VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/29/11 -- Premium Exploration Inc. (TSX VENTURE: PEM) ("Premium" or the "Company") is pleased to announce two drills are turning at the company's 100% owned Idaho Gold Project located in the Central Idaho USA. Five zones of mineralization are known within the 30 km of potentially mineralized structure identified by geophysics, with less than 1% of the anomaly drill tested to date.
The primary focus of the Phase-Four drill program is to demonstrate the district size potential of the Idaho Gold Project by discovering and delineating new zones of mineralization: the Friday Zone currently hosts a resource of 343,000 Indicated and 879,000 oz Inferred ounces(i). In addition, the Buffalo Gulch, Deadwood, Monday, and "X" Zones and the newly identified 15 km structure demonstrate the potential for additional deposits.
Key Objectives for Phase-Four Exploration include:
- + 25,000 meters of diamond drilling with a two-fold strategy:
15,000 m: Discover new gold zones at Buffalo Gulch, Deadwood, and "X"
Zones by drill testing defined coincident geophysical and
geochemical anomalies; Expand and define the geometry of the
Monday Discovery
10,000 m: Step-out drilling to expand and define the geometry of the
Friday-Petsite deposit; Infill drilling for resource
expansion and category upgrade
- Gradient array IP geophysics to refine drill targets over key areas
- Up to 10,000 soil samples to further refine geophysical anomalies
- +100 drill sites proposed and permitted along the 30 km for maximum
flexibility
"Our goal is to ultimately develop a district with multiple near-surface gold resources along our +30 km property," stated Del Steiner, President & CEO.
"Our strategy of drilling structures identified by geophysics has led to 3 gold discoveries and significant resource development. With less than 1% of the geophysical anomalies on the property being systematically drilled to date, Phase-Four offers an excellent opportunity to potentially create significant shareholder value in 2011."
One drill is located at the Friday Zone where major step-out with some infill drilling is planned. The second drill is at the Buffalo Gulch Zone testing an extraordinary anomaly at depth identified by the IP geophysics.
Two additional drills are contracted to arrive in June when the majority of the drill permits are anticipated to be received. Drilling will target numerous coincident geophysical and gold-in-soil anomalies along the Idaho Gold Project in an effort to discover and delineate new discoveries. Please click http://bit.ly/Phase4_Drilling for the Phase-4 Proposed Plan Map; http://bit.ly/FP_MN_Proposed for a proposed drill plan map focused on the Friday & Monday Zones and http://bit.ly/BG_DW__Proposed for a proposed drill plan focused on the Buffalo Gulch and Deadwood Proposed Drill Plan Maps. Please click http://bit.ly/IGP_Zones for a map of all the Idaho Gold Project Zones.
New 15 Km Structure
Additional airborne geophysics reveals another 15 km geophysical anomaly potentially outlining 15 km of mineralized structure. Premium previously announced staking an additional 328 claims to control the priority zone when the 2010 soil sampling revealed coincident gold mineralization along 1.0 km of the structure and will be followed up with drilling in Phase-Four.
The Phase-Four budget is currently $7.0M for the 25,000 meter program. Premium believes that sufficient resources are available to complete the Phase-Four drill program.
(i) The Friday-Petsite deposit hosts 343,000 Indicated oz Au (11.8 Mt @ 0.90 g/t Au with 0.5 g/t Au cut-off) and 879,000 Inferred oz (26.4 Mt @ 1.04 g/t Au with 0.5 g/t Au cut-off) and remains open.
For an updated Block Model of the recently released resource estimate on www.Corebox.Net, please click http://bit.ly/Corebox_Block_Model_FP.
Quality Assurance
The Company has implemented a rigorous QA/QC program using best industry practices at the Friday-Petsite Property. As described in the Company's News Releases of July 9th, 2009 and December 29th, 2009 the program includes chain of custody of samples, drill core sawn in half and shipped in sealed bags, blind duplicates, blank samples and certified standards are inserted in the sample stream. The samples are then boxed and couriered to Acme Analytical Laboratories of Vancouver, B.C. a lab certified for the provision of assays and geochemical analyses (ISO 9001:2008). In Phase-Three, as with Phase-Two and Phase-One, samples with gold values greater than 10 g/t are re-analyzed via the metallic screen procedure. Samples with visible gold were also analyzed initially using the metallic screen analysis, as were the samples immediately preceding and following the sample with visible gold. ALS Chemex is the check laboratory for the program.
Qualified Person
The 2010 Phase-Four exploration program is being directed by Michael Ostenson, P.Geo., VP Exploration of Premium Exploration Inc. Mr. Ostenson is a Qualified Person as defined by NI 43-101. Mr. Ostenson prepared, and approves of the content in this release.
About Premium Exploration Inc.
Premium Exploration Inc. (TSX VENTURE: PEM) is focused on gold exploration at its district-sized land package along the Orogrande Shear Zone ("OSZ") in North-Central Idaho, USA; the 4th largest gold producing country in the world. The "OSZ" is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization and similar to many large gold belts, like the Carlin Trend in Nevada. Armed with a proven exploration strategy, advancing gold resources, and 30 Km of drill-ready targets, Premium is well positioned to create shareholder value through exploration and the development of this emerging gold district. For additional information, please visit us at www.premiumexploration.com.
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.
Contacts:
Premium Exploration Inc.
Mr. Del Steiner
President & Chief Executive Officer
(604) 682-0243
(604) 682-2499 (FAX)
dsteiner@premiumexploration.com /info@premiumexploration.com
www.premiumexploration.com
Opes Capital Inc.
Ms. Christine Kopr
Corporate Communications
(604) 682-0243
(604) 682-2499 (FAX)
ckopr@opescapitalinc.com
www.opescapitalinc.com
