FOR IMMEDIATE RELEASE JULY 5, 2007
VANCOUVER, BRITISH COLUMBIA–(MarketWire – July 5, 2007) - Premium Exploration, Inc. (TSX-V:PEM) (“Premium”) (http://www.premiumexploration.com/) is pleased to announce the commencement of the Phase I Drilling Program at its Nueva Galicia silver-gold project in Nayarit, Mexico. Additionally, to optimize the metres drilled during the Phase I Drill Program at Nueva Galicia, Premium began double shifting its drill crews on July 1, 2007.
So far Premium has completed two drill holes for a total of 90 metres using a Boyles 225 machine drilling NW size core. These first two holes were drilled on the Buenos Aires Zone, where surface sampling by a previous operator returned 4.3g/t Au and 392g/t Ag over 1.9 metres and surface sampling by Premium returned 12.5g/t Au and 1229g/t Ag over 0.5 metres and 0.58g/t Au and 39g/t Ag over 0.4 metres. The geologic model developed by Premium predicts mineralization hosted in quartz veins and quartz breccia in prominent fault zones over a strike length of several kilometres, and that the structure will widen at depth. The drilling completed to date is validating this model.
The Buenos Aires structure was intersected at the targeted depth in both drill holes with intercepts of 2.95 metres (1.89 metres true thickness) and 9.90 meters (3.38 metres true thickness) respectively, these intercepts demonstrate continuity of the zone to a depth of 70 metres below the surface and 13 metres along strike to the north from the Las Palmeras mine, a small-scale historic mine from Spanish Colonial times. The next two holes will test the structure 40 meters to the north to a vertical depth of approximately 75 metres.
Premium is also pleased to announce that it has contracted Vancouver-based geologist Julie Kadar, B.Sc. as Senior Project Geologist for the Nueva Galicia Project. Ms. Kadar has experience in mapping, drilling, database design, GIS and ore deposit and resource modeling. She has worked on projects for both major and junior exploration companies, including Teck’s Pogo Deposit and BHP’s (now Miramar Mining’s) Boston and Doris deposits.
Qualified Person:
Mr. Wilf Struck, P.Eng., geologic consultant 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. specializes in precious metals exploration in North America; current holdings are in Montana, USA and Mexico. The Company has an aggressive program of project acquisition and resource definition in Mexico. Premium’s goal is to explore, discover and quickly advance precious metal deposits that are strategically located in areas that would allow their profitable extraction, with minimal political, social or environmental risks. 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/.
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Premium Exploration’s Current Projects |
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Project |
Location |
Commodity |
Land Position |
Mineralization |
Snapshot |
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Chrome Mountain |
Montana, USA |
PGM – Pt,Pd,Rh
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970 hectares (2,397 acres) 50% owned |
Platinum, palladium and rhodium within chromitite layers of the Stillwater Complex | Located within the Stillwater Complex and host to the only producing primary platinum and palladium mine in the USA. Project in a US$5,000,000 Joint Venture with Beartooth Platinum Corporation. |
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Nueva Galicia |
Nayarit, México |
Ag/Au |
17,000 hectares (42,000 acres) Option to earn 100% |
High grade epithermal vein systems and breccias. | Epithermal vein systems aligned along a structural corridor over a distance of 10 km (6 mi.). Three parallel vein systems have been mapped in detail for a total of 4500 meters to date – the target of Phase I drill program scheduled for mid-May. |
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San Pedro Analco |
Jalisco, México |
Ag/Au/Zn |
1,136 hectares (2,800 acres) Option to earn 100% |
High-grade, epithermal vein systems and breccias | Phase I exploration program highlights:
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Dos Amigos |
Nayarit, México |
Ag/Au/Cu/Zn/Pb |
3,230 hectares (7,985 acres) Option to earn 100% |
Veins and bulk-tonnage gold/silver | Select grab sample returned 8.3 g/t gold and 15,276 g/t (445 oz./ton) silver as well as 7.2% copper, 4.5% lead and 17.2% zinc. |
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Rosamorada |
Nayarit, México |
Au/Ag |
300 hectares (740 acres) Option to earn 100% |
Veins and bulk-tonnage gold/silver | Preliminary results pending. |
Contact Information:
Premium Exploration, Inc.
Ms. Lisa Maxwell, Corporate Secretary
(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 files 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.