Premier extends gold mineralization west at Hasaga Red Lake

THUNDER BAY, ON, Dec. 7, 2015 /CNW/ - Premier Gold Mines Ltd. (TSX-PG) is pleased to provide its latest update from ongoing surface drilling on the Hasaga Porphyry target at the Company's 100%-owned Hasaga Project in the Red Lake gold mining district of Northwestern Ontario.  Drilling continues to extend near surface mineralization to the west with highlight results that include assays of up to 1.68 grams per tonne gold (g/t Au) across 49.0 metres (m) and 7.94 g/t Au across 11.0 m. 

The Hasaga Property is host to the past-producing Hasaga and Gold Shore Mines and is strategically-located proximal to the Balmer-Confederation regional unconformity, recognized as an important geologic feature at the multi-million ounce past and currently producing Red Lake area mines.

Table 1 provides a more comprehensive summary of highlight results from additional holes drilled at the Hasaga Porphyry target (previously released results were up to HMP038) which is considered open to the west and at depth.  Recent drilling has intersected a new near-surface mineralized zone in the footwall of the Hasaga Porphyry noted as F1 in Table 1 with intercepts including 1.50 g/t Au across 18.0m. 

Highlights from holes with completed assays in the Hasaga Porphyry target area include:

Hasaga Porphyry (reporting holes HMP039-077)

• HMP039 – 1.68 g/t Au over 49.0 m including 2.41 g/t Au over 17.6 m.
• HMP053 – 7.94 g/t Au over 11.0 m and 4.67 g/t Au over 4.0 m.
• HMP069 – 1.32 g/t Au over 27.0 m and 1.54 g/t Au over 16.0 m.
• HMP074 – 0.96 g/t Au over 36.0 m and 1.72 g/t Au over 37.0 m.
• HMP076 – 1.50 g/t Au over 18.0 m and 0.87 g/t Au over 34.0 m.

Premier anticipates stopping drilling operations at Hasaga in mid-December for the holiday season.  In all, more than 60,000 metres of diamond drilling will have been completed on the property during the 2015 exploration program and have given management sufficient confidence in the opportunity to execute a recent land purchase to expand the size of the property to some 1200 hectares.

"We have accomplished a lot in a relatively short period of time in 2015 and are generating solid results," commented Stephen McGibbon, Executive Vice-President, Corporate and Project Development on the Company's C-Suite Blog (http://www.premiergoldmines.com/news/c-suite-blog). "Our team has an aggressive goal in 2016 that includes reporting an initial mineral resource estimate on the Hasaga Porphyry area by yearend."   

Prior to drilling resuming in Q1 of 2016, it is expected that an upgraded litho-structural model will be completed at the Hasaga target area with which to finalize the drilling plan for the coming year.  The 2016 exploration program will also include additional stripping, mapping and channel sampling on relevant outcrop exposures in addition to step-out drilling along strike on the new property area.  Initial metallurgical testing is expected to be undertaken.

Table 1:  Highlight Results From Hole HMP039 to HMP077

* - True widths range between 65% and 90% of reported results  

In most cases, the mineralization highlighted in Table 1 is surrounded by broad haloes of lower grade mineralization (typically less than 0.30 g/t Au) which would result in some intercepts exceeding 100 metres in core length.  Apparent gaps in the numerical "HOLE_ ID" sequence listed in Table 1 reflect those holes which don't contain higher grade composite intervals, but often do contain the lower grade haloes over variable widths.

Figures 1 through 4 below provide a variety of plan and section views profiling the results in Table 1 within a schematic geological context.

Premier believes that Hasaga and Gold Shore, underground mines that ceased production in the early 1950's, have the potential to host gold mineralization that may be amenable to open pit mining methods in addition to higher grade underground mineable mineralization.  Current drill targets include the "Hasaga Porphyry Zone", testing the porphyry rock unit that hosts the past-producing Hasaga and Howey Gold Mines, where in excess of 600,000 ounces of gold was produced by underground mining methods, and the "Central Zone" where drilling has delineated widespread gold mineralization in the Dome Stock granodiorite.

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 either Accurassay Laboratories or Activation Labs, both accredited mineral analysis laboratories in Thunder Bay, Ontario, 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 Ltd.