Premium Exploration Completes Phase-One Drill Program and Extends Strike Length at Friday Petsite Gold Project, Idaho
PREMIUM EXPLORATION INC PEM
7/9/2009 2:12:04 PM
Jul 09, 2009 (TheNewswire.ca via COMTEX News Network) --
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VANCOUVER, BRITISH COLUMBIA (July 9, 2009) - Premium Exploration Inc. (TSX-V:PEM) ("Premium" or the "Company") is pleased to announce the completion of the Phase One - Seven hole drill program that has successfully extended the strike length of the Orogrande Shear Zone by 175 meters (574 feet) at it's Friday-Petsite gold project in central Idaho, USA.
The drill program consisted of seven HQ core holes drilled to a maximum down-hole depth of 153 meters (502 feet). The drill program was completed ahead of schedule, despite inclement weather and muddy conditions making drill moves difficult. Total footage drilled was 853.4 meters (2800 feet) which was an increase of 6.7 % (53.4 meters) over the original scheduled footage, while the direct drilling cost was 7.3% less than the budget estimate. Please click premiumexploration.com for a map of the completed drill program.
Premium commends West-Core Drilling, LLC of Elko, Nevada for their professional staff and high quality, well maintained equipment, which enabled the company to complete the program ahead of schedule and under budget.
The program was designed to test continuity of the Orogrande Shear Zone (OSZ) along strike to the north and south of the existing resource and to provide minor in-fill drilling for information which will be used to re-assess the NI 43-101 compliant resource. The data from this program will likely upgrade a significant portion of the resource.
The geologic model as developed by Premium geologists and consultants predicted continuity of the OSZ to the north and south with a steep easterly dip to the mineralization as opposed to a westerly dip inferred by previous operators.
Drilling confirmed a steep easterly dip (approximately 65-75 degrees) and intersected the OSZ to the north of the main zone of mineralization in drill hole PFR2009-3 and most importantly intersected the OSZ south of Quartz Creek in holes PFR2009-6 7, which is south of the main zone of mineralization.
Drill hole location, azimuth, dip and total depth, are listed in the following table:
Hole E_NAD83 N_NAD83 Elevation (m) Azimuth Dip Total Depth (Ft) Total Depth (m)
PFR2009_1 613550.84 5062241.95 1428.21 263.0 -65.2 502.00 153.01
PFR2009_2 613562.68 5062283.21 1420.30 270.3 -64.3 405.00 123.44
PFR2009_3 613555.58 5062319.40 1408.17 270.9 -64.6 392.00 119.48
PFR2009_4 613541.22 5062017.31 1407.39 268.1 -79.8 484.00 147.52
PFR2009_5 613550.92 5062179.41 1447.53 265.6 -66.1 451.00 137.46
PFR2009_6 613583.25 5061948.73 1427.12 273.1 -70.6 247.00 75.29
PFR2009_7 613583.25 5061948.73 1427.12 0.0 -90.0 319.00 97.23
Drill holes PFR2009-6 and PFR2009-7 (located south of Quartz Creek) intersected intensely sheared and altered Muscovite-Sericite Schist with associated sulphides indicative of OSZ mineralization as found in the main zone of mineralization. The two drill holes were drilled in the same location with one having a -65 degree dip and the other a -90 degree dip. With this geometry, a true easterly dip of 75 degrees has been confirmed.
These two holes also extend the strike length of the OSZ by 100 meters to the south and are located on the north end of a1200 meter (4,000 foot) gold in soil geochemical anomaly. This confirms the probability that the anomaly is likely related to the continuation of the OSZ to the south. Additional drilling planned for Phase 2 will be designed to delineate the continuity of the mineralization associated with the OSZ to the south of the main zone.
PFR2009-3, the northern-most drill hole in the program, intersected shear zone material and has increased the strike length of the OSZ by 75 meters to the north.
Based on drilling by previous operators and core logging of the new core, gold mineralization occurs in two distinct forms; primary fine grained gold mineralization is associated with Pyrite, Arsenopyrite, and likely Lollingite (iron arsenide), and a second coarser gold phase which is likely associated with a post-mineral Dacite Dike remobilizing the primary gold. Additional investigations will be conducted to determine if there is any significance to the Lollingite-gold association which may be useful in future drilling programs.
The host rock in the shear zone is predominately Muscovite-Sericite Schist with sericite altered Quartz Monzonite to a lesser extent. Pyrite, Arsenopyrite and Lollingite are disseminated and also occur within quartz/carbonate veinlets.
