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With an estimated 100,000 metres of drilling expected by year end, Premier Gold Mines Limited (PG) is spearheading one of the largest exploration programs in Canada. Premier’s goal is to discover, delineate and develop ore bodies in the heart of three separate gold mining camps in Ontario, a province that has produced many millions of ounces of gold and has been the birthplace of many major gold producers. The districts the company is focused in are Red Lake, Geraldton, and Musselwhite. Unlike most other juniors that are exploring one marquis project, Premier has three that can each be potential “company-makers”.
- Proven Management
- Advanced-Stage Canadian Projects
- High Grade Deposits
- Safe Jurisdictions
- NI 43-101 Resource Calculation by year end.
Red Lake
Premier has three projects in Red Lake, two joint ventures with Goldcorp (G) and one 100%-owned property. The most active property in Red Lake is called the Rahill-Bonanza Project, a 49%-PG and 51%-G joint venture. It is located along the mine trend directly between the Bruce Channel discovery, which Goldcorp purchased for $1.2 billion, and Goldcorp’s Red Lake Gold Mines (RLGM). That mine is considered to be the world’s richest gold mine and the platform for Goldcorp’s phenomenal growth.
Recently, at their investor day presentation, Goldcorp announced that they may be developing a high-speed tram to connect the RLGM with their Cochenour Mine, as well as dewater the Cochenour Mine as a part of the mine development of the Bruce Channel deposit. A straight line drive between RLGM and Cochenour would go directly through the joint venture ground, which will open this area up to exploration at depth.
Hardrock (Geraldton)
Located along the Trans-Canada Highway, approximately 250 kilometres northeast of Thunder Bay, the Hardrock Project is Premier’s main focus for 2009. After 11 years of persistence, Premier successfully negotiated an agreement with Barrick Gold to sell this property in October of 2008 to a joint venture that includes Premier (70%) and Roxmark Mines Ltd (RMK, 30%). Premier was immediately able to raise $15 million dollars at the heart of the global economic meltdown because of the potential of the company, its management and properties.
Some $9 million dollars has been budgeted for this property and an estimated 70,000 metres will be drilled to complete a NI 43-101 compliant mineral resource estimate by Q4 of 2009. The drill program is designed to delineate resources in both open pit and underground areas. Drilling to date has exceeded Premier’s expectations. There are tremendous infrastructure advantages to this property with Trans-Canada Highway, the Trans-Canada Pipeline, and a Hydro sub-station all nearby. The full service town of Geraldton sits three kilometres to the north, providing access to a large and capable work force. All of these factors combined would significantly reduce Premier’s capital expenditures and time required to develop a possible mine.
PQ-North (Musselwhite)
This 100%-owned property is located on the same PQ-Limb and on-strike from Goldcorp’s Musselwhite Mine. As Goldcorp mines the PQ-Limb towards the PQ North property they are discovering more deposits with increasing grade. Premier began a small drill program this winter to test the geology of its property as most is covered by overburden. In this phase one drill program, Premier hit two high-grade holes including 10.24 grams per tonne gold (g/t Au) across 5.1 metres (m) and 10.25g/t Au across 1.8m, both results significantly higher than Musselwhite’s average production grade of 5.5g/t. Given this early success, Premier has significantly increased the budget at PQ-North.
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