Shares Issued: 151,720,324
THUNDER BAY, ON, March 13, 2014 /CNW/ - PREMIER GOLD MINES LIMITED ("Premier" or "The Company") (TSX:PG) is pleased to confirm that it has filed a technical report ("Report")
prepared for the Hardrock and Brookbank Projects in accordance with
Canadian Securities Administrators' National Instrument 43-101. The
Report may be found on the Company website or under the Company's
profile at www.sedar.com.
Highlights of the 2014 PEA Studies (all currency amounts in Canadian
dollars unless otherwise stated) include:
Hardrock Project Estimates
Average annual gold production during the first 8 years of 253,100
ounces with life of mine "LOM" (15 years) annual production of 202,700 ounces
(including low-grade stockpiles).
Average grade over the first 8 years of 1.50 grams per tonne gold "g/t
Au" with a LOM average grade of 1.18 g/t Au (including low-grade
Initial processing of 10,000 tonnes per day "tpd", expanding to 18,000 tpd in Year 3.
Pre-production capital costs of $410.6 million including $83 million for contingency.
Pre-tax net present value "NPV" (at a 5% discount rate) of $519 million
at US$1250 gold and an exchange rate of CAD$1.00 = US$0.95.
Pre-tax internal rate of return "IRR" of 23.0% and a 3.5 year payback at
US$1250 gold and an exchange rate of CAD$1.00 = US$0.95.
Brookbank Project Estimates
Pre-tax NPV (at 5% discount rate) of $73.8 million and IRR of 30.1%, at US$1250 gold and an exchange rate of CAD$1.00 = US$0.95, when rock is trucked to Hardrock versus stand-alone processing option.
On an After-Tax basis, NPV (5%) is $49.9 million and IRR of 24.2%.
Average annual gold production during LOM (7 years) of 48,700 ounces.
The independent report, dated March 13, 2014, entitled "Trans-Canada
Property Hardrock and Brookbank Projects Preliminary Economic
Assessment" was issued by Stantec - Mining in North Bay, Ontario. The
Report provides detail to the disclosure contained in the Company's
news release issued on January 28, 2014.
Readers are advised that the PEA for Brookbank that was filed on Sedar
includes a minor adjustment to cash outflows to reflect the 1% NSR
payable on gold revenues after the recovery of Capital Costs. The
impact of this adjustment on After-Tax NPV is $1,657,000, a 0.524%
reduction in IRR.
The Hardrock and Brookbank Projects, a part of the Trans-Canada
Property, are located in the historic Geraldton/Beardmore mining
district, in North West Ontario, along the Trans-Canada Highway. The
Hardrock Deposit, which resides on patented claims, is currently being
evaluated by a Feasibility Study expected to be released during H1
2015. Premier is well-financed to advance the Trans-Canada Property
with a treasury of cash and securities that exceeds $70 million.
Stephen McGibbon, P. Geo., is the Qualified Person for the information
contained in this press release and is a Qualified Person within the
meaning of National Instrument 43-101.
Premier Gold Mines Limited is one of North America's leading exploration and development companies
with a high-quality pipeline of gold projects focused in proven, safe
and accessible mining jurisdictions in Canada and the United States.
The statements made in this Press Release may contain forward-looking
statements that may involve a number of risks and uncertainties.
Actual events or results could differ materially from the Company's
expectations and projections.
SOURCE: Premier Gold Mines Limited
For further information:
Ewan Downie, President & CEO
Web Site: www.premiergoldmines.com