Premier-Roxmark Intersect 254.8 g/t (7.44 oz/ton) and 60.88 g/t (1.78 oz/ton) In New Zone Discovered Proximal To Little Long Lac Gold Mine



    Shares Issued: 68,647,742

    THUNDER BAY, ON, March 3 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is
pleased to announce that drilling at the Geraldton Project has confirmed it's
initial exploration model by intersecting multiple zones with high-grade gold
mineralization proximal to the past-producing Little Long Lac Gold Mine
including 254.8g/t Au (7.44 opt) over 0.3m, 60.88/t Au (1.78 opt) over 1.0m
and 45.3g/t Au (1.32 opt) over 1.0m. The Geraldton Project is being operated
by Premier under an option agreement with Roxmark Mines Limited (TSX-V:RMK).
    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.
    The first target area tested in the ongoing $2.5 Million program was to
confirm Premier's belief that previously untested sub-parallel mineralized
faults occur proximal to the historic Little Long Lac Gold Mine. The mine
produced more than 600,000 ounces of gold during the period 1934-53 at an
average grade of 11.66g/t Au. The initial drill program consisted of 8
wide-spaced holes drilled immediately south of the historic mine workings over
a strike length of 400 metres. This drilling successfully intersected
multiple, near-surface, mineralized vein zones including what is believed to
be the up-dip extension of the No.10 Vein. Prior to closure, drifting was
carried out on the "No.10 Vein" that was discovered on the 16th Level, one of
the deeper levels (675 metres below surface) of the mine. Limited data
available with respect to this zone suggests that the No.10 Vein carried
high-grade gold and that little previous exploration was carried out up-dip
towards surface. Highlights from this initial drilling are presented in Table
1.

    
        Table 1     Significant Results at Little Long Lac Target Area
    -------------------------------------------------------------------------
                                      Length                AU      AU
    Hole-ID   Section    From    To     (m)    Zone        (g/t)   (opt)
    -------------------------------------------------------------------------
    PLL07001   1400E     105.0  106.0   1.0    12 (New)    60.88    1.78
                         168.0  169.0   1.0    11 (New)    45.32    1.32
                         189.0  190.9   1.9    10           8.70    0.25
                         288.3  289.8   1.5     9          11.43    0.33
    -------------------------------------------------------------------------
    PLL07002  1500E      120.5  120.8   0.3    11 (New)   254.79    7.44
                         227.0  228.0   1.0    10           2.94    0.09
                         256.8  260.0   3.2     9           2.36    0.07
    -------------------------------------------------------------------------
    PLL07003  1400E      150.0  152.0   2.0    10           6.95    0.20
                         193.3  194.3   1.0     9           3.28    0.10
    -------------------------------------------------------------------------
    PLL07004  1500E       26.0   27.0   1.0   (New)         5.24    0.15
    -------------------------------------------------------------------------
    PLL07005  1400E      143.0  146.0   3.0    12 (New)     4.60    0.13
                         354.0  358.5   4.5     9           5.81    0.17
    -------------------------------------------------------------------------
    PLL07006  1500E      101.0  102.0   1.0    12 (New)     7.81    0.23
                         188.0  189.0   1.0    11 (New)     4.58    0.13
    -------------------------------------------------------------------------
    PLL07007  1600E       94.4   95.4   1.0    11 (New)    15.04    0.44
    -------------------------------------------------------------------------
    PLL07008  1650E       47.5   48.0   0.5   (New)         2.11    0.06
    -------------------------------------------------------------------------
    NOTE: True widths estimated at approximately 70% of intersection width
    

    Current drilling is following-up on the new high-grade gold veins to
further delineate the zones, and is also testing two additional, highly
prospective targets located immediately north and east of the Little Long Lac
Mine.
    Premier, operator of the Project, holds the option to earn up to a 70%
interest in the Geraldton Project by making cash and share payments to
Roxmark, and performing exploration on the Project.

    In addition to Geraldton, Premier is active on two additional projects:

    1. A major exploration program has resumed on the Rahill-Bonanza Project,
operated under a 49%:51% joint venture with Red Lake Gold Mines: (a) Drilling
is expected to continue from the underground workings of the Red Lake Gold
Mines complex in the near future; (b) deep drilling is underway in the
vicinity of the Wilmar deposit; and, (c) a major drill program has commenced
at Bonanza consisting of in-fill and expansion drilling to further define the
Bonanza Deposit, where previous drilling has returned numerous significant
intersections to depths of less than 600 metres including 13.27 g/t Au across
19.00 metres, 8.66 g/t Au across 22.0 metres and 5.05 g/t Au across
34.95 metres. A recent NI 43-101 compliant inferred mineral resource estimate
on the Bonanza Deposit reported 512,000 ounces of gold at an undiluted grade
of 6.98 g/t Au.
    2. Exploration drilling is underway at the Santa Teresa Property in
Mexico, a joint-venture project with Sutter Gold Mining Inc. Drilling is
testing for the potential down-plunge extension of the high-grade,
past-producing, Princessa Gold Mine which produced at an average grade of more
than 1.0 ounce of gold per ton. Drilling has intersected several mineralized
vein zones including local occurrences of visible gold - Assays are expected
in March.

    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 is sent to Accurassay Laboratories in
Thunder Bay for preparation and analysis - fire assay and pulp metallic assay.

    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) 345-0284, E-mail: info@premiergoldmines.com, Web Site:
http://www.premiergoldmines.com


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