Premier Confirms Filing Of NI 43-101 Technical Report For The Preliminary Economic Assessment Studies For Hardrock & Brookbank Projects
PREMIER GOLD MINES LIMITED (“Premier” or “The Company”) (TSX:PG)
is pleased to confirm that it has filed a technical report (“Report”)
prepared for the Hardrock and Brookbank Projects in accordance with
Canadian Securities Administrators’ National Instrument 43-101. The
Report may be found on the Company website or under the Company’s
Highlights of the 2014 PEA Studies (all currency amounts in Canadian dollars unless otherwise stated) include:
Hardrock Project Estimates
- Average annual gold production during the first 8 years of 253,100 ounces with life of mine “LOM” (15 years) annual production of 202,700 ounces (including low-grade stockpiles).
- Average grade over the first 8 years of 1.50 grams per tonne gold “g/t Au” with a LOM average grade of 1.18 g/t Au (including low-grade stockpiles).
- Initial processing of 10,000 tonnes per day “tpd”, expanding to 18,000 tpd in Year 3.
- Pre-production capital costs of $410.6 million including $83 million for contingency.
- Pre-tax net present value “NPV” (at a 5% discount rate) of $519 million at US$1250 gold and an exchange rate of CAD$1.00 = US$0.95.
- Pre-tax internal rate of return “IRR” of 23.0% and a 3.5 year payback at US$1250 gold and an exchange rate of CAD$1.00 = US$0.95.
- Pre-tax NPV (at 5% discount rate) of $73.8 million and IRR of 30.1%,
at US$1250 gold and an exchange rate of CAD$1.00 = US$0.95, when rock
is trucked to Hardrock versus stand-alone processing option. On an
After-Tax basis, NPV (5%) is $49.9 million and IRR of 24.2%.
- Average annual gold production during LOM (7 years) of 48,700 ounces.
Readers are advised that the PEA for Brookbank that was filed on Sedar includes a minor adjustment to cash outflows to reflect the 1% NSR payable on gold revenues after the recovery of Capital Costs. The impact of this adjustment on After-Tax NPV is $1,657,000, a 0.524% reduction in IRR.
The Hardrock and Brookbank Projects, a part of the Trans-Canada Property, are located in the historic Geraldton/Beardmore mining district, in North West Ontario, along the Trans-Canada Highway. The Hardrock Deposit, which resides on patented claims, is currently being evaluated by a Feasibility Study expected to be released during H1 2015. Premier is well-financed to advance the Trans-Canada Property with a treasury of cash and securities that exceeds $70 million.
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.
Premier Gold Mines Limited is one of North America’s leading exploration and development companies with a high-quality pipeline of gold projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States.
For further information, please contact:
Ewan Downie, President & CEO
Web Site: www.premiergoldmines.com
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company’s expectations and projections.