Shares Issued: 68,189,742
THUNDER BAY, ON, Sept. 24 /CNW/ - PREMIER GOLD MINES LIMITED (TSX:PG) is
pleased to announce that it has signed a Letter of Intent with ROXMARK MINES
LIMITED (TSX-V:RMK) to acquire an interest in a portion of Roxmark's extensive
land holdings in the Geraldton Greenstone belt in Northwestern Ontario.
The "Geraldton Project" is contained within the Beardmore-Geraldton
Greenstone belt, a highly prospective high-grade gold district that has seen
very little exploration over the past several decades. The Project area covers
approximately 10km of some of the most prospective geology in the area and is
host to three past producing mines and numerous prospective exploration
targets in a district that has seen past production of more than 4.1 Million
ounces of gold. On the project area, the Little Long Lac Mine produced more
than 600,000 ounces of gold during the period 1934-53 at an average grade of
11.66g/t Au; the Magnet Mine produced more than 150,000 ounces of gold during
the period 1938-51 at an average grade of 14.40g/t Au; and the Bankfield Mine
produced more than 65,000 ounces of gold during the period 1937-42 at an
average grade of 9.94g/t Au. All deposits have excellent expansion potential
and/or are open at depth. Little to no deep drilling has been performed in the
district and much of the project area is completely untested.
Exploration, including an extensive drilling program, is expected to
begin immediately. Under the terms of the Agreement, Premier holds the option
to earn up to a 70% interest in the Property by making cash and share payments
to Roxmark, and performing exploration on the Property pursuant to the
following general terms:
(i) An initial 51% interest by paying to Roxmark $500,000 Cash
(including $100,000 on signing), 250,000 Shares of Premier
(including 100,000 on signing subject to regulatory approval), and
performing $7,000,000 in exploration on the Property over a four
year period (including a firm commitment of $2,500,000 in the
first 12 months).
(ii) Immediately upon completion of the initial earn-in, Premier will
have the right to increase its interest to 70%, and carry Roxmark
at 30%, by making an additional $250,000 Cash payment to Roxmark,
delivering to Roxmark an additional 150,000 Shares of Premier, and
bringing the Property to a Production decision within 5 years of
the end of the initial earn-in period (4 years) five year period.
(iii) Premier will be the operator of the Project.
The Letter of Intent is conditional on Premier completing a due diligence
investigation on title to the properties comprising the Geraldton Project.
"I have long-considered the Geraldton Project area to be one of the most
prospective, yet underexplored, high-grade gold districts in Canada," stated
Ewan Downie, President of Premier. "The complete lack of modern exploration,
particularly on the property holdings that are the subject of this Agreement,
allows for the potential of making numerous significant discoveries within
this extensive property package."
Roxmark holds several gold and molybdenum exploration and development
projects in the historically significant Beardmore-Geraldton greenstone belt
of Northwestern Ontario including a fully-permitted mill that could be used to
process ore from the joint venture property.
With respect to Premier's other properties, exploration continues at the
Rahill-Bonanza Joint Venture Project in Red Lake where recent drilling has
intersected multiple gold horizons including a new zone discovered in the
hanging wall of the Wilmar Horizon with assay results of up to 14.2g/t Au
across 5.0 meters including 59.09g/t Au across 1.0 meters. The Rahill-Bonanza
Project is being operated under a 50-50 Joint Venture with Red Lake Gold
Mines, an affiliate of GOLDCORP INC. (TSX:G, NYSE: GG). Additional assays from
drilling are expected in the near future.
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: email@example.com, Web Site: