Sampling Results from 2011 Exploration Work

RNS Number : 3925D

Premier Gold Resources PLC

16 May 2012

 

Embargoed: 0700hrs 16 May 2012

Premier Gold Resources plc

("Premier Gold" or the "Company")

Sampling Results from 2011 Exploration Work

Premier Gold (AIM: PGR), the Central Asia-focused gold exploration and development company, has received the results of rock and soil analyses from samples collected during the 2011 exploration programme, which focused primarily on the Talbaital prospect within the Company's Cholokkaindy licence in Kyrgyzstan.

Cholokkaindy is an early stage gold exploration project where four target prospects have been identified, of which Talbaital is the most advanced. Two periods of sampling in 2010-11 have built a picture of a significant gold target, possibly extending southwards to a second prospect identified at Jarkonush, which will be the focus of detailed exploration in 2012, including drilling. At Talbaital, the initial trenches pointed at a single structure but the second sampling programme has demonstrated that it is much wider and therefore of greater potential.

Talbaital Prospect Highlights

·    Talbaital discovery highlights potential for large mineralised system

·    Evidence of multiple mineralised structural zones

·    Results extend the minimum target area within the Talbaital prospect to 1,200 metres north-south, with soil geochemistry results showing a significantly increased 400 metre width zone in the central area

·    Notable new trench assay results from the Talbaital prospect included:

5 metres of 1.9 g/t gold

3 metres of 2.5 g/t gold

3.4 metres of 2.07 g/t gold

5 metres of 0.24 g/t gold

·      These add to previously published results showing:

8 metres of 3.7 g/t gold

2 metres of 6.7 g/t gold

0.5 metres of 12 g/t gold

3 metres of 9 g/t gold

The new results extend the total target to in excess of 1,200 metres north-south, and also indicate a wide 400 metre zone in the central area. The Talbaital prospect is defined by a broad soil gold anomaly, with trenching confirming the presence of significant gold grades and widths in bedrock.

The geology of the Talbaital prospect consists of fractured and veined sediments, with quartz, iron and copper associated with more pervasive alteration. Gold occurs within these altered and fractured rocks, as seen in trenching and in outcrop. The key discovery from last season's work has been the identification of a considerably wider zone in the central part of the prospect and this will be the target for further work this summer. To the south, Talbaital is bounded by the Cholokkaindy River, and soil sampling in 2012 will extend onto the southern side of the river.

Jarkonush Prospect Highlights

·      Significant values obtained in trenching and rock sampling within Jarkonush prospect include:

20 metres of 0.036 g/t gold

·      This adds to previously published trench and rock sample results showing:

3 metres of 1.9 g/t gold

3 metres of 7 g/t gold

3 metres of 4 g/t gold

Boulder sample of 64 g/t gold

Outcrop sample of 56.2 g/t gold

Located some 1.5 kilometres southeast of Talbaital, and along the trend defined at Talbaital, the Jarkonush target was also the focus of trenching and soil geochemistry during 2011. The geology at the Jarkonush occurrence is more complex than Talbaital. The Jarkonush prospect contains numerous trial pits and adits which were excavated in the 1950s during exploration for base metal mineralisation. These fault controlled vein systems contain advanced metasomatic alteration and polymetallic mineralisation with abundant pyrite, hematite, sphalerite and malachite. The mineralised zone is traced in a north-westerly direction for several hundred metres.

The focus for exploration for the majority of the 2011 field season had been the Talbaital area. However, Jarkonush will see further exploration in 2012.

Aksai and Torsai Prospects

In addition to the Talbaital and Jarkonush prospects, two further prospects have been identified within the Cholokkaindy licence, known as Aksai and Torsai. Limited work was carried out in 2011 on Aksai and Torsai, and consisted of rock chip traverses and some trenching. It is planned that soil geochemistry profiling, which was so successful on Talbaital, can be extended to these prospects in the 2012 and 2013 seasons.  Channel samples returned 1 metre of 12 g/t gold and 3 metres of 0.5 g/t gold.

Graphics illustrating the four major prospects within the Cholokkaindy licence area are available on the Company's website:

http://www.premiergoldresources.com/exploration/projects/cholokkaindy.aspx

Richard Nolan, Chief Operating Officer, commented:

"We are highly encouraged by the 2011 field season results which reinforce Premier Gold's belief that the Cholokkaindy licence offers several attractive zones of gold bearing rock with commercial grades. We look forward to further positive results from our forthcoming 2012 season to include drilling, prospecting and soil geochemistry."

Sample analyses were carried out at the Central Laboratory in Bishkek, Kyrgyzstan.

NB. This announcement has been approved by EurGeol Christian Schaffalitzky, FIMMM, PGeo, CEng, who is a director of the Company and a Competent Person for the purposes of the reporting of these results.

Enquiries:  

Premier Gold Resources Plc Gerry Desler, Chairman / Richard Nolan, COO	Tel: [phone]
Libertas Capital Corporate Finance Limited - Nominated Adviser Thilo Hoffmann / Sandy Jamieson	Tel: [phone]
Rivington Street Corporate Finance - Broker Jon Levinson	Tel: [phone]
M: Communications Ben Simons / Matthew Neal	Tel: [phone]

 

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