Premier Gold Mines (PG.TSX) announced that their drilling program at Rahill-Bonanza has intersected 'approximately 120 meters of mineralization while drilling' the first of two primary targets. The project is a joint-venture being explored with Red Lake Gold Mines, a subsidiary of Goldcorp (GG). This represents a 'significant strike and depth extension,' according to the company release. Drilling will continue to test the potential on-strike extension for this deposit.

The current drill program is focused on testing exploration targets and defining a potential gold resource. The testing area is proximal to Goldcorp's Bruce Channel deposit. The Bruce Channel deposit was acquired by Goldcorp through its acquisition of Gold Eagle Mines in 2008. Collaboration between the projects could serve to reduce cash costs for both projects. Test mining has suggested that a historical resource of 5.7 million tons at 0.1 gold ounces per ton may exist. The company does note that this is not a certified estimate and should not be relied upon.

Premier has multiple gold projects and hence offers investors a multitude of potential exploration targets. Premier Gold is unusually well-diversified for an exploration company and does not contain the same risks as many companies that possess a single project. CEO Ewan Downie has a long history in the sector and a track record of proven success. Downie successfully sold his previous company, Wolfden Resources, to Zinifex, an Australian-based base metals company, in 2007.

Premier Gold Mines is a Canadian-based mineral exploration and development company with several projects and deposits in Northwestern Ontario and a joint venture in Mexico. Two of these projects are operated in the Red Lake gold mining camp, both joint ventures with Goldcorp. The company has active drill programs at its Hardrock Project and PQ North Project that is located on the main Musselwhite gold mine trend. Shares of Premier were up C$0.19 to $2.60 going into the final hour of trading, while the gold price was up $6.60 to $919.60 per ounce.