FOR RELEASE AT 6:45 AM PST FEBRUARY 22, 2007
VANCOUVER, BRITISH COLUMBIA (February 22, 2007) Premium Exploration, Inc. (TSX-V:PEM) (http://www.premiumexploration.com/) is pleased to announce that it has purchased a turnkey diamond drill package. Additionally, Premium has signed a contract to operate the drill with a driller who has over 20 years of drilling experience.
Premium management has concluded that due to high demand for drills and resulting lack of availability, quality control issues and high costs, it is in the best interest of the Company to purchase a drill. By doing this, Premium is now in control of the timing of its drill programs, while significantly lowering costs. The drill rig can be contracted to other companies when not in use by Premium and may provide revenue to cover purchase and operating costs.
The drill purchased is a turnkey operation including the diamond drill, skid base, trailer base, pumps, waterline, casing, NQ and BQ drill rods, and tools. The purchase price for the entire package is $150,000CAD. The drill is a Hydracore 28 diesel hydraulic rig with a new 80 horsepower engine capable of drilling 305 vertical meters (1,000 feet) of BQ or 122 meters (400 feet) of NQ or NQ2 core. The drill is mounted on a steel skid frame with wheels for transportation. The wheels and axle detach and the drill can be moved easily on skids by a bulldozer. The drill also unbolts from the frame to allow transportation by helicopter, with all loads less than 1,000 lbs. Mobilization costs are minimal as the entire drill, rods, casing, water pumps, hoses and tools all fit easily into a five-ton truck. Well-engineered with quick couple hydraulics, this drill is very quick to transport and set-up with minimal environmental impact.
Preparations are underway for shipping the drill to Mexico from Canada. Shipping is expected to take six to twelve weeks. The drill will be sent to Premium’s Nueva Galicia Project, where a 2,000m drill program is planned upon receipt of an exploration permit, which has been submitted to SEMARNAP (Mexican government environmental department) and is expected in late March.
Premium Drops Cucurpe Claims
Premium Exploration has elected to drop 19 claims on the Cucurpe Project acquired through its acquisition agreement. The Company will retain the additional 13 claims it staked on the property but has no plans to conduct exploration at this time.
About Premium Exploration, Inc.:
Premium Exploration, Inc. is a precious metals exploration company focused on exploration in North America. The Company is listed on the TSX Venture Exchange and has assembled an innovative and experienced management and advisory team who are committed to the long-term success of the Company. 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, the company’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, the company is able to maximize the potential for discovery while mitigating risk and increasing shareholder value.
More information can be found on our website at http://www.premiumexploration.com/ or on the SEDAR website at http://www.sedar.com/.
Contact Information:
Ms. Lisa Maxwell
VP – Corporate Development
Premium Exploration, Inc.
(604) 682-0243
Email:
lmaxwell@premiumexploration.com
This press release contains certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involve 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. Information contained in this news release includes information about adjacent properties on which we have no right to explore or mine. We advise investors in the United States that the SEC’s mining guidelines strictly prohibit information of this type in documents filed with the SEC. United States investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.