VANCOUVER (miningweekly.com) – Canadian precious metals miner Premier Gold Mines has approved a 2018 exploration and development budget of $38.8-million, the company announced on Tuesday.
The budget will be supplemented by a further $6-million to be spent at the McCoy-Cove joint venture (JV), in Nevada, funded entirely by Barrick Gold, and, based on certain milestones and objectives, up to $37.9-million will be spent at the Greenstone Gold JV, in Ontario, funded entirely by Centerra Gold.
"Premier remains focused on increasing future production by advancing multiple projects. A substantial portion of this budget is allotted to exploration, a long-standing commitment of the company that has resulted in several significant discoveries and a peer-best development pipeline," commented president and CEO Ewan Downie.
At the South Arturo mine, in Nevada, the company is focused on starting development of the Phase 1 openpit and El Nino underground deposits. A mineral reserve and resource estimate for these deposits is expected to be released before the end of March, while exploration drilling continues on several other targets on the property.
At the Mercedes mine, in Mexico, Premier will look to extend the underground workings in the Marianas and Rey de Oro deposits. An updated mineral reserve and resource estimate is expected to be released this quarter.
At the Cove project, also in Nevada, underground development is expected to start this year, after the company released a preliminary economic assessment (PEA) that includes an updated mineral resource estimate.
On the Greenstone Gold project, Premier expects to start work on an $18.1-million first-phase work programme of three phases, to advance permitting and detailed engineering for the future development of the Hardrock deposit. This work will be milestone-based and funded entirely by Centerra.
Following the JV agreement with Barrick over the McCoy-Cove project announced earlier this month, Barrick will spend $6-million on surface exploration as part of their earn-in agreement on the lands surrounding Premier's Cove property.
Further, Premier advised that an exploration programme at the Goldbanks JV, in Nevada, will test multiple prospective targets including follow-up on high-grade results from 2017 grading 7.15 oz/t gold (245.27 g/t gold) along a core interval of 3.35 m.
The miner will also continue exploration drilling at the Hasaga property, in Ontario, to target and infill higher-grade potential underground resources.
Premier also plans to spend about $3.4-million on exploration drilling at the Goldbanks and Rye properties, in Nevada.
Premier produced 24 385 oz of gold during the fourth quarter of 2017, and 139 658 oz for the full year. Silver output came in at 77 082 oz for the quarter and 357 901 oz for 2017. The company has guided for all-in sustaining costs of between $660/oz and $690/oz gold.