Premium Exploration Inc.
TSX VENTURE : PEM
OTCQX : PMMEF

Premium Exploration Inc.

October 03, 2012 11:23 ET

Premium Exploration: 1.88 g/t Au Over 32 Meters in Historic Drilling 1.0 km From Friday Resource

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 3, 2012) - Premium Exploration Inc. (TSX VENTURE:PEM)(OTCQX:PMMEF) ("Premium" or the "Company") is pleased to announce it located and reviewed historic exploration reports with drill results, geological logs, and core photos from the historic target known as the Petsite Stock at the 30 km long Idaho Gold Project.

The Petsite Stock is 1.0 km south of the 1.7 km mineralized Friday footprint, host to the Friday-Petsite gold resource. The Friday-Petsite resource is located along 1.0 km of the 1.7 km mineralized footprint which is the target of an upcoming infill program at the Idaho Gold Project (IGP).

The reports identify lithology (Idaho Batholith), alteration, structure, and gold mineralization consistent with the Friday-Petsite resource beyond the 1.7 km mineralized Friday footprint, demonstrating the resource and the mineralized zone's additional growth potential. The Petsite Stock is located along the Friday Zone and correlates with all coincident geological data that identifies the 5 km potentially mineralized target.

Highlights:

  • 1.88 g/t Au over 32 meters was encountered in historic RC drill-hole 89-7. DH 89-7 was drilled to a depth of 375 ft (114.3 m) and terminated in mineralization. Previous operators stopped the drill-hole as the quartz vein target was not intersected. DH 89-7 is located 1.7 km south from the Friday-Petsite resource. The Friday-Petsite resource hosts 629,000 oz Au indicated (21.5 Mt averaging 0.91 g/t Au) and 146,000 oz Au inferred (5.9 Mt averaging 0.77 g/t Au) along 1.0 km of strike.
  • The lithology of the RC drilling was difficult to identify due to the nature of the cuttings, however, lithology, mineralization, and alteration consistent with the Friday-Petsite resource was identified in geological logs and recognized in core pictures of historic core holes such as drill-hole 91-2. DH 91-2 was located 50 m west of RC drill-hole 89-7 and not being the target lithology, was not assayed.
  • Premium has drilled nine gold discoveries along a 20 km portion of the 30 km IGP with the Idaho Batholith interpreted as being the preferred host rock for gold mineralization along the contiguous Buffalo Gulch, Deadwood, Monday, and Friday mineralized Zones. 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.
  • Permitting has been initiated to follow up on the historic drilling and permits are pending.

Click here for a map of the Friday Zone: http://bit.ly/FP_Growth-Petsite_Stock

Click here for a map of the Idaho Gold Project: http://bit.ly/IGP_Zones_Map

Two reports obtained by Premium contain geological logs and assays for historic drilling conducted in 1989 and 1991 by Allotta Resources and Idaho Consolidated Metals Corporation. The drill programs were targeting anomalous gold mineralization associated with the Petsite Stock, an interpreted 0.5 km diameter eocene aged rhyolitic quartz-eye porphyry which has intruded the Idaho Batholith and is intersected by cross-cutting quartz veins. The Petsite Stock and drill-holes 89-7 and 91-2 are reportedly located approximately 1.0 km south of drill hole PFR2011-18, the southern-most hole drilled by Premium to date.

The target of the historic drilling was quartz-vein hosted gold mineralization with the largest vein known as the Petsite vein within the Petsite Stock. This rich vein was developed by a ~450 foot long adit known as the Waligura Tunnel and is reported to consist of chalcopyrite, pyrite, molybdenite, petzite, tetradymite, wolframite and scheelite. A 2,355 pound concentrate sample reportedly created from ore mined out of the Waligura Tunnel was shipped to the Tacoma smelter in 1942, and contained 17.498 troy ounces of gold and 6.12 troy ounces of silver.

During the course of the historic core drill program, lithology, alteration, and sulfide mineralization similar to the Friday-Petsite deposit were encountered adjacent to the stock. Not being the target lithology, it was not commonly assayed. It is encouraging that drill hole 89-7, located only 50 m east, was assayed and returned gold mineralization however the lithology associated with this mineralization is unknown.

