THUNDER BAY, ON, April 3, 2019 /CNW/ - Premier Gold Mines
Limited ("Premier" or "the Company")
(TSX:PG) is pleased to announce that it has entered into
an option acquisition agreement with Americas Silver Corporation
("ASC") to acquire an option to purchase a 100% interest in the
San Felipe Property, located 55 kilometres from the Company's
Mercedes Mine in Sonora State, Mexico. Hochschild plc is the underlying owner
of the San Felipe Property.
The San Felipe Property consists of several claim groups that
comprise 16,265 ha with several poly-metallic zones that hosts a
high-grade historic mineral resource and has potential for
future discoveries.
The Company plans to assess potential development options which
may include: 1) Adding a parallel floatation circuit at Mercedes to
increase annual output in the near-term; 2) Building a stand-alone
mill at San Felipe; 3) Bringing
San Felipe into development at the end of the Mercedes mine-life
and processing mineralized material at the existing
complex.
Ewan Downie, President and CEO
stated "San Felipe represents a
strategic asset, adding resources and providing a near-term
development opportunity in close proximity to an existing
operation. We will assess options to bring San Felipe to production to complement
existing production in Mexico".
An Environmental Impact Statement (MIA) will be transferred to
Premier upon closing which should allow for a shortened timeline to
production. San Felipe is
partially developed with an existing ramp and several mining
related facilities already constructed on-site. With 69,000
metres of drilling on the property and several existing deposits
open for expansion, the Company believes that there is potential
for new discoveries and increased mineral resources at San Felipe.
As consideration, Premier will pay America's Silver US$7.0 Million on closing, and make additional
payments of US$1.9 Million upon the
making of a positive construction decision and then upon achieving
commercial production. Premier will also make eight quarterly
payments of US$750,000 to Hochschild
pursuant to the underlying option agreement. There is no
royalty payable on the property. Completion of this
transaction is subject to customary closing conditions for a
transaction of this nature.
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 has not completed sufficient work to
validate the mineral resources estimate as current and it should
not be relied upon. Premier is not treating the above mineral
resource estimate as current mineral resources. For a
complete description of sample preparation, analytical methods and
QA/QC procedures please refer to the technical report associated
with the above mineral resource estimate titled" TECHNICAL REPORT
AND RESOURCE ESTIMATED FOR THE SAN
FELIPE PROJECT, SONORA,
MEXICO" and dated May 3, 2018
located at www.sedar.com.
Premier Gold Mines Limited is a gold-producer with a
respected exploration and development 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.
The Company believes that the potential for
new discoveries and increased mineral reserves at the San Felipe property is high.
SOURCE Premier Gold Mines Limited