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Premier Gold Mines Ltd
Symbol C : PG
Shares Issued 149,372,712
Close 2013-06-26 C$ 1.51
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Premier Gold Mines drills 84.4 m of 6.52 g/t Au at Cove

2013-06-27 06:27 ET - News Release

Mr. Ewan Downie reports

PREMIER EXPANDS HIGH-GRADE MINERALIZATION AT THE COVE GOLD PROJECT, NEVADA; HIGHLIGHTS INCLUDE 6.52 G/T AU ACROSS 84.4 M AND 40.47 G/T AU ACROSS 10.5 M

Premier Gold Mines Ltd. has released additional assay results from the Helen zone on the company's Cove gold project, located along the Eureka-Battle Mountain trend in Nevada. These results continue to expand mineralization with strong grades and widths within the Upper and Lower Helen zones.

The Helen zone deposit represents a prospective, high-grade, Carlin-style, gold deposit and is the focus of a drill program to extend mineralization within both the Upper and Lower Helen zone horizons. Drilling has now expanded well beyond the 2011 resource envelope and indicates that the favourable horizons remain wide open for expansion. Highlights of the most recent 20 drill holes (one was abandoned) include:

  • Upper Helen zone:
    • 19.60 grams per tonne gold across 10.80 metres (or 0.57 ounce per ton gold across 35.4 feet) in hole AX-35;
    • 37.01 grams per tonne gold across 2.7 metres (1.08 ounces per ton gold across 8.8 feet) in the Upper Helen zone from hole AX-40;
    • 9.98 grams per tonne gold across 9.6 metres (0.29 ounce per ton gold across 31.5 feet) in hole AX-41;
  • Lower Helen zone:
    • 6.52 grams per tonne gold across 84.4 metres (0.19 ounce per ton gold across 276.8 feet), including 14.59 grams per tonne gold across 14.0 metres (0.43 ounce per ton gold across 46.0 feet) from hole AX-27;
    • 21.49 grams per tonne gold across 4.5 metres (0.63 ounce per ton gold across 14.7 feet) in the Lower Helen zone from hole AX-30;
    • 40.47 grams per tonne gold across 10.5 metres (1.18 ounces per ton gold across 34.4 feet), including 76.58 grams per tonne gold across five metres (2.24 ounces per ton gold across 16.3 feet) from hole AX-36.

Drilling has extended high-grade mineralization in the Helen target horizon by approximately 365 metres (1,200 feet) southeast and 245 metres (800 feet) northwest of the previously tested Helen deposit and mineralization remains open in multiple directions. The balance of the 2013 program will see additional expansion drilling completed in the Helen zone, testing of highly prospective targets beneath the historic Cove pit, and culminating in a resource estimate in the fourth quarter of 2013.

Nevada is one of the world's most favourable jurisdictions for mine development and the Cove gold project offers substantial upside in the existing resource areas in addition to opportunities for the discovery of new high-grade gold deposits within the district. The Cove deposit was mined (primarily by open pit) between 1986 and 2001, a period of comparatively low metal prices, producing approximately 2.6 million ounces of gold, and more than 100 million ounces of silver. The Cove gold project is held under lease from Newmont Mining Corp. Newmont has the option at any time to earn back 51 per cent by financing expenditures equal to 250 per cent of all exploration expenditures on the project since March of 2006. If Premier submits a positive feasibility study containing 500,000 ounces gold or greater, Newmont has a window of 90 days in order to confirm its participation.

The table provides a summary of recent results at Cove. These results include both infill drilling and step-out holes designed to expand mineralization within the Helen zone.

