For Immediate Release
Premium Exploration, Inc. Announces Drill Program at its 2007 Platinum Palladium Mineralization Discovery at Stillwater Complex
VANCOUVER, BRITISH COLUMBIA (May 22, 2008) Premium Exploration, Inc. (TSX-V:PEM) (http://www.premiumexploration.com/) is pleased to announce that it has received United States Forest Service approval for it’s 10,000 foot drill program operated by its joint venture partner, Beartooth Platinum Corp. (TSX-V:BTP). The program is designed to test what the Company believes to be a potential “feeder zone” for the previously unknown style of PGM mineralization, discovered at Premium’s 100% wholly-owned Chrome Mountain property in the Stillwater Complex, Montana, USA. The program will be located on the north-western portion of the Stillwater Complex in Sweet Grass County on the Gallatin National Forest. The program will consist of 10 to 15 NQ Core holes totaling approximately 10,000 feet and will follow up on the successful 2007 drill program.
The Chrome Mountain property is located 1,500m from the Stillwater Mining Company, who are mining the highest grade platinum group metal bearing reef in the world, the JM Reef of the Stillwater Complex.
Highlights include:
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Approval for 40 drill sites on the Chrome Mountain property;
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Drill testing of the high-grade chromitite area of the PGM anomaly which was not yet permitted at the time of the 2007 drill program;
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Drilling is targeting a combination of two styles of South African PGM mineralization combined in the same envelope of disseminated chromitite;
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Platreef-style mineralization, as demonstrated in hole CM2007-4 of the 2007 drill program:
1.0 g/t PGM + Au over 116.7 meters
Includes five zones of comparable to UG2 in widths and grades:
6.3 g/t over 1.2 meters
4.8 g/t over 1.2 meters
11.9 g/t over 0.3 meters
7.6 g/t over 0.3 meters
6.5 g/t over 0.3 meters
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Additional geochemical sampling will be conducted to test the boundary of the known PGM+Au 2300m x 1000m geochemical anomaly west along the 8 km of strike not yet explored by the Company.
This drill program is designed to further understand and define the boundaries of the platinum, palladium, and gold mineralization of Premium’s PGM geochemical anomaly and information accumulated in the 2007 drill program, which suggests the identification of a feeder zone. All holes in 2007 were collared within the central part of the soil geochemical anomaly, all holes started immediately in mineralization with the majority of holes terminating in mineralization. Widths intercepted, reached up to 116.7 m of 1.5 g/t PGM + Au. The 2007 drill program tested only a small portion (approximately 30%) of the large geochemical anomaly discovered in 2006.
The broad zones of PGM enrichment at Chrome Mountain may reflect the higher energies of magmas entering the chamber from conduits (feeder zones) in this area. Because the magmas will have more energy at the point of entry, the sulfide droplets come into contact with larger amounts of magma, thus scavenging large amounts of PGM. This process of increasing magma energies leading to increasing PGM concentration in sulfides is also believed to be responsible for the high grade PGM mineralization of the Platreef on the Bushveld Complex, the most profitable PGM deposit in the world.
Interpretation based on the 2007 drilling encountered high-grade reef-style mineralization associated with chromitite layers occurring within a much thicker envelope of PGM enrichment. Drill hole hole CM2007-04 grades reach 6.3 g/t PGM+Au over 1.2 meters, within a mineralized halo grading 1.0 g/t PGM+Au over 116.7 meters. Interestingly, high grade, chromitite associated PGM mineralization occurs at multiple locations with intervals of 7.6 g/t over 0.3 meters, 6.5 g/t over 0.3 meters, 11.9 g/t over 0.3 meters, and 4.8 g/t over 1.2 meters, (see press release dated March 3, 2008). The average intercept at Chrome Mountain was 118.2 meters at a grade of 0.66 g/t platinum, palladium and gold with platinum:palladium ratios averaging 1.0:1.4 Stillwater Mining Company’s, for example, which mines the JM reef has a platinum:palladium ratio of 1.0:3.4.
The high grade chromitite associated mineralization within the mineralized envelope at Chrome Mountain reflects a periodic culmination of the process in which very high energy magma pulses undergo turbulent interaction with PGM-enriched residual magmas. The fact that multiple high-grade chromitite intervals appear to be present in this area may also reflect proximity to entry points for new magmas. The lithology is also disrupted and lacks continuity between drill holes indicating turbulent conditions during crystallization. Similarly, the interaction between high-energy fresh magma pulses and older, PGM enriched, residual magmas in the Bushveld magma chamber is thought to have produced the high grade PGM deposits of the UG2 chromitite layer.
A large part of the Chrome Mountain target remains untested and the 2008 drill program will delineate the mineralization encountered last year and will also test additional geochemical and geophysical anomalies located near Chrome Mountain.
Drilling will begin immediately as soon as upon snow levels allowing access.
All prospective and current shareholders of Premium Exploration are invited to join the company’s official investment forum exclusively at Pinnacle Digest: (http://www.pinnacledigest.com/company/pem:ca). The forum allows for investor controlled discussion, questions and progressive feedback from other shareholders and investors. Third party reports on the company are also available at http://www.pinnacledigest.com/.
Qualified Person
Mr. Wilf Struck, P.Geo is the Qualified Person for the technical information in the news release under National Instrument 43?101.
About Premium Exploration, Inc.
Premium Exploration, Inc. is a precious metals exploration company focused on exploration in North America, with an acquisitions focus on Mexico. Premium’s goal is to discover precious metal deposits that are strategically located in areas that would allow their profitable extraction, with minimal political, social or environmental risks. Current holdings are in Mexico and the USA. To maximize the possibility of realizing this goal, Premium’s exploration team continues to review early-stage projects located within under-explored precious metal belts that host multi-million ounce deposits. By acquiring prospects internally and financing some of them through joint venture partners, Premium is able to maximize the potential for discovery while mitigating risk and increasing shareholder value. Additional information may be found on our website at http://www.premiumexploration.com/.
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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. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.