Premium Exploration Inc.
TSX VENTURE : PEM

Premium Exploration Inc.

July 06, 2011 16:00 ET

Premium Exploration: Correction From Source and Step-Out Drilling Extends Gold Resource Zone by 15% in Ongoing 25,000 m Drill Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 6, 2011) - Premium Exploration Inc. (TSX VENTURE:PEM) ("Premium" or "the Company") is making gold discoveries. The Company's goal is to discover multiple deposits along its 30 km property, an emerging gold district in Idaho, USA.

The following corrects previous news release dated May 31, 2011. Drill-holes PFR2011-1 and PFR2011-2 were reported to be drilled 100 m along strike south of the Lower Block of the Main Zone. The correct distance is 25 m.

The Company is pleased to announce the following highlights of the 25,000 m Drill Program:

  • Extended the Main Zone/Lower Block strike length south, by 115 m to 915 m, a 15% increase since Phase-Four
  • Friday Fault located at the north-end of the Main Zone, guiding step-outs north along strike
  • Drill highlights include PFR2011_5: 1.0 g/t gold over 40.5 m within 0.4 g/t gold over 267.0 m
  • Three drills are acitve on the property; two drills in the highly prospective Deadwood Zone
  • 2,348.8 m (9%) have been reported while 5,445.9 m (22%) have been drilled to date of the 25,000 m program

"343,000 indicated gold oz and 780,000 inferred gold oz are hosted within the 800 meter strike length of the Main Resource Zone. The 15% increase in the strike length of the Main Zone to the south and the successful location of the target to guide step-outs to the north, demonstrates the additional size potential of the deposit along strike," stated Michael Ostenson, P.GEO., VP Exploration.

"Two drills led to four discoveries in Phase-Three: The expansion to three drills along the 30 km gold district increases Premium's ability to aggressively pursue making more new discoveries while step-out drilling along the Friday deposit."

Friday-Petsite Step-Out Drilling South – Main Resource Zone:

  • PFR2011-4 intersected 1.0 g/t gold over 10.0 m within 0.4 g/t gold over 77.1 m
  • PFR2011-5 intersected 1.0 g/t gold over 40.5 m within 0.4 g/t gold over 267.0 m

Both drill-holes were step-outs drilled east as a fan from the same collar. Both encountered gold mineralization consistent with the Friday-Petsite resource, intersected the Friday Fault, and terminated in country rock.PFR2011-4 was drilled to a depth of 286.82 m and PFR2011-5 to a depth of 320.04 m.

This drilling extends the strike length of the Main Zone/Lower Block 115 meters south, for a total Lower Block strike length of 915 m, a 15% increase and demonstrates the additional size potential of the deposit along strike.

The results also exhibit mineralization along the first 115 m of the 2.5 km of potential additional strike length indentified by geophysics and gold-in-soils. Premium is currently taking broad step-outs to the north and south to test this potential and delineate the true mineralized footprint of the Friday-Petsite deposit as it remains open along strike and depth.

The Main Zone of the Friday-Petsite NI 43-101 resource contains; 343,000 indicated oz in 11.8 Mt grading 0.90 g/t Au (0.5 g/t cut-off) and 780,000 inferred oz in 22.5 Mt grading 1.08 g/t Au (0.5 g/t cut-off) and is associated with the Friday Fault.

Drill-Hole Zone From (m) To (m) Interval (m) Au g/t
PFR2011-4 Friday 0.0 77.1 77.1 0.4
67.1 77.1 10.0 1.0
PFR2011-5 Friday 0.0 267.0 267.0 0.4
226.5 267.0 40.5 1.0

*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 estimate to be 50-75% of the drilled interval.

Friday-Petsite Drilling North – Main Resource Zone:

Both PFR2011-3 and PFR2011-6 were exploration holes drilled from the same collar at the north-end of the Main Zone/Lower Block. PFR2011-3 was drilled east and PFR2011-6 was drilled west to investigate the direction of the Friday Fault structure north to see if it continued north along the Crooked River and/or splayed north-northwest towards the historic Orogrande Frisco Pit.

