Premier Reports Second Quarter Production of 16,007 Ounces Gold
Increasing Annual Gold Production Guidance
THUNDER BAY, ON, July 12, 2018 /CNW/ - PREMIER GOLD MINES LIMITED ("Premier" or "The Company") (TSX:PG) is pleased to announce its second quarter (Q2) production results, including an increase in annual production guidance, and a continued solid and safe track record from the Company's mining operations.
Second Quarter - 2018 Production Highlights:
First half gold production from South Arturo significantly exceeded annual production forecasts. The Company has therefore revised its full-year consolidated production guidance from 85,000 - 95,000 to 90,000 - 100,000 ounces of gold (See Table 2).
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 Results for Q2 2018 and YTD
"The Company began to see the impact of Mercedes development initiatives late during the second quarter when production from Diluvio and Rey de Oro began to reach the mill." stated John Begeman, Executive Chairman of Premier. "It is expected that these two deposits will drive increased production and a stronger second half at Mercedes. When also considering stronger than expected production from South Arturo, we have re-evaluated and ultimately revised 2018 gold production guidance".
South Arturo Mine, Nevada
The South Arturo Mine, a joint venture operated by Barrick Gold, has delivered exceptional results since achieving commercial production. Processing of ore stockpiled from mining of Phase 2 will continue on a limited scale throughout the balance of the year, however processed ore in H1-2018 was well above guidance resulting in an increase in annual production expectations.
Efforts are now focused on expanding operations with construction of two new mines, the Phase 1 open-pit and the El Nino underground project. Stripping of Phase 1 is now underway and construction of a ramp at El Nino will begin in July. Work also continues to advance a potential "Phase 3" open-pit opportunity, with drilling and additional metallurgical and geotechnical characterization being completed during 2018.
Mercedes Mine, Mexico
Mercedes Mine production was impacted during the first half of the year owing to delays in the development of the Diluvio and Rey de Oro deposits, resulting in production being weighted towards the second half of the year. Reinterpretation of the Diluvio ore shapes required changes to the stope designs. Mining in Rey de Oro was delayed by permitting requirements for the ventilation system.
Revised 2018 Production Guidance
Table 2 - Revised Production Guidance
Q2 – 2018 financial results and conference call details:
Full financial results for the three months ended June 30, 2018, will be released before market open on August 8, 2018 and a conference call with senior management will be held at 10:00 am EDT.
Details for the conference call and webcast can be found below and will be accessible on the Company's website at www.premiergoldmines.com
Toll Free (North America): 1-888-390-0605
Conference Call Replay
The conference call replay will be available from 1:00pm EDT on August 8, 2018 until 11:59 pm EST on August 15, 2018.
Toll Free Replay Call (North America): 1-888-390-0541
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.
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
Company Codes: Toronto:PG
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