Premier Goldmines

cnw




Shares Issued: 138,702,462


THUNDER BAY, ON, Sept. 12, 2012 /CNW/ - PREMIER GOLD MINES LIMITED (TSX: PG) is pleased to provide an update from ongoing exploration activities at
several of the Company's project sites and corporate operational
changes. Drilling programs are currently underway at the Rahill-Bonanza
Project in Red Lake, the Hardrock Project in Northwestern Ontario, and
at the Cove Gold Project in Nevada. Numerous developments on all
projects continue to demonstrate the potential for future resource
growth. Significant highlights so far in 2012 include:






Premier announced the acquisition of the Cove Gold Project in Nevada, a
high-grade gold project located in the heart of the Eureka-Battle
Mountain Trend. Initial drilling has expanded the Helen Gold deposit
along strike with intercepts including 7.09 grams per tonne gold (g/t
Au) across 24.38 metres (m) (0.21 ounces per ton (oz/t) across 80 feet)
and 14.42 g/t Au across 12.19 m (0.42 oz/t across 40 feet).




Surface and underground diamond drilling is being carried out on the
Rahill-Bonanza Joint Venture in Red Lake. This exploration is testing
a newly identified structure on the property and started flat holes
from the tram designed to build a camp-wide geological model and to
test the regional unconformity.




The Red Lake to Cochenour haulage drift (tram) has recently excavated
through a gold-bearing Basaltic Komatiite (ultramafic) rock unit, an
important unit known to be associated with high-grade mineralization at
the Red Lake Gold Mines complex including the High Grade Zone (HGZ).




Final modeling of the deposits that comprise the Trans-Canada Project is
underway such that a revised resource estimate can be completed in the
near future. Ongoing drilling at the Fortune Zone horizon continues to
expand high grade mineralization with numerous recent intercepts
including 431.43 g/t Au across 2.0 metres (12.6 oz/t across 6.6 feet).



"2012 is the largest year, in terms of exploration dollars in Company
history with three active exploration projects that continue to deliver
significant exploration success", stated Ewan Downie, President and CEO
of Premier. "Management and operational changes continue to evolve as
we quickly grow from exploration to anticipated development in the
years to come."


Cove Project Acquisition


In June of this year, Premier entered into an agreement to acquire the
Cove Gold Project from Victoria Gold Corp. The Cove Project is located
within the Eureka-Battle Mountain Trend that is host to a number of
multi-million ounce producing and past-producing mines. The Cove
deposit was mined (primarily by open pit) between 1986 and 2001,
producing approximately 2.6 million ounces of gold, and 100 million
ounces of silver. The target-rich 6,972 hectare property (17,252 acres)
has been subject only to limited surface exploration outside of the
Cove pit and Premier believes that the property offers potential for
the discovery of additional mineralized zones and horizons.
Importantly, the property is located in close proximity to excellent
infrastructure (including paved roads and power). A Plan of Operations
(PoO) for underground and surface exploration has been submitted to the
appropriate federal agency and is anticipated to be approved in the
fourth quarter of 2012. Once the PoO is received, the company expects
to significantly increase exploration on the Project with multiple
drill rigs.


The Helen Zone is a stratiform, Carlin-style, deposit that remains wide
open along the trend of the favourable anticline structure that is host
to the primary mineralized zones at Cove. Recent step-out drilling
from the Helen Zone to the northwest and southeast towards the historic
Cove pit suggests major expansion potential. Substantial thickness of
high-grade mineralization including 11.75 g/t Au across 20.42 m (0.34 oz/t across 67.0 feet) in hole AX-8A,
7.09 g/t Au across 24.38 m (0.21 oz/t across 80 feet) and 9.26 g/t Au
across 5.18 m (0.27 oz/t across 17 feet) in AX-12 demonstrate the robust system at Cove. More recent southeasterly
drilling approximately 200 feet (60 metres) further along strike (AX-13
and AX-14 - assays pending) continues to intersect significant
mineralization.


Red Lake Projects -- Rahill-Bonanza Update


Surface and underground drilling is underway at the Rahill-Bonanza Joint
Venture Project operated by Red Lake Gold Mines Limited ("RLGM"), a
partnership between Goldcorp Inc. and Goldcorp Canada Ltd. The
Rahill-Bonanza Project (PG:49%) that is strategically located in the
heart of the prolific Red Lake "Mine Trend" between the Red Lake Gold
Mines complex to the east, and the Cochenour (Bruce Channel) complex to
the west.


Surface drilling is testing a newly identified structure intersected at
depth in the tram and is also further delineating the mineralized zones
proximal to the Wilmar Gold Mine. Recently, the tram has intersected
several gold-bearing structures including one that has been drill
tested from the tram. This favourable structure is also being
drill-tested from surface along its interpreted trend. Additionally,
high-grade mineralization has now been intersected to some 450 metres
down-plunge of the historic Wilmar Mine workings with intercepts that
include up to 68.87 g/t Au across 3.5 m (2.01 oz/t across 11.5 feet) in hole PG10082
and 46.15 g/t Au across 4.5 m (1.35 oz/t across 14.8 feet) in hole
PG11092. Results from the summer 2012 surface drill program are pending. The
tram is being excavated from the 5400 foot Level of Red Lake Gold Mines
and will intersect several kilometres of some of the highest potential
and untested geology in the heart of the Red Lake camp. The drift has
recently intersected multiple gold-bearing structures including one
that has been core drill-tested (assays pending). Additionally, the
underground diamond drilling program designed to build a camp-wide
geological model and to test the regional unconformity to the south is
now underway.


