Prime Meridian Resources Corp.

Prime Meridian Resources Corp.

January 09, 2008 10:00 ET

Prime Meridian Resources Corp.: Copper Mineralization Intersected at Wilson Creek IOCG Project

Winter Drilling of Nickel-Copper Targets Underway in Mid January

CALGARY, ALBERTA--(Marketwire - Jan. 9, 2008) - Prime Meridian Resources Corp (TSX VENTURE:PMR) (FRANKFURT:DYD) ("Prime Meridian") is pleased to provide an update on its activities.

- Drilling has intersected copper mineralization at the Wilson Creek Iron Oxide-Copper-Gold ("IOCG") project;

- drilling will commence in mid January on the TAG and JAKE magmatic nickel-copper targets in the Upper Peninsula of Michigan;

- drilling will commence in February on the Winterfire nickel-copper project in Minnesota.

Prime Meridian initiated the drilling of its portfolio of properties in the Spring of 2007 and plans to continue this drill program during 2008, the current focus being areas which are best accessed during the winter drilling season. The Company is continuing its business model of systematically drill testing a series of projects it has acquired and advanced since 2000, each project having the potential to provide a significant mineral discovery.

Wilson Creek IOCG Project, Michigan

Prime Meridian has completed 4 drill holes on separate targets in the Wilson Creek Project Area, 3 of them being within the Main Grid Area ("MGA"). The MGA covers an area of approximately two miles by three miles. Assay results have been received for 3 of these holes. Copper mineralization, alteration, mineral assemblages and structural features characteristic of IOCG deposits were intersected in all three drill holes within the MGA.

The most encouraging assay results were received from the second drillhole within the MGA, DDH WC-2, which tested a coincident magnetic and electromagnetic response in close proximity to anomalous surface samples.

Interval (ft) Thickness (ft) Cu (%)
------------- -------------- ------
586-592 6 1.25
888-896 8 0.98

This hole was drilled at a 45 degree angle and intercepted bedding and structure at nearly 90 degrees, thus giving approximate true thicknesses. Contained within the intervals above are thin, 2" to 8" thickness of veined, massive chalcopyrite with trace amounts of gold, tungsten, and bismuth and abundant magnetite, hematite fluorite, epidote, K-spar, tourmaline, albite and chlorite alteration, all of which are typically associated with IOCG deposits. Additionally, copper mineralization occurs disseminated at various intervals throughout the hole. The best value is from 603 to 611 feet, 8 feet of 0.045% or 447 ppm copper. Anomalous geochemical values were also received for numerous Light Rare Earth Elements.

The vein-related mineralization present in this hole has been developed within structural zones that have served as conduits to allow the mineralizing fluids to ascend from a source at depth, laterally, or both. These structures are critical to the development of large-tonnage copper deposits when hydrothermal fluids are introduced into favorable environments, which Prime Meridian's previous work has identified to be present at Wilson Creek.

WC-1, testing a magnetic anomaly beneath very large, angular, subcropping mineralized boulders, had several intervals with geochemically anomalous results for copper, gold, tungsten and bismuth, all of which are associated with strongly altered rocks. The best copper values are from 627 to 635 feet, 8 feet of 0.05% or 495ppm copper.

WC-3 was collared to test an electromagnetic anomaly discovered from the airborne surveys and confirmed with ground follow-up geophysical surveys. This hole was not completed to the targeted depth because of the hunting season but will be deepened when the drill testing of the remaining targets at Wilson Creek resumes later in 2008. To date, trace amounts of copper mineralization have been observed in the core from WC-3, however, the targeted geophysical anomaly had not been reached when drilling was halted in November for the hunting season and for drill maintenance.

The other hole, DDH S9-1, located outside of the MGA, did not intercept any significant results.

Within the MGA it is very important to note that Prime Meridian's geological reconnaissance samples from outcrop and subcrop contained anomalous copper-gold-tungsten-flourine mineralization and associated hydrothermal alteration, as seen in the drilling. Values from very large, angular subcropping boulders were 2.69% copper, 0.01 oz/ton gold, 0.41 oz/ton silver, 0.13% tungsten, 0.3% fluorine and 0.02% molybdenum. These analyses are from rock samples of hydrothermal veins in mafic volcanics, the same style of mineralization intersected in DDH WC-2. Additionally, values of 1.03% copper were assayed from rock samples exhibiting a disseminated style of mineralization within the host mafic volcanics, a rock type which represents a favourable environment to form a large tonnage deposit.

