Aug. 27, 2009 (TheNewswire.ca) --
August 27th, 2009, Vancouver, British Columbia: Premium Exploration (OOTC:PMMEF) Inc. (TSX-V:PEM)(the "Company") is pleased to announce that results have been received from an additional two holes from the Phase-One drill program with PFR2009-05 confirming the continuity of a high-grade gold zone within the current bulk-tonnage resource, which is expected to increase the current 531,890 oz inferred gold resource (OTCBB:GORO) at Friday-Petsite.
PFR2009-05: 1.20 g/t gold over 76.05 meters (249.5 ft) including 3.76 g/t gold over 10.52 meters (34.5 ft) including 8.81 g/t gold over 2.90 meters (9.5 ft)
As well as*: 1.13 g/t gold over 42.67 meters (140 ft) including 7.73 g/t gold over 4.57 meters (15 ft)
*Interval is divided by a post-mineralization Dike
The drill program consisted of seven HQ core holes and assay results have now been received for the first five drill holes from Phase-One of the 2009 exploration program. Please see news release dated August 6th 2009 for the complete release of the first three holes; PFR2009-01, PFR2009-02 (the 0.40 meter over-limit has been received and assayed 10.39 g/t) and PFR2009-03. Click here for a cross section of PFR2009-01 http://www.premiumexploration.com/wp-content/uploads/2008/05/pfr2009-1-cross-section.pdf.
Del Steiner (President) states, "This program continues to produce very encouraging results; it is confirming the continuity of gold mineralization along strike, down dip, and will expand the current bulk-tonnage resource. Excellent near-surface values continue to be intercepted in these shallow holes and they (PFR2009-01, PFR2009-02, PFR2009-05) terminated in mineralization, continuing to leave the deposit open at depth.
The broad zone of gold mineralization encountered in PFR2009-05 originally totaled 118.72 meters, but has been split into two discrete zones by the intrusion of a more recent unmineralized dike. This zone of mineralization is consistent with, and confirms, the grades of the existing resource originally calculated by Kinross Gold Corp. (TSX:K''C) (TSX:K''B) (OOTC:KNRSF) (NYSE:KGC) (TSX:K'U) (TSX:K)
The decrease in hole spacing has confirmed continuity of the low-grade bulk-tonnage mineralization which surrounds the high-grade zone and will result in an upgrade of a portion of the existing resources and likely increase the resource in total. The high-grade gold intercepts from Phase-One will also likely have a positive impact on the average grade of the resources."
PFR2009-05 returned 1.20 g/t gold over 76.05 meters, including 3.76 g/t gold over 10.52 meters as well as 1.13 g/t gold over 42.67 meters, including 7.73 g/t gold over 4.57 meters.
There is a post mineralization dike, which has cut through the mineralization and split the previously continuous interval into two separate zones. The sieve analysis has been received for the two over-limit samples mentioned in the August 6th release. The first over-limit sample is above the dike at 72.4 to 73.3 meters (0.91 meter intercept) grading 21.17 g/t and the second sample occurring below the dike at 98.8 to 100.3 meters (1.52 meter intercept) grading 15.95 g/t gold. PFR2009-5 is located between PC-10 to the south and PC-08 to the north confirming continuity of the high-grade gold zone and confirms that there is room for further resource growth of a lower grade envelope around the higher-grade gold core.
PFR2009-04 returned 0.88 g/t gold over 12.89 meters.
Based on current geologic interpretation, this drill hole was collared slightly west of the main zone of mineralization. Similar to the other drill holes like PFR2009-03, this hole was drilled further west of the main zone and intersected mineralization near the top of the hole. These holes are delineating the western boundary of the bulk-tonnage deposit. PFR2009-4 is located 50 meters to the south of BFD-29 which returned 0.63 g/t Au over 58.3 meters, including 13.5 meters of 1.01 g/t Au. *The mineralized intercepts for the BFD holes have been recalculated at a lower cutoff grade of 0.5 g/t to take into consideration the current gold price. The initial results reported for these holes utilized a cutoff grade of 1 g/t. The revised results are listed in the table below.
As with the first three holes, PFR2009-04 and PFR2009-05 confirm the broad zone of near-surface lower-grade gold mineralization along strike and continuity of the high-grade gold zone in the central portion of the deposit. Please click here for a plan view map of the Phase-One drill program (http://www.premiumexploration.com/wp-content/uploads/2008/05/completed-2009-drill-program.pdf
Hole ID From (m) To (m) Length (m) Length (ft) Au (g/t) PFR2009-04 15.24 28.13 12.89 42.30 0.88 PFR2009-05 0 76.05 76.05 249.50 1.2 including 39.93 76.05 36.12 118.50 1.84 including 65.53 76.05 10.52 34.50 3.76 including 68.28 74.07 5.79 19.00 5.95 including 71.17 74.07 2.9 9.50 8.81 DIKE 76.05 94.79 18.75 61.50 PFR2009-05 94.79 137.46 42.67 140.00 1.13 including 94.79 106.07 11.28 37.00 3.51 including 98.76 103.33 4.57 15.00 7.73
*True Widths are estimated to be between 65% and 75% of the drilled interval
Resource recalculation is currently underway incorporating the recent drill results. A total of 16 holes consisting of the seven Phase-One core holes, four BFD core holes from 2004, and the five core holes drilled by Canden Resources (for a total of 16 holes) will be included in a new resource estimate. These holes were drilled subsequent to the NI 43-101 resource calculation and consequently were not available for that calculation.