The tram drift has recently excavated through a gold-bearing Basaltic
Komatiite (ultramafic) rock unit, an important unit known to be
associated with high-grade mineralization at the Red Lake Gold Mines
complex including the High Grade Zone (HGZ). This structure will be
the target of future drilling.


Trans-Canada Project


The Hardrock Deposit, within the Trans-Canada Project, is host to a gold
resource estimate with Measured and Indicated Resources of 2,492,000
ounces and Inferred Resources of 1,123,000 ounces. Work is underway
including the modeling of numerous zones and deposits that comprise the
project such that a revised resource estimate can be completed. This
work is nearing completion and the revised estimate is expected in the
coming weeks.


In 2012, substantial success has been recognized in the Fortune Zone.
The Fortune Zone is comprised of multiple, en-echelon, narrow vein
zones located in close proximity to the historic Hardrock mine workings
and includes extensions of the historically mined "F-Zone" from which
more than 2.0 million ounces of gold was mined. High-grade gold
mineralization within the Fortune Zone horizon has now been delineated
over a plunge length of some 3.5 kilometres and has characteristics
similar to the high-grade past-producing Little Long Lac (600,000
ounces gold produced at a grade of 11.70 g/t) and Leitch (847,900
ounces produced at a grade of 31.50 g/t) Gold Mines that are located on
the Trans-Canada Project. Recent intercepts in the Fortune Zone include 431.43 g/t Au across 2.0 m
(12.60 oz/t across 6.6 feet) in hole MM307 and 21.13 g/t Au across 8.9
m (0.62 oz/t across 29.2 ft) in hole MM298. Additional results are pending.


Following the completion of the updated mineral resource estimate, work
will begin on a Preliminary Economic Assessment (PEA) for
Trans-Canada. The Company has retained the services of one of Canada's
leading mine developers (see operational changes below) to assist in
this project. Permitting for advanced exploration activities on the
project is also being completed.


Operational Update


As the corporation prepares for future growth, numerous changes to
management and to the board of directors have been made to facilitate
this growth, resulting in an industry-best Management team with the
ability to effectively advance Company projects. A recent development
will see Paul Huet depart Premier as he has resigned as Chief Operating
Officer (COO).


Paul Huet has tendered his resignation as COO to pursue an executive
opportunity with another organization. The Company wishes to thank
Paul for his valued contribution over the past year and success in his
new role. Paul will maintain an advisory role with Premier on an as
needed basis.


In June of 2012, Ebe Scherkus joined Premier as Director and Chairman.
Mr. Scherkus brings to Premier 37 years of mineral exploration and mine
development experience with a successful history of corporate
development. Ebe will play an important role in Premier realizing its
future growth objectives as it transitions toward project development.
Mr. Scherkus recently retired as President and Chief Operating Officer
of Agnico-Eagle Mines Ltd. after a 27-year progressive career with the
company. Additionally, Claude Lemasson joined as a Director of
Premier. Claude brings to Premier more than 20 years of mining
development experience in Canada and the United States. His senior
mine development and operational roles with Goldcorp Inc. included
roles as General Manager of Projects for Canada and the U.S. where he
was responsible for the advancement of the Eleonore Project and General
Manager of the Red Lake Mine. Brian Morris (Vice-President
Exploration) and Warren Thompson (Exploration Manager for Nevada) have
been retained to advance the corporation's US project portfolio. Brian
and Warren bring to Premier substantial exploration and development
experience and have played important roles in numerous discoveries and
deposit development projects.


Owing to the fact that the advancement of the Saddle Project has been
put on hold such that the company can focus its efforts on Cove, the
Company does not intend to fill the position of COO at this time.


Premier Royalty Corporation


In November 2011, Premier made the decision to optimize the value of its
royalty portfolio by forming a royalty subsidiary with the intent of
creating Canada's next gold focused royalty company, led by Abraham
Drost. Since this decision, Premier Royalty Corporation (PRC) has
entered into agreements to acquired four producing royalties in
addition to Premier's Emigrant Mine and other royalties. A definitive
agreement with Bridgeport Ventures Inc. will result in a business
combination pursuant to which Bridgeport will acquire PRC. Upon
"Closing" of this agreement, Premier Gold Mines Limited will become
PRC's largest shareholder. As the company grows, Premier will have the
option to either use this position as a non-dilutive financing
mechanism or then dividend this ownership to shareholders. This
agreement is expected to close in the fourth quarter of 2012.


Premier Gold believes that consolidating existing royalties owned by the
Company combined with the acquisition of other high quality cash
flowing royalty assets will form the basis of a transaction that is
value accretive to Premier Gold shareholders.


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 Activation Laboratories, an accredited mineral analysis
laboratory in Ancaster, Ontario, or to Accurassay Laboratories, an
accredited mineral analysis laboratory 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 companies with a
high-quality pipeline of projects focused in proven, safe and
accessible mining jurisdictions in Canada and the United States. The
Company's portfolio includes significant assets in world class gold
mining districts such as Red Lake, Musselwhite and Geraldton in Ontario
and the Battle Mountain and Carlin 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



For further information:



Ewan Downie, President & CEO
Phone: 807-346-1390
Fax: 807-346-0100
e-mail: Info@premiergoldmines.com
Web Site: http://www.premiergoldmines.com/">www.premiergoldmines.com