Premier assays confirm high grade PQ-North gold discoveries



    Shares Issued: 78,065,179

    THUNDER BAY, ON, May 4 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is
pleased to provide a summary of results from the Phase I drill campaign at the
Company's 100%-owned PQ-North Project in Northwestern Ontario. This program
resulted in the discovery of two potentially significant gold-bearing
horizons. Phase I drilling, testing only one of the four main targets on the
property, was primarily aimed at confirming historic geological information.
    To accommodate the significant early success of this exploration program,
Premier has expanded the PQ North budget to utilize two diamond drill rigs
throughout the summer season. The Phase I discoveries are located along strike
from Goldcorp's multi-million ounce Musselwhite Mine and are highlighted by:

    
    1. High grade mineralization in two initial holes grading up to
       10.24 grams per tonne gold (g/t Au) across 5.1 metres (m) discovered
       in an "Upper" iron formation within 100 metres of surface.

    2. The first holes drilled to test the PQ-limb of the main iron formation
       that hosts the primary gold zones at the adjacent Musselwhite Gold
       Mine returned assays of up to 10.25g/t Au across 1.8m and 20.65g/t Au
       across 1.0m.
    

    Phase I drilling consisted of eleven holes, focused primarily on
confirming existing geological data and identifying favourable shear
structures that could result in the discovery of "Musselwhite-style" gold
mineralization. In addition to calibrating the Musselwhite model, by
identifying rock units and major structures similar to those at the mine,
significant gold-bearing mineralization was discovered.
    These new intercepts are hosted within discreet biotite-garnet altered
zones consisting of folded and laminated iron formation containing pyrite,
pyrrhotite, chalcopyrite and rare visible gold. Considering the early stage of
the exploration program, these discoveries have returned impressive
intersections with grades and widths comparable to those at Musselwhite
including a previously released 21.33g/t Au across 2.1m.
    A presentation of the PQ-North Project can be viewed on Premier's website
www.premiergoldmines.com.
    The following table summarizes significant Phase I drill results from
holes that tested the Upper Iron Formation and PQ Limb mineralized zones:

    
    -------------------------------------------------------------------------
                                AZI-               INTER- GRADE INTER-
                       UTM      MUTH   DIP FROM-TO   VAL    (g/   VAL  GRADE
    HOLE-ID  ZONE  Coordinates  (deg) (deg)    (m)   (m)  tonne)  (ft) (oz/t)
    -------------------------------------------------------------------------
    PQ09006   UIF   5838336 N    042   -52  215.0-   5.1  10.24  16.7   0.30
                    675239 E                220.1
    -------------------------------------------------------------------------
    Including                               218.0-   2.1  21.33   6.9   0.62
                                            220.1
    -------------------------------------------------------------------------
    PQ09009   PQL   5837786 N    073   -65  519.3-   1.8  10.25   5.9   0.30
                    674837 E                521.1

               MA                           569.0-   1.0  20.65   3.3   0.60
                                            570.0
    -------------------------------------------------------------------------
    PQ09009W1 PQL     Wedge                 516.2-   1.2   3.65   3.9   0.11
                     Up-dip                 517.4
    -------------------------------------------------------------------------
    PQ09011   UIF   5838336 N    042   -47  216.3-   2.7   7.35   8.9   0.21
                    675239 E                219.0

    Including                               216.3-   2.2   8.58   7.2   0.25
                                            218.5
    -------------------------------------------------------------------------
    (*) True widths estimated at 80-100% of intersection width
    - PQ09006 was previously released

    (xx) PQL - PQ Limb intersection
         UIF - Upper Iron Formation
         MA - Main Anticline
    

    Phase II drilling will continue to evaluate the extent of these new
discoveries, in addition to testing other priority targets on the Property.
Premier's top-ranked targets include a 400m wide magnetically disrupted zone
(interpreted as a major structural break) that is expected to intersect the
main PQ-Limb at depth, located along strike from, and within the same host
rock as, the Musselwhite Gold Mine.
    "Premier's exploration program marks the first concerted effort to define
new gold-bearing structures in this part of the camp and our early discoveries
are located immediately along strike from the main ore-bearing host rock at
Goldcorp's adjacent Musselwhite Gold Mine" stated Stephen McGibbon, Executive
Vice-President and Chief Operating Officer of Premier. "The fact that these
discoveries were made during a program designed primarily to provide
geological data from areas covered by overburden, speaks volumes to the
potential of our primary targets that will be tested during the summer drill
program". "Most impressive is the fact that the grades from our initial four
holes in these two discoveries compare favourably with those currently being
mined at Musselwhite", McGibbon concluded.
    The PQ-North Project is located within Goldcorp's Musselwhite Property
holdings and is strategically located along the PQ-Limb of the key iron
formation that is host to the majority of the ore zones at Musselwhite. In
2008 Musselwhite produced 210,500 ounces of gold at an average grade of
5.56g/t Au and is targeting some 235,000 ounces of production in 2009.
    Premier previously announced that it had signed a Letter of Intent (LOI)
with the North Caribou Lake First Nation ("NCLFN") that paves the way for a
major exploration program on the PQ-North Property in Northwestern Ontario.
The LOI forms the basis of a cooperative relationship between Premier and
NCLFN that will guide the early phase of exploration on the property,
including line cutting, geophysics and diamond drilling, as well as lead to a
Memorandum of Understanding (MOU).
    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 assay results presented are from core
samples sent to Accurassay Laboratories, an accredited mineral analysis
laboratory in Thunder Bay, Ontario, for preparation and analysis utilizing
both fire assay and screen metallic methods. Presentations detailing the
Company's activities on its active projects are available on the Premier Gold
Mines Limited website www.premiergoldmines.com.

    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 projects are operated in joint venture with Red Lake Gold
Mines, and another, adjacent to the Red Lake Gold Mines complex, is operated
on a 100% basis. The company also owns a strategic project located on the main
Musselwhite Gold Mine trend and is acquiring a 70% interest in the Hardrock
Project, an advanced-stage gold project in the Geraldton area.

    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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