For Immediate Release January 19, 2007
VANCOUVER, BRITISH COLUMBIA–(CCN MATTHEWS – January 19, 2007) Premium Exploration Inc. (TSX-V:PEM) (“Premium”) (www.premiumexploration.com) has elected to proceed with an option to acquire 100 per cent of San Pedro Analco project in Jalisco state, central Mexico.
The San Pedro Analco property consists of 1,136 hectares covering an extensive low-sulphidation silver-gold epithermal system located within the Cinco Minas-San Pedro Analco mining district, 70 kilometres northwest of Guadalajara. The project has excellent infrastructure with road access, ample water available and a high-voltage transmission line less than one kilometre from the property. San Pedro Analco is a past producer, reportedly operating until 1988, although production data are unavailable. Milling and processing equipment remains on the property and could be refitted.
The district is currently the focus of significant exploration activity by several junior mineral exploration companies. Located immediately southwest of San Pedro Analco, Stroud Resources Ltd. reports samples from old mine workings which assayed 37.6 grams per tonne to 1,466.6 grams per tonne silver and 0.17 gram per tonne to 3.94 grams per tonne gold from its Santo Domingo project. Eleven kilometres south, Bandera Gold Ltd. is exploring the Cinco Minas area, where in the 1920s, 15 million ounces of silver and 97,500 ounces of gold were produced from 1.2 million tons of mine ore, with recoveries of the silver and gold ranging from 88 per cent to 90.5 per cent. The main mineralized zone had a length of 550 metres and was mined to a depth of 700 metres.
The San Martin de Bolanos mining district, 65 kilometres north of San Pedro Analco, produced 40 million to 50 million ounces of silver and Bolanos, 85 kilometres northeast, has 60 million to 100 million ounces of historic production. Premium believes there remains potential to discover significant mineralization at San Pedro Analco which could be quickly brought to a production level. In January, Premium will conduct a phase I exploration program of mine sampling, as well as mapping and sampling of five mineralized structures identified the property.
Appointment of Hildebrando Paredes as senior project geologist
Mr. Paredes has worked as a geological engineer and geologist for the past 28 years in Peru and Venezuela. He has experience in the evaluation and exploration of mineral deposits, as well as management and logistics of mineral exploration projects. Nancy Reardon, vice-president, exploration, states: “Mr. Paredes is an excellent addition to Premium’s geological team in Mexico. He brings a vast amount of knowledge and experience, and great enthusiasm and motivation to make a discovery.”
Resignation of Dave McMillan from the board of directors
Effective immediately, Mr. McMillan has resigned as a member of the board of directors. Mr. McMillan has resigned to devote his efforts to United Resource Group, and his oil and gas interests.
We seek Safe Harbor.