Shares Issued: 68,297,742
TORONTO, Jan. 18 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is pleased
to announce that Red Lake Gold Mines, an affiliate of GOLDCORP INC. (TSX:G,
NYSE: GG), has exercised its option, as permitted under the joint venture
agreement, to increase its interest in the Rahill-Bonanza Joint Venture by 1%
to 51% by paying Premier $440,000. By doing this Goldcorp has taken over as
primary operator of the Joint Venture. Premier now holds a 49% interest in the
property and will continue to participate in the ongoing, major two-year
exploration program. Premier is overseeing one of the three surface drills
that are currently drilling on the property.
"The proximity of the Rahill-Bonanza project to Goldcorp's Red Lake Gold
Mines complex, widely considered the world's highest-grade gold mine, may
realize many potential synergies leading to accelerated development of
deposits on the joint venture property" stated Ewan Downie, President & CEO of
Premier. "The decision by Goldcorp to increase its interest in the project and
become the primary operator speaks to their opinion of the quality of the
property and the progress made on work completed to date."
The Rahill-Bonanza Project is strategically located along the main Red
Lake "Mine Trend" between the prolific Red Lake Gold Mines complex to the east
and the Cochenour Gold Mine and Bruce Channel discovery to the west. This
property includes the Bonanza deposit, discovered in 2004, and the historic
Wilmar Gold Mine.
The Bonanza deposit was subject to two years of exploration, with the
last concerted drilling effort in the main deposit area ending in 2006. This
drilling returned numerous significant intersections to depths of less than
400 meters including 13.27 g/t Au across 19.0 meters, 8.66 g/t Au across 22.0
meters, and 5.05 g/t Au across 34.95 meters. Work is underway to produce a
NI43-101 resource during the first quarter of 2008 and renewed drilling in the
deposit area will focus on expanding resources and providing additional
information that will help advance the deposit toward potential bulk sampling.
Exploration drilling in 2007, and the current drilling is focused on
testing the vicinity of the past-producing Wilmar Gold Mine. The Wilmar Gold
Mine was mined as a satellite deposit to the adjacent Cochenour-Willans Gold
Mine (owned by Goldcorp) and was in operation during the final several years
of mining at Cochenour. This resulted in the mining of 203,256 Tons at an
average grade of approximately 0.30 oz/ton Au (10.3g/t Au) with the deposit
remaining open at depth when the mine shutdown. The current drill program has
intersected the Wilmar horizon in all holes drilled over a depth of more than
600 meters below the historic workings and over a strike length of
approximately 300 meters with assays that include 49.0g/t Au over 1.0m,
14.2g/t Au over 5.0 m and 18.1 g/t Au over 2.0 m. Mineralization remains open
at depth and along strike. One drill is currently drilling a deep hole to test
the horizon at a depth of approximately 2000 meters. The permitting process is
being initiated in order to ensure that future, potentially advanced
exploration can be conducted on a timely and uninterrupted schedule. 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.
Matt Long, P. Geo., Red Lake District Project Manager 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.
Premier Gold Mines Limited is a 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 Goldcorp Inc. (TSX:G). 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
For further information:
For further information: Ewan Downie, President & CEO, Phone: (807)
346-1390, Fax: (807) 345-0284, E-mail: email@example.com, Web Site: