Premium Exploration Inc.
TSX VENTURE : PEM
OTCQX : PMMEF

Premium Exploration Inc.

April 24, 2012 13:23 ET

Premium Exploration Completes District-Wide Structural Study and Reports Final 2011 Exploration Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 24, 2012) - Premium Exploration Inc. (TSX VENTURE:PEM)(OTCQX:PMMEF) ("Premium" or the "Company") is pleased to announce that it has completed a district-wide structural report on the Idaho Gold Project. In addition, the Company reports assays from the final three, 2011 reconnaissance core holes, and surface grab sample results from the recently acquired Deadwood Patented claims located along the 180 km2 Idaho Gold Project ("IGP").

Results of the completed structural study on the exploration drill-holes in the Deadwood Zone, and definition drill-holes from the Friday Zone, has confirmed strong structural control on at least 12 km of the 30 km long gold mineralized system on the Idaho Gold Project.

Premium is currently preparing the 2012 drill program to complete the 15,000 metre balance of the Phase-Four Exploration program. The structural mapping of the drill-holes correlates to geophysical and gold-in-soil anomalies and has guided the selection of the priority drill targets for 2012.

Key Drill Results:

SD2011-1: 0.25 g/t Au over 13.6 m within 0.14 g/t Au over 113.4 m

SD2011-2: 0.12 g/t Au over 10.1 m as well as 1.64 g/t Au over 0.9 m

SD2011-3: 3.38 g/t Au over 0.9

Surface Grab Sample Results:

Sample# Au g/t Sample# Au g/t
151010 31.34 151016 0.15
151011 18.12 151017 41.86
151012 16.88 151018 1.92
151014 18.43 151019 0.35
151015 1.34 151020 1.21

Key Points

  • All three holes intercepted anomalous gold mineralization consistent with bulk-tonnage style mineralization, identified the 9th gold zone along the IGP, and continue to confirm Premium's geological model for at least 12 km of the 30 km IGP.
  • Drilling targeted a 400 metre portion of the 12 km gold-in-soil anomaly that trends through the Deadwood and Buffalo Gulch Zones and correlates with the 30 km Orogrande Shear structure.
  • Deadwood drill-holes exhibit similar geology, structure, alteration, and sulphide mineralisation characteristic of the Friday Zone which hosts the Friday-Petsite deposit located 12 km to the south.
  • Future drilling will focus on the result of a detailed structural study to outline the size and geometry of the potential mineralised system on both the bulk-tonnage and quartz vein targets throughout the IGP.
  • Surface grab sampling returned results consistent with the bulk-tonnage target as well as high-grade results up to 41.86 g/t Au associated with a recently discovered, non-drill tested, quartz vein swarm located immediately west of the drill-holes reported in this release.
  • Premium continues to encounter anomalous gold mineralisation in 99.9% of all its drilling; all mineralised zones are linked by the 30 km geophysical anomaly with co-incident 16 km gold-in-soil anomalies.

Drill Summary:

SD2011-1, 2, & 3 were spaced along 400 m of strike length on the north-south trending Orogrande Sheer Zone structure. All three holes were drilled in either an east or west direction with a 50-60 degree dip to a maximum down-hole depth of 370 metres. The Orogrande Shear Zone is characterised by structurally controlled sulphide gold mineralization and is interpreted to be steeply dipping with widths up to 1.0 kilometre. The results confirm the lateral and vertical continuity of the Orogrande Shear structure.

The Orogrande Shear Zone is comprised of hydrothermally altered granites, gneisses, and schists carrying abundant sericite, clay and pyrite. These observations along with coincident geophysics and gold-in-soils have helped focus the Phase-Four drill plan and provide priority drill targets.

The anomalous gold mineralization in the first-pass drilling may suggest proximity to a zone of higher grade material similar to early drilling on the Friday-Petsite deposit where drilling first encountered a zone of anomalous low grade mineralization which upon further drilling and understanding of the geology was determined to be an envelope surrounding a zone of higher grade mineralization.

These three drill-holes are the final holes drilled in 2011. 10,888 meters of the 25,000 metre Phase-Four Program was completed in 2011, the balance of which is anticipated to be completed in 2012.

Drill-Hole Zone From
(m)
To
(m)
Interval
(m)
Au g/t
SD2011-1 Deadwood 167.8 181.4 13.6 0.25
within 75.3 188.7 113.4 0.14
SD2011-2 Deadwood 257.3 267.3 10.1 0.12
as well as 426.1 427.0 0.9 1.64
SD2011-3 Deadwood 62.5 63.4 0.9 3.38
*The gold grade calculation is a weighted mean with no top cut and no bottom cut. The grade calculation includes internal waste and low grade sections. True Widths are unknown at this time.

For a Plan Map of both drill and sampling results please click: http://bit.ly/DWResults04242012

Grab Sampling Summary:

Grab sampling results reported in this release are follow up on results previously reported October 12th, 2011 that returned up to 54 g/t Au and revealed an east-west high grade cross-cutting quartz vein swarm intersecting the interpreted north-south disseminated lower-grade bulk tonnage system within the Deadwood Patented Claims.

At least 8 high-grade east-west vein systems along a 7 km segment of the +30 km Orogrande Shear Zone within the Deadwood Zone with historically reported grades of over 1 oz/ton have been identified and never drilled to date. This ongoing exploration, including grab sampling and future mapping, is an effort to define and tie the quartz veins together along strike and to guide drilling planned for 2012.

Future drilling will be oriented in a north-south direction to test the width of the vein system where it intersects the north-south bulk-tonnage system of the Orogrande Sheer Zone. Drilling will also be conducted along strike and depth of the veins to the west of the main OSZ structure to test for lateral continuity.

The cross-cutting quartz vein system is interpreted to be a dilatant zone where gold deposition is typically enhanced in both size and grade potentially upgrading low grade bulk tonnage style mineralization.

Quartz veins mapped are up to 1.0 metre in thickness may potentially have over a kilometer of strike length. A number of these high-grade quartz veins have been historically mined. Historical mining exploited the shallow oxide portions of the veins, leaving the sulphide portion of the vein open to depth.

Grab samples were taken from multiple quartz veins and surrounding sheared and altered country rock with up to 5% pyrite occurring as disseminated and in veinlets.

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 Project, 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 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.

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