PREMIER GOLD MINES LIMITED (TSX:PG) is pleased to provide an update of the Company’s mineral reserves and mineral resources effective December 31, 2017 at the Company’s 40%-owned South Arturo Mine located in the Carlin Trend of Nevada. Results support an organic growth in MRMR through successful exploration and technical de-risking of the Phase 1 and Phase 3 open pit projects as well as the El Nino underground project.
The South Arturo Mine is a joint venture between Premier and Barrick Gold Corporation’s wholly-owned subsidiary of Barrick Gold Exploration Inc. Barrick is the operator and processes ore from South Arturo at its Goldstrike facility located approximately 5 kilometres to the south.
Highlights from the December 31, 2017 MRMR statements include:
“Reserve and resource growth was a key focus at the Project in 2017” stated Ewan Downie, President & CEO on the Company’s C-Suite Blog (http://www.premiergoldmines.com/news/c-suite-blog). “The substantial addition of mineral reserves and resources on several deposits at South Arturo confirms our belief this project will be a solid long-term producing asset that is expected to have a significant impact on our goal to become a mid-tier producer.”
Table 1: South Arturo mineral reserves for gold as of Dec 31, 2017 (attributable to Premier)
GOLD (Au) | PROVEN RESERVES | PROBABLE RESERVES | PROVEN+PROBABLE RESERVES | ||||||
PROPERTY | Tonnes
(Mt) |
Grade
(g/t Au) |
Au Ounces
(000’s) |
Tonnes
(Mt) |
Grade
(g/t Au) |
Au Ounces
(000’s) |
Tonnes
(Mt) |
Grade
(g/t Au) |
Au Ounces
(000’s) |
South Arturo (Phase 1 O/P) | 1.51 | 3.27 | 159 | 1.04 | 2.52 | 84 | 2.55 | 2.97 | 243 |
South Arturo (El Nino U/G) | <0.01 | 12.85 | 1 | 0.08 | 9.57 | 25 | 0.09 | 9.70 | 27 |
TOTAL | 1.51 | 3.30 | 160 | 1.12 | 3.04 | 109 | 2.63 | 3.18 | 270 |
SILVER (Au) | PROVEN RESERVES | PROBABLE RESERVES | PROVEN+PROBABLE RESERVES | ||||||
PROPERTY | Tonnes
(Mt) |
Grade
(g/t Ag) |
Ag Ounces
(000’s) |
Tonnes
(Mt) |
Grade
(g/t Ag) |
Ag Ounces
(000’s) |
Tonnes
(Mt) |
Grade
(g/t Ag) |
Ag Ounces
(000’s) |
South Arturo (Phase 1 O/P) | 1.14 | 3.27 | 615 | 1.04 | 14.97 | 500 | 2.18 | 13.60 | 1,115 |
TOTAL | 1.14 | 3.27 | 615 | 1.04 | 3.04 | 500 | 2.18 | 13.60 | 1,115 |
As reported by Barrick Gold at www.barrick.com; See the Endnotes at the end of this press release. Totals may not add correctly due to rounding. |
Premier purchased its interest in the South Arturo property in mid-2015 and production commenced in August 1, 2016. Initially, the property hosted a mineral reserve within the Phase 2 open pit of 155,000 ounces attributable to Premier. Mined production (contained ounces) was more than 190,000 ounces. Premier estimates that some 30,000 ounces currently remain stockpiled (ARSO and/or roaster) at Goldstrike, of which 5,000 and 10,000 ounces reside in the 2018 production guidance. Final production at Phase 2 represents a 23% increase above the initial reserve estimate.
Phase 1 open pit project
Development of the Phase 1 open pit is scheduled to begin in mid-2018. This project will be one of the first North American mines operated by Barrick that will include autonomous mining equipment that could provide for reduced mining costs. Open Pit (O/P) mineral reserves presented in Table 1 represent Premier’s portion of the current mine plan of the Phase 1 open pit project.
