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Premier contemplates US spin-out

7th August 2020

By: Creamer Media Reporter

     

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Toronto-listed Premier Gold Mines is considering spinning out its US subsidiary, which holds its assets in Nevada, into a standalone, US-domiciled, publicly listed gold company.

The spin-out will include the South Arturo and McCoy-Cove properties, the company says, adding that its US subsidiary is also considering additional acquisition opportunities.

“Premier has assembled a high-quality portfolio of assets spanning exploration to mining operations and we believe the market is not fully valuing the sum of the parts. This is one option we are considering to change that,” says Premier president and CEO Ewan Downie.

The South Arturo mine is located in the heart of the Carlin Trend in Nevada and is operated by joint venture partner Nevada Gold Mines, a partnership between Barrick Gold and Newmont Mining. The El Nino underground mine was brought into production in the second half of 2020 and the partners are currently assessing additional developments on the property including the Phase 1 and Phase 3 openpit projects and a potential on-site heap leach facility. 

The company is in the process of completing an updated technical report for South Arturo and is drill-testing the down-dip extension of the El Nino mine and upper targets within and proximal to the proposed Phase 1 and Phase 3 pits.

The McCoy-Cove property is host to one of the highest-grade undeveloped gold deposits in Nevada. In 2018, the company announced a preliminary economic assessment for the project, which highlighted indicated mineral resources of 1.05-million tons at 0.327 oz/t gold (342 000 oz) and inferred mineral resources of 4.04-million tons at 0.327 oz/t (1.3-million ounces).

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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