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
PROPERTY
|
Gold
(Au
ozs)
|
Silver
(Ag
ozs)
|
Cash Costs
(1)
(US$/oz
Au)
|
AISC
(1)
(US$/oz
Au)
|
Mercedes
|
75,000 -
85,000
|
225,000 -
250,000
|
730 -
780
|
900 -
950
|
Table 2: South Arturo Pre-Commercial Production Estimate
for 2019 (2)
PROPERTY
|
Gold
(Au
ozs)
|
South
Arturo
|
5,000 -
10,000
|
(1)
|
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".
|
(2)
|
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
Webcast
Link
https://event.on24.com/wcc/r/1989861/7E60C55C7426BC143258EA66DA8C6155
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.
Non-IFRS Measures
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