Premier Provides Red Lake Exploration Update

Press Releases |

Drill Intercepts Up to 46.00 g/t Au Across 11.0 Metres

THUNDER BAY, ON, Dec. 8, 2015 - Premier Gold Mines Limited (TSX-PG) is pleased to provide an update of exploration activities at the Company's Rahill-Bonanza Joint Venture (RBJV) Project (44% PG) in the Red Lake mining district of Northwestern Ontario. Rahill-Bonanza is being explored with partner and operator Red Lake Gold Mines Limited ("RLGM"), an affiliate of Goldcorp Inc. (TSX:G, NYSE: GG). Exploration highlights include the discovery of additional high-grade gold mineralization in a favourable geological setting, immediately south of the tram and on-strike with the Red Lake Gold Mines complex.

The Rahill-Bonanza Project is a joint venture located in the heart of the Red Lake "Mine Trend", a world-class gold mining complex in continuous production since 1939 and host to more than 24 million ounces of past production at grades in excess of 20 g/t Au (http://www.premiergoldmines.com/our-properties/exploration/rahill-bonanza/overview ). The property is being explored from multiple drill bays along the haulage drift (tram), a deep underground platform constructed to link the Red Lake Mine complex with the Cochenour complex.

Favourable alteration, mineralization and structure are widespread on the property, and often supported by multiple, high grade, gold intercepts in horizons that remains open at depth. Drilling in 2016 will continue to test these prospective horizons with a focus on the "Fold Target" where the Joint Venture is testing an arsenopyrite replacement zone located approximately 200 metres to the south of the tram.

Significant developments and assay highlights at Rahill-Bonanza include:

  • Drilling has continued testing a favourable geological setting to the south of the tram that shares similarities with the Red Lake Gold Mines complex (See Figure 1) including favourable alteration and mineralization proximal to an ultramafic rock unit.
  • Hole D36987 grades 15.79 g/t Au across 2.1m contained within a mineralized alteration zone grading 6.58 g/t Au across 6.3m.
  • Hole D36994 contains 18.20 g/t Au across 3.4m.
  • Hole D36999 grades 36.30 g/t Au across 1.7m & 11.0 g/t Au across 2.5m.
  • Hole D361036 with 46.00 g/t Au across 11.0 m (1.34 oz/ton Au across 36.0 feet) including 121.20g/t Au across 3.8 m (3.54 oz/ton Au across 12.3 feet); one of the deepest holes drilled to test this horizon to-date.

"We continue to be rewarded with our patience at the Rahill-Bonanza Joint Venture" stated Stephen McGibbon, Executive Vice-President of Premier on the Company's C-Suite blog (http://www.premiergoldmines.com/news/c-suite-blog). "Our 2016 exploration program will focus on defining and expanding the Fold Target for high grade extensions both along strike and up and down plunge. Several other favourable horizons are wide open at depth."

Highlight assays from drilling at the Fold Target are provided in Table 1 below.

Table 1 – Highlight Assays From Tram Drilling.

Hole ID

Drill Bay

Release

From (m)

To (m)

Length(m)

Grade (g/t Au)

D36973

26

New

588.3

600.5

12.2

2.40

D36974

26

New

865.9

867.2

1.2

5.10

D36984

20

Previously

Released

171.4

171.9

0.5

21.60

176.2

178.8

2.6

7.90

D36985

20

New

NSV

D36986

20

Previously

Released

6.4

7.3

0.9

39.10

205.4

205.8

0.4

5.80

D36987

20

Previously

Released

159.0

163.5

4.5

3.40

180.8

182.9

2.1

15.79

184.0

187.1

3.1

2.40

D36988

20

New

133.8

135.8

1.9

4.10

D36991

20

New

NSV

D36992

20

New

182.4

183.5

1.1

6.20

D36993

20

New

171.0

171.5

0.5

8.90

D36994

20

New

179.8

183.2

3.4

18.20

D36995

20

New

NSV

D36996

20

New

90.3

90.8

0.5

30.90

D36997

20

Previously

Released

152.4

157.9

5.5

5.80

159.1

160.0

0.9

6.20

D36998

20

Previously

Released

124.4

127.5

3.1

1.70

162.5

165.6

3.1

2.10

D36999

20

Previously

Released

178.8

180.4

1.7

36.30

212.1

212.8

0.7

24.30

221.0

223.5

2.5

11.00

225.0

225.8

0.8

11.00

D361000

20

New

NSV

D361001

20

New

NSV

D361009

20

New

127.2

129.5

2.3

6.20

D361036

20

New

199.4

210.6

11.0

46.10

Including

199.6

204.0

4.4

11.61

Including

207.6

210.6

3.8

121.20

D361010

20

New

281.9

286.3

4.4

3.40

D361011

20

New

202.1

204.9

2.8

2.70

*True widths range between 65% and 90% of reported results, lengths may not calculate due to rounding and assay results are uncut (no capping applied)

A primary future target of the joint venture is the projected down-plunge extension of the Wilmar Zone. Surface holes previously drilled to test this horizon to depths of up to 1220 metres (4,000 feet) intersected numerous high grade intercepts including 14.20 g/t Au across 5.0 m (hole PG07018W1), 68.90 g/t Au across 3.5 m (PG10082), 46.15 g/t Au across 4.5 m (PG11090), and 4.00 g/t Au across 20.5 m including 11.50 g/t Au across 3.0 m (PG12110). The partners are currently extending several holes from the tram elevation to provide more complete geological coverage toward the south side of the property.

The Rahill-Bonanza Project covers approximately 4.5 kilometres of the main Red Lake "Mine Trend" between the Red Lake Gold Mines complex to the east, and the Cochenour Complex to the west.

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 Accurassay Laboratories and AGAT Laboratories, in Thunder Bay, Ontario, and SGS Laboratories in Red Lake, Ontario (all accredited mineral analysis laboratories) for preparation and analysis utilizing both fire assay and screen metallic methods.

Premier Gold Mines Limited is one of North America's leading exploration and development companies with a high-quality pipeline of gold projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States. The Company is well financed with approximately $75 million in cash and investments and a portfolio of advanced-stage assets in world class gold mining districts such as Red Lake and Geraldton in Ontario and the most prolific gold trends in Nevada.

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.

SOURCE Premier Gold Mines Limited

Image with caption: "Figure 1: Composite Plan View of Fold Target (36 level) (CNW Group/Premier Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20151208_C8225_PHOTO_EN_560041.jpg

Image with caption: "Figure 2: Composite Cross-Section of Fold Target (36 level) (CNW Group/Premier Gold Mines Limited)". Image available at: http://photos.newswire.ca/images/download/20151208_C8225_PHOTO_EN_560043.jpg

For further information: Ewan Downie, President & CEO, Phone: 807-346-1390, Fax: 807-346-1381, e-mail: Info@premiergoldmines.com, Web Site: www.premiergoldmines.com

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
PG:CA Premier Gold Mines Limited 2.24 -0.03 -1.11 969,973

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