                                 SELECT ASSAY RESULTS FOR HELEN ZONE DRILLING

                               Inter-       Grade                        Interval         Grade 
Hole ID     From (m)* To (m)* val (m)*       (g/t)     From (ft)  To (ft)     (ft)        (oz/t)*        Zone

AX-24         396.5   399.6     3.0          5.50       1,301.0  1,311.0     10.0          0.16         Upper
AX-25         399.7   402.2     2.4          3.59       1,311.5  1,319.5      8.0          0.10         Upper
AX-26         547.0   550.5     3.5          4.02       1,794.5  1,806.0     11.5          0.12         Lower
AX-27         406.0   457.8    51.8          1.62       1,332.0  1,502.0    170.0          0.05         Upper
including     408.7   413.2     4.4          3.29       1,341.0  1,355.5     14.5          0.10         Upper
              519.2   603.6    84.4          6.52       1,703.5  1,980.3    276.8          0.19         Lower
including     520.9   534.3    13.4          7.19       1,709    1,753       44.0          0.21         Lower
and           551.1   578.0    26.9          7.99       1,808.0  1,896.2     88.2          0.23         Lower
and           588.9   602.9    14.0         14.59       1,932.0  1,978.0     46.0          0.43         Lower
AX-28          NSV                                                                                     NSV
AX-29         474.6   485.7    11.1          4.24       1,557.0  1,593.5     36.5          0.12         Upper
              499.7   506.7     7.0          4.13       1,639.5  1,662.5     23.0          0.12         Upper
              568.7   574.4     5.7         11.42       1,865.7  1,884.4     18.7          0.33         Lower
              588.3   590.1     1.8         23.21       1,930.0  1,936.0      6.0          0.68         Lower
AX-30         474.7   487.1    12.4          3.14       1,557.3  1,598.0     40.7          0.09         Upper
              573.3   577.8     4.5         21.49       1,880.9  1,895.6     14.7          0.63         Lower
AX-31         390.4   399.7     9.3          5.31       1,281.0  1,311.5     30.5          0.16         Upper
including     397.0   399.7     2.7          9.47       1,302.5  1,311.5      9.0          0.28         Upper
              586.4   588.0     1.5         44.33       1,924.0  1,929.0      5.0          1.29         Lower
              659.4   662.2     2.7          4.04       2,163.5  2,172.5      9.0          0.12  Dixie Valley
AX-32         562.5   564.6     2.1          8.73       1,845.5  1,852.4      6.9          0.25         Lower
AX-33         388.9   390.8     1.8          4.31       1,276.0  1,282.0      6.0          0.13         Upper
              516.3   517.9     1.5          3.21       1,694.0  1,699.0      5.0          0.09         Lower
              545.3   548.3     3.0          1.73       1,789.0  1,799.0     10.0          0.05         Lower
AX-34 (RC)    387.1   388.6     1.5          1.45       1,270.0  1,275.0      5.0          0.04         Upper
AX-35         412.7   423.5    10.8         19.60       1,354.0  1,389.4     35.4          0.57         Upper
including     418.2   421.7     3.5         29.47       1,372.0  1,383.4     11.4          0.86         Upper
              462.1   476.9    14.8          4.32       1,516.0  1,564.5     48.5          0.13         Lower
including     469.4   472.4     3.0          7.36       1,540.0  1,550.0     10.0          0.21         Lower
AX-36         395.5   398.7     3.3          9.53       1,297.5  1,308.2     10.7          0.28         Upper
including     397.0   398.3     1.3         17.94       1,302.5  1,306.7      4.2          0.52         Upper
              561.6   572.0    10.5         40.47       1,842.4  1,876.8     34.4          1.18         Lower
including     561.6   566.5     5.0         76.58       1,842.4  1,858.7     16.3          2.24         Lower
AX-37         428.9   441.4    12.5          5.16       1,407.0  1,448.0     41.0          0.15         Upper
including     437.2   441.4     4.1          8.17       1,434.4  1,448.0     13.6          0.24         Upper
              498.1   511.7    13.7          2.83       1,634.1  1,678.9     44.8          0.08         Lower
including     510.2   511.7     1.5          6.79       1,674.0  1,678.9      4.9          0.20         Lower
AX-38 (RC)    413.0   414.5     1.5          2.38       1,355.0  1,360.0      5.0          0.07         Upper
AX-39         408.9   412.1     3.2          9.87       1,341.5  1,352.0     10.5          0.29         Upper
              574.7   579.3     4.6          9.56       1,885.5  1,900.5     15.0          0.28         Lower
              591.2   594.7     3.5         15.34       1,939.5  1,951.0     11.5          0.45         Lower
AX-40         448.8   451.5     2.7         37.01       1,472.5  1,481.3      8.8          1.08         Upper
              605.6   612.2     6.6          6.14       1,987.0  2,008.5     21.5          0.18         Lower
AX-41         412.5   422.1     9.6          9.98       1,353.5  1,385.0     31.5          0.29         Upper
including     414.7   418.5     3.8         15.35       1,360.5  1,373.0     12.5          0.45         Upper
              567.2   588.7    21.5          7.11       1,861.0  1,931.5     70.5          0.21         Lower
including     572.7   575.5     2.7         23.13       1,879.0  1,888.0      9.0          0.68         Lower
AX-42         369.7   375.8     6.1          7.87       1,213.0  1,233.0     20.0          0.23         Upper
              570.6   575.0     4.4         13.68       1,872.0  1,886.5     14.5          0.40         Lower
AX-43       Abandoned                                                                               Abandoned
AX-44         375.5   390.0    14.5          5.85       1,232.0  1,279.5     47.5          0.17         Upper
including     375.5   381.3     5.8          7.75       1,232.0  1,251.0     19.0          0.23         Upper