A preliminary statistical evaluation of the sieve analysis results based on seven samples greater than 5 g/t gold from Phase-One , indicates that there is coarse gold present and that special assay procedures were warranted. Gold assays utilizing sieve analysis procedures return values that average 18% higher than standard fire assay procedures. Of the seven samples, two samples were higher, one approximately the same and four were lower. This evaluation is based on a limited number of samples and additional research will be conducted to confirm these results.
As a result of this analysis, Premium's geologists will be re-evaluating historic core assays which utilized standard fire assay procedures and may have under-reported gold values. Drill core from the historic holes is available and will be examined to determine the suitability of the core for metallic sieve analysis.
Taking into account the current gold price , Premium geologists recalculated (using a cutoff grade of 0.5 g/t) the intervals in the four core holes from the 2004 BFD program conducted by a previous operator.
Drill Results from the BFD Drill Program in 2004 Identifying the High-Grade Zone - Drilled to the East Assuming a Westerly Dip
Hole ID From (m) To (m) Length (m) Length (ft) Au (g/t) BFD-29 49.00 107.32 58.32 191.30 0.63 including 60.05 73.53 13.48 44.20 1.01 including 72.66 73.53 0.87 2.90 5.26 BFD-30 0 15.30 15.30 50.20 0.89 41.31 119.51 78.20 256.60 1.08 including 41.67 45.42 3.75 12.30 10.11 BFD-31 30.64 122.26 91.62 300.60 2.05 including 30.64 48.78 18.14 59.50 8.29 including 34.34 44.51 10.17 33.40 12.69 including 34.34 37.20 2.86 9.40 26.70 BFD-32 41.97 122.56 80.59 264.40 2.00 including 64.60 101.95 37.35 122.50 3.53 including 64.60 67.21 2.61 8.60 9.30
*True Widths are estimated to be between 40% and 50% of the drilled interval
The large and extensive zone of lower-grade mineralization hosts an NI 43-101 inferred gold resource estimate of 16,544 kilograms of gold (531,890 troy ounces) contained in 15.17 million tonnes averaging 1.1 g/t gold (0.032 oz/ton) at a cutoff of 0.514 gram per metric tonne (0.015 oz/ton) which is a potentially open-pittable heap-leachable disseminated gold resource.
192 drill holes totaling 19,577 meters (64,213 ft) has been completed by previous operators. The drill results were used to design a preliminary pit design and calculate the resource estimate.
Once the results from the remaining two drill holes have been received and complied, the Phase-Two drill program will be designed and implemented.
The Nez Perce National Forest has approved the Plan of Operations for drill sites located north of the patented claims which were host to the Phase-One drilling. This will provide the Company with flexibility for ongoing delineation of the gold mineralization along strike to the north of the existing NI 43-101 resource.
The Company has implemented a rigorous QA/QC program using best industry practices at the Friday-Petsite Property. As described the Company's News Release of July 9th, 2009 the program includes chain of custody of samples, drill core sawn in half and shipped in sealed bags, blind duplicates and blank samples are submitted, with the samples shipped to Acme Analytical Laboratories of Vancouver, B.C. a lab certified for the provision of assays and geochemical analyses (ISO 9001:2008). The ongoing 2009 exploration program is directed by Wilf Struck, P.Eng., CEO of Premium Exploration, Inc. and a Qualified Person as defined by NI 43-101. Mr. Struck prepared, and approves of the content of this release.
About Premium Exploration Inc.
Premium Exploration Inc. (TSX-V:PEM) is an explorer and developer of precious metals projects with significant potential for near-term production and growth. Our projects are located in the USA and Mexico; stable regions where we have a history of success. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing, and permitting precious metals assets to production. The Company's portfolio includes one of the largest land packages in Idaho, including an NI 43-101 gold resource, a PGM exploration project in Montana, and a past-producing silver project in Mexico. For additional information, please visit us at www.premiumexploration.com.
For More Information, Please Contact:
Mr. Wilf Struck, P.EngChief Executive OfficerPremium Exploration Inc.P: (604) 682-0243F: (604) 682-2499Email: email@example.com Christine KoprCorporate CommunicationsPremium Exploration Inc.P: (604) 682-0243F: (604) 682-2499Email: firstname.lastname@example.org
This press release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission. All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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