Commercial production at the El Nino gold mine in Nevada’s Carlin Trend started ahead of schedule and on budget, Premier Gold Mines (TSX: PGM; US-OTC: PIRGF) reports.
Premier owns 40% of the underground mine and Nevada Gold Mines owns the remainder. Nevada Gold Mines is a joint-venture between Newmont-Goldcorp (TSX: NGT; NYSE: NEM) and Barrick Gold (TSX: ABM; NYSE: GOLD).
High-grade ore is being processed at the Goldstrike facility, 8 km to the south of the mine, which is part of the South Arturo property.
Premier also released results from its 2019 drill program at South Arturo, which included definition and step-out holes from underground drill stations in the El Nino mine, as well as geotechnical holes at the proposed phase 3 open pit project and at the East Dee target.
Highlights from El Nino include 24 metres of 20.60 grams gold per tonne in hole SEC19010 and 50 metres of 6.36 grams gold in SEC19009.
At phase 3, intercepts included 113 metres of 7.29 grams gold in MAD19004, and 37 metres of 4.6 grams gold, including 9 metres of 11.99 grams gold in hole MAD19001.
Drilling at East Dee — immediately east of the current phase 1 open pit — is almost complete. Highlights from the 2018 drill program at East Dee include 26 metres of 5.8 grams gold in hole BD18-05c and 21 metres of 6.5 grams gold in hole BD18-08C.
CIBC has a 12-18 month target price on the stock of $3.85 per share.
At presstime in Toronto Premier was trading at $1.99 within a 52-week range of $1.39 and $2.55 per share.
The company has 210.5 million common shares outstanding for a market cap of $419 million.
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