Notes:
1. Gravimetric assays used when available      
2. True widths estimated at approximately 80 to 95 per cent of core intercept      
3. * denotes table values calculated from original data

"Our drill results comprise some of the best results seen coming out of Nevada over the past several years," stated Warren Thompson, U.S. exploration manager for Premier. "These results confirm the robust nature of the Helen zone deposit and we look forward to expanding mineralization and testing additional prospective targets in the current program."

In May, the Bureau of Land Management approved the company's plan of operation for the Cove-Helen underground mine project. The approval allows Premier the flexibility to consider, at its discretion, up to 100 acres of disturbance for exploration and development purposes, and to construct a portal and ramp to further explore the Helen zone from underground. These key approvals position the company to aggressively pursue expansion of its mineral resources from new surface platforms during the remainder of 2013 and potentially complete an underground bulk sampling program in the future.

Premier's management team believes that the Cove gold project represents one of the most underexplored projects in Nevada. It is located along the Eureka-Battle Mountain trend that is host to numerous multimillion-ounce producing and past-producing mines. The property is located in close proximity to excellent infrastructure (including paved roads and power) and is permitted for an expanded surface drill campaign and underground access.

Annual general meeting

Premier Gold Mines cordially invites all shareholders to its annual general meeting of shareholders, at 4 p.m. today, Thursday, June 27, 2013, at the Toronto Board of Trade. Following the formal meeting a presentation will be given at 4:30 p.m. by several members of the of the company's management team and will include a complete update on the progress of all three of its core projects and highlight your company's substantial recent successes, and provide guidance on Premier's future plans and initiatives.

Other projects

Premier holds several projects that are subject to major exploration programs in 2013. Recently, underground drilling has commenced from the haulage drift in Red Lake on the Rahill-Bonanza project (PG 49 per cent and Red Lake Gold Mines 51 per cent). Several drills are active on the company's 100-per-cent-owned Trans-Canada property. Activity is focused in preparation for a revised mineral resource estimate at Hardrock and work on preliminary economic assessments for the Hardrock and Brookbank deposits.

Stephen McGibbon, PGeo, 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 for RC drill samples were sent to the American Assay Laboratories prep facility, located in Elko, Nev., and analysis was performed at its Sparks, Nev., analytical facility utilizing 30-gram fire assay with an AA finish. Core samples were analyzed by Inspectorate laboratory facility located in Sparks, Nev., and analysis was done using 30-gram fire assay with AA finish and ICP-MS 30 element scan from four-acid digestion.

We seek Safe Harbor.

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