Premier intersects high-grade gold at EP and SP Zone targets



    
           19.03 g/t Au across 11.3m and 6.63 g/t Au across 28.1m
           ------------------------------------------------------

    Shares Issued: 78,125,179
    

    THUNDER BAY, ON, June 17 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is
pleased to announce that ongoing drilling continues to intersect significant
gold mineralization across multiple subzones at the Company's Hardrock Project
in Northwestern Ontario. The current program, consisting of delineation and
exploration drilling, will continue throughout 2009 and is expected to result
in an NI 43-101 compliant resource estimate by year end.
    Drilling at the EP Zone continues to exceed expectations with recent
step-out and infill holes returning some of the best results received to date.
The first three holes drilled to test the South Porphyry Zone ("SP") have all
returned high-grade gold mineralization within multiple zones.

    
    Highlights from recent drilling include:

    -   EP Zone: 5.21 grams per tonne gold (g/t Au) across 37.0 metres within
        the North Limb
        19.03 g/t Au across 11.3 metres in step-out drilling on the South
        Limb

    -   SP Zone: 6.63 g/t Au across 28.1 metres within the SP Zone
        underground target
        36.22 g/t Au (1.06 oz/ton) across 2.2 metres within the HGV Zone
        target
    

    Premier holds a 70% interest in the Hardrock Project, which is operated
under a joint venture with Roxmark Mines Limited (TSX-V:RMK). The Hardrock
Project is host to several past-producing mines which collectively produced
nearly 3.0 Million ounces of gold within 600 metres of surface from 1938-1968.
Early drilling in 2009 focused on open pit-style mineralization and but is now
targeting the huge potential to expand higher grade mineralization amenable to
efficient underground mining methods. Historically at Hardrock, little effort
was made to define narrow vein, high grade mineralization as bulk mining
methods were used to extract the ore.

    
    EP-Zone
    -------
    

    The EP-Zone has been identified as a potential high-grade open pit target
in the vicinity of the historic North Zone, from which 2.97 million short tons
of ore was mined at a recovered grade of 0.22 ounces per ton gold (7.54 g/t
Au). Drilling has intersected mineralization in multiple sub-zones within the
EP target over a strike length of 600 metres.
    Previous highlights include 7.60 g/t Au across 20.5 m in hole EP044, 2.37
g/t Au across 62.7 m in hole EP026, and 4.17 g/t Au across 29.0 m in hole
EP053. New results, that include 6.66 g/t Au across 14.0 m in hole EP074, 5.21
g/t Au across 37.0 m in hole EP079, and 19.03 g/t Au across 11.3 m in hole
EP080 continue to define and expand mineralization within the EP target area.
    Table 1 highlights new assay results at the EP-Zone. A complete table of
results for the EP Zone can be found on the Company's website,
www.premiergoldmines.com.

    
    Table 1      New Sub-Zone Intercepts within the EP Zone Target Area
    -------------------------------------------------------------------------
             UTM
           Coord-      Dip/              Inter- Grade Inter- Grade
    Hole-  inates    Azimuth  From   To   val    (g/   val   (oz/
    ID       (m)    (degrees)  (m)   (m)  (m)  tonne) (ft)   ton)    Zone
    -------------------------------------------------------------------------
    EP058 5503053 N  -45/360 147.6  156.4  8.8  5.81  28.9  0.17 North Limb B
                             ------------------------------------------------
           504699 E          165.7  176.4 10.7  3.03  35.1  0.09 North Limb C
    -------------------------------------------------------------------------
    EP061 5503076 N  -50/360  62.4   62.9  0.5  5.89   1.6  0.17  South Limb
                             ------------------------------------------------
           504652 E           71.5   72.0  0.5  7.19   1.6  0.21  North Limb
                             ------------------------------------------------
                             165.7  180.1 14.4  1.23  47.2  0.04 North Limb C
    -------------------------------------------------------------------------
    EP062 5503052 N  -50/360  89.6   98.7  9.1  0.73  29.8  0.02  South Limb
                             ------------------------------------------------
           504650 E          116.5  117.2  0.7  5.04   2.3  0.15  North Limb
                             ------------------------------------------------
                             135.2  159.2 24.0  1.71  78.7  0.05 North Limb B
                             ------------------------------------------------
                             195.7  196.2  0.5  7.31   1.6  0.21 North Limb C
    -------------------------------------------------------------------------
    EP063 5503052 N  -60/360 130.8  135.4  4.6  4.00  15.1  0.12  North Limb
                             ------------------------------------------------
           504650 E          181.3  187.1  5.8  4.30  19.0  0.13 North Limb B
    -------------------------------------------------------------------------
    EP064 5503027 N  -60/360  74.9   92.9 18.0  1.49  59.0  0.04 South Limb B
           504653 E          212.8  217.7  4.9  2.83  16.1  0.08 North Limb C
    -------------------------------------------------------------------------
    EP066 5503051 N  -60/360 124.7  125.7  1.0  5.48   3.3  0.16  North Limb
                             ------------------------------------------------
           504601 E          159.9  162.6  2.7  4.87   8.9  0.14 North Limb B
                             ------------------------------------------------
                             249.7  252.0  2.3  5.49   7.5  0.16 North Limb C
    -------------------------------------------------------------------------
    EP071 5503074 N  -60/360 108.9  120.8 11.9  4.06  39.0  0.12  South Limb
                             ------------------------------------------------
           504551 E          138.1  141.5  3.4  4.48  11.2  0.13  North Limb
    -------------------------------------------------------------------------
    EP072 5503101 N  -60/360 106.0  116.1 10.1  1.29  33.1  0.04  North Limb
                             ------------------------------------------------
           504549 E          128.1  135.3  7.2  2.11  23.6  0.06 North Limb B
    -------------------------------------------------------------------------
    EP074 5503050 N  -60/360              14.0        45.9  0.19
           504500 E          154.0  168.0       6.66              North Limb
    -------------------------------------------------------------------------
    EP078 5503026 N  -60/360 159.0  165.7  6.7  3.16  22.0  0.09  South Limb
                             ------------------------------------------------
           504750 E          176.5  185.5  9.0  2.59  29.5  0.08  North Limb
                             ------------------------------------------------
                             193.0  218.5 25.5  2.12  83.6  0.06 North Limb B
    -------------------------------------------------------------------------
    EP079 5503102 N  -45/360              37.0       121.4  0.15
           504808 E           40.0   77.0       5.21              North Limb
    -------------------------------------------------------------------------
    EP080 5503026 N  -60/360  75.0   76.5  1.5 21.10   4.9  0.62 South Limb C
                             ------------------------------------------------
           504807 E          131.0  146.4 15.4  2.10  50.5  0.06 South Limb B
                             ------------------------------------------------
                             156.2  167.5 11.3 19.03  37.1  0.56  South Limb
                             ------------------------------------------------
                             187.5  189.0  1.5 14.00   4.9  0.41  North Limb
                             ------------------------------------------------
                             241.5  246.0  4.5  2.13  14.8  0.06 North Limb C
    -------------------------------------------------------------------------
    True widths estimated at approximately 70% of intersection widths

    UNDERGROUND ZONES
    -----------------
    Following compilation of data from the Project area, several highly
prospective target areas, with the potential to host new underground mineral
resources, have been identified. Initial drilling to test the potential of the
SP Zone, and one of several High Grade Vein Zones ("HGV"), has returned
multiple intersections of high-grade gold mineralization.

    SP Zone
    -------
    

    At Hardrock, the SP Zone was partially mined in the upper levels of the
mine with 264,354 tonnes (291,428 tons) of ore mined at an average grade of
8.37g/t Au (0.244 oz/t). Intermittent historic drilling that tested the
unmined down-plunge extension of the SP Zone suggests the potential to outline
mineralization over a plunge length of nearly 3.0 kilometres (8,500 feet). The
initial three holes drilled to test this target have all intersected
significant mineralization within the SP Zone in addition to high-grade gold
within a HGV Zone (Note that only MM006 was drilled far enough to intersect
the HGV - other holes are being deepened).
    Table 2 summarizes new assay results from drilling to test the SP Zone.
Highlights include 6.63 g/t Au across 28.1 m and 6.74 g/t Au across 7.0 m
within the SP Zone, 8.42 g/t Au across 2.0 m within the F Zone, and 36.22 g/t
Au across 2.2 m within the HGV Zone. SP Zone results correlate very well with
previous surface drilling results conducted by Asarco in 1994. Previous SP
Zone hits include 11.69 g/t across 7.6 m in 94-77 and 7.76 g/t across 21.6 m
in 94-78. Premier plans to include these intercepts in its NI-43101 compliant
resource by year-end.

