Shares Issued: 78,065,179
THUNDER BAY, ON, April 17 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is
pleased to announce that it has entered into an Option and Purchase Agreement
to acquire a 100% interest in ten patented mining claims, "Lennie Property",
located in the Red Lake district in the Province of Ontario.
The Lennie Project is strategically located northeast of the Red Lake
Gold Mines complex along the same geological contact that hosts the major gold
mines in Red Lake. The Property covers the important unconformity between the
ore-hosting Balmer volcanic rocks and the overlying sedimentary rocks. Folded
ultramafic rocks and conjugate fault structures, similar to those at the mine,
are interpreted to be located on the Lennie claims and will be the focus of an
exploration program that will begin immediately on the property, including
diamond drilling. It is anticipated that a drill program, that will include
deep drilling, will begin in the spring to test these high-potential faults as
well as other targets, where they are interpreted to intersect Balmer-aged
ultramafic rocks in a setting similar to that which hosts Goldcorp's
High-grade Zone. That zone is considered to be one of the largest and highest
grade gold deposits in the world.
Upon completing the Option, as previously announced on February 18, 2009,
Premier will hold a 100% interest in the Property, subject to a 3.0% Net
Smelter Return royalty ("NSR") payable to the vendor, Newcastle Resources Ltd.
(OTCBB: NCSLF). Premier retains the right to purchase one-third of the NSR (1%
NSR) at any time for the sum of $1.0 Million. A finders' fee is payable to an
arm's length party in relation to this transaction.
The Lennie Project is Premier's second strategic property, in addition to
the Rahill-Bonanza Joint Venture Project, located in the heart of the prolific
Red Lake district and within the core of Red Lake Gold Mines' land holdings.
The Rahill-Bonanza Project covers several kilometres of the main Red Lake
"Mine Trend" and is strategically located between the world class Red Lake
Gold Mines to the east, and the "Bruce Channel" discovery to the west.
A Presentation detailing the Lennie Project is available on the Premier
Gold Mines Limited website at www.premiergoldmines.com. 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
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 projects are operated in joint venture with Red Lake Gold
Mines, and another, adjacent to the Red Lake Gold Mines complex, is operated
on a 100% basis. The company also owns a strategic project located on the main
Musselwhite Gold Mine trend and is acquiring a 70% interest in the Hardrock
Project, an advanced-stage gold project in the Geraldton area.
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: Info@premiergoldmines.com, Web Site: