PREMIER TO ACQUIRE CLAIMS TO EXPAND CARLIN TREND LAND HOLDINGS
THUNDER BAY, ON, May 3 /CNW/ --
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THUNDER BAY, ON, May 3 /CNW/ - PREMIER GOLD MINES LIMITED (TSX: PG) ('Premier') is pleased to announce that it has entered into a definitive acquisition
agreement with arm's length third parties pursuant to which Premier has
agreed to indirectly acquire the Blue Sage mineral claim rights within
the Rain Sub-district of the Carlin Trend, in Elko County, Nevada. The
transaction will result in the expansion of Premier's mineral interests
along the 'Rain Fault' strike extension.
The Blue Sage claims are located to the northwest of and adjoin the
Sections that comprise Premier's Saddle Gold Project, covering
approximately 4500 feet (1.37 kilometres) of the projected 'Rain Fault'
strike extension. The Rain Fault is host to the past producing Rain Gold Mine, and the
Saddle/NW Tess Gold Deposit (Premier holds a 100% interest in the
majority of the Saddle Deposit). The Saddle Gold Deposit is one of
several deposits discovered by Newmont Mining Corporation during the
1990's to the northwest of, and down plunge from, its Rain Gold Mine. Recent drilling by Premier at Saddle has returned significant gold
intersections including 0.25 ounce per ton gold (oz/t Au) across 40.0
feet (8.46 grams per tonne gold (g/t Au) across 12.2 metres) including
0.31 oz/t Au across 22.9 feet (10.70 g/t Au across 6.98 m). Ongoing
drilling continues to intersect favourable structures and
mineralization.
The Nevada acquisitions represent a new chapter in Premier's strategy to
build a significant presence in proven, accessible and low-risk
jurisdictions that offer opportunities for the discovery of potentially
high grade gold deposits.
'The acquisitions of Saddle and Blue Sage represents our ongoing
commitment to expand our US-based presence, particularly on the Carlin
Trend, one of the world's most productive gold districts,' commented
Ewan Downie, President and CEO of Premier Gold Mines Ltd. .
The acquisition of the Blue Sage mineral claims includes the assumption
by Premier of a US$400,000 promissory note. The purchase price for the
acquisition will be satisfied by the issue of an aggregate of 350,000
common shares of Premier. The Blue Sage mineral claim rights are
subject to a one percent (1.0%) net smelter return royalty. The
transaction is subject to conditions normal for a transaction of its
nature, including the approval of the Toronto Stock Exchange.
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.
Premier Gold Mines Limited is a well financed Canadian-based mineral exploration and development
company with several projects and deposits in Northwestern Ontario,
Nevada and a joint venture in Mexico. In the Red Lake gold mining camp,
two are operated in joint venture with Red Lake Gold Mines. The
company also owns a strategic project located on the main Musselwhite
Gold Mine trend and holds a 70% interest in the Hardrock Project.
This Press Release contains certain information that may constitute
'forward-looking information' under applicable Canadian securities
legislation. Forward-looking information includes, but is not limited
to, statements about strategic plans, including, future operations,
future work programs, capital expenditures, discovery and production of
minerals, price of gold and currency exchange rates, timing of
geological reports, corporate and technical objectives and closing of
the acquisition of the Blue Sage mineral claims. Forward-looking
information is necessarily based upon a number of assumptions that,
while considered reasonable, are subject to known and unknown risks,
uncertainties, and other factors which may cause the actual results and
future events to differ materially from those expressed or implied by
such forward-looking information, including the risk that regulatory
approvals for the acquisition of the Blue Sage mineral claims will not
be obtained, risks inherent to the mining industry, adverse economic
and market developments and the risks identified in Premier's annual
information form under the heading 'Risk Factors'. There can be no
assurance that such information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not place
undue reliance on forward-looking information. All forward-looking
information contained in this press release is given as of the date
hereof and is based upon the opinions and estimates of management and
information available to management as at the date hereof. Premier
disclaims any intention or obligation to update or revise any
forward-looking information, whether as a result of new information,
future events or otherwise, except as required by law.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/May2011/03/c8754.html
Ewan Downie, President & CEO Phone: 807-346-1390 Fax: 807-346-0100
e-mail: Info@premiergoldmines.com Web Site: www.premiergoldmines.com