FOR IMMEDIATE RELEASE MAY 11, 2007
VANCOUVER, BRITISH COLUMBIA–(CCNMatthews – May 11, 2007) – Premium Exploration, Inc. (TSX-V:PEM) (“Premium”) is pleased to provide a summary of drill targets for the 2,000 metre Phase I drill program at its Nueva Galicia Silver-Gold Project, located in Nayarit State, west central Mexico. A map of the veins in this area, highlights of results from surface rock chip sampling and proposed drill hole locations is posted on Premium’s website (www.premiumexploration.com).
Overview of Phase I Drill Program
Mineralization at Nueva Galicia consists of silver sulphides and native gold and electrum in quartz veins, stockworks and breccias. Ore shoots contain bonanza-grade silver mineralization with high gold content locally. The current drill target area is a complex vein-stockwork system centered on a jog in a major fault zone that crosses the property for over 10 kilometers, where it changes direction from NNW-SSE to NW-SE.
Premium’s Phase I drill plan includes 26 drill holes will be completed for a total of 2000 meters. Ore shoots exposed in historic workings will be tested along strike on step outs up to 25 meters and down dip to depths of 130 meters below surface. Phase I drilling will test steeply-dipping silver- and gold-bearing veins in the Tajitos North, Buenos Aires-La Palmera, Mercedes and San Mateo Zones at Nueva Galicia.
The following table presents the total number of rock chip samples taken by a previous operator, Radius Gold Inc., and Premium Exploration in the zones to be drilled in Phases I-III, with the ranges of silver and gold values encountered. All float, grab and select chip samples were excluded. These samples do not include sampling by the Mexican Geological Survey (see previous release dated July 19, 2006) from inside the old mine workings.
|
Zone Sampled |
Samples |
Samples |
Total |
Avg. Width |
Ag low |
Ag high |
Au low |
Au high |
|
|
Radius Gold |
Premium |
# |
m |
ppm |
ppm |
ppb |
ppb |
|
PHASE I |
|
|
|
|
||||
| Buenos Aires-La Palmera |
9 |
5 |
14 |
2.24 |
0.6 |
1228.9 |
45.0 |
12530 |
| Tajitos North |
36 |
1 |
37 |
1.81 |
14.0 |
460.0 |
42.0 |
8060 |
| Mercedes |
1 |
119 |
120 |
1.17 |
0.5 |
374.6 |
<5 |
4490 |
| San Mateo |
8 |
2 |
10 |
1.72 |
1.2 |
356.0 |
20.0 |
3250 |
|
Total |
54 |
127 |
181 |
|
|
|
Radius Gold samples were prepared by ALS Chemex Labs in Guadalajara and analyzed by ALS Chemex in Vancouver, BC. Premium Exploration samples were prepared by Inspectorate Labs in Durango Mexico and analyzed by Inspectorate Labs in Sparks, Nevada.
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. is a mineral exploration company focused on precious metals 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
|
Current Projects |
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|
Project |
Location |
Commodity |
Land Position |
Mineralization |
Snapshot |
|
Chrome Mountain |
Montana, USA |
PGM – Pt,Pd,Rh
|
970 hectares (2,397 acres) 100% owned |
Platinum, palladium and rhodium within chromitite layers | Within the Stillwater Complex., host to the only producing primary platinum and palladium mine in the USA. Strategic Exploration Alliance with Beartooth Platinum. 1,100 soil assays pending. |
|
Nueva Galicia |
Nayarit, México |
Ag/Au |
18,125 hectares (44,787 acres) Option to earn 100% |
Silver sulphides and native gold in quartz veins, stockworks and breccias | Historic mines 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-III drill programs. Outside of the area to be drilled there are several high quality targets within the land package. |
|
San Pedro Analco |
Jalisco, México |
Ag/Au/Zn |
1,136 hectares (2,800 acres) Option to earn 100% |
Past producer; high-grade veins and breccias | Phase I exploration program the following highlights:
|
|
Dos Amigos |
Nayarit, México |
Ag/Au/Cu/Zn/Pb |
3,230 hectares (7,985 acres) Option to earn 100% |
Veins and bulk-tonnage deposits | 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; further results pending. |
|
Rosamorada |
Nayarit, México |
Au/Ag |
300 hectares (740 acres) Option to earn 100% |
Veins and bulk-tonnage deposits | Preliminary results pending. |
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 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. 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.