The historic drilling done in and around the Petsite stock sits along strike and within the 5.0 km Friday Zone target, which consists of coincident geophysics, gold-in-soils, drilling, mapping and sampling.

While the historical information referred to in this press release does not specify an estimated resource, we still note that a qualified person has not done sufficient work to classify the information as current and the Company is not treating this information as current.

1989 Searchlight RC Drill Program

Nine reverse circulation holes totalling 3,350 feet were drilled on the Petsite property by Searchlight Consultants Inc (SCI) for Idaho Consolidated Metals Corporation and all drill-holes encountered anomalous gold mineralization. The holes were located in the area of Waligura Tunnel and were designed to determine both the style and grade of precious metals mineralization associated with the rhyolite stock along with the down-dip extension of the Petsite quartz vein along the northern contact of the intrusion.

The reverse circulation holes tested the Petsite vein system over a strike length of 500 feet and to a depth of approximately 340 feet. Based on the results obtained during this drilling program, the vein system was estimated to dip steeply to the north, strike 85 degrees, and increase in width down dip. The drilling was successful in delineating siliceous, sulphide rich zones depth, but due to the nature of the cuttings, the host rock was unable to be established with certainty. The northerly contact zone between the granodiorite of the Idaho Batholith and the rhyolite of the Petsite stock was also elevated in gold with values up to 4200 ppb (0.122 troy oz/ton).

1991 Searchlight Core Drilling Program

The results of the RC drill program were encouraging enough to warrant a follow up diamond drill program. Searchlight Consultants was again requested by Idaho Consolidated Metal to conduct the drilling and completed three drill holes in 1,325 feet of HQ core.

Drilling was focused on the abovementioned Petsite vein and the Idaho Batholith / Petsite Stock contact with anomalous gold mineralization of up to 2.94 g/t Au being intersected.

Sampling was extremely limited. Less than 10% of the core was sampled with only sulfide rich quartz veining being assayed. The low-sulfidation sericite-altered granodiorite of the Idaho Batholith, which the Friday-Petsite resource is hosted within, was not sampled. Detailed geological logging was done on the core and significant intervals of Premium Exploration's primary Friday Zone target; altered granodiorite, were intersected.

Exploration Drill Plan

The Friday-Petsite resource is hosted along 1.0 km of the 5.0 km Friday Zone target and remains open along strike and depth. Step-out drilling in 2011 extended the zone of mineralization to 1.7 km and is the target of a planned infill program while the Petsite Stock is located an additional 1.0 km to the south.

Premium Exploration is currently in the process of permitting drill holes along the interpreted southerly extension of the currently mineralized 1.7 km Friday Zone. Widely spaced drill holes are planned for the interpreted 1.0 km extension of the Friday Zone to the Petsite-Stock, within and around the interpreted 0.5 km stock, and an additional 0.8 km along strike to the south of the stock.

NI 43-101

This release and associated maps include a listing of resources for the Friday-Petsite deposit, which are described with further detail in the Company's current technical report (the "Technical Report") on the Idaho Gold Project dated effective as of May 31, 2012 with a report date of August 15, 2012, and filed on SEDAR on August 16, 2012. The Technical Report was prepared for the Company in accordance with National Instrument 43-101 ("NI 43-101") by Mr. Ronald Simpson, P.Geo., President of Geosim Services Inc., a "Qualified Person" who is independent from the Company under NI 43-101.

Qualified Person

The 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 is focused on the exploration and development of its district-sized Orogrande Shear Zone "OSZ" to fulfill its vision of developing a new mining district in North America. The OSZ is a 30 km-plus regionally-significant trending structure that correlates with multiple known zones of mineralization and has structural control to its gold mineralization, characteristics similar to many large gold belts, such as the Carlin Trend of Nevada. Development is ongoing at the bulk-tonnage Friday-Petsite deposit, the most advanced of several known mineralized zones located along the OSZ and represents 4% of the OSZ under Premium's control. 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 under the Company's profile on www.sedar.com in accordance with the policies and requirements of the TSX Venture Exchange and applicable securities law. 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. There are no assurances that the Company can fulfill such Forward-Looking Statements and the Company undertakes no obligation to update 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.

Contact Information