THUNDER BAY, ON, June 27, 2018 /CNW/ - Premier Gold Mines Limited ("Premier" or "the Company") is pleased to provide an update of development programs initiated at the Company's South Arturo Property located in the Carlin Trend of Nevada where construction of both the Phase 1 open pit and the El Nino underground mine have commenced.
The South Arturo Property is a joint venture between Premier (40% ownership) and Barrick Gold Corporation's wholly‑owned subsidiary of Barrick Gold Exploration Inc. ("Barrick"). Barrick is the operator and processes ore from South Arturo primarily at their Goldstrike facility located 5 kilometres to the south.
Construction of the Phase 1 open pit and the El Nino underground mine have been accelerated resulting in some production expected from both operations later in 2018. Additional work will assess the potential of additional mining opportunities that include a Phase 3 pit and processing of heap leach material from all pits.
"With new mine developments being advanced ahead of schedule at South Arturo, the stage is set for a solid operational future at this strategic property", stated Ewan Downie, President & CEO. "Work continues on several additional opportunities that could add to reserves and resources and provide for sustained mining operations".
Phase 1 Open Pit Project
Development of the Phase 1 open pit has begun and will be one of the first open pit mines operated by Barrick that will include autonomous mining equipment. This new technology could provide an opportunity for reduced mining costs and improved safety. Mine development capital in 2018 for Phase 1, on a 100% basis, is currently forecasted for US$17 million and US$90 million for the entire project.
The run-of-mine ("ROM") material from Phase 1 will be stockpiled, pending a decision on whether to proceed with a processing facility located on the joint venture property. This has the potential to add to future resources and reserves, and subsequent production, at South Arturo.
El Niño Underground Project
The El Nino underground deposit is the down-plunge extension of the Phase 2 pit which was mined in 2016-17. Ground work including backfilling of the Phase 2 pit has been completed and full construction of the El Nino mine will begin in July 2018 with capital costs in 2018 estimated at US$7.4 million on a 100% basis and US$36.4 million for the entire project. Following development of the upper ore zones, underground exploration will be initiated to identify additional mineralization, which remains open at depth and locally along strike.
Work will continue to advance a potential Phase 3 open-pit and additional run-of-mine (ROM) heap leach material that would complement material from Phase 1. Drilling to further define and expand mineralization is currently occurring.
Drilling in 2017 identified mineralization below the current pit design and demonstrated continuity with higher than expected grades in the southern extent of the current resource model. Drilling will primarily follow-up high-grade results from the 2017 program including 117.0 feet grading 0.48 oz/ton Au (35.7 m of 16.54 g/t Au) with 50 feet grading 0.82 oz/ton Au (15.2 m of 28.26 g/t Au) and an additional intercept of 226.5 feet grading 0.09 oz/ton Au (69.0 m of 3.05 g/t Au) in hole ART17-10C – the final hole of the program.
Column leach testing to verify ROM recoveries will be completed in 2018 to validate recovery curves and some additional drilling will be completed to add mineralization in the eastern portion of the Phase 1 pit.
Drilling is also planned for the South Hinge zone, a primary exploration target on the property owing to its proximity to the Phase 2 and Phase 3 pit designs and it's potential to expand the planned Phase 3 pit. Future exploration will test the East Dee target, located east of the Phase 1 pit which could provide for an additional open pit or underground opportunity.
Annual General Meeting – June 27, 2018
Premier would like to cordially invite its shareholder, analysts, and potential investors to its Annual General Meeting to be held at 4:00pm EST on June 27, 2018 at the Board of Trade, 1 First Canadian Place, Toronto, Ontario. The AGM will be followed by a corporate presentation at 4:30pm EST (with conference call and webcast details found on the Company's website www.premiergoldmines.com) and a reception.
Details for the conference call and webcast can be found below and will be accessible on the Company's website.
Toll Free (North America): 1-888-231-8191
Conference ID: 2584517
Conference Call Replay
Toll Free Replay Call (North America): 1-855-859-2056
International Replay Call: 1-416-849-0833
Both the webcast and conference call replay will be available 9:00am EDT on June 28, 2018 until 11:59 pm EST on July 4, 2018.
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 a gold producer and respected exploration and development company with a high-quality pipeline of precious metal projects in proven, accessible and safe mining jurisdictions in Canada, the United States, and Mexico.
This Press Release contains certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans, including future operations, future work programs, capital expenditures, discovery and production of minerals, price of gold and currency exchange rates, timing of geological reports and corporate and technical objectives... Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks inherent to the mining industry, adverse economic and market developments and the risks identified in Premier's annual information form under the heading "Risk Factors". There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Premier disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Premier Gold Mines Limited
For further information: Ewan Downie, President & CEO, Phone: 807-346-1390, Fax: 807-346-1381, E-mail: [email protected], Web Site: www.premiergoldmines.com