Consolidated gold production of 139,658
ounces for 2017
THUNDER BAY, ON, Jan. 17, 2018 /CNW/ - PREMIER GOLD MINES
LIMITED (TSX:PG) ("Premier", "the Company") is pleased to
announce fourth quarter and full-year 2017 production results as
well as consolidated production and cost guidance for
2018.
All dollar figures are in United
States dollars unless otherwise indicated.
2017 Fourth Quarter Highlights:
- Gold production of 24,385 ounces
- Silver production of 77,082 ounces
2017 Full-Year Highlights:
- Gold production of 139,658 ounces
- Silver production of 357,901 ounces
- Commenced work on El Nino underground project and advanced the
Phase 1 pit project
- New resource estimates released for the McCoy-Cove
(Nevada) and Hasaga (Ontario) projects
2018 Production and Cost Guidance:
- Gold production of between 85,000 to 95,000 ounces
- Silver production of between 300,000 to 325,000 ounces
- Forecast cash operating costs of between $690 to $740 per
ounce of gold(i)
- Forecast all-in sustaining costs (AISC) of between $800 and $850 per
ounce of gold(i)
2017 Operating Results
Premier's two producing mines, South Arturo in Nevada and Mercedes in Mexico, had consolidated gold production of
139,658 ounces of gold.
Table 1: Gold production in the fourth quarter and full-year
2017
Mine
|
Q4 2017
Production
(ounces)
|
Full-year 2017
Production
(ounces)
|
South Arturo,
Nevada
|
4,472
|
57,124
|
Mercedes,
Mexico
|
19,913
|
82,534
|
|
|
|
Premier
Consolidated
|
24,385
|
139,658
|
The Mercedes Mine has performed well since it was acquired in
2016. For the full-year and the fourth quarter of 2017 the Mercedes
Mine produced 82,534 and 19,913 ounces of gold and 337,983 and
77,082 ounces of silver respectively. Some items that impacted
production included lower grades than modeled in some stoping
areas, difficult ground conditions requiring a change to the mining
sequence, and a nearby forest fire in the third quarter, during
which manpower and machinery were deployed from the mine site to
help fight the fire and protect the Mercedes property.
2018 Production Outlook and Cost Guidance
Consolidated production for 2018 is expected to be between
85,000 to 95,000 ounces of gold, compared to 139,658 ounces
produced in 2017, as a result of the completion of the Phase 2 open
pit mine at South Arturo. The partnership is now working towards
the construction of an underground mine (El Nino) and the next
phase of open pit mining (Phase 1). In 2018, gold production will
be realized from both Mercedes and South Arturo. Cash operating
costs are projected to be $690 to
$740 per ounce of gold(i),
and consolidated all-in sustaining costs are expected to be between
$800 and $850 per ounce of gold. (i)
Table 2: 2018 production and cost guidance
Mine
|
Guidance
2018
|
Production
ounces
|
Cash Cost per ounce
(i)
|
AISC per ounce
(i)
|
South
Arturo
|
5,000 -
10,000
|
$600 -
$650
|
$620 -
$670
|
Mercedes
|
80,000 -
85,000
|
$700 -
$750
|
$820 -
$870
|
Consolidated
|
85,000 -
95,000
|
$690 -
$740
|
$800 -
$850
|
The Mercedes mine is
forecasting 300,000 - 325,000 oz silver for 2018.
|
|
South Arturo Mine, Nevada
The South Arturo Mine is forecast to produce between 5,000 to
10,000 ounces of gold in 2018 compared to 57,124 ounces in 2017.
Cash operating costs are forecast to range between $600 and $650 per
ounce based on projected annual throughput and projected grades to
be processed. (i) All-in sustaining costs are forecast
to range between $620 and
$670 per ounce. (i)
Preliminary silver production from South Arturo for 2017 is 19,918
ounces.
Two additional mine developments have been approved. Stripping
of the Phase 1 pit will commence mid-year and development of the El
Nino underground is scheduled to begin in the second half of the
year. Mineral resource/reserve estimates for both deposits are
expected in February.
Metallurgical characterization to assess the potential of
processing run-of-mine (ROM) material is being completed at the
Phase 1 pit. Planned 2017 definition drilling to increase
confidence in the geological model and to support additional
metallurgical work has been completed at the El Nino underground
deposit. El Nino is located down-plunge of the previously mined
Phase 2 pit and planning for development that is scheduled to begin
in the third quarter of 2018 is now underway.
Future mine planning for the potential Phase 3 pit project is
also being supported by exploration and geotechnical drilling and
metallurgical characterization work in 2018. Higher-grade
mineralized breccia is being targeted in the main Phase 3 ore zone
in addition to potential ROM grade ore in the upper parts of the
deposit. Highlight results from initial drilling in the main
zone include 177.8 feet grading 0.23 oz/t Au (54.2 m grading 7.90 g/t) in hole ART17-01C and
261.6 feet grading 0.15 oz/t Au (79.7
m grading 5.20 g/t) in hole ART17-04C. Future drilling will
continue to target gaps in the model.
For 2018, Premier's portion of capital expenditures at the El
Nino and Phase 1 mines are estimated at $9.2
million. The exploration budget for South Arturo in 2018 is
$1.2 million, which is planned to
include over 8,000 metres of drilling on the Phase 3, East Dee and
El Nino targets.
Mercedes Mine, Mexico
The Mercedes Mine is forecast to produce between 80,000 to
85,000 ounces of gold in 2018 compared to 82,534 ounces produced in
2017. Cash operating costs are forecast to range between
$700 and $750 per ounce.(i) All-in sustaining
costs are forecast to range between $820 and $870 per
ounce.(i)
In 2017, more than 45,000 metres of drilling was completed at
Mercedes and a revised mineral resource and reserve estimate is
planned for release in February.
For 2018, sustaining capital at the Mercedes Mine is estimated
at $6.8 million, which includes
$3.8 million in primary
development.
The total exploration budget is $6.0
million with a plan of 40,000 drilling metres, including
15,000 metres on Marianas, 6,500 metres on Axis-Sharbat, 5,000
metres on Lupita-Diluvio and 4,000 metres on Klondike-Rey de
Oro.
"During 2018 Premier will advance several development projects
financed entirely from company's treasury and cash flow," stated
Ewan Downie, President & CEO of
Premier. "In addition to the current mining operations, we
continue to advance two near-term development opportunities at
South Arturo and also plan to initiate an underground program at
McCoy-Cove."
Premier remains focused on building a mid-tier gold producer
with two producing mines, South Arturo and Mercedes, and the
ongoing permitting for future mine development at Hardrock in
Ontario (Greenstone JV) and
McCoy-Cove in Nevada. Deeper exploration continues along the
Deep Hasaga target in Red
Lake.
All abbreviations used in this press release are available by
following this link (click here).
The statements contained herein reflect the views of Premier
Gold Mines Limited and may not reflect the views of Barrick Gold or its Affiliates.
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. Drill samples from Arturo were sent to ALS
USA Inc. in Reno, Nevada, USA for analysis by fire assay
with AA finish of a 30 gram sample.
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's team is focused
on creating a low‑cost, mid-tier gold producer through its two
producing gold mines; and two advanced multi-million ounce
development projects where permitting and pre-construction
initiatives are in progress.
Forward Looking Statement
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.
Non-IFRS Measures
The Company has included certain terms or performance measures
commonly used in the mining industry that are not defined under
International Financial Reporting Standards ("IFRS") in this
document. These include: cash cost per ounce sold, all in
sustaining cost ("AISC") per ounce sold and average realized price
per ounce. 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.
SOURCE Premier Gold Mines Limited