Premier provides Red Lake exploration update - Deep drilling intersects high grade gold 12.5g/t Au across 4.5 metres



    Shares Issued: 78,510,179

    THUNDER BAY, ON, Aug. 18 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is
pleased to provide an exploration update from an ongoing drill program at the
Company's Rahill-Bonanza joint venture project in Red Lake. Premier remains
one of the sectors most active exploration companies, defining mineralization
on multiple projects, an effort that is expected to result in at least one
NI43-101 compliant gold resource estimate by year-end. Prior to year-end,
exploration in Red Lake will include drilling on both the Rahill-Bonanza joint
venture and the 100% held Lennie Project. This drilling will test some of the
district's most prospective targets proximal to what is considered the world's
richest gold mine.
    The Rahill-Bonanza joint venture Property is being explored with Red Lake
Gold Mines Limited ("RLGM"), an affiliate of Goldcorp Inc. Recent work
immediately north of the Rahill-Bonanza Project suggests that Goldcorp's Bruce
Channel Deposit is hosted within a North-South fault structure that could
cross onto the joint venture property. A new hole is being drilled that will
test the northwestern portion of the Property potentially along strike from
the Bruce Channel Deposit.
    A recently completed hole (PG09068A), that did not test the Bruce Channel
target, intersected high-grade mineralization within the nearby West
Granodiorite Zone (WGZ) target with assays as high as 12.5 grams per tonne
gold (g/t Au) across 4.5 metres (m) in a section containing numerous specks of
visible gold, and 21.2g/t Au across 0.5m. This intersection is being
followed-up with ongoing drilling.
    Ewan Downie, President of Premier, stated that "Our drilling has
intersected high grade gold mineralization within the WGZ in a 400 m step-out
below where to WGZ was previously drilled and bulk sampled. This part of the
Red Lake camp has seen almost no previous exploration and suggests that this
deposit could have significant size potential. The grades and widths from this
deep intercept are comparable to those at the Bruce Channel Deposit".
    The current drill program is focused on testing prospective exploration
targets, and defining potentially significant resources, located in close
proximity to Goldcorp's Bruce Channel Deposit that is located immediately
northwest of the joint venture property. The new West Granodiorite intercept
is located approximately 100 metres along strike to the west of, and 400
metres below, the known WGZ Deposit, a large, near-surface, bulk-tonnage
deposit that shares similarities to the Goldex Deposit that was recently
brought into production by Agnico-Eagle in Northwestern Quebec. Goldex is a
profitable low-grade bulk mineable gold deposit with favourable cash costs.
Previous work, including test mining on the 1300 foot Level of the
Cochenour-Wilmar Mine, has identified a significant (historical) resource
within the WGZ that appears to be higher grade than Goldex. This work suggests
a historical resource of up to 5,700,000 tons @ 0.10-0.15 oz/ton (3.4-5.1g/t)
Au, that is open both along strike and at depth (a qualified person has not
done sufficient work to verify the historical resource, the company is not
treating the historical resource as a current resource and the historical
resource should not be relied upon). The new drill intercept, from which the
high grade interval was contained within a larger mineralized section of WGZ
that returned 1.5 g/t Au across 75 m, suggests excellent potential to
materially increase the size of the WGZ deposit.
    The joint venture property covers several kilometers of the prolific
"Mine Horizon" between the Cochenour (Bruce Channel) complex to the west and
the RLGM complex to the east. The RLGM has produced more than 18 Million
ounces of gold, discovered nearly 10 Million additional ounces of resources,
and is widely considered to be the world's richest gold mine.
    Pursuant to its press release dated May 7, 2009, Goldcorp announced
several major development initiatives that are being considered on and around
the Joint Venture Property. De-watering of the Cochenour mine workings has
started for the potential development of the Bruce Channel Deposit. This
de-watering will also allow underground access to the Wilmar and West
Granodiorite Zones located on the Joint Venture Property immediately to the
southeast. Additionally, Goldcorp is considering a high-speed tram system to
link Bruce Channel to the Red Lake Gold Mines complex. A straight line from
the RLGM complex would pass through the Joint Venture Property and would
provide exploration access to several kilometres of favourable, untested,
geology.
    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
metallic methods.

    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 active drill programs at its Hardrock Project and PQ North
Project that is strategically 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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