Premier acquires key claims in Red Lake
Feb 06, 2012, 14:43 ET
Shares Issued: 127,431,855
THUNDER BAY, ON, Feb. 6, 2012 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to announce that it has entered into agreements to acquire 100% interest in two key patented claim groups located on the East Bay Ultramafic Trend in Red Lake.
These claim groups are located proximal to the Footwall Zone on the East Bay Project, one of two active joint ventures Premier has with Red Lake Gold Mines ("RLGM"), a partnership between Goldcorp Inc. and Goldcorp Canada Ltd., in the heart of the prolific Red Lake gold mining district, and north of Rubicon Minerals' Phoenix Gold Project.
In 2010, Premier and Goldcorp discovered the Footwall Zone while testing favourable geophysical structures along the East Bay Ultramafic Trend. The mineralized zones in the Footwall discovery area consist of narrow-vein high-grade structures with numerous intercepts grading in excess of one ounce per ton gold (oz/ton Au) (34.29 grams per tonne (g/t)). The partnership completed a 2011 drill program testing for extensions of the Footwall Zone and for parallel structures. Assays from this program are expected to be released in the near future and a 2012 drill program has now started to further define mineralization in addition to testing new target areas along the favourable horizon.
Highlights of the Footwall Zone include:
- The core area of the mineralized zones has been defined over a strike length of 400 metres and to a depth of 400 metres where it remains wide open for expansion.
- The 2011 drill program successfully intersected mineralization on-strike with previous drilling in addition to favourable structures parallel to the main Footwall horizons (assays pending).
- Main Footwall (MFW) Drill intercepts include 297.61 g/t Au across 1.0m (8.68 oz/ton across 3.3 ft) and 56.54 g/t Au across 0.9m (1.65 oz/ton across 3.0 ft).
- FW2 drill intercepts include 44.82 g/t Au across 1.5m (1.31 oz/ton across 4.9 ft).
Two claims comprising approximately 80 acres are being acquired from Belmont Resources Inc. and International Montoro Resources Inc. (the "Vendors"). Premier will pay the Vendors an aggregate of $20,000 Cash and issue 5,000 Shares of Premier for the acquisition. The claims are located to the south of the Footwall Zone. The Vendors will not retain any royalty however the claims are subject to an underlying 3% Net Smelter Return royalty ('NSR') of which 1% can be purchased for $500,000.
Premier has also secured an Option to acquire four claims comprising approximately 53 acres from a private vendor. Premier will pay the vendor $20,000 Cash over a three year period and issue 4,000 Shares of Premier and the vendor will retain a 2% NSR, half of which Premier can purchase at any time for $500,000.
"In recent years, the East Bay Ultramafic Trend has yielded impressive high-grade discoveries that are aggressively being advanced," said Stephen McGibbon, Executive Vice-President of Premier. "These new claim groups are located between the two most active areas and are believed to have the potential to host similar mineralization."
In addition to the East Bay Project, Premier's core Red Lake Project is the Rahill-Bonanza Project that is host to several gold deposits having historical and NI43-101 compliant mineral resources, including the past-producing Wilmar Gold Mine. The Rahill-Bonanza joint venture Project (49% Premier, 51% RLGM) covers approximately 4.5 kilometres of the main Red Lake "Mine Trend" between the world class Red Lake Gold Mines complex to the east, and the Cochenour (Bruce Channel) complex to the west, where an underground exploration tram designed to link the two operations is under construction. This Project represents the last piece of the main mine horizon in the Red Lake gold camp not 100% owned by Goldcorp. Current drilling at Rahill-Bonanza is defining high-grade gold mineralization within the 2E structure where recent drilling has intersected appreciable grades including 68.87 g/t Au across 3.5 m (2.01 oz/t across 11.5 ft uncut) and 46.15 g/t Au across 4.5m (1.35 oz/t across 14.8 ft uncut).
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. Assay results are from core samples sent to Activation Laboratories, an accredited mineral analysis laboratory in Ancaster, Ontario, or 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, Nevada and a joint venture in Mexico. In the Red Lake gold mining camp, two are operated in joint venture with Red Lake Gold Mines. The Company holds 100% interests in the PQ North project on the main Musselwhite Gold Mine trend, the Trans-Canada Project and the Saddle Gold project in the heart of the Carlin Trend, Nevada. Premier has recently signed a Letter of Intent with Newmont Mining Corporation to consolidate lands held in the historic Rain Gold Mine area that includes Saddle.
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.
For further information:
Ewan Downie, President & CEO
e-mail: [email protected]
Web Site: www.premiergoldmines.com
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