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THUNDER BAY, ON, Oct. 2 /CNW/ - PREMIER GOLD MINES LIMITED ("Premier")
(TSX:PG) is pleased to announce that exploration will continue at the PQ North
Properties in Northwestern Ontario. Exploration to-date has included an
airborne magnetics geophysical survey and a grid has been cut on the ground.
An exploration camp is presently being constructed on the property and
geological mapping and sampling are being completed. A 3D exploration model is
being created and will be further refined for identifying high-grade targets
prior to a major diamond drilling this winter.
The PQ North Property is strategically located on the PQ limb of the key
iron formation that is host to Goldcorp's Musselwhite Gold Mine. Recently,
Goldcorp stated that gold mineralization has been extended to the north with
intersections on structures trending in close proximity to Premier's PQ North
Property. These results include a drill intercept of 15.5 grams per tonne
(gpt) gold across a true width of 4.5 metres (m) in hole 07-NSD-005 (see Fig.
1 below). Goldcorp also indicated that gold mineralization within the mine
horizon is estimated to have increased from 1.0 million to 2.0 million ounces
per kilometre and has been intersected as far as 6 kilometres north along
strike of the main mine facilities.
The PQ North Property encompasses a major fold structure along strike
from and within the main rock unit (Northern Banded Iron Formation) that hosts
the gold-bearing ore zones at Musselwhite. Previous drilling has returned
numerous significant intersections and has identified structural units similar
to those at the mine (Fig. 1). Of particular interest are a series of quartz
veins, and shear zones, in places tens of meters wide, hosted within volcanic
rocks in the southern portion of the PQ North Property. It is believed that
these (low-grade) veins could be related to structures that may cut the main
iron formation unit at depth, and potentially become significant gold-bearing
zones. Similar veins on surface on the Musselwhite Property are located up-dip
from the main gold zones currently being mined. To date, the Musselwhite Mine
has produced more than 2.0 million ounces of gold and has reserves and
resources totaling in excess of 3.30 Million ounces at the end of 2007.
Premier owns a 100% interest in the PQ North Property subject to a 2% Net
Smelter Returns Royalty of which Premier retains the right to acquire 1% by
paying to the vendor $1 Million.
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) in the near future.
To view Figure 1, Location of PQ North Property, Musselwhite Mine and
significant exploration results, please go to
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. Core from Rahill-Bonanza is sent to Accurassay
Laboratories, an accredited mineral analysis laboratory in Thunder Bay,
Ontario, for preparation and analysis utilizing both fire assay and screen
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.
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) 346-0100, E-mail: email@example.com, Web Site: