THUNDER BAY, ON, Jan. 23, 2020 /CNW/ - PREMIER GOLD MINES
LIMITED ("Premier", "the Company") (TSX: PG) (OTCPK:
PIRGF) is pleased to announce its fourth quarter and full year
production results for 2019.
Production Highlights:
- Total Q4 gold production of 16,880 ounces
- Total 2019 gold production of 67,427 ounces
- Total Q4 silver production of 45,500 ounces
- Total 2019 silver production of 192,829 ounces
Commercial production was declared more than three months ahead
of schedule at South Arturo's El Nino mine and ore tons mined
during the fourth quarter were considerably above plan. At
the Company's Mercedes Mine, excessive dilution led to lower than
planned grades and therefore fewer than guided gold ounces produced
during the year. The Company identified several factors
contributing to the lower than planned grades and is working on
initiatives to ensure increased and more reliable production for
2020 and beyond.
Table 1 below provides a summary of production results by mine
site.
Table 1
Q4 and Full Year Preliminary Production Results
|
Mine
|
Q4
Gold Production
(ounces)
|
Full Year
Gold Production
(ounces)
|
Q4
Silver Production
(ounces)
|
Full Year
Silver Production
(ounces)
|
Mercedes,
Mexico
|
12,274
|
59,901
|
44,809
|
191,306
|
South Arturo,
Nevada
|
4,606
|
7,526
|
691
|
1,523
|
Consolidated
Production
|
16,880
|
67,427
|
45,500
|
192,829
|
"2019 was a trying year for our Mercedes Mine" stated
Ewan Downie, President and CEO of
Premier. "However, we believe that we understand the
challenges faced by the mine this past year and have a plan in
place to address them. We believe our continued exploration
successes at Mercedes and the resumption of mining at South Arturo
will contribute to production for years to come and provide a
platform for our Company's growth".
Mercedes Mine, Mexico
The Mercedes Mine is focused on improving grade predictability
while also reducing dilution and overall costs. Developing new
deposits to increase flexibility and productivity remains a key
priority.
During 2019, exploration efforts at the mine focused on
identifying near-mine deposits. This program resulted in the
most successful campaign for Premier at Mercedes since its
acquisition in 2016, with key discoveries at Lupita Extension and
San Martin. Both deposits
display potential to host above average mineral resource
grades. Access to Lupita Extension is underway and will
increase the number of available ore headings and stopes, resulting
in added flexibility and improved production. A comprehensive
reconciliation process is being implemented at the mine as part of
an overall effort to ensure mined grades are optimized to the block
model estimate. Additionally, the mine's dilution reduction
efforts now include the use of smaller mining equipment to allow
reduced mining widths and headings sizes where appropriate.
For 2020, the Company is expecting increased production and
lower costs versus 2019 as operational improvements and access to
higher grade mineralization is realized. Consequently, the Mercedes
2020 production guidance range is between 65,000 to 75,000 ounces
of gold at cash costs of between $850
to $975 per ounce and all-in
sustaining costs of between $1,125 to
$1,275 per ounce.
South Arturo Mine, Nevada
The South Arturo Mine is a joint venture between Premier and
Nevada Gold Mines LLC, a joint venture between Newmont Mining and
Barrick Gold Exploration Inc. ("Barrick") operated by Barrick.
Commercial production was declared at the El Nino underground
mine at the end of Q3, more than three months ahead of
schedule. The El Nino mine recovered a total of 5,964
ounces of gold (including 562 pre-production ounces) to Premier's
account during 2019, with an additional 3,855 contained ounces
being stockpiled for future processing. In addition, 2,124 ounces
of gold were recovered from the Phase 2 open pit stockpile during
the year with an additional 392 pre-production ounces of gold from
the Phase 1 open pit. Underground core drilling at El Nino returned
numerous positive results including 24.4
m of 20.60 g/t Au (SEC19010), 32.0
m of 10.09 g/t Au (IER19021), and 51.8 m of 11.13 g/t Au (IER19031).
Exploration drilling to increase reserves and resources was also
completed elsewhere at South Arturo. Primary Phase 3 pit targets
returned highlight intercepts including 112.8 m of 7.29 g/t Au (MAD19004) and
62.5 m of 7.39 g/t Au (MAD19002) (See
press release dated October 28, 2019
for complete results).
The JV is finalizing the operating plan for 2020, including a
detailed review of additional mining opportunities, following which
the Company expects to provide cost and production guidance for
South Arturo.
Q4 and year end 2019 financial results and conference call
details:
Full financial results for the three and twelve months ended
December 31, 2019, will be released
before market open on March 5, 2020
and a conference call with senior management will be held at
10:00am EST.
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)
888 390 0605
International: (+1) 416 764 8609
Conference ID: 12570368
Webcast Link:
https://event.on24.com/wcc/r/2170433/9BF07975F01997539A4A558FF039F0F8
Conference Call Replay:
The conference call replay will be available from 1:00pm EST on March 5,
2020 until 11:59pm EST on
March 12, 2020.
Toll Free Replay Call (North
America): (+1) 888 390 0541
International Replay Call: (+1) 416 764 8677
Passcode: 570368 #
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. Premier
remains focused on creating a low-cost, mid-tier gold producer
through its two producing gold mines; South Arturo and Mercedes,
and through future mine development opportunities at Hardrock in
Ontario (Greenstone Gold JV) where
permitting and development initiatives are ongoing and McCoy-Cove
in Nevada.
Stephen McGibbon, P. Geo.,
Executive Vice President, Corporate and Project Development, is the
Qualified Person for the technical information contained in this
press release and is a Qualified Person within the meaning of
National Instrument 43-101.
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, mineral resource and mineral reserve estimates 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