Strong Q4 Results at Both Operating
Mines
THUNDER BAY, ON, Jan. 20, 2021 /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 2020.
Consolidated production highlights:
- Quarterly production of 16,084 ounces of gold and 66,482
ounces of silver
- Full-year production of 58,443 ounces of gold and 170,457
ounces of silver
- Annual production from the El Nino Mine at South Arturo
exceeded budget by more than 30%
Solid production from the Mercedes mine, as a result of the
modified mine plan developed during the COVID–19 related care and
maintenance period in the second quarter, highlighted strong
overall performance in the quarter. Production from the El
Nino deposit at South Arturo continued to perform very well in the
fourth quarter, leading to 2020 production significantly above the
original annual budget.
Fourth Quarter and
Full Year 2020 Production Results by Mine Site
|
|
Q4
Production (ounces)
|
Full Year
Production (ounces)
|
Mine
|
Gold
|
Silver
|
Gold
|
Silver
|
Mercedes,
Mexico
|
11,185
|
65,735
|
34,955
|
167,917
|
South Arturo,
Nevada
|
4,899
|
747
|
23,488
|
2,540
|
Consolidated
Production
|
16,084
|
66,482
|
58,443
|
170,457
|
"While 2020 was a challenging year, we are extremely pleased
with this strong finish", stated Ewan
Downie, Chief Executive Officer of Premier. "South
Arturo exceeded expectations in 2020 with a winning track record of
performance versus plan, and our operations team at Mercedes have
defined higher grade resources and executed a revised higher-margin
mine plan that has the mine poised for continued
success."
Mercedes Mine, Mexico
Following the successful turnaround of the Mercedes Mine in the
prior reporting period, fourth quarter production was well in line
with the revised higher margin operating plan. The production
results continue to validate the work carried out earlier in the
year designed to reduce dilution and though put, create better
operational flexibility, improve productivity, and grade, and
reduce costs. New geological modeling, resource estimates and
reconciliation processes of the models to the mined production
greatly improved the operation's planning and forecasting and will
focus on higher grade resources that are currently being
defined.
South Arturo Mine, Nevada
Underground operations on the El Nino deposit at the South
Arturo Joint Venture, operated by Barrick
Gold through its subsidiary Nevada
Gold Mines, had another exceptional year with production
exceeding budget by over 30%. The strong performance was driven by
higher production rates that averaged 694 tonnes per day
processed.
In 2020, drill programs were completed at El Nino, with initial
results suggesting the potential to expand underground resources
and extend the mine life. Drilling into the upper portion of the
planned Phase 1 and Phase 3 deposits to assess heap leach economics
in advance of a potential mining decision was also conducted. Phase
3 is under evaluation to determine the economics of an open pit
versus an underground operation. A revised mineral resource/reserve
estimate for all of the deposits that comprise the South Arturo
Joint Venture is planned following receipt of all assays from the
2020 drill program.
About Premier
Premier is a gold producer and successful exploration and
development company with a high-quality portfolio of precious
metals projects in proven, accessible and safe mining jurisdictions
in Canada, the United States and Mexico. On December 16,
2020, Equinox Gold Corp. (TSX: EQX, NYSE American: EQX) and
Premier Gold Mines Limited (TSX: PG, OTCPK: PIRGF) announced that
the companies have entered into a definitive agreement whereby
Equinox Gold will acquire all of the outstanding shares of Premier.
Concurrently, Premier will spin-out to its shareholders shares of a
newly created US-focused gold production and development company to
be called i-80 Gold Corp.
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.
www.premiergoldmines.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