Table 2: South Arturo mineral resources as of Dec 31, 2017 (attributable to Premier & exclusive of reserves)
GOLD (Au) | MEASURED RESOURCES | INDICATED RESOURCES | INFERRED RESOURCES | ||||||
PROPERTY | Tonnes
(Mt) |
Grade
(g/t Au) |
Au Ounces
(000’s) |
Tonnes
(Mt) |
Grade
(g/t Au) |
Au Ounces
(000’s) |
Tonnes
(Mt) |
Grade
(g/t Au) |
Au Ounces
(000’s) |
South Arturo (Phase 3 O/P) | 1.95 | 1.19 | 74 | 5.58 | 1.12 | 201 | 0.50 | 0.45 | 7 |
South Arturo (El Nino U/G) | <0.01 | 9.99 | 1 | 0.04 | 9.19 | 10 | 0.08 | 9.37 | 24 |
TOTAL | 1.95 | 1.20 | 75 | 5.61 | 1.17 | 211 | 0.58 | 1.66 | 31 |
SILVER (Ag) | MEASURED RESOURCES | INDICATED RESOURCES | INFERRED RESOURCES | ||||||
PROPERTY | Tonnes
(Mt) |
Grade
(g/t Ag) |
Ag Ounces
(000’s) |
Tonnes
(Mt) |
Grade
(g/t Ag) |
Ag Ounces
(000’s) |
Tonnes
(Mt) |
Grade
(g/t Ag) |
Ag Ounces
(000’s) |
South Arturo (Phase 3 O/P) | 1.95 | 6.93 | 434 | 5.58 | 6.14 | 1,102 | 0.50 | 3.83 | 61 |
South Arturo (El Nino U/G) | – | – | – | – | – | – | – | – | – |
TOTAL | 1.95 | 6.92 | 434 | 5.58 | 6.14 | 1,102 | 0.50 | 3.83 | 61 |
As reported by Barrick Gold at www.barrick.com; See the Endnotes at the end of this press release. | |||||||||
Resources that are not reserves do not have demonstrated economic viability; Totals may not add correctly due to rounding |
El Nino underground project
Table 1 and Table 2 represent the underground (U/G) mineral reserves and resources presented for the current mining scenario envisioned for the El Nino deposit. The deposit is essentially a down-plunge extension of the recently completed Phase 2 open pit that remains open on strike and at depth. Planning is underway to drive a development/access ramp in the second half of 2018.
Phase 3 open pit project
Open pit mineral resources presented in Table 3 represent the resource detail related to a potential Phase 3 open pit scenario that includes a high grade core comprised of 344,000 tonnes at 8.16 g/t Au and 90,000 ounces attributable to Premier. The Phase 3 deposit remains open for expansion where drilling is expected to continue in 2018. &# 160;
Table 3 Phase 3 M+I mineral resources for gold by process type (attributable to Premier & exclusive of reserves)
GOLD (Au) | MEASURED RESOURCES | INDICATED RESOURCES | M+I RESOURCES | ||||||
PROCESS ROUTING | Tonnes (t) | Grade
(g/t Au) |
Au Ounces
(000’s) |
Tonnes (t) | Grade
(g/t Au) |
Au Ounces
(000’s) |
Tonnes
(Mt) |
Grade
(g/t Au) |
Au Ounces
(000’s) |
Arturo AMW Stockpile | 61,602 | 1.25 | 2,471 | 61,602 | 1.25 | 2,471 | |||
Mill Rte 1 | 174,407 | 2.67 | 14,997 | 691,140 | 2.85 | 63,240 | 865,547 | 2.81 | 78,237 |
Roaster Rte 1 | 86,183 | 9.30 | 25,760 | 257,506 | 7.77 | 64,352 | 343,689 | 8.16 | 90,112 |
Rom Leach Rte 1 | 486,495 | 0.44 | 6,923 | 1,964,553 | 0.44 | 27,866 | 2,451,048 | 0.44 | 34,789 |
Mill Rte 2 | 99,642 | 1.17 | 3,734 | 138,757 | 1.23 | 5,474 | 238,399 | 1.20 | 9,208 |
Roaster Rte 2 | 70,537 | 1.50 | 3,403 | 129,091 | 1.26 | 5,237 | 199,628 | 1.35 | 8,641 |
Rom Leach Rte 2 | 972,151 | 0.55 | 17,098 | 2,395,342 | 0.45 | 34,467 | 3,367,493 | 0.48 | 51,564 |
TOTAL | 1,951,017 | 1.19 | 74,386 | 5,576,388 | 1.12 | 200,636 | 7,527,405 | 1.14 | 275,022 |
As reported by Barrick Gold at www.barrick.com; See the Endnotes at the end of this press release. | |||||||||
Resources that are not reserves do not have demonstrated economic viability; Totals may not add correctly due to rounding |
Mineral Reserves and Resources Endnotes
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 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’s team is focused on creating a low-cost, mid-tier gold producer through its two producing gold mines; and two advanced multi-million ounce development projects where permitting and pre-construction initiatives are in progress.
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