    
    Table 2      New Sub-Zone Intercepts within the SP Zone Target Area
    -------------------------------------------------------------------------
             UTM
           Coord-      Dip/              Inter- Grade Inter- Grade
    Hole-  inates    Azimuth  From   To   val    (g/   val   (oz/
    ID       (m)    (degrees)  (m)   (m)  (m)  tonne) (ft)   ton)    Zone
    -------------------------------------------------------------------------
    MM004 5502718 N  -55/360 208.1  210.0  1.9  5.88   6.2  0.17      SP
                             ------------------------------------------------
           504306 E          219.0  223.4  4.4  6.36  14.4  0.19      SP
                             ------------------------------------------------
                             240.5  242.1  1.6  8.35   5.2  0.24      SP
                             ------------------------------------------------
                             334.0  336.0  2.0  8.42   6.6  0.25       F
    -------------------------------------------------------------------------
    MM005 5502703 N  -55/360 230.8  258.9 28.1  6.63  92.2  0.19      SP
                             ------------------------------------------------
    inclu  504257 E          252.9  258.9  6.0 17.14  19.7  0.50      SP
    -ding                    ------------------------------------------------
                             272.3  273.5  1.2 10.92   3.9  0.32      SP
                             ------------------------------------------------
                             297.5  300.5  3.0  4.57   9.8  0.13      SP
    -------------------------------------------------------------------------
    MM006 5502694 N  -55/360 244.0  251.0  7.0  6.74  23.0  0.20      SP
                             ------------------------------------------------
           504199 E          314.5  316.0  1.5  4.80   4.9  0.14       F
                             ------------------------------------------------
                             371.0  373.2  2.2 36.22   7.2  1.06     HGV
    -------------------------------------------------------------------------
    (*) True widths estimated at approximately 70% of intersection widths
    

    Recent compilation work has identified define what appears to be
continuous veining over a plunge length of some 1,100 metres (3,800 feet) with
historic intersections that include 112.5 g/t Au (3.28 oz/ton Au) across 1.2m
on the 7th Mine Level, 39.1 g/t Au (1.14 oz/ton Au) across 1.2m on the 10th
Mine Level, and 88.5 g/t Au (2.58 oz/ton Au) across 1.5m on the 13th Mine
Level. MM006 intersected similar high-grade vein mineralization up dip from
this previous work. This style of mineralization is similar to that at two of
the nearby mines which exist on the Hardrock Property including the Little
Long Lac Mine (past production of more than 600,000 ounces of gold at an
average recovered grade of 11.66 g/t Au) and the Magnet Mine (past production
of more than 150,000 ounces of gold at an average grade of 14.4 g/t Au).
    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 Open pit-style
mineralization with grades exceeding 1.5 g/t Au (Timmins, Hemlo), broad zones
of mineralization with grades averaging 5.0+ g/t Au (Musselwhite), and narrow
vein zones with higher gold grades often exceeding 7.0g/t (Red Lake, Pickle
Lake). The Hardrock Project benefits from development advantages with the
Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running
through the center of the property.

    
    ANNUAL GENERAL MEETING
    ----------------------
    

    Premier Gold Mines Limited will be hosting its Annual General Meeting of
Shareholders today at 4:00pm EDT at the Toronto Board of Trade, located at 1
First Canadian Place, Toronto, Ontario. At 4:45pm, President and CEO Ewan
Downie, along with other senior members of Premier management, will complete a
presentation that will profile key projects, including the topics covered in
this news release and future milestones. In addition, there will be a webcast
of the event which can be listened to via a link from the Premier Gold Mines
website.
    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. Assay results are from core samples sent to
Activation Laboratories, an accredited mineral analysis laboratory in
Ancaster, Ontario, for analysis utilizing both fire assay and screen metallic
methods.

    Premier Gold Mines Limited is a well-financed mineral exploration and
development company based in Canada, with mineral interests and deposits in
Northwestern Ontario and a joint venture in Mexico. Premier has recently
earned a 70% interest in the Hardrock Project, an advanced-stage gold project
in the Geraldton area. In the Red Lake gold mining camp, two properties are
operated in joint venture with Red Lake Gold Mines. The company's 100%-owned
PQ North Property a strategic project located on the main Musselwhite Gold
Mine trend.

    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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