THUNDER BAY, ON, Oct. 16, 2018 /CNW/ - PREMIER GOLD MINES
LIMITED ("Premier" or "The Company") (TSX:PG) is pleased to
announce its third quarter production results for 2018.
Q3 - 2018 Production Highlights:
- Mercedes Mine produced 17,465 ounces of gold, a 26% increase
over Q2 2018
- South Arturo produced 2,635 ounces of gold from Phase 2
stockpiles
- Total silver production of 89,512 ounces
The increase in production from Mercedes quarter over quarter is
consistent with the Company's previous guidance, where production
is weighted toward the second half of 2018. Production from South
Arturo has exceeded annual guidance, benefitting from a decision to
accelerate processing of the Phase 2 ore stockpile. The Company
remains on-track to meet its 2018 consolidated guidance of
90,000-100,000 ounces of gold owing to increased production from
South Arturo and decreased production expected from Mercedes.
Summary of Q3-2018 Preliminary Production Results
MINE
|
Gold
Production
(ounces)
|
Silver
Production
(ounces)
|
|
Q3
2018
|
YTD
2018
|
Q3
2018
|
YTD
2018
|
Mercedes,
Mexico
|
17,465
|
46,254
|
88,390
|
190,126
|
South Arturo,
Nevada
|
2,635
|
20,403
|
1,122
|
10,958
|
Consolidated
Production
|
20,100
|
66,657
|
89,512
|
201,084
|
Consolidated
Sales
|
21,466
|
71,383
|
85,376
|
209,684
|
"Overall gold production during the third quarter met
expectations with additional ore being processed from stockpiles at
the low-cost South Arturo mine," stated John Begeman, Executive Chairman of
Premier. "In addition, development and construction commenced
on the next two production phases at South Arturo; the Phase 1 open
pit and the El Nino underground mine".
South Arturo Mine, Nevada
The South Arturo Mine, a joint venture operated by Barrick Gold
Corporation ("Barrick"), has delivered exceptional results since
achieving commercial production. Processing of ore stockpiled
from the Phase 2 open pit will continue in limited quantities
during the fourth quarter and production in 2018 has already
exceeded guidance for the year.
Future production opportunities are being advanced with two
additional developments underway at the Property. Both the Phase 1
open pit and the El Nino underground mine are now under
construction with production expected in the second half of
2019.
Mercedes Mine, Mexico
The Mercedes Mine remains focused on cost reduction and the
development of new deposits to increase flexibility and
productivity. Subtle changes to the mine plan at Diluvio have
led to infrastructure adjustments including the addition of
multiple sub-levels and added vertical stoping. In addition,
a minor ground fall in September resulted in delayed production
during the month. Production is now back to normal.
Incremental costs associated with the infrastructure adjustments
and increased definition drilling, combined with lower than
forecasted year to date production, has resulted in higher costs at
Mercedes when compared to 2017.
During the third quarter, construction to expand tailings
capacity began. Additionally, development continued on a drift from
the Lagunas mine to access the higher-grade Marianas deposit
located along the main Mercedes mine trend.
For the year, production at Mercedes is weighted towards the
second half as new headings and a modified mine plan for Diluvio
are being implemented. Exploration and resource definition drilling
continues to be a priority with both surface and underground
programs underway.
Q3 – 2018 financial results and conference call
details:
Full financial results for the three months ended September 30, 2018, will be released before
market open on November 7, 2018 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: 50238865
Webcast Link
https://event.on24.com/wcc/r/1858478/C813B379017A7F3EA0F16252ED176A8F
Conference Call Replay
The conference call replay will be available from 1:00pm EST on November 7,
2018 until 11:59pm EST on
November 14, 2018.
Toll Free Replay Call (North
America): (+1) 888 390 0541
International Replay Call: (+1) 416 764 8677
Passcode: 238865 #
Premier Gold Mines Limited is a gold producer with a
high-quality pipeline of precious metal projects in proven,
accessible and safe mining jurisdictions in Canada, the United
States, and Mexico. The
goal is to evolve into a low-cost, mid-tier gold producer through
its two producing mines and the development of its Hardrock Project
in Ontario (Greenstone Gold JV)
and McCoy-Cove Property in Nevada
and where permitting and pre-construction initiatives are well
advanced.
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.
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