THUNDER BAY, ON, Dec. 6, 2018 /CNW/ - Premier Gold Mines
Limited ("Premier" or "the Company") is pleased to
provide an update of the development programs underway at the
Company's South Arturo Property located in the Carlin Trend of
Nevada. Construction of both
the Phase 1 open pit and the El Nino underground mine is
progressing well with mineralized material being stockpiled for
future processing.
The South Arturo Property is a joint venture between Premier
(40% ownership) and Barrick Gold Corporation's wholly-owned
subsidiary, Barrick Gold Exploration Inc. ("Barrick").
Barrick is the operator and processes ore from South Arturo
primarily at their Goldstrike facility located approximately 5
kilometers to the south.
Construction of the Phase 1 open pit and the El Nino underground
mine has started with initial gold production from operations
planned in late 2019. Mining production from the El Nino mine
is expected to ramp up in Q4 2019. Heap leach material from
the Phase 1 open pit is now being stockpiled for potential future
processing. The pre-feasibility level engineering design for
the heap leach option is planned to start early 2019.
Additional work on the property in 2018 includes infill and
exploration drilling (initial results expected to be released prior
to year-end) and ongoing work being conducted to advance additional
mining opportunities that include the Phase 3 pit.
"Multiple new mine developments are being advanced, including
detailed engineering work aimed at moving the heap leach project
into the South Arturo mine plan", stated Ewan Downie, President & CEO of
Premier. "Additional opportunities continue to be advanced
that are expected to add to future reserves and/or resources in an
effort to extend mining operations well into the future".
Phase 1 Open Pit Project
More than 1.5 million tons of material has been stripped at the
Phase 1 open pit. Run-of-mine ("ROM") heap leach material
from Phase 1 is being stockpiled for potential processing at a
facility that will be located on the joint venture
property. If the heap leach option is approved, construction
of the facility is anticipated to begin in 2020.
Drilling in 2018 has been focused on expanding near-pit
mineralization and testing the nearby East Dee target that has the
potential to represent an additional mining opportunity on the
property. Initial assays from this program are expected to be
released prior to year-end.
El Niño Underground
Project
The El Nino underground deposit is the down-plunge extension of
the Phase 2 pit that was mined in 2016-17. Both portals are
now collared (see figure 1) and some high-grade material located
proximal to the pit highwall has now been mined and
stockpiled. Mining continues to be advanced such that gold
production is expected late 2019.
Following development of the upper ore zones, underground
exploration will be initiated to identify additional
mineralization, which remains open at depth and locally along
strike.
Additional Opportunities
Drilling at the potential Phase 3 open-pit has been completed to
further define both high-grade and heap leach material that would
complement material from Phase 1. Drilling in 2017 identified
mineralization below the current pit design and demonstrated
continuity with higher than expected grades in the southern extent
of the current resource model with intercepts including 117.0
feet grading 0.48 oz/ton Au (35.7
m of 16.54 g/t Au) with 50 feet grading 0.82 oz/ton
Au (15.2 m of 28.26 g/t Au) and
an additional intercept of 226.5 feet grading 0.09 oz/ton Au
(69.0 m of 3.05 g/t Au) in hole
ART17-10C, the final hole of the program. Additional drilling
is being completed in this target area.
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. 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 for the South Arturo 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.
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.
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