Strong results realized at both operating
mines
THUNDER BAY, ON, Oct. 14, 2020 /CNW/ - Premier Gold Mines
Limited ("Premier", "the Company") (TSX: PG) (OTCPK:
PIRGF) is pleased to release solid production results
for the third quarter of 2020 from the Company's 100%-owned
Mercedes Mine in Mexico and its
40%-owned South Arturo Mine in Nevada.
Q3 - 2020 Production Highlights:
- Consolidated gold production for the third quarter exceeds
19,000 ounces
- 12,183 ounces of gold at Mercedes exceeds the mine's new
operating plan for the quarter
- Mercedes performance led by strong grades and reduced mining
dilution
- 7,096 ounces of gold at South Arturo ensures production
already exceeding the annual plan
Improved production from the Mercedes mine was a result of
implementing a modified mine plan developed during the COVID
19-related care and maintenance period in Q2. Significant progress
has been made with respect to cost reduction initiatives at the
Mercedes mine during the quarter and this progress will be
reflected in unit operating costs reported for Q3. The El Nino mine
at South Arturo continued its trend of strong quarterly production
and has now exceeded the annual production plan.
"Consolidated production in the third quarter met the high-end
of expectations", stated Ewan
Downie, Chief Executive Officer of Premier, "The modified
mine plan at Mercedes, designed to increase mining efficiency and
expand operating margins, has resulted in significantly enhanced
cash flow."
Mercedes Mine, Mexico
Following the pandemic-related suspension of operations during
the second quarter, ore production and processing resumed in July
with 12,183 ounces of gold and 49,985 ounces of silver produced in
the quarter. Extensive technical work was carried out during
the two-month shutdown to assess alternative mine plans with
renewed attention to increasing profit margins. A new simplified
operating plan with a more focused mining and development strategy
has enhanced productivity, reduced costs and is ensuring the mine's
ability to reliably deliver free cash flow. Significant progress
has been made with respect to cost reduction initiatives at the
Mercedes mine during the quarter and this progress will be
reflected in unit operating costs reported for Q3.
This optimized plan has consolidated production to one mine
portal from five, reduced the mining rate to a target of 1,200
tonnes per day from 2,000 tonnes, and now operates the processing
plant on a campaign basis in alignment with the plan and crew
rotations. Furthermore, the plan has enhanced underground operating
efficiencies and supervision effectiveness, resulting in ore
quality improvements such as higher than forecast grades and
reduced mining dilution. Contractor supplied services were
dramatically decreased with most mining carried out utilizing
company employees. The success of future exploration and
delineation drill programs is expected to allow the production rate
to eventually return to the plant's nameplate capacity over
time.
South Arturo Mine, Nevada
The El Nino underground mine at the South Arturo Joint Venture
is operated by Barrick Gold through
its subsidiary Nevada Gold
Mines. El Nino has delivered solid operating results
since initial production in late 2019, including year-to-date in
2020 where, despite ensuring protocols to deal with potential
COVID-19 related issues, gold production has exceeded its annual
plan. During the third quarter, gold production from South Arturo
was 7,096 ounces, from more than 650 tonnes of ore per
day at the high-grade underground operation.
Expansion drill results from the El Nino underground program
were announced with highlight results of 39.6 m of 17.11 g/t Au, including 21.3 m of 24.75 g/t Au (SER20019) and
100.6 m of 5.73 g/t Au, including
13.7 m of 8.52 g/t Au (SER20018).
The partners continue to advance additional development
opportunities, including the Phase 1 and Phase 3 open-pit projects,
and are assessing the potential for an on-site heap leach facility.
Surface drilling in the vicinity of these pits commenced during the
third quarter. The Company is in the final stages of
completing a Pre-Feasibility Study for South Arturo.
Q3 2020 financial results and conference call
details:
Full financial results for the quarter ended September 30, 2020 will be released before market
open on November 4, 2020 followed by
a conference call with senior management being held at 10:00am EDT.
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
Webcast Link:
https://produceredition.webcasts.com/starthere.jsp?ei=1385431&tp_key=ca1ecfd77a
Conference Call Replay
The conference call replay will be available from 1:00pm EST on November 4,
2020 until 11:59pm EST on
November 11, 2020.
Toll Free Replay Call (North
America): (+1) 888 390 0541
International Replay Call: (+1) 416 764 8677
Passcode: 423039#
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.
Stephen McGibbon, P. Geo.,
Executive Vice President, Corporate and Project Development, 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. The primary assay laboratories for the South
Arturo Mine are ALS Chemex Labs (ALS Chemex) and American Assay
Labs (American Assay) in Reno,
Nevada. For a complete description of sample preparation,
analytical methods and QA/QC procedures, refer to the technical
report dated March 26, 2018
(effective date December 31, 2017),
entitled "Technical Report on the South Arturo Mine, Elko County, State
of Nevada, USA" located on Premier's website and at
www.sedar.com.
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