Ipdate from ongoing exploration activitiesPREMIER GOLD MINES LIMITED (TSX:PG) is pleased to provide an update from ongoing exploration activities at the Company's Key Lake site that forms part of the 100%-owned Trans-Canada Project. This drilling is aimed at expanding the current footprint of the Key Lake deposit trend along strike and testing the down-plunge potential of some of the higher-grade "shoots" within the core area of the deposit. The Key Lake deposit is being evaluated to form part of the NI43-101 mineral resource estimate update for the Trans-Canada Project that will be completed for release in Q1 of 2012 and will be included in the Company's future Preliminary Economic Assessment of the Trans-Canada Project.
The Key Lake Deposit is located approximately 10 kilometres along strike to the west of the Hardrock Deposit. The current drill program has successfully extended mineralization approximately 600 metres along strike to the west of the core area, with the best results coming from the westernmost 200 metres, where it remains wide open for expansion (see Figure 1). Recent highlights include:
-- Step-out drilling has extended mineralization along strike to
the west with numerous higher grade intercepts highlighted by
hole KL-11-157 that returned 3 mineralized zones assaying 17.50
grams per tonne gold (g/t Au) across 1.4 metres (m) (0.51 oz/t
across 4.6 feet), 21.77 g/t Au across 5.35 m (0.63 oz/t across
17.6 feet), and 6.31 g/t Au across 7.0 m (0.18 oz/t across 23.0
feet).
-- Step-out drilling some 300 metres down-plunge of the "core
area" has intersected broad mineralization that suggests
excellent expansion potential at depth.
Tim Twomey, Vice-President of Exploration of Premier said, "These results are particularly exciting as they demonstrate the potential of the Key Lake deposit to host underground-type grades west of the core area, where it remains wide open down plunge. The 2011 Key Lake drilling results have the potential to materially increase the overall gold resources at the Trans-Canada Project. We will be following-up these results with drilling further west this winter."