THUNDER BAY, ON, May 1, 2019 /CNW/ - Premier Gold Mines Limited ("Premier" or "The Company") (TSX:PG) is pleased to announce its first quarter production results for 2019. Production in the quarter was in line with the full year production schedule at Mercedes and the Company remains on track to meet its full year guidance.
Q1 2019 Mercedes Production Highlights:
- 17,614 ounces of gold production
- 57,681 ounces of silver production
"Our objective at Mercedes during the first quarter was to drive development work necessary to support planned production growth for the remainder of the year" stated John Begeman, Executive Chairman of Premier. "First quarter production at Mercedes is in line with plan, and we are currently on track to meet annual operating and production related targets".
Mercedes Mine, Mexico
With development work weighted heavily toward the first half of 2019 and monthly production levels weighted toward the second, the Mercedes team focused on meeting development objectives that will drive planned production levels for the remainder of the year. In addition to meeting development targets, the team continued to demonstrate improvements in safety, efficiency and cost control, all of which are contributing positively toward performance against the 2019 plan.
Development of the drift from the Lagunas mine to access the higher-grade Marianas deposit located on-strike continued during the quarter with underground drilling at Marianas, which commenced in 2018, planned to continue throughout 2019.
Exploration and resource definition drilling are a priority at Mercedes where current surface and underground drill programs are testing several new targets to identify new deposits at Mercedes.
South Arturo Mine, Nevada
The South Arturo Mine is a key joint venture project for the Company that is operated by Barrick Gold Corporation ("Barrick"). Future production opportunities are being advanced with two additional developments underway at the Property. The Phase 1 open pit and the El Nino underground mine are now under construction with production expected to ramp up late in the second half of 2019 at El Nino.
Exploration drilling in 2019 will focus on expansion and delineation of the El Nino Mine and the East Dee deposit that is located proximal to the Phase 1 pit.
2019 Annual Production Guidance
Production guidance is maintained for the year and presented in the Tables below.
Table 1: Production Guidance for 2019
Cash Costs (1)
75,000 - 85,000
225,000 - 250,000
730 - 780
900 - 950
Table 2: South Arturo Pre-Commercial Production Estimate for 2019 (2)
5,000 - 10,000
Cash cost and all in sustaining costs ("AISC") are non IFRS measures. A cautionary note regarding Non-IFRS financial metrics is included below in the section "Non IFRS Measures".
Premier's proportionate share of development capital at South Arturo for 2019 (excluding proceeds from pre-commercial production gold sales) is $39 million. Proceeds from pre-commercial production gold sales will be credited against development capital.
Q1 2019 financial results and conference call details:
Full financial results for the three months ended March 31, 2019, will be released before market open on May 8, 2019 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: 90889716
Conference Call Replay
The conference call replay will be available from 1:00pm EST on May 8, 2019 until 11:59pm EST on May 15, 2019.
Toll Free Replay Call (North America): (+1) 888 390 0541
International Replay Call: (+1) 416 764 8677
Passcode: 889716 #
Premier Gold Mines Limited is a gold-producer with a respected exploration and development pipeline of high-quality 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 - as well as mine development opportunities at McCoy-Cove in Nevada and Hardrock in Ontario.
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 Company has included certain terms and performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards ("IFRS") within this document. These include: cash cost per ounce sold and all in sustaining cost ("AISC") per ounce sold. Non-IFRS measures do not have any standardized meaning prescribed under IFRS, and therefore, they may not be comparable to similar measures employed by other companies. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and should be read in conjunction with the Company's consolidated financial statements. Readers should refer to the Company's Management Discussion and Analysis under the heading "Non-IFRS Measures" for a more detailed discussion of how such measures are calculated.
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.
SOURCE Premier Gold Mines Limited