THUNDER BAY, ON, Oct. 18, 2016 /CNW/ - PREMIER GOLD MINES
LIMITED ("Premier" or "The Company") (TSX:PG) is pleased to
announce third quarter ("Q3/16") production results from its
40% ownership in the South Arturo Mine located in Carlin, Nevada. The mine is a joint venture
between Premier and Barrick Gold Corporation's wholly-owned
subsidiary Barrick Gold Exploration Inc. ("Barrick"),
and has delivered solid operating results since achieving
commercial production on August 1,
2016.
The following table provides Q3/16 production statistics for
South Arturo:
Table 1: South Arturo – Q3/16 Operational Statistics (100%
Basis)
OPERATIONAL
STATISTICS
|
Q3/16
ACTUAL
|
Total Gold Production
(ounces)
|
75,570
|
PROCESSING
Tons
Processed
Contained
Ounces
Ounces
Produced
Grade Processed
(oz/t)
Recovery Rate
|
322,614
83,605
75,570
0.259
90.4%
|
Attributable to Premier on a 40% basis, a total of approximately
129,000 tons of ore was processed at South Arturo during Q3/16
producing 30,228 ounces of gold. The South Arturo Mine, which was
brought into production on time and under budget, has exceeded
Q3/16 production guidance by approximately 50% YTD owing to revised
scheduling of ore through the roaster. Recoveries have also been
slightly higher (90.4% actual vs. 86.4% budget) due to grade
processed. The Company is currently targeting between 100,000 and
110,000 ounces of gold production for 2016 from its operations at
South Arturo and the recently acquired Mercedes Mine in
Sonora, Mexico.
Approximately 80% of targeted production is anticipated during the
fourth quarter.
"We are extremely pleased with the performance achieved to date
by Barrick, the operator of our joint venture at South Arturo"
stated Ewan Downie, President and
CEO of Premier, in the company's C-Suite Blog
https://www.premiergoldmines.com/news/c-suite-blog/all, "South
Arturo is one of the highest grade open pit operations brought into
production in 2016 and based on the strong initial performance
achieved, we remain on track to meet or exceed our production
guidance for the year".
Also at South Arturo, the joint venture is advancing two
additional mining opportunities on the property: the El Nino
underground project and the Dee pit expansion project (Phases
1&3). A Plan of Operations for the construction of a ramp
at El Nino to access high-grade mineralization down-dip of the
current pit has been submitted for approval with Nevada regulatory authorities. Drilling
in H1 2017 will focus on the further definition of the ore zones
from surface to infill previous surface exploration programs.
Drilling and bulk sampling are in process for the Dee pit
expansion, a potential run-of-mine heap leach operation located to
the west of the current Phase 2 pit. Updated metallurgical
recoveries and optimized capital and operating assumptions will be
used for a revised economic assessment for this potential second
pit operation prior to making a construction decision.
In Mexico, our Mercedes Mine is
also expected to produce 90,000 to 100,000 ounces of silver during
the fourth quarter. Production estimates for 2016 are derived
from life of mine operating plans prepared on the basis of mineral
reserves associated with each property. Material factors and
assumptions underlying 2016 gold production estimates for South
Arturo and Mercedes, as derived from the respective mine plans are
as follows: (1) a realized gold price of $1,100; (2) average cash costs of $429 and $672 per
ounce; and (3) all in sustaining costs of $444 and $819 per
ounce. Material factors and assumptions underlying 2016
silver production estimates for Mercedes are: (1) a realized silver
price of $17.00; (2) average cash
costs of $8.80 per ounce; and (3) all
in sustaining costs of $9.05 per
ounce.
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.
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