Premier Gold Mines has enhanced its profile with several gold deposits

GOLD STOCKS NEWS - Gold stocks have performed well over the past year, but the 89.5% rise in the shares of Premier Gold Mines (PG.TSX) stands out amongst its peer group of gold companies. Chief amongst the reasons for the share price appreciation is the continued success Premier Gold has had discovering gold at the company’s Hardrock deposit. This morning, Premier Gold Mines announced it has received a National Instrument (NI) 43-101 compliant Mineral Resource estimate for the company’s Hardrock Project in northwest Ontario.

The NI 43-101 estimate includes Indicated Resources of 11.6 million tonnes at an average grade of 1.82 g/t gold hosting 675,000 ounces of gold cut and 905,000 ounces uncut. In the Inferred Resources category, the report outlined 7.3 million tonnes at an average grade of 1.81 g/t gold hosting 425,000 ounces gold cut and 830,000 ounces of gold uncut. The estimate confirms guidance that the Canadian gold mining company had provided to investors throughout 2009.

In addition, outside consultants to Premier Gold have confirmed the potential for expansion of resources in the near-surface areas and additional resources amenable to underground extraction below the areas identified in the current Mineral Resource estimate. The company noted that another promising discovery, the Kailey Zone almost two miles north of Hardrock, was not included in the estimate.

The Mineral Resource estimate comes only twelve months into a two-year exploration initiative of the near-surface resources of the Hardrock property which the company owns through a 70% interest in a joint venture with Goldstone Resources (GRC.TSX).

Premier President and CEO, Ewan Downie commented that “This initial Mineral Resource estimate for the Hardrock Project is the culmination of 12 months of aggressive exploration by Premier following more than 10 years of persistence to acquire this under-appreciated asset.”

The Hardrock property was host to a number of past-producing mines, which produced nearly 3 million ounces gold, primarily from depths within 600 meters of surface. The portion of the property subject to the Mineral estimate was previously mined and yielded a total of 13.1 million tonnes with a recovered grade of 4.9 g/t gold. Current exploration has shown these previously mined zones are open at depth as highlighted by recent drill intercepts of 5.3 g/t Au across 57.3 m and 10.0 g/t Au across 24.2 m.

Importantly, the Hardrock project has access to extensive infrastructure, a major factor in lowering capital expenditures and operating costs. The gold deposit is in close proximity to the Trans-Canada Highway, Trans-Canada Pipeline, as well as near major power lines. Hardrock is one of several targets being drilled by Premier Gold which have shown high-grade gold potential in an area that is well-established as one the premier gold producing regions in the world.

Premier Gold Mines is a Canadian-based mineral exploration and development company with several projects and deposits in Northwestern Ontario, Canada and a joint venture in Mexico. Additionally, the company jointly owns two projects with Goldcorp (GG) near the Red Lake Gold zones, and is conducting a drill program at its PQ North Project that, like Hardrock, is located on the main Musselwhite gold mine trend.