Premier-Roxmark - Kailey Zone drilling returns 1.47g/t Au across 162.0 metres



    Shares Issued: 68,747,742

    THUNDER BAY, ON, June 26 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is
pleased to announce that drilling has again returned the best results to-date
in the recently discovered Kailey Zone at the Geraldton Project in
Northwestern Ontario. Drilling in the central part of the Kailey Zone has
returned gold intersections well in excess of 100 meters where the two broad
parallel stringer horizons converge to the east.
    The Kailey zone is a bulk tonnage target proximal and parallel to the
historic Little Long Lac Gold Mine from which more than 600,000 ounces of gold
was produced during the period 1934-53 at an average grade of 11.66g/t Au.
Highlights from ongoing drilling include 1.32g/t Au across 191.2 metres,
2.16g/t Au across 92.2 metres, 1.47g/t Au across 162.0 metres and 1.15gt Au
across 140.2 metres.
    Drilling in the Kailey Zone has identified parallel horizons (K1 - North
& K2 - South) which converge in the central and eastern sections. The latest
three intersections have true widths approaching 100 metres. Drilling has cut
off the horizon to the east with mineralization remaining open primarily
down-plunge where drilling is currently focused. The following table provides
a summary of recent assay results received from drilling the Kailey Zone on
Section 12+75E (dip angles: 50, 60, and 70 degrees respectively):

    
    Table 1   Significant Results at Stringer Zone - Little Long Lac Target
              Area
    -------------------------------------------------------------------------
                                                                   AU    AU
    Hole-ID      Section      From    To     Length (m)     Zone  (g/t) (opt)
    -------------------------------------------------------------------------
    PLL08043  1275E - 3+30N    6.8  147.0  140.2 (460 ft)  K1-K2  1.15  0.034
    -------------------------------------------------------------------------
              Incl.            6.8   68.0   62.2 (204 ft)     K2  1.23  0.036
    -------------------------------------------------------------------------
              Incl.           85.0  147.0   62.0 (203 ft)     K1  1.33  0.039
    -------------------------------------------------------------------------
    PLL08045  1275E - 3+30N    6.0  168.0  162.0 (531 ft)  K1-K2  1.47  0.043
    -------------------------------------------------------------------------
              Incl.           27.0   72.0   45.0 (148 ft)     K2  1.61  0.047
    -------------------------------------------------------------------------
              Incl.           91.5  168.0   76.5 (251 ft)     K1  1.93  0.056
    -------------------------------------------------------------------------
    PLL08048  1275E - 3+30N    5.8  197.0  191.2 (627 ft)  K1-K2  1.32  0.038
    -------------------------------------------------------------------------
              Incl.            5.8   98.0   92.2 (302 ft)     K2  2.16  0.063
    -------------------------------------------------------------------------
              Incl.          212.0  215.0    3.0 (9.84 ft)   K1a  7.06  0.206
    -------------------------------------------------------------------------
    NOTE: True widths estimated at approximately 50-70% of intersection width
    

    It is management's belief that these horizons could also direct future
exploration towards discovering and delineating higher-grade mineralization
potentially amenable to underground mining methods. Higher grade intersections
of 6.14g/t Au across 3.0 metres in hole PLL08045 and 7.06g/t Au across
3.0 metres in hole PLL08048 demonstrate this potential. In order to test this
theory, drilling is currently being performed to test the K1 horizon at depth.
    Premier holds the option to acquire up to a 70% interest in the Geraldton
Project from Roxmark Mines Limited (TSX-V:RMK) by making cash and share
payments to Roxmark, and performing exploration on the Project. The current
drilling is part of an ongoing program aimed at confirming Premier's belief
that previously untested sub-parallel mineralized faults occur proximal to the
historic Little Long Lac Gold Mine. In addition to the Kailey Zone, drilling
is currently testing two of the program's other primary targets believed to
have high potential to host gold mineralization, "TAZ" and "Mine Repetition".
Veining and mineralization has been identified in both target areas and assays
are expected in the near future.
    The "Geraldton Project" is located in the heart of the
Beardmore-Geraldton greenstone belt, a highly prospective high-grade gold
district that has seen relatively little exploration over the past several
decades. The Project area covers approximately 10 kilometres of some of the
most prospective geology in the region and is host to three past-producing
mines and numerous exploration targets in a district that has seen historic
production of more than 4.1 Million ounces of gold. Several slides of the
Little Long Lac area can be viewed on the Premier Gold Mines Limited website,
www.premiergoldmines.com.

    Other Projects - Red Lake & Santa Teresa
    ----------------------------------------
    Premier is one of the industry's most active exploration companies, with
9 drills active on three of four major projects. In Red Lake, drilling
continues at the Rahill-Bonanza Project, a joint venture with Red Lake Gold
Mines Limited, where 3 key target areas are being tested - Wilmar, Bonanza,
and the deep mine target. Ongoing drilling at the Santa Teresa Project in
Mexico, a joint venture between Premier and Sutter Gold Mining Inc.
(TSX-V:SGM), has intersected numerous mineralized quartz vein zones along
strike the past-producing Princessa Gold Mine (Historical data indicates that
mined grades within the district average better than 1.00 ounce gold per ton).
Initial assays from Santa Teresa included extremely high-grade drill results
including 479.31g/t Au (13.98 oz/ton gold) over 2.0 metres. Additional assays
are expected to be released in the near future.
    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 Geraldton 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 fully 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. A strategic project is also 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:
http://www.premiergoldmines.com


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