Further Expansion Of The El Nino Underground Mine

THUNDER BAY, ON - Premier Gold Mines Limited reported the El Nino, in Nevada, further expansion of the JV is currently underway including development of Phase 1 and Phase 3 open pit projects, and a potential heap leach operation. Stripping of the Phase 1 pit is ongoing and further economic studies are being completed for the Phase 3 pit and the heap leach material, some of which is currently being stockpiled.

Exploration drilling continues at El Nino to increase reserves and resources, and at East Dee, a high-grade mineralized zone located immediately to the east of the Phase 1 open pit. Recent highlight drill intercepts from El Nino include 24.4 m of 20.60 g/t Au and 50.3 m of 6.36 g/t Au and from Phase 3 open pit drilling include 112.8 m of 7.29 g/t Au and 62.5 m of 7.93 g/t Au. El Nino underground mine is part of the South Arturo Joint Venture (JV) operated by Barrick Gold through its subsidiary Nevada Gold Mines. El Nino is a high-grade operation (between 8 and 10 grams per tonne gold) that was developed by the JV on time and on budget. The mine achieved commercial production in September and it is expected that this low cost operation will contribute to a strong fourth quarter for the Company.  El Nino is the second mine to be developed by the JV within the last three years. 

Third quarter gold production from South Arturo includes 873 ounces from Phase 2 open pit stockpiles and 1,130 ounces from the El Nino underground mine. In addition, 953 pre-production gold ounces were recovered during the quarter, including 391 ounces from Phase I open pit development and 562 ounces from El Nino pre-commercial production in September.

"Having achieved commercial production ahead of schedule, South Arturo continues to exceed my expectations," stated John Begeman, Executive Chairman of Premier. "Realizing commercial production at El Nino this year rather than next is a positive development that we expect will impact Premier's consolidated operating performance for 2019, particularly in the fourth quarter."  

The company’s address is 138 Rothwell St, Beardmore, ON P0T 1G0, (807) 875-2876, www.premiergoldmines.com.