The country rock near the OSZ bounding faults (Monday Fault on the west, Friday Fault on the east), is Quartz Monzonite and exhibits minor sulphide mineralization, however it is relatively un-mineralized with respect to gold.
The drill core from Phase 1 has been logged in its entirety by the onsite geologists and core cutting and sampling has been completed as of Thursday July 9th, 2009. A total of 685 core samples have been shipped to Acme Analytical Laboratories of Vancouver, B.C. to date, with the remaining samples slated for shipment early next week.
The drill program was designed to take advantage of HQ size core, which provides larger drill core for logging and sampling purposes and also reduces the potential for core loss in highly altered and sheared rocks. A Triple-Tube Core Barrel was also used to maximize recovery. Geotechnical data (RQD) is also being collected for future use in the assessment of the resource for the suitability of surface or underground mining methods.
Acme Analytical Laboratories of Vancouver, B.C. a lab certified for the provision of assays and geochemical analyses (ISO 9001:2008) has been selected to process and assay the core.
Assay results are expected by July 30th and will be incorporated into the existing database. The data will then be utilized to design Phase 2 of the ongoing exploration and development of the company's gold properties in Idaho.
QA/QC
The drill core is placed in numbered core boxes by the drilling contractor and transferred from the drill site to the core logging station by the project geologist and kept under direct
control of Premium Exploration personnel. Once the core has been logged and sample intervals selected by the geologist, the core is split in half lengthwise with a diamond bladed
core saw by trained personnel. One half of the core is kept in the core box for future reference, while the second half is placed in numbered plastic (new) sample bags, sealed and placed in numbered sample boxes for shipment to the assay lab. The sample boxes are sealed and shipped via courier to Acme Labs.
Due to the presence of visible gold in some of the core, assay procedures have been discussed with the lab to ensure that the method selected would best represent the actual gold content and not over or under report grade. The majority of the core will be assayed utilizing standard one-assay ton, while samples with visible gold will be analyzed using a metallic screening and sieving method. This method is designed to provide a quantitative gold assay on samples that have coarse particulate gold. The screening procedure separates the coarse gold from the fine gold, which makes it easier to get a total gold assay result for that particular sample. The method is described as follows:
1.Crush, Pulverize and Sieve 500 grams to -150 mesh, save +150 mesh for metallic gold assay.
2.The pulverized sample (500 grams) is then passed through a "150" mesh screen and the "plus" and "minus" fraction are saved and weighed.
3.The entire "plus" fraction is then fire assayed to get the total gold and a 1 Assay Ton fire assay is done on the "minus" fraction.
The selection criteria for samples to be analyzed by metallic screening will be:
- Samples with visible gold.
- 3 sample intervals prior to the sample with visible gold.
- 3 sample intervals after the sample with visible gold.
- Any samples with a "standard" fire assay returning assay greater than 10 gram per ton gold.
- 20 samples selected based on geologic similarities to samples with visible gold.
The purpose of the enhanced assaying procedures will be to develop a statistical database to determine the variability of the mineralization. This will provide data to assist Premium in developing procedures for sample collection and assaying which are representative of the mineralization and reduce the potential for inconsistent results.
Contract negotiations are underway with West-Core Drilling, LLC.; for Phase 2 drilling which would continue the drilling on the Friday-Petsite property and in addition, would include drilling on the Buffalo Gulch property. Approval for drilling on Bureau of Land Management lands on the Buffalo Gulch project is in place and permitting for drilling on Forest Service Lands in the Deadwood area is also underway.
Qualified Person
Mr. Wilf Struck, P.Eng., is the CEO of Premium Exploration Inc. and the Qualified Person for the technical information in the news release under 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 precious metals assets to production. The Company's portfolio includes one of the largest land packages in Idaho, including an NI 43-101 gold resource, a PGM exploration project in Montana, and a past-producing silver project in Mexico. For additional information, please visit us at www.premiumexploration.com.
For More Information, Please Contact:
Mr. Wilf Struck, P.EngChief Executive OfficerPremium Exploration, Inc.P: (604) 682-0243F: (604) 682-2499Email: wstruck@premiumexploration.com Christine KoprCorporate CommunicationsPremium Exploration, Inc.P: (604) 682-0243F: (604) 682-2499Email: ckopr@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. |
