Name of the Project
Cove gold/silver project.

Location
The project is located near Battle Mountain, Nevada, in the US.

Client
Premier Gold Mines.

Project Description
The results of a preliminary economic assessment (PEA) have supported Premier Gold’s plan for the construction of an exploration ramp to further define and expand the deposits at the Cove project in advance of a future feasibility study.

The project has indicated mineral resources of 1.05-million tons grading 0.33 oz/t gold and 0.86 oz/t silver for 342 000 oz of gold and 900 000 oz of silver. Inferred mineral resources are estimated at 4.03-million tons at 0.33 oz/t of gold and 0.61 oz/t of silver for 1.32-million ounces of gold and 2.46-million ounces of silver.

The PEA proposes the mining of mineral resources in the Helen and Gap deposits only. Potential exists to increase mineral resources as the deposits remain open for expansion, as well as adding potential mineral resources from the Cove South Deep and 2201 zones following underground exploration and delineation drilling. These opportunities will be reviewed during underground development and and exploration drilling programme.

The project envisages the processing of 2.93 million tons of ore at an average grade of 0.305 oz/t gold producing 0.74-million ounces of gold over an eight-year period.

Gold production will average 92 400 oz/y over the life-of-mine. The mine will be accessed by a single ramp extending from the surface to the lowest extent of planned mining. The access ramp will be large enough to accommodate 30 t trucks. A series of raises will provide secondary egress and ventilation. 

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an estimated after-tax net present value, at a 5% discount rate, of $143-million and an after-tax internal rate of return of 48%, with a four-year payback.

Value
Mine construction capital is estimated at $143-million.

Duration
Not stated.

Latest Developments
The focus for the remainder of 2018 and 2019 includes the refinement of the hydrological model and the development of an exploration decline to support underground diamond drilling to upgrade and add to mineral resources. Baseline studies, permitting and a feasibility study are planned for 2019/20.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Premier Gold Mines, tel +1 807 346 1390, fax +1 888 346 1390 or email info@premiergoldmines.com.