines.com


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