Premier Gold Provides 2019 Production Guidance

Press Release

Thunder Bay, February 28, 2019 – Premier Gold Mines Limited (“Premier” or “The Company”) (TSX:PG) is pleased to provide 2019 production guidance for the Mercedes Mine as well as pre-commercial production guidance for the South Arturo Mine.

MERCEDES

Production guidance for 2019 (see Table 1) reflects mining at the Mercedes Mine only which is expected to see a meaningful improvement over 2018.

 

SOUTH ARTURO

The planned transition at the South Arturo Mine in Nevada, a joint venture operated by Barrick Gold Corporation (“Barrick”), from Phase 2 mining to commercial production at Phase 1 (open pit) and El Niño (underground) is well underway with the development of these two mining projects setting the stage for renewed commercial production expected to begin in 2020. The Company expects it will recover between 5,000 to 10,000 ounces of gold from development during the year (see Table 2), the proceeds of which will be applied as a reduction in development capital.  Premier’s proportionate share of development capital at South Arturo for 2019 (excluding proceeds from pre-commercial production gold sales) is budgeted at US$39 million.

The joint venture is assessing the feasibility of Phase 3 open-pit mining and heap leach processing of stockpiled ore and will provide a longer-term outlook for this project once this work is complete.

“With production quickly stabilizing at Mercedes and associated reduction in costs, our focus now includes developments such as the Marianas deposit,”, stated Ewan Downie, President & CEO.  “Ongoing initiatives at South Arturo, including two new mines under development, are setting the stage for increased production and sustained operations”.

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 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.

 

For further information, please contact:

Ewan Downie, President & CEO
Phone: 807-346-1390
Fax: 807-345-0284
e-mail: info@premiergoldmines.com
Web Site: www.premiergoldmines.com

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