Quartz Vein - PQ North

The three Canadian projects are all based in Northwestern Ontario. The first project is the Hardrock, which is based in the Beardmore – Geraldton greenstone belt and in which Premier owns a 70% holding. The Hardrock site is a vital core holding in the portfolio of Premier, which believes we are experiencing a renaissance of mining in Canada, in the rediscovery of traditional mining locations that still contain considerable resources. In the past, this region has produced over four million ounces of gold. Premier believes that there are at least 1 million ounces of gold to be recovered from the site, with the additional potential for multiple discoveries of at least 1 million ounces each in the future.

The second site is called PQ North, located along the same iron formation that is host to Goldcorp’s Musselwhite Gold Mine, which has mined or discovered over 5 million ounces of gold since 1997. The results of continued exploration and production at Musselwhite give strong indications that the PQ North has the potential to host similar mineralization; Grade is increasing at Musselwhite as it moves down plunge and towards the PQ-North property. Like the Hardrock Project, Premier is confidently hopeful of a multi-million ounce deposit at PQ North. Over $1,000,000 will be spent at PQ North in 2009 to demonstrate this.

Ewan Downie looking at Wilmar Core

Finally, there is the Rahill-Bonanza joint venture, in the Red Lake area, in which Premier Gold Mines Ltd owns a 49% holding in a partnership with a subsidiary of Goldcorp Inc., Red Lake Gold Mines. This final project is the flagship of Premier Gold Mines Ltd’s holdings, and one they consider to be the “best-positioned gold property anywhere”. They also have an interest in two other smaller properties in the area – East Bay – also a joint project with Red Lake Gold Mines, and the Lennie Property, 100% owned by Premier and in the early stages of exploration with very high prospects due to its similarities with the larger mines.

As McGibbon notes, with regard to the future prospects of the Red Lake region, “Discoveries in the Red Lake district in the last 10 or 12 years have confirmed that it’s still a young district, even though it has been actively mined for 80 years. We believe that our joint venture property with Goldcorp is really the best positioned property in the district today.”

Rahill-Bonanza is located to the west of Goldcorp’s high-performing Red Lake Gold Mines and to the east of Goldcorp’s’ Cochenour Project, which although not yet in production, has already yielded very impressive drilling results with the discovery of the Bruce Channel Deposit. This all serves to emphasise the importance of the Red Lake region.

McGibbon says that, “The key for our Red Lake joint venture, at this point, isn’t so much the resources that we already, but that the location of the property may very well lead to a world class discovery that is very similar to Red Lake Gold Mines. “

As well as its prime properties in Canada, Premier Gold Mines Ltd also has gained an interest in recent years in a property in Mexico, another significant gold mining region. The Santa Teresa Project, in the El Alamo district is located in an area that has seen considerable mining production in the past, although not in recent years. This will change, however, with Premier’s initial 50% stake, which may increase in future years to 65%. During 2009, the project will be idle but will continue in future years.

The location and the quality of the sites that Premier Gold Mines Ltd holds in North-western Ontario are an excellent indicator of current strength as well as providing a firm foundation for future growth, and excellent indicators for current and potential investors.