Vancouver, British Columbia, Canada, May 15, 2009 --(PR.com
)-- Premium Exploration, Inc., (TSX-V:PEM) (”Premium”) is pleased to announce it has signed a contract for minor road development to access new drill sites for the Phase-One High-Grade Gold Drill Program at the Friday-Petsite drill target in Idaho, USA. Premium also welcomes Mike Ostenson, an experienced gold, platinum and palladium exploration geologist to Premium’s geological team.
Highlights from historic drilling at the high-grade zone:
PC010: 26.92 g/t Au over 6.1 meters
PC008: 29.02 g/t Au over 3.05 meters
BFD31: 8.29 g/t Au over 13 meters true width
The new road will provide access to the majority of a historic 4,000-foot, gold in soil geochemical anomaly that extends south from the Friday-Petsite NI 43-101 compliant resource. The compliant 531,890 oz Inferred gold Resource is contained in 15.18 million tonnes at an average grade of 1.1 g/t Au. Please go to http://www.premiumexploration.com/wp-content/uploads/2008/05/fp-historic-drill-geochem.pdf to view a new map of the zone.
The majority of the geochemical anomaly is yet to be drilled due to low gold prices during the 1990’s, approximately $340/oz, when the property was in possession of previous operators.
The Phase-One 800-Metre Drill Program is designed to further delineate the high-grade component of the resource and to provide geotechnical data on the high-grade zone, as well as the hanging wall and footwall. Mineralization strikes North-South and is steeply dipping with exposure at the surface in an historic open cut.
It is anticipated that the drilling will provide sufficient geological data for Premium to investigate the possibility of accessing the high-grade portion of the resource through the development of a small underground mine. Metallurgical test work will be conducted on representative drill core to establish parameters for extraction of the gold and future pilot plant development.
Due to late and heavy snowfall, drilling is anticipated to commence in June 2009.
Permitting of the open-pit heap leach mine on the Buffalo Gulch project is continuing, with a planned increase in permitting activity this summer.
“I am thrilled to be coming on board with the Premium Exploration team. The properties on the Orogrande Shear Zone in Idaho hold considerable potential in both near-term gold production and immediate resource growth with a small, well-placed drill program. The mineralization associated with the Shear Zone on the Friday-Petsite property is open at depth and may hold high-grade gold potential not unlike many Carlin-Type deposits in Nevada. It will be very exciting to test this theory and I look forward to being a part of this project.” states Mike Ostenson.
With both Friday-Petsite and Buffalo Gulch slated for drill testing in upcoming and future exploration programs, Mr. Ostenson provides considerable expertise as he had supervised successful drill programs at both properties for a previous operator.
Mr. Ostenson also brings mining and mine development expertise from his experience as a platinum and palladium geologist for six years in the Stillwater Complex, Montana, USA, including experience with Stillwater Mining Company as an Ore Grade Control Geologist and as a Gold Mine Geologist with AngloGold Corp at its Jerritt Canyon Mine in Elko, Nevada, USA.
“Premium is benefiting from significant exploration expenditures on properties by previous operators on the Orogrande Shear Zone. The historic exploration has defined gold resources and provided an indication of the area’s potential, which the Company will further develop. Premium is conducting exploration on advanced gold projects in North America and with the addition of Mike Ostensen to the team, Premium is also building an experienced, well respected geologic team to rapidly advance the Orogrande Shear Zone and rejuvenate a historic mining district.” states Wilf Struck, CEO.
Mr. Wilf Struck, P.Eng., CEO of Premium Exploration Inc, is the Qualified Person (”QP”) responsible for the technical disclosure in this press release, in accordance with National Instrument 43-101.
About Premium Exploration, Inc.
Premium Exploration Inc. (TSX-V:PEM) is an explorer and developer of precious metals projects with significant potential for near-term production and growth. Our projects are located in the USA and Mexico; stable regions where we have a history of success. Our team is committed to unlocking mineral wealth for our shareholders by discovering, developing and permitting our precious metals assets to production. The Company’s portfolio includes one of the largest land packages in Idaho with two potential near-term gold production assets, a PGM exploration project in Montana, and a past-producing silver project in Mexico. For additional information, please visit them at http://www.premiumexploration.com.