Mineralization associated with the North Zone was previously interpreted to be a splay. Results from both PFR2011-3 and 6 revealed the main Friday Fault structure trends north-northwest toward the historic Orogrande Frisco Pit* and remains open along strike and depth.

  • PFR2011-6 intercepted 1.1 g/t gold over 12.2 m within of 0.8 g/t gold over 28.4 m
  • PFR2011-3 did not encounter significant mineralization

PFR2011-6 was drilled to a depth of 341.4 meters and successfully located the Friday Fault and encountered gold mineralization consistent with the Main Zone. These results were used to guide step-out drill-holes PFR2011-8 and PFR2011-10 north-northwest along strike beneath the North Zone.

PFR2011-3 was drilled to a depth of 422.9 meters and did not encounter the Friday Fault or significant mineralization, demonstrating the Friday Fault does not continue north and trends north-northwest.

Drill-Hole Zone From (m) To (m) Interval (m) Au g/t
PFR2011-6 Friday 148.7 177.1 28.4 0.8
150.6 162.8 12.2 1.1

*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 estimate to be 20-30% of the drilled interval.

To view Plan Maps and Sections, please click: http://bit.ly/PFR2011_4_5XSection, http://bit.ly/PFR2011_3_6_XSec, http://bit.ly/IGP_FP_Zone_Long-Sec, http://bit.ly/IGP_FP_Zone_Drilling, http://bit.ly/IGP_Phase4_Drilling, or visit Corebox by clicking: http://bit.ly/CoreboxFP3DModel.

Exploration Update – Drilling Commences in Deadwood Zone

  • Third drill in operation
  • Drill #1: Step-out drill-hole PFR2011-12 in progress
  • Drill #2: Drill-hole DW2011-1 In progress
  • Drill #3: Drill-hole DW2011-2 In progress
  • 2,348.8 m (9%) has been reported and 5,445.9 m (22%) has been drilled to date of the 25,000 m program

The third drill has arrived and two drills are located in the Deadwood Zone. The Deadwood Zone is located between the Buffalo Gulch Zone and the Friday and Monday Zone to the south along the Idaho Gold Project.

A 12 km gold-in-soil trend extends along the Buffalo Gulch and Deadwood Zones and correlates with the 30 km Orogrande Shear Zone, a regional structure identified by geophysics. There are numerous additional gold-in-soil anomalies that correlate with numerous cross-cutting structures, historic mines, and prospects throughout the 35 km2 Deadwood Zone.

DW2011-1 is located along the western side of the Orogrande Shear Zone structure interpreted by airborne geophysics and correlating gold-in-soil anomalies. There also a historic mine known as the Black Lady located 500 m southwest of DW2011-1 along the regional structure.

DW2011-2 is located on the east side of the Deadwood Zone and is targeted on a cross-cutting structure interpreted by airborne geophysics and also hosts the historic Grangeville Mine.

Premium's strategy of drilling structures identified by geophysics with correlating gold-in-soil anomalies has led to:

  • Four discoveries along the 30 km property in under 15,000 meters of drilling
  • Increased the Friday-Petsite resource from 549,000 inferred oz in 15 Mt grading 1.1 g/t Au (0.5 g/t Au cut-off) to 343,000 indicated oz in 11.8 Mt grading 0.90 g/t Au (0.5 g/t cut-off) and 879,000 inferred oz in 26.4 Mt grading 1.04 g/t Au (0.5 g/t cut-off) in 10,000 meters of drilling

NI 43-101

Premium's current NI 43-101 on the Friday-Petsite Zone along the Company's Idaho Gold Project, was prepared for Premium by Mark I. Pfau, MSc. of Tellurian Exploration, Inc. Mr. Pfau is an Independent Qualified Person as defined under NI 43-101. The technical report has an effective date of March 28, 2011 and was filed on SEDAR on May 12, 2011

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 Idaho Gold Project along the Orogrande Shear Zone in North-Central Idaho, USA. The "OSZ" is a +30 km regionally-significant trending structure with multiple known zones of gold mineralization, 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.

Contact Information