Premier Gold Mines Offers Drilling Update

THUNDER BAY – MINING – Premier Gold Mines Limited (TSX-PG) is pleased to provide an update on the 2017 drilling program at the Company’s 100%-owned Hasaga Project in the Red Lake gold mining district of Northwestern Ontario.  The program is targeting potential higher grade mineralization along the Hasaga Porphyry trend at depth, proximal to historic results and includes wedged holes from historic drill sites.

Selected Drill Hole Highlights include:   

• HMP 161 with 1.21 g/t Au across 181.0 m from 998.0 m, including 2.14 g/t Au across 19.0 m and 2.21 g/t Au across 18.0 m down plunge from the Hasaga Porphyry open pit deposit
• HMP 162 with 9.55 g/t Au across 8.0 m from 799.0 m in a new target west of the Hasaga Zone
• HMP 17-88-02-W1 with 3.38 g/t Au across 10.0 m from 977.0 m, including 13.3 g/t Au across 2.0 m, and 3.55 g/t Au across 5.0 m from 1083.0 m in a wedged hole in the C Zone underground target
• HMP 17-88-02-W2 that grades 22.56 g/t across 7.0 m from 898.0 m including 125.0 g/t across 1.0 m

A comprehensive table of assay highlights from the 2017 Hasaga Deep drill program is summarized in Table 1.

All abbreviations used in this press release are available by following this link (click here).

The Hasaga Porphyry (See Figure 1) is host to the past-producing Hasaga, Buffalo and Howie Mines and is being evaluated for both lower grade, open-pit potential, as well as higher grade mineralization that may occur at depth.  Premier considers Hasaga to have similar exploration potential to other historic mining camps in Ontario, where gold resources have been discovered at the site of past-producing mines. In January, Premier confirmed the multi-million ounce potential of the shallower target areas.

The 2017 program is primarily focused on testing the potential for deeper higher grade mineralization in the Hasaga porphyry. Historic drill holes with positive results, HRL-88-02, HRL-88-03 and HRL96-02 completed by earlier operators were never adequately followed up.  These historic results and the Premier high grade intercept in hole HMP151 (see press release dated March 1, 2017) may represent mineralization characteristic of the C-Zone at the Hasaga Mine that occurs down-plunge of the historic mined area.  If the current program can confirm lateral continuity and scale to the C-Zone discovery, it may have the potential to become a bulk mineable underground opportunity that would complement the open pit resource delineated in the 2015-16 drill programs.

“The positive results of our 2017 program adds to the success of our 2016 campaign, which confirmed a multi-million ounce resource of near surface mineralization.” commented Stephen McGibbon, Premier’s Executive Vice-President on the Company’s C-Suite Blog (http://www.premiergoldmines.com/news/c-suite-blog). “We continue to extend mineralization at depth at C-Zone and towards the Buffalo Zone (the “West Extension”) in addition to confirming the continuity of mineralization proximal to historic intercepts on the property.”

Based on these positive preliminary results from the two primary target areas Premier plans to continue drilling during the remainder of the year.  One drill is currently active on the Hasaga Property.

C-Zone Target Areas

The 2017 drilling on the C-Zone target has included the reaming of historic holes in order to wedge other holes that may extend the size of the C-Zone and better understand the distribution of mineralization. The completion of two wedged holes from hole 17-88-02 confirmed the historical mineralization and extended high grade that was intercepted in the previously released hole HMP151 with 54 m of 10.90 g/t Au, located 100 metres east along strike and 150 metres down dip. These results are highlighted in Figure 2.

West Extension Target

The West Extension Target area is a 1.6 kilometre southwest extension between the C-Zone target and the Buffalo Zone to the west. Holes HMP161 and HMP162 were 500 metre south west step-outs along strike from the C-Zone, within the anticipated mineralized Hasaga Deep horizon.  Hole HMP161 intersected a broad 291 metre envelope of low grade (0.95 g/t Au) mineralization, which included 19 metres of 2.14 g/t Au and 18 metres of 2.21 g/t Au.   Alteration is characterized by sericitization and silicification of the host porphyry.  Gold mineralization occurs in association with minor sulphide-bearing sequences and also as visible gold within common quartz veinlet arrays.

Reaming Historic Holes

The reaming of the historic holes has been proved to be important in confirming the location of the mineralization with new assay information and in fixing the position and trace of the upper portion of the original drill hole by using more modern borehole survey techniques.

Stephen McGibbon, P. Geo., is the Qualified Person for the information contained in this press release and is a Qualified Person within the meaning of National Instrument 43-101.  Assay results are from core samples sent to either Accurassay Laboratories or Activation Labs, both accredited mineral analysis laboratories in Thunder Bay, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods.

Premier Gold Mines Limited is a gold producer and respected exploration and development company with a high-quality pipeline of precious metal projects in proven, accessible and safe mining jurisdictions in Canada, the United States, and Mexico.