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Premier Gold Mines Ltd

Mining Companies - Gold Companies

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Premier Gold Mines Limited is a well-financed Canadian-based mineral exploration and development company with several active projects and deposits in Northwestern Ontario. In the Red Lake gold mining camp, two projects are operated in joint venture with Red Lake Gold Mines, and another, adjacent to the Red Lake Gold Mines complex, is operated on a 100% basis. The company also owns a 100% interest in the PQ-North Project, located along strike from Goldcorp's Musselwhite Gold Mine.  Premier is listed on the Toronto Stock Exchange under the symbol (PG), on the Frankfurt Stock Exchange under the symbol (P20) and on Pinksheets under the symbol (PRIGF).  SP on the TSX for 12 Nov 09 was 3.58.

Projects

Rahill-Bonanza & Other Red Lake

Red Lake is quite simply the high, grade gold capital of the world and the #1 address in Canada for high grade gold discoveries. Since 1995, there have been five significant gold discoveries in the Red Lake area, four of which are or appear to be high grade. Within Red Lake, more than 30 million ounces of gold have been discovered along the prestigious "Mine Trend."

Premier's marquis property in Red Lake is a 49% interest in the Rahill-Bonanza Project, a joint venture with Red Lake Gold Mines (RLGM), an affiliate of Goldcorp Inc. Key aspects of the property include:

-It occurs along the least explored portion of the prolific Mine Trend

-It resides immediately west of Goldcorp's world class RLGM mining complex and east of Goldcorp's newest high, grade deposit, the Bruce Channel Deposit.

-It holds one recently discovered and one historic gold deposit, each of which could host much sought after "high grade gold" at depth.

Planned Exploration

Premier intends to spend between $2 million and $3 million on Red Lake area projects in 2009 and anticipates press releases on a quarterly basis or as results warrant beginning in Q2.

 

Hardrock

The Hardrock Project comprises approximately a 15-kilometre long property package that overlies more than 3.0 million ounces of past gold production in a district that has historic production in excess of 4.0 million ounces. The property lies only a few kilometers south of the Town of Geraldton, which is serviced by the Trans-Canada Highway, Trans-Canada Pipeline and the Canadian National Railway. Exploration is conducted year round.  The Hardrock Project contains some 1 million ounces of historic (non-NI43-101 compliant) gold resources having potential to be mined in part by both open pit and underground methods. Premier is currently earning a 70% interest in the project.

Planned Exploration

In 2009, Premier has planned an aggressive $8 to $10 million exploration program with the goal of tabling a NI43-101 compliant mineral resource estimate of 1 million to 1.5 million ounces of gold, occurring in multiple, closely-spaced deposits, potentially amenable to open-pit mining. In order to achieve this, we have planned the following exploration program:

-Some 50,000 metres of diamond drilling in delineation and exploration configurations.

-Focus within 300 metres of surface.

-Target areas of existing mineralization & those with high potential for discovery based on our geological model.

  

PQ North

The PQ North Project, located in the Musselwhite District of Northwestern Ontario, some 300 kilometres northeast of Red Lake, is a strategic property within Premier's property portfolio, owing to it's location proximal to Goldcorp's Musselwhite Mine and to the strong potential for discoveries to be made early in the exploration cycle. The property is within 10 kilometres of the Musselwhite Mine surface infrastructure and is accessed by road in winter and by road and lake in summer. Exploration can be conducted year round at PQ North. 

The location of PQ-North, potentially down-plunge from Musselwhite, is particularly important when considering the following facts:

-The apparent mine grade at the Musselwhite Mine is increasing as mineralized zones are mined in a down-plunge to the north (toward PQ-North).

-The frequency of new discoveries (some closer to surface than current mining) at Musselwhite is increasing as exploration migrates to the north (toward PQ-North).

-Historic diamond drilling at PQ-North includes an intercept of 23.42 g/t Au across 5.3 metres within a Musselwhite-style host rock.

-The 2007 Goldcorp Annual Report confirmed, "Drilling on the North Shore [in close proximity to PQ-North] indicate high potential for resource expansion. This strong potential has led to a study to test the economics of constructing a new shaft at Musselwhite."

Premier strongly believes that PQ-North may host a gold deposit similar to the multi-million ounce deposit characteristic of the Musselwhite Mine.

Planned Exploration

For 2009, Premier plans to spend in excess of $1 million at PQ-North with the goal of clearly demonstrating that significant Musselwhite-style mineralization is likely to exist. Based on results, the program can be quickly expanded. 

Premier anticipates reporting results at PQ-North on a monthly to quarterly basis beginning in April 2009. 

 

Shares Structure

S/O 68,397,742                                           

FD  78,510,179

 

Corporate

Management

JOHN F. COOK                    Chairman, Director

EWAN S. DOWNIE              CEO, President and Director

STEPHEN McGIBBON        Executive Vice-Pres. and COO

JOHN SEAMAN                   CFO, Director

 

Board of Directors

JOHN F. COOK                    Chairman, Director

EWAN S. DOWNIE              CEO, President and Director

JOHN SEAMAN                   CFO, Director

JOHN A. POLLOCK             Director

JEAN-PIERRE COLIN         Director

JOHN BEGEMAN                Director

HENRY J. KNOWLES, Q.C., H.B.A., LL.B., LL.M., M.B.A.  Director

 

Finances

Q2 2009

Cash and Cash Equivalents            10,067,407

Liabilities                                            2,298,924

Gain/loss diluted                                         (.04)

 

News Releases

http://www.premiergoldmines.com/s/QwikReport.asp

http://www.premiergoldmines.com/i/pdf/PGOct-2009website.pdf

 

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