FOR RELEASE AT 6:45 A.M. PST ON FEBRUARY 8, 2007
VANCOUVER, BRITISH COLUMBIA–(CCNMatthews – February 8, 2007) – Premium Exploration, Inc. (TSX-V:PEM) (“Premium”) is pleased to provide an exploration update on its Nueva Galicia Silver/Gold Project, located in the State of Nayarit, west central Mexico.
The Nueva Galicia Project is centered on a large, low sulfidation epithermal precious metal vein system, which is outlined by 17 historic workings over 10 km of strike across the Project. This structural corridor contains several mineralized, sub-parallel, sub-vertical vein systems, breccias, and low-angle vein structures locally. Stringer and disseminated mineralization have been identified peripheral to the veins.
Premium’s first phase exploration program was focused on approximately 200 hectares of the property where significant results were obtained by the Mexican Geological Survey and a previous operator (see Press Release dated July 19, 2006). In the area of current focus alone, over 4,000 meters of mineralized structures are present in six sub-parallel and cross-cutting veins. The area of current exploration represents only a small part of the entire system – large areas with known mineralization have yet to be explored using modern methods – no drilling or geophysical surveys have ever been carried out at Nueva Galicia.
Sampling and mapping were carried out to develop drill targets for testing in Spring 2007, as well as mapping extensions of known vein structures and prospecting for additional mineralized zones. The program included re-sampling of a representative percentage of accessible historic workings, surface sampling, as well as structural and alteration mapping, which will be used to develop drill targets which will test the continuity of mineralization along strike and down-dip of known ore shoots.
Final results for 96 samples have been received to date, with results for 112 samples pending. The chip samples were collected from pits, shallow trenches and surface exposures along two parallel zones of mineralization. The table below list results for samples which returned gold values greater than 500 ppb (0.5 g/t) gold and/or greater than 100 ppm (100 g/t) silver.
| Zone | Sample Width (m) | Au (ppb) | Ag (ppm) | Au. Eq. (g/t) |
| Lluvia de Oro | 2.00 | 1100 | 285.2 | 5.85 |
| 0.50 | 2369 | 325.4 | 7.79 | |
| 1.50 | 1155 | 153.5 | 3.71 | |
| 2.00 | 1260 | 214.3 | 4.83 | |
| 2.00 | 570 | 134.0 | 2.80 | |
| 2.30 | 1065 | 203.1 | 4.45 | |
| 2.00 | 1385 | 446.0 | 8.82 | |
| Tajitos | 5.00 | 1405 | 141.4 | 3.76 |
| 5.00 | 4731 | 59.3 | 5.72 | |
| 0.50 | 12530 | 1228.9 | 33.01 | |
| 0.40 | 585 | 36.9 | 1.20 | |
| 0.80 | 1450 | 65.4 | 2.54 | |
| 0.62 | 757 | 403.7 | 7.49 | |
| La Palmera | 2.30 | 1270 | 13.2 | 1.49 |
| La Cholita -San Mateo | 1.65 | 3247 | 195.9 | 6.51 |
| 1.00 | 905 | 150.7 | 3.42 | |
| 1.00 | 515 | 140.5 | 2.86 | |
| PN1 | 2.50 | 2870 | 128.6 | 5.01 |
| West Zone | 2.30 | 1625 | 302.7 | 6.67 |
| 8.00 | 1185 | 161.5 | 3.88 | |
| 0.70 | 1650 | 176.6 | 4.59 | |
| 0.90 | 1183 | 133.0 | 3.40 |
Premium’s COO and Vice President – Exploration, Nancy Reardon, states, “We are pleased that the zones of stringer mineralization peripheral to the veins are returning significant values of gold and silver. We know there are high grade shoots within this vein system, now we have demonstrated that wider zones of mineralization exist locally as well.”
On January 9, 2007, Rochester Resources announced that it commenced milling operations at its Mina Real mine, located approximately 40 kilometers northeast of Nueva Galicia. Mill recovery rates are anticipated to average approximately 95% for gold and 90% for silver. Mining, milling and trucking costs at Mina Real are estimated at less than $75/tonne.
The Nueva Galicia Project is located immediately south of Cream Mineral’s Nuevo Milenio Project, where a NI 43-101 compliant inferred mineral resource of 13,120,000 tonnes containing 268,000 oz. gold and 30,340,000 oz. of silver have been identified so far.
Infrastructure and access to the Nueva Galicia project are excellent. The claims are located 29 kilometers southeast of the Nayarit State capital, Tepic, and four kilometers from the town of Compostela (pop. 15,000), where Premium has established a field office. Paved highways and electric power lines pass within four kilometers of the western boundary, and within one kilometer of the southern boundary of the property. An operating railway line crosses the northwest corner of the property. A gravel road provides access to the center of the property where many of the historic workings are located. Water is available year round on the property.
Quality Control and Assurance
Geochemical results reported herein are from chip and channel samples collected from outcropping and sub-cropping rock on the Company’s Nueva Galicia Silver/Gold Project. Blank samples are inserted at a rate of 1 in 20 at the project site to monitor the quality control of the assay data. Samples were sealed on site by the staff of Minera Zorro de Plata S.V de C.A., Premium’s 100%-owned Mexican subsidiary, and transported to the preparation facilities of Inspectorate in Durango, Mexico. All Inspectorate labs are ISO 9001:2000 accredited. Samples were assayed for gold by standard fire assay-ICP finish with a 30 gram charge. Samples also underwent 30 element ICP-MS analysis. Samples in excess of 2000 ppb gold and 200 ppm silver were re-analyzed by fire assay.
Mr. Wilf Struck, P.Eng., geologic consultant to the Company, is the qualified person responsible for the technical disclosure in this press release.
About Premium Exploration Inc.
Premium Exploration, Inc. is a junior mineral exploration company focused on precious metals exploration in North America. Premium has assembled an innovative and experienced management and advisory team who are committed to the long-term success of the Company.
Premium’s strategy as a prospect generator is to actively evaluate, acquire and advance projects and mitigate risk through joint venture arrangements. Our 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. The Company has established excellent project pipelines in Mexico and has already acquired several precious metal projects with good infrastructure under favourable terms, and is moving rapidly to advance them. With current high metal prices and the long-term bullish outlook for precious metals, Premium is well-positioned to make a significant precious metals discovery and dramatically increase shareholder value.
Contact Information:
Ms. Lisa Maxwell
VP – Corporate Development
Premium Exploration, Inc.
(604) 682-0243
Email:
lmaxwell@premiumexploration.com
The information in this press release is not NI 43-101 compliant and should not be relied upon as such. 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.