Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Dec. 1, 2011) – Premium Exploration Inc. (TSX VENTURE:PEM.V –News)(OTCQX:PMMEF.PK – News) (“Premium” or the “Company”) is pleased to announce that the first six of nine holes drilled in the 35 km2 Deadwood Zone have resulted in four widely-spaced gold discoveries in host rocks identical to the Friday Zone. These discoveries are located 12 km north of the Friday Zone, which hosts a current NI 43-101 compliant resource of 343,000 oz indicated (11.8 Mt @ 0.90 g/t Au) and 879,000 oz inferred (26.4 Mt @ 1.04 g/t Au) at a 0.5 g/t cut-off along 1,400m of a 5,000m coincident geophysical and gold-in-soil trend.
Key Points:
— Encountered gold-bearing host rocks and structures identical to the
Friday Zone in multiple locations throughout the Deadwood Zone.
— Premium has now made eight gold discoveries along 20 km of the Idaho
Gold Project (“IGP”). Geological similarities between all zones and at
all scales suggest that these zones are related to the same mineralizing
event and, as a result, are potentially connected along trend and at
depth.
— DW2011-1,3,4,5,6 intercepted three separate mineralised zones and
together demonstrate potential continuity along 1.3 km of strike length.
— DW2011-2 discovered a high-grade vein system, intersecting gold-bearing
host rocks identical to those found at the Friday Zone in close
proximity to the historic Grangeville Mine approx. 4 km from DW2011-
1,3,4,5,and 6
“We are very pleased to have confirmed the existence of the regional gold bearing system in multiple locations at Deadwood. The discoveries confirm we are on track with our exploration strategy and provide us with an excellent starting point for follow-up drilling to unlock Deadwood’s potential.” stated Michael Ostenson VP Exploration.
Central Deadwood Discoveries
Drill-holes DW2011-1,3,4,5, and DW2011-6 were spaced over 1.3 km along trend in the central Deadwood Zone on a 12 km long coincident geophysical and gold-in-soil trend. For an updated Plan View Map of Deadwood Zone please click http://bit.ly/DWdrillingnov2011.
Central Intercept #1
DW2011-1: 1.0 g/t gold over 1.8 m as well as
0.3 g/t gold over 3.7 m
DW2011-3: 0.3 g/t gold over 7.0 m as well as
0.5 g/t gold over 4.9 m
The first two holes were collared from the same location with one being drilled west and the second being drilled east in order to locate the preferred structural corridor for gold mineralization. Drilling encountered alternating intervals of older gneiss/schist and granite of the Idaho Batholith.
As with all mineralized zones discovered at the Idaho Gold Project to date, gold mineralization is associated with a low sulfidation system primarily hosted within sheared and brecciated granites of the Idaho Batholith accompanied by sericite alteration, silica flooding and disseminated pyrite.
The granite of the Idaho Batholith is now interpreted as being the preferred host rock for gold mineralization at the IGP. It covers a vast regional extent in central Idaho and also hosts gold mineralization at Midas Gold’s Golden Meadows Project located approximately 90 km due south along a large structural and geological trend coincident with Premium’s Idaho Gold Project.
DW2011-5: Central Intercept #2
DW2011-5: 1.4 g/t gold over 3.1 m within
0.9 g/t gold over 7.6 m within
0.5 g/t gold over 18.0 m as well as
1.2 g/t gold over 4.6 m within
0.8 g/t gold over 10.1 m
DW2011-4,6: Central Intercept #3
DW2011-4: 1.6 g/t gold over 2.7 m within
1.0 g/t gold over 8.5 m within
0.7 g/t gold over 17.1 m within
0.3 g/t gold over 100.9 m
DW2011-6: 0.3 g/t gold over 13.1 m as well as
1.3 g/t gold over 0.9 m
These drill-holes are located 800m to 1,300m, respectively, along trend to the north of DW2011-1 & 3.
The anomalous gold mineralization encountered in DW2011-1,3,4,5, and 6 is interpreted to have intercepted the outer edge of a potentially large zone of mineralization, similar to the anomalous mineralization surrounding the Friday-Petsite resource.
Early on in the development of the Friday-Petsite resource many drill-holes encountered anomalous gold mineralization in very close proximity to higher-grade material within a broad envelope of low grade. The new discoveries along the Deadwood zone may reflect the same type of situation where anomalous gold mineralization is proximal to a much larger zone of mineralization.
Example: Corebox Section 01010 where PZ64 encounters sporadic intercepts of: 2.01 g/t over 9.0 m, 0.67 g/t over 7.62m, and 0.90 g/t over 6 meters. This hole is very close to the Friday-Petsite indicated and inferred resources where drill-holes PFR2010-5, 6, & 21 encountered 0.9 g/t over 267m, 0.5 g/t over 226m, and 1.5 g/t over 330.4m respectively. To view Corebox Section 01010 please click http://bit.ly/CoreboxFP3DModel and click on the “Section” tab.
DW2011-2: Grangeville Vein System Intercept #4
DW2011-2: 4.5 g/t gold over 2.7 m as well as
11.2 g/t gold over 0.6 m within
2.0 g/t gold over 4.6 m as well as
3.5 g/t gold over 0.6 m
This drill-hole was targeted on a potential cross-cutting structural vein system interpreted by geophysics near the historic Grangeville Mine in the eastern portion of the Deadwood Zone. The historic Grangeville Mine was focused on an east-west approximately 10 meter thick sheered and brecciated quartz vein system with historically reported grades of up to 15 g/t gold.
A new vein system was discovered proximal to the Grangeville zone and is interpreted to strike in a parallel east-west orientation. This previously unknown vein system consists of three brecciated quartz veins and demonstrates the potential of these higher grade cross-cutting targets along the Idaho Gold Project.
Cross-cutting east-west vein systems have been historically mined in a number of locations. These vein systems intersect the north-south Orogrande Shear Zone and potentially represent a high-grade component to the main low-grade bulk tonnage target.
Deadwood Zone Follow Up Drilling:
First pass drilling in multiple locations along the Deadwood Zone has revealed a structural environment and gold bearing host rocks identical to the Friday Zone. The key to unlocking the potential to host Friday-like deposits is by predicting the trend of the gold bearing host rocks, structures, and cross-cutting dilatant zones.
Gold bearing structures with cross-cutting dilatant zones are the optimum targets where gold deposition is typically enhanced in both size and grade. The Friday-Petsite resource is interpreted to be hosted within one of these complex structural intersections.
A comprehensive structural study of the Idaho Gold Project has been initiated with the object of relating the gold bearing structures to the airborne geophysics, gold-in-soil trends, and known deposits.
The focus of this work will identify locations of potential dilatant zones and provide information that can be used to guide the remainder of the Company’s 25,000 meter drill program.
Premium’s vision is to discover multiple deposits along its 30 km Idaho Gold Project (180 km2), a re-emerging gold district in Idaho, USA. Approximately 24,000 m have been drilled since the Company’s first program in mid-2009, resulting in 8 gold discoveries along 20 km of strike of the IGP while encountering gold mineralization in 99.9% of all drilling; results are in line with the Company’s objectives.
