Two New Mining Operations At South Arturo Now Underway 

 

THUNDER BAY, ON - Premier Gold Mine reported that the South Arturo Mine in Nevada, a joint venture operated by Barrick Gold Corporation, continued to deliver exceptional results during the quarter.  Processing of stockpiled ore from the Phase 2 open pit during the second quarter has contributed to gold production that has exceeded full-year gold guidance with a total of 17,767 ounces delivered to Premier in the first half of the year. Accordingly, the Company recently updated its production guidance from 5,000-10,000 to 15,000-20,000 ounces of gold.

A the McCoy-Cove "Earn-in" agreement that was signed with Barrick Gold in December 2017 to explore the claims surrounding the Cove project completed 3,129 meters of drilling with a focus on an initial test of two target areas that have little historic drilling straddling the Cove pit. The drilling was split between the Windy Point and Lakeside east extension target areas, both with encouraging results. Exploration on the Joint Venture Property began in April and also included detailed geophysics, surface mapping and soil sampling.

A Preliminary Economic Assessment (PEA) was completed in the first half of 2018 on the Cove project. Preliminary engineering, dewatering studies and baseline studies have been initiated to advance an underground exploration program planned in the second half of 2018. Dewatering simulations, including a pump test of the proposed underground advanced exploration areas around the Helen Zone were completed during 2017 and further optimization and validation of the dewatering scenario is ongoing. During the quarter, spending focused on pre-development mainly in engineering design changes to the regulatory agencies, such as the portal and power line locations. Bids for underground development took place during the quarter.  The received bids were in line with estimates contained in the Cove PEA.  Hydrologic wells placement and evaluation of the optimal portal construction schedule will be a focus during the third and fourth quarters.

"With strong consolidated production realized from Premier's mining operations during the first half of the year, we have fully paid down the Company's debt and expect to meet or beat consolidated annual gold production guidance in 2018" said Ewan Downie, President and CEO. "Our cash position will fund the near-term development of three additional deposits from within our project portfolio, including the construction of two new mining operations at the South Arturo JV in Nevada that are now underway".

Premier 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 from its two producing gold mines and two advanced-stage, multi-million ounce, development projects.