Name of the Project
Cove gold project.

Location
McCoy-Cove property located near Battle Mountain, Nevada, in the US.

Project Owner/s
Premier Gold Mines.

Project Description
A preliminary economic assessment (PEA) envisages the mining of mineral resources in the Cove project’s Helen and Gap deposits.

The project has total indicated resources of 1.01-million tonnes grading 10.9 g/t gold and 29.1 g/t silver. Inferred resources are estimated 3.87-million tonnes grading 10.9 g/t gold and 20.6 g/t silver.

Potential exists to increase mineral resources, as the deposits remain open for expansion. New mineral resources may also be found along the Cove South Deep and 2201 zones, and this potential will be reviewed following underground exploration and delineation drilling.

The proposed mine will be accessed through a single ramp extending from the lowest extent of planned mining. The access ramp will be large enough to accommodate 30 t trucks and a series of raises will provide secondary egress and ventilation. The study contemplates using a mining contractor to extract the mineralisation using drift-and-fill mining methods at an estimated 1 180 t/d.

The project will process 2.97-million tons at an average grade of 0.303 oz/t gold producing 743 000 oz of gold over an eight-year period.

There are three roasting facilities and two pressure oxidation facilities, in northern Nevada, which are amenable to processing the Cove mineralisation.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $178-million at a gold price of $1 400/oz, with a 4.5-year payback from a positive construction decision, and an after-tax internal rate of return of 36.

Capital Expenditure
Mine construction capital is estimated at $81.9-million.

Planned Start/End Date
Not stated.

Latest Developments
The focus for 2021 and 2022 includes laboratory and economic evaluations of alternative processing methods, optimising the mine plan with the hydrological model, completing the baseline studies to start an environmental-impact study, and beginning the development of an exploration decline to support underground diamond drilling to upgrade and increase mineral resources. Completion of these activities and a feasibility study will occur in 2023/24.

Key Contracts, Suppliers and Consultants
SGS Laboratories, under the direction of Jacobs Engineering (metallurgical testing).

Contact Details for Project Information
Premier Gold Mines, tel +1807346 1390 or email info@premiergoldmines.com.