In addition to the drilling, ground-based induced polarization, magnetic and electromagnetic surveys were completed in November, 2007. These surveys developed a minimum of four new high priority exploration targets that will be drill tested within the MGA area. These are new geophysical targets relating to the possible existence of a large tonnage copper occurrence and are independent of the nine targets previously defined within the MGA on the basis of Prime Meridian's previous work.

Prime Meridian is encouraged that the IOCG model has been further confirmed as a strong and large system hosting copper mineralization. The drilling and geophysical results combined with Prime Meridian's earlier work have advanced the understanding of the Wilson Creek IOCG project.

Prime Meridian will use the winter drill season to test other projects requiring winter access. The Company plans to continue drilling at Wilson Creek after the spring break up period.

TAG Nickel-Copper Drilling, Michigan

Prime Meridian will use the winter drill season to test targets which are, in several cases, accessible only at this time of year. It will begin its 2008 drill campaign in mid January by drill testing the TAG anomaly.

Prime Meridian acquired lands on its Mid-Stage projects in Michigan earlier this year, based upon interpretations of available government data sets and results from Fugro's Geotem and Geotech's VTEM airborne systems. The TAG target, an anomaly defined in the Geotem surveys as a strong, elliptical magnetic high with coincident EM and a 5 milligal ground gravity peak, is one of the acquired projects and Prime Meridian believes it is a compelling magmatic nickel-copper target. In November, 2007, an induced polarization ("I.P.") survey was conducted over the peak of the coincident magnetic, EM and gravity anomalies. The I.P. data shows a strong chargeability high and resistivity low coincident with magnetic, EM and gravity responses. Prime Meridian believes these anomalies may represent a buried mafic intrusive (peridotite) contained within sulfidic slates of the Michigamme Formation, thus presenting itself as a nickel-copper-PGM target.

JAKE Nickel-Copper Target, Baraga Basin, Michigan

Following the completion of drilling at TAG and to take advantage of winter access, Prime Meridian plans to drill test its JAKE nickel-copper-PGM project located in the Baraga Basin of Michigan. This project is located approximately 12 miles from Rio Tinto's recently permitted Eagle nickel-copper-PGM deposit. Outcrops of this gabbro intrusive were discovered by Prime Meridian in 2000. This dike and sill complex intrudes into the sulfidic slates of the Michigamme Formation along a major Midcontinent Rift structure. Subsequent ground geophysical surveys conducted by Prime Meridian defined this intrusive as a strong magnetic high with EM conductors.

Minimally, three additional nickel-copper targets in the Baraga Basin are planned for testing after the winter drilling at Winterfire (described below). All of these are high priority, coincident, magnetic, EM and gravity targets and two of these are within 3 miles of the Eagle Deposit.

Winterfire, Minnesota

Prime Meridian has received the interpretations and selected drill targets from the flying of GEOTECH's VTEM magnetic / electromagnetic system over the Winterfire nickel-copper project area. During the 1970s a series of drill holes intersected nickel-copper-PGM-gold mineralization over a 400m strike length at Winterfire. Prime Meridian has acquired all lands containing this discovery as well as additional lands covering newly developed targets from these surveys.

Prime Meridian will mobilize the drill rig to Winterfire during February to take advantage of winter access.

Other News

Prime Meridian is also pleased to announce that it will be attending the Prospectors and Developers Convention in Toronto as an exhibitor during March, 2008. We will be located at Booth # 2205 in the Investors Exchange Hall and extend an invitation to visit to anyone interested in our programs.

Prime Meridian Resources Corp. is a Canadian exploration company focused on projects it has developed since 2000 within the Midcontinent Rift System in Michigan and Minnesota. This rift system consists of deep-seated structures and act as conduits permitting the intrusion of mantle-derived magmas (mafic and felsic) and permit the development of magmatic nickel-copper and IOCG mineralization. Prime Meridian is continuing its drilling and the exploration of projects it has developed with the goal of achieving a discovery in an area that has historically produced large and valuable base and precious metal mines.

Prime Meridian Resources Corp.

Michael J. Senn, President and CEO

Prime Meridian Resources Corp. is a Canadian exploration company focused on the Midcontinent Rift system in Michigan and Minnesota.

Michael Senn, P.Geol, President of Prime Meridian and a "qualified person" as defined by National Instrument 43-101, prepared the information in this release. Detailed information on the projects described above can be accessed in NI43-101 reports available at

Certain disclosures in this release, including management's assessment of Prime Meridian's plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Prime Meridian's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Prime Meridian expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

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