February 4th, 2014, Couer d'Alene, Idaho - Premium Exploration Inc. (TSX-V: PEM; OTC Pink Current: PMMEF) ("Premium" or the "Company") is pleased to announce assay results from the second hole (PFR2013-2), drilling the deep zone at the Friday Gold Deposit in Idaho County, ID, have been received. The drill-hole has confirmed continuity of a gold zone below the current bulk-tonnage gold resource. One additional hole has been completed in the deep zone, and drilling is now focused on the shallow high-grade zone at the Friday. The drilling is being done to support a preliminary economic study of the high grade at the Friday deposit and is designed to extend the high grade mineralization found in drill holes detailed in the January 15th, 2014 press release.
Highlights Include:
-3.68 g/t gold over 6.1 meters (20 feet)
-2.37 g.t gold over 36.4 meters (199.5 feet)
-1.66 g/t gold over 123.3 meters (417.5 feet)
The ongoing drill program consists of twelve HQ core holes, and complete assay results have now been received for the first two drill holes, PFR2013_1&2. Drill-hole PFR2014_3 is at the assay lab pending results and drill-hole PFR2014_6 is now in being drilled.
Drill hole PFR2013_2 was drilled 15 meters north of PFR2009_10 and intercepted the strongest mineralization at approximately 17 meters due to drill-hole deflection. A zone of 36 meters (785 to 904 feet) encountered strongly silicified, clast-supported breccia rimmed with pyrite. A suite of metallic screens will be completed on the high-grade intercepts, as well as a selected grade range to better understand gold distribution. Approximately 50 samples will have metallurgical testing work performed in the near future to further our understanding of the high-grade zone.
---------------------------------------------------------- |Drill |Zone |From |To |Interval|Interval|Au | |Hole | |(ft) |(ft) |(ft) |(m) |g/t | |--------------------------------------------------------| |PFR2013-2|Friday|780 |1,197.5|417.5 |123.3 |1.66 | |--------------------------------------------------------| | |“ |785 | |119.0 |36.4 |2.37 | | |” | |904.5 | | | | |--------------------------------------------------------| | |“ |850 | |20.0 |6.1 | 3.68| | |” | |870.0 | | | | |--------------------------------------------------------| | |“ |960 |1,017.5|57.5 | 17.5 |2.54 | | |” | | | | | | |--------------------------------------------------------| | |“ |966 | |6.5 | 2.0 | 3.87| | |” | |972.5 | | | | |--------------------------------------------------------| | |“ | | |15.0 |4.6 |2.83 | | |” | 982.5 |997.5 | | | | |--------------------------------------------------------| | |“ |1,185.0|1,192.5|7.5 |2.3 |3.72 | | |” | | | | | | ----------------------------------------------------------
Note:
-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 estimated to be between 65% and 75% of the drilled interval.
"The initial results from this program support the current understanding of the geologic and structural controls of the mineralization and will be used in the upcoming Preliminary Economic Study." stated John Ryan, President and CEO of Premium.
The Company has implemented a rigorous QA/QC program using best industry practices at the Friday- Petsite Property. The program includes security of samples, and drill core sawn in half and shipped in sealed bags, blind duplicates, blank samples and certified standards are inserted into the sample stream. The samples are then boxed and freighted to ALS Chemex Labs in Elko, NV a lab certified for the provision of assays and geochemical analyses (ISO 9001:2008). Samples with gold values greater than 10 g/t were 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.
Qualified Person
The 2013 exploration program is directed by James Baughman, Chief Geologist of Premium Exploration, Inc., who is a Qualified Person as defined by NI 43-101. Mr. Baughman prepared, and approves of the content of this release.
About Premium Exploration Inc.
The Company's purpose is to efficiently and economically advance their district sized Idaho Gold Project. The Idaho Gold project contains three known deposits. The Friday deposit has an NI 43-101 compliant resource of:
Indicated: 647,000 Au (20.1 MT @ 1.0 g/t Au with 0.45 g/t cut-off)
Inferred: 590,000 Au (20.9 MT @ 0.88 g/t Au with 0.45 g/t cut-off)
The Deadwood deposit and the Buffalo Gulch oxide deposit both have small historical gold resources and both are expandable.
The aim of the current drill program is to increase the existing Friday Zone resource base by in-filling and offsetting high-grade intercepts in both the Upper and Lower Zones. Premium Exploration has commenced a preliminary economic study envisioning underground mining of the high grade portion within the Friday deposit.
For More Information Please Contact:
------------------------------------------------------------------------------------- |Mr. John Ryan, President&CEOPhone:(604)682-0243|Peter J. Kletas, Investor Relations| |Fax: (604) 682-2499 |Phone: (604) 874-7915-Direct | |E:[email protected] |Toll Free: (866) 999-6251 | |E: [email protected] |[email protected] | -------------------------------------------------------------------------------------
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.
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