2012 Exploration Programme Update

RNS Number : 6911M

Premier Gold Resources PLC

20 September 2012

 



Embargoed: 0700hrs, 20 September 2012

Premier Gold Resources Plc

("Premier Gold" or the "Company") 

2012 Exploration Programme Update

 

Premier Gold (AIM:PGR), the Central Asia-focused gold exploration and development company, provides an update on progress during the 2012 exploration programme on the Cholokkaindy licence in Kyrgyzstan.

Soil Geochemistry Sampling

An extensive fieldwork programme commenced in June and completed recently. A total of 2,221 samples were collected on a 25x100 metre grid in the four target areas (Talbaital: 466 samples, Jarkonush: 369 samples, Aksai: 856 samples and Torsai: 161 samples). 

The programme was designed, among other things, to identify whether the Talbaital prospect - the most advanced on the licence - extends into Jarkonush. To this end 369 samples were collected from the area between Talbaital and Jarkonush and initial results suggest that the mineralised system is indeed continuous between these areas.

Geochemical Analyses

Analyses are being undertaken at Central Laboratory of the State Agency for Geology and Mineral Resources in Bishkek, Kyrgyzstan. While final results are not yet available, the preliminary indications are that numerous new areas of significantly elevated gold values have been defined. Strong indications are that these anomalous areas are coherent and follow geologically defined trends.

Drilling

In preparation for maiden drilling on the licence, a bulldozing process, to provide access for the drilling rig, has been initiated. 800 metres of access road have been developed to date with approximately 1,200 metres remaining to be completed.

Drilling procedures and logistics have been assessed and the Company is satisfied that the local contractors have the highest technical and environmental criteria in place to undertake the programme.

As a result of the transition in scale of the operations, including the use of heavy machinery, the Company felt that deeper engagement with the local communities was required to enhance and maintain a long-term relationship with all stakeholders.  

As a result, the Company has considered it prudent to delay the commencement of drilling while local management engages in a more intensive educational programme to improve knowledge and understanding among the local communities, and wider areas, about Premier Gold and its objectives at Cholokkaindy. The Company has strong local support and is intent upon maintaining this for the long term benefit of the project.

The Company is confident, notwithstanding the decision to delay the commencement of drilling, that a considerable drilling programme will still be undertaken on Cholokkaindy this year. The extent will be determined by the date on which the Company resumes its programme.

The Company does not currently expect that there will be any material change to costs as a result of the delay in the drilling programme.

Richard Nolan, Chief Operating Officer, commented:

"Initial indications from soil geochemistry sampling are highly promising, therefore further highlighting the attractiveness of the Cholokkaindy prospect.

History has taught us that it is vital to get the relationships with the local communities right from the outset. Since the acceleration of our programme at Cholokkaindy, our presence is being felt wider in the region. It is our belief, therefore, that investing the time to engage and educate the local communities more proactively now, while resulting in a delay to the drilling programme, will be of much greater long term benefit as we seek to develop this exciting prospect."

The Company will report both on results from geochemical analyses, once processed and interpreted, and on the status of the drilling programme, when appropriate.

-ENDS-

For further information please visit: www.premiergoldresources.com 

Contacts:

Premier Gold Resources Plc
Richard Nolan, COO	01279 731037
Merchant Securities Limited (NOMAD and Sole Broker)
Lindsay Mair / Richard Goldsmith / Chris Theis	020 7628 2200
M: Communications
Ben Simons / Matthew Neal	020 7920 2340/68

 

END

 

 

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