Premier continues success at Hasaga Red Lake

Drill intercepts include 1.18 g/t Au across 117.0 metres

THUNDER BAY, ON, May 3, 2016 /CNW/ - Premier Gold Mines Ltd. (TSX-PG) is pleased to provide its latest update from the winter drilling program on the Company's 100%-owned Hasaga Project in the Red Lake gold mining district of Northwestern Ontario.  Results continue to extend the near surface mineralization in the Hasaga Porphyry area with the holes listed below being the closest intercepts to surface (beneath the overburden) drilled to date.  Although the winter portion of the program has been concluded, further results will be reported as the assays are received.

A portion of the program focused on the lands acquired along strike to the southwest.  Initial results suggest the potential to materially expand both open pit and underground mineralization.  Hole HMP103 is located approximately 200 metres southwest of previous drilling.

Recent highlights from the Hasaga Porphyry program include the following:   

• HMP103 contains 7.52 g/t Au across 3.0m beginning at 404m and 0.84 /t Au across 42.0m beginning at 429.0m (including 17.50 g/t Au across 1.0m) in step-out drilling to the southwest onto the recently purchased Buffalo Property

• HMP104 contains 1.04 g/t Au across 70.0m in the H1,H2 Zone beginning at 27.0m downhole and includes 2.98 g/t Au across 13.0m beginning at 73.0 m downhole

• HMP105 contains 1.27 g/t Au across 85.0m in the H1,H2 Zone beginning at 26.0m downhole including 2.19 g/t Au across 17.0m beginning at 26.0m and 3.36 g/t Au across 10.0m beginning at 50.0m downhole

• HMP106 contains 1.18 g/t Au across 117.0m in the H2,H3 Zone beginning at 117.0m downhole and includes 1.67 g/t Au across 63.0m beginning at 117.0m downhole

• HMP107 contains 0.85 g/t Au across 142.0m in the H1,H2 Zone beginning at 74.0m downhole and includes 1.06 g/t Au across 86.0m beginning at 78.0m downhole

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 (See Figure 1). All abbreviations used in this press release are available by following this link (click here).

Tables 1 provides a more comprehensive summary of highlight results from additional holes drilled at Hasaga.  Importantly, the results in holes HMP102 & HMP103, including intercepts of 4.69 g/t Au across 5.0m and 0.84 g/t Au across 42.0m, were drilled across the original Hasaga property boundary and up to 200 metres onto the recently purchased Buffalo ground to the southwest.    

"The Hasaga Porphyry system appears to be wide open as it crosses onto the Buffalo ground" commented Stephen McGibbon, Premier's Executive Vice-President on the Company's C-Suite Blog (http://www.premiergoldmines.com/news/c-suite-blog). "Our visual assessment of holes not yet assayed is also very encouraging."

Premier regards the Hasaga Porphyry target as having potential to host mineralization that could be amenable to both open pit and underground mining methods.  While the focus of the drilling to date has been expanding the known extent of mineralization laterally along strike, it is expected that deeper drilling to test continuity of potentially higher grade mineralization will be undertaken in a future program.

While drilling has been focused on defining bulk lower grade mineralization, the winter program suggests that higher grade vein structures exist within the Hasaga porphyry that warrant additional infill drilling to establish potential continuity.  Selected highlight results from this structure include multiple assays in Hole HMP095 including 14.30 g/t Au across 1.5 m, 12.60 g/t Au across 1.0 m and 23.40 g/t Au across 1.0 m, in Hole HMP096 assays of 30.90 g/t Au across 1.0 m and 97.00 g/t Au across 1.0 m, and in Hole HMP106 assays of 15.44g/t Au across 2.0 m.

The remainder of the 2016 exploration program will include a mix of infill and step-out drilling, bulldozer stripping, mapping and channel sampling on relevant outcrop exposures, wedge drilling to test the continuity of recently identified high-grade gold mineralization, and additional step-out drilling along strike on the new property area. The metallurgical profiling and test program is underway and Premier anticipates reporting on results of this program during the second half of the year.

Table 1:  Highlight results from recent drilling at the Hasaga Porphyry target

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

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 $40 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.