Shares Issued: 59,135,492
THUNDER BAY, ON, April 2 /CNW/ - PREMIER GOLD MINES LIMITED (PG:TSX) is
pleased to announce it has signed a Letter of Intent (LOI) with Sutter Gold
Mining Inc. (SGMI; SGM.V) to jointly explore the Santa Teresa mineral
concession, located in the historic and high grade El Alamo District of Baja
California Norte, Mexico. The concession is accessible by road, located 10
kilometres west of Highway 3, some 100 kilometres southeast of Ensenada and
about 250 kilometres from San Diego, California, USA.
This proposed joint venture (JV) meshes well with Premier's NW Ontario
- It is located within a proven (some 220,000 ounces of past production)
- Historical data indicates that mined grades within the district are
between 1.00 and 2.00 ounces per ton (opt).
- The majority of district production occurred within 120 metres of
surface, but remains open at depth.
- It has characteristics similar to the historic Mother Lode District of
The Santa Teresa Concession (STC) is located adjacent to and on strike
from the past-producing Princessa Mine (the district's largest gold producer),
whose orebody was known to extend close to the STC boundary. Data suggests
that extensions of the Princessa Mine along strike and at depth have not been
tested. The El Alamo District's gold production halted at its peak owing to
technological and political circumstances early in the 20th century, thus
presenting a unique opportunity to the JV today. The mineralization in the
district is characterized by common visible gold hosted within narrow and
near-vertical quartz veins associated with felsic intrusives.
Premier's senior management experience in the Red Lake District of NW
Ontario coupled with Sutter's experience in the Mother Lode District of
California makes this JV team extremely well-suited to exploring the El Alamo
District successfully. Stephen McGibbon, Premier's COO and former Goldcorp
Inc. Chief Geologist in Red Lake commented that "we envision excellent
potential to discover high grade ore bodies in the El Alamo District given its
strong history, and insufficient exploration." Further he commented that
"while this is an early stage project, it is expected that initial exploration
could yield very exciting results."
Premier will earn an initial 50% interest in the project by:
- Making payment of 100,000 shares of free-trading Premier stock to
- Completing US$1.5 million in exploration and property acquisitions
within two years, including US$1 million within one year of signing
the JV agreement.
- Reimbursing SGMI for all payments (~US$225,000) over a four-year
period to the original vendor of the property.
In addition, Premier has secured the right to earn an additional 15%
interest in the JV (for a total interest of 65%) by making a further cash
payment of $500,000 to SGMI and conducting an additional US$4.0 million in
exploration on the property. SGMI will be the initial operators of the
project, however, Premier can take over as operator once it secures a greater
than 50% interest in the project.
Ewan Downie emphasized "Premier is fully funded in 2007 to meet its
obligations to the Santa Teresa Project as well as its commitments in Red
Lake. Our Mexican venture will not impair progress on our flagship Red Lake JV
with Goldcorp Inc. and allows the company to pursue a premier high-grade
Stephen McGibbon, P.Geo., Executive Vice-President and Chief Operating
Officer of Premier, is the qualified person for the information contained in
this press release and is a Qualified Person within the meaning of National
Premier Gold Mines Limited is a Canadian-based mineral exploration and
development company with diverse property holdings that include 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 Goldcorp Inc. (TSX:G). A strategic project is also located on the main
Musselwhite Gold Mine trend (Goldcorp-Kinross).
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) 345-0284, e-mail: firstname.lastname@example.org, Web Site: