THUNDER BAY, ON, Oct. 3, 2016 /CNW/ - PREMIER GOLD MINES
LIMITED ("Premier" or "The Company") (TSX:PG) is pleased to
confirm a current Mineral Reserve and Resource estimate for the
Company's 100%-owned Mercedes Mine, located in the State of Sonora, Mexico, some sixty-five (65)
kilometres southeast of Magdalena de
Kino. The estimate, completed by the Mercedes Mine personnel
(with an effective date of June 30,
2016) is documented in an independent technical report
completed on behalf of Premier by Roscoe Postle Associates Inc.
(RPA).
Table 1 provides a summary of the Mineral Reserves at the
Mercedes Mine, while Table 2 provides a summary of Mineral
Resources.
Highlights of the June 30, 2016
Mercedes estimate include:
- Proven & Probable Reserves exceed 400,000 ounces gold, a
21% increase from 2015 net of depletion
- Proven Reserve grade exceeds 6.00 g/t Au
- Measured & Indicated Resources of 382,000 ounces gold
and 4.4 million ounces of silver
- Measured & Indicated Resource grade has increased 23% to
4.14 g/t Au
All abbreviations used in this press release are available by
following this link (click here).
"A renewed focus on reserve and resource definition at Mercedes
has resulted in a 20% increase in Proven and Probable reserves
between December and June. This is a result of excellent work
by the professional Management team at site" commented Premier
President & CEO Ewan Downie.
"Premier is now in place as a fully-engaged mine operator and we
will continue to seek to grow reserves and resources by maintaining
an aggressive exploration and development effort."
Table 1 – 2016 Mercedes Mine Mineral Reserve Summary –
June 30, 2016
Deposit
Mercedes
|
Category/
Process Type
|
Tonnes
('000 t)
|
Gold (Au)
Grade (g/t)
|
Contained Au
('000 oz)
|
Silver (Ag)
Grade (g/t)
|
Contained Ag
('000 oz)
|
Proven
|
509
|
6.02
|
99
|
51.5
|
842
|
Probable
(UG)
Probable
(OP)
|
2,174
229
|
4.13
2.15
|
289
16
|
33.9
17.4
|
2,369
128
|
Probable
(Total)
|
2,404
|
3.95
|
305
|
32.3
|
2,497
|
Proven +
Probable
|
2,913
|
4.31
|
403
|
35.7
|
3,339
|
1
|
CIM definitions
were followed for Mineral Reserves
|
2
|
Mineral Reserves
are estimated at a cut-off grade of 3.0 g/t Au for underground
reserves and 1.55 g/t Au for open pit
reserves
|
3
|
Mineral Reserves
were estimated using an average gold price of US$1,150 per ounce
and a silver price of US$18.00 per ounce
|
4
|
A minimum mining
width of 2.5 m was used
|
5
|
Bulk density is
2.42 t/m3 for ore and 2.44 t/m3 for
waste
|
6
|
Number may not add
due to rounding
|
|
|
Table 2 - 2016 Mineral Resource Estimate Exclusive of Mineral
Reserves (June 30, 2016)
Deposit
Mercedes
|
Resource
Category
|
Tonnes
('000t)
|
Gold (Au)
Grade (g/t)
|
Contained Au
('000 oz)
|
Silver (Ag)
Grade (g/t)
|
Contained Ag
('000 oz)
|
Measured
Indicated
|
522
2,344
|
4.98
3.96
|
83.6
298.3
|
65
45
|
1,085
3,355
|
Measured
+ Indicated (Total)
|
2,866
|
4.14
|
381.9
|
48
|
4,440
|
Total
Inferred
|
1,220
|
4.6
|
180
|
33
|
1,300
|
1
|
CIM definitions
were followed for Mineral Resources
|
2
|
Mineral Resources
are estimated at a cut-off grade of 2.0 g/t gold equivalent (AuEq)
for underground resources and 0.40
AuEq for open pit resources
|
3
|
AuEq based on 1.0
g Au = 140.0 g Ag
|
4
|
Mineral Resources
were estimated using an average gold price of US$1600 per
ounce
|
5
|
No minimum mining
width was used
|
6
|
Bulk density is
2.42 t/m3 for ore and 2.44 t/m3 for
waste
|
7
|
Mineral Resources
are exclusive of Mineral Reserves
|
8
|
Number may not add
due to rounding
|
|
|
The Mineral Reserve and Resource estimate used the Canadian
Institute of Mining, Metallurgy and Petroleum (CIM), CIM Definition
Standards for Mineral Resources and Mineral Reserves, Definitions
and Guidelines prepared by CIM Standing Committee on Reserve
Definitions and adopted by CIM Council on May 10, 2014. The mineral resource estimate
is classified as "measured", "indicated", or "inferred" as defined
by CIM.
The report, "TECHNICAL REPORT ON THE MERCEDES GOLD-SILVER MINE,
SONORA STATE, MEXICO" was completed by Qualified Persons
Kathleen A. Altman, P.E., Stuart E. Collins, P.E., and Chester M. Moore, P.Eng. and has been filed on
SEDAR and on the Company's website. The key assumptions and
parameters used in the estimate of the Mineral Reserves and Mineral
Resources presented in this press release are set out in such
technical report.
Chester M. Moore is the
independent Qualified Person who has reviewed and approved the
contents of this press release for the purposes of National
Instrument 43-101.
Premier Gold Mines Limited is a respected production,
exploration and development company with a high-quality pipeline of
gold projects focused in proven, safe, and accessible mining
jurisdictions in Canada,
the United States, and
Mexico. Anticipated gold production in excess of 100,000
ounces during the final quarter of 2016 will come from its interest
in the South Arturo Mine in Nevada, and the recently acquired Mercedes
Mine in Mexico.
Forward Looking Information
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 the estimation of mineral
resources and mineral reserves, 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