FOR IMMEDIATE RELEASE
Premium Exploration Announces Trenching Program on Gold-Silver Program in Mexico
VANCOUVER, BRITISH COLUMBIA (March 11, 2008) Premium Exploration, Inc. (TSX-V:PEM) (http://www.premiumexploration.com/) is pleased to announce results from a surface sampling program and plans for a trenching program at its Rosamorada property, located in Nayarit State, west central Mexico.
Quartz veining and stockwork are present at Rosamorada over an area approximately 1000m by 300m. Forty-five rock chip samples of stockwork and veins from surface outcrops and locally-derived bedrock float from Rosamorada returned from 0 to 6.1 g/t gold, and 0 to 437 g/t silver. Silver values in the stockwork zones may increase at depth, due to the leaching and downward mobility of the silver from surface. Results are listed in the table below:
|
Sample ID |
Rock Source |
Width/Area Meters |
Gold ppb |
Silver ppm |
Gold eq. g/t |
|
1251 |
Outcrop |
2.70 |
132 |
63.2 |
1.2 |
|
1252 |
Outcrop |
0.60 |
10 |
9.1 |
0.2 |
|
1253 |
Outcrop |
5.00 |
5 |
0.6 |
0.0 |
|
1254 |
Outcrop |
1.00 |
5 |
4.1 |
0.1 |
|
1255 |
Outcrop |
1.00 |
60 |
1.8 |
0.1 |
|
1256 |
Outcrop |
1.00 |
95 |
88 |
1.6 |
|
1257 |
Float |
0.00 |
<5 |
0.5 |
0.0 |
|
1301 |
Outcrop |
2.00 |
110 |
88.7 |
1.6 |
|
1302 |
Outcrop |
0.30 |
120 |
83.4 |
1.5 |
|
1303 |
Outcrop |
2.00 |
35 |
10.1 |
0.2 |
|
1304 |
Outcrop |
2.00 |
89 |
22.8 |
0.5 |
|
1305 |
Outcrop |
2.00 |
25 |
16.4 |
0.3 |
|
1306 |
Outcrop |
2.00 |
200 |
298.1 |
5.2 |
|
1307 |
Outcrop |
2.00 |
15 |
8.7 |
0.2 |
|
1308 |
Outcrop |
2.00 |
95 |
0.7 |
0.1 |
|
1309 |
Float |
0.00 |
852 |
17.4 |
1.1 |
|
1310 |
Outcrop |
1.00 |
40 |
6.5 |
0.1 |
|
1311 |
Float |
0.00 |
530 |
2.5 |
0.6 |
|
1312 |
Float |
0.00 |
2393 |
437.5 |
9.7 |
|
339575 |
Outcrop |
0.10 |
59 |
2.6 |
0.1 |
|
339576 |
Float |
15 x 10 |
6 |
1.7 |
0.0 |
|
339577 |
Float |
15 x 15 |
230 |
8.8 |
0.4 |
|
339578 |
Subcrop |
0.50 |
30 |
2.4 |
0.1 |
|
339580 |
Float |
15 x 15 |
532 |
1.9 |
0.6 |
|
339581 |
Outcrop |
1.90 |
1332 |
11.3 |
1.5 |
|
339582 |
Subcrop |
0.25 |
233 |
1.8 |
0.3 |
|
339583 |
Float |
15 x 15 |
613 |
4.5 |
0.7 |
|
339584 |
Float |
15 x 15 |
1110 |
6.6 |
1.2 |
|
339585 |
Float |
15 x 15 |
256 |
0.8 |
0.3 |
|
339586 |
Stockpile |
5 x 5 |
6133 |
78.6 |
7.4 |
|
339587 |
Float |
30 x 30 |
26 |
0.4 |
0.0 |
|
339588 |
Subcrop |
15 x 15 |
60 |
0.2 |
0.1 |
|
365508 |
Outcrop |
0.40 |
565 |
12.4 |
0.8 |
|
365509 |
Float |
5 x 5 |
293 |
4 |
0.4 |
|
365511 |
Float |
5 x 5 |
182 |
7.8 |
0.3 |
|
365512 |
Outcrop |
1.00 |
37 |
25.8 |
0.5 |
|
365513 |
Float |
5 x 5 |
81 |
54.5 |
1.0 |
|
365514 |
Float |
5 x 5 |
103 |
30 |
0.6 |
|
365515 |
Float |
5 x 5 |
87 |
1.5 |
0.1 |
|
365516 |
Subcrop |
1.00 |
1830 |
5.8 |
1.9 |
|
365517 |
Subcrop |
1.00 |
6 |
0.6 |
0.0 |
|
365518 |
Float |
5 x 5 |
103 |
8.1 |
0.2 |
|
365519 |
Subcrop |
1.00 |
20 |
0.3 |
0.0 |
|
365521 |
Subcrop |
1.00 |
1 |
0.3 |
0.0 |
|
365522 |
Subcrop |
1.00 |
2 |
0.5 |
0.0 |
Gold equivalent calculated using a silver to gold ratio of 60:1.
Ten samples returned greater than 0.5 g/t gold and five samples greater than 1.0 g/t gold; nine samples returned greater than 30 g/t silver and seven samples returned greater than 60 g/t silver. Nineteen samples returned greater than 0.5 g/t eq. gold and 12 samples returned greater than 1.0 g/t eq. gold.
Rosamorada represents a low grade/high tonnage bulk-mineable open pit target with potential for a high-grade feeder system at depth. The project is located on low rolling hills at approximately 100 meters elevation with no post-mineralization cover, within two kilometers of the Pan American highway, and less than one kilometer from an active rail line. A high-tension powerline crosses the property.
Premium’s Mexican subsidiary, Compañia Minera Zorro de Plata, S.A. de C.V., has received approval from the Mexican environmental agency, SEMARNAP, for a Notice of Work, and has obtained written approval from the local community for a 500m trenching program on the property. The trenching program is designed to test, at depth, widespread gold-silver mineralization recognized on surface and is scheduled to commence in late March 2008.
Premium has an option to purchase 100% of the Rosamorada property by making staged cash payments totaling $1,000,000USD and exploration expenditures totaling $800,000USD over three years. The vendors retain a 1% NSR on the property, which may be purchased for $1,000,000USD.
Qualified Person
Ms. Nancy Reardon, M.Sc., P.Geol., Vice President Exploration to the Company, is the Qualified Person (“QP”) responsible for the technical disclosure in this press release, in accordance with National Instrument 43-101
About Premium Exploration, Inc.
Premium Exploration, Inc. is a precious metals explorer specializing in prospect generation in Mexico and the United States. Utilizing a joint venture strategy, Premium maintains interests and royalties in multiple projects, thus maximizing shareholder exposure to mineral discovery. Premium’s portfolio currently holds projects in various stages of exploration, including grassroots projects in Mexico, and advanced-stage exploration project in Montana, USA, and a 43-101 resource in Idaho, USA which is undergoing permitting for production in 2009. Currently, Premium is advancing the Chrome Mountain platinum group metal project in Montana, USA, and the Buffalo Gulch gold deposit in Idaho, USA, while exploration and negotiation of joint ventures and acquisitions in Mexico and Idaho are in progress.
Additional information may be found on our website at: http://www.premiumexploration.com/.
Contact Information:
Premium Exploration, Inc.
Brett Delaney / Christine Kopr
Investor Relations
(604) 682-0243
Email:
IR@premiumexploration.com