Premier Gold Mines (PG.TSX) announced the signing of a Letter of Intent to enter into a joint venture with Newmont USA Limited, a subsidiary of Newmont Mining (NEM) to consolidate the Saddle and Rain projects in Nevada.  The projects are located within the Rain sub-district of Nevada’s prolific Carlin Trend.

Premier noted that the joint venture will provide the Company with an expanded core land position within one of the world’s most productive gold regions. Premier will make advancing the projects towards underground development, including an opportunity to restart operations at Rain, a priority. The partners expect to implement a program that will include establishing underground infrastructure to complete an aggressive drill program for resource delineation and bulk sampling in advance of a potential mining project. The Saddle-Tess Deposit represents one of the most prospective undeveloped high-grade gold deposits in the Carlin Trend.

Highlights:

* Premier and Newmont will each contribute lands held along the “Rain Trend” to consolidate the prospective horizon that is host to the Rain Mine, and the Saddle and Tess gold Deposits

* Premier will acquire a 55% operating interest by contributing one land Section, waiving its existing right of payment under the Rain and Emigrant royalties, and contributing an initial $20 million in development expenditures over two years

* Newmont will acquire a 45% non-operating interest by contributing three land Sections, full site access to the joint venture including roads, infrastructure and power, and access to contractor/supplier relationships/discounts

* The Joint Venture will secure a favourable milling agreement such that ore from the project will be processed at Newmont’s milling facilities that are located within 20 miles of the Property at a pre-arranged milling rate, subject to Newmont’s processing and displacement priorities

Ewan Downie, President and CEO of Premier:

“This joint venture will elevate the profile of the Company’s US Division, consistent with a focus on aggressively building Premier’s US-based project portfolio as we develop an exciting, North American, high-grade, growth-oriented company.  We are also excited by the prospect of working with one of the world’s major gold producers to advance this highly prospective property package located in the heart of the Carlin Trend, a jurisdiction that supports mine development.”

Paul Huet, Chief Operating Officer of Premier:

“The combination of projects could allow for near-term production and the potential to define a significant gold resource along the largely underexplored Rain Trend.  With full access to existing Newmont infrastructure in the heart of one of the world’s most prolific gold mining districts, this joint venture has the potential to significantly de-risk the Project while vaulting Premier from explorer to producer.”