RE:News OutNews Release - September 11th, 2018
Premier Gold Expands High-Grade Zone at Mercedes
Drilling includes 12.64 g/t Au & 240.1 g/t Ag across a true width (TW) of 13.5 metres
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Brent Cook in his September 16 issue of The Exploration Insights Newsletter made the following comments about this news release.
Quote:
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The North America-focused junior gold and silver producer delivered drilling results from its
Mercedes underground mine in Sonora, Mexico which is exploiting an array of
northwest trending, low sulphidation epithermal gold-silver bearing veins at a rate of 2,000
tonnes per day.
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The results of up to ~30 meters (13-14 m true width) grading 12.6 grams per tonne gold
and 240 grams per tonne silver were reported from delineation