PREMIER GOLD MINES LIMITED (“Premier” or “The Company”) (TSX:PG) is pleased to announce its second quarter production results and a continued solid and safe track record from the Company’s mining operations.
Q2 - 2017 Production Highlights:
- Gold production of 37,617 ounces
- Silver production of 89,474 ounces
- Gold sales of 43,213 ounces at an average realized price of US$1,256 per ounce
Operations in 2017 have outperformed expectations and as a result the Company is increasing its full-year production guidance to 130,000-140,000 ounces from 125,000 to 135,000 ounces of gold and to 340,000 to 365,000 ounces of silver, up from 325,000 to 350,000 ounces.
Table 1 provides a summary of production statistics from the mines and of ounces sold on a Q2 and year-to-date (YTD) basis.
Table 1 - Preliminary Production and Sales Results for Q2 2017 and YTD
|Mine||Gold Production (ounces)||Silver Production (ounces)|
|Q2 2017||YTD 2017||Q2 2017||YTD 2017|
|South Arturo, Nevada||15,724||44,539||0||0|
|Gold Ounces Sold||43,213||94,806||97,357||171,190|
“The continued strong performance at both of the Premier Gold operating sites, including the extension of open pit mining at South Arturo, has resulted in a spectacular cash position and a historic strong balance sheet. Consequently, we have increased our 2017 production guidance.,” stated John Begeman, Executive Chairman of Premier, in the company’s C-Suite Blog https://www.premiergoldmines.com/news/c-suite-blog/all, “Attributable gold production from our first four quarters as a gold producer has exceeded 200,000 ounces. The financial performance from this past production will allow for further funding support of our project pipeline.”
South Arturo Mine, Nevada
The South Arturo Mine, a joint venture operated by Barrick Gold, has delivered exceptional results since achieving commercial production with higher than forecasted grades in the mine and revised pit wall slope designs that have allowed for additional extraction.
The potential to further expand operations on the property is underway and includes the El Nino underground project and two potential open pits (Phases 1&3). A Plan of Operations for the construction of a ramp at El Nino to access high-grade mineralization down-dip of the current pit has been submitted for approval with Nevada regulatory authorities and several permits have now been granted. Upon receipt of permits, the partnership is planning to develop an underground access to complete detailed drilling and mine planning in advance of potential future production. The proposed Phase 1 open pit development has been advanced into the draft mine plan for detailed review. If approved, development could begin in early 2019. As part of this review and Phase 3, drilling to complete additional metallurgical and geotechnical characterization has commenced at both pit sites.
Mercedes Mine, Mexico
The Mercedes Mine continues to deliver solid and safe performance with a strong operating team focused on identifying and implementing measures to increase productivity and reduce costs. Results to date include reduced mining dilution and improved gold and silver recoveries.
During the second quarter, the deferral of non-material mining operations allowed some mine personnel to support the safe suppression of an offsite brush fire in order to ensure it did not encroach the mine site. Exploration and resource definition drilling continues to be a priority. Both surface and underground drilling was significantly increased in the last month to a total of nine drills active on the property.
Q2 - 2017 financial results and conference call details:
Full financial results for the three months ended June 30, 2017, will be released before market open on August 9, 2017 and a conference call with senior management will be held at 10:00 a.m 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): 1-888-231-8191
Conference ID: 51433191
Conference Call Replay:
The conference call replay will be available from 1:00pm EDT on August 9, 2017 until 11:59 pm EST on August 16, 2017.
Toll Free Replay Call (North America): 1-855-859-2056
International Replay Call: 1-416-849-0833
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 remains focused on creating a low-cost, mid-tier gold producer through its two producing gold mines; South Arturo and Mercedes, and through future mine development opportunities at McCoy-Cove in Nevada and Hardrock in Ontario (Greenstone Gold JV) where permitting and development initiatives are ongoing
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.
For further information, please contact:
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 the estimation of mineral resources and mineral reserves. 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 forwardlooking 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.