Premier Gold Mines has provided an update of ongoing surface drilling at the company's 100%-owned Hasaga Project in the Red Lake gold mining district of Northwestern Ontario including assays of up to 0.94 grams per tonne gold across 305.5 metres.

Hasaga is strategically-located proximal to the Balmer-Confederation unconformity, recognized as an important geologic feature at the multi-million ounce past and currently producing Red Lake area mines.

Premier believes that the Hasaga and Gold Shore Mines, which ceased production in the early 1950’s, have the potential to host gold mineralization that may be amenable to open pit mining methods in addition to higher grade underground mineable mineralization. Current drill targets include the "Porphyry Zone" which hosts the past-producing Hasaga and Howey Gold Mines and the "Central Zone" where drilling has delineated widespread gold mineralization in the Dome Stock granodiorite. Table 1 provides a more comprehensive summary of results from the first 8 holes drilled at the Central Zone target which is considered open in all directions.

Completed assaying in the Central Zone target are reporting significant highlight results including:

Central Zone drilling is currently on the sixteenth hole of the program and widespread, disseminated mineralization has been noted in all holes. Additional assays are pending. An update of assay results from drilling in the Porphyry Zone is expected to be released in the near future.

Premier executive vice-president Stephen McGibbon said: "Several holes drilled in the Central Zone have ended in mineralization, including hole HLD006, the most distant hole drilled to the northeast to have received assay results to date. These early results support our belief that the Central Zone represents a viable open-pit exploration target."

The Hasaga Project covers 677 hectares beside the Town of Red Lake. The Property is located along a regional unconformity that hosts multiple historic mines including Hasaga, Howey and Madsen. The current Phase 1 drill program has been increased to include some 40,000 metres of drilling to test both the Hasaga Porphyry Zone and the Central Zone targets. Figure 1 is a surface plan view of the Central Zone drilling and highlights the widespread gold mineralization recently identified.

The Central Zone Target encompasses a series of conjugate structures occurring within the Dome Stock, a large granitic intrusive unit in the heart of the Red Lake camp. An historic hole drilled in the target area by Lac Minerals in the 1980’s reporting widespread mineralization was never followed up until the current program. The Dome and nearby McKenzie stocks are host to several mines having historic gold production approaching 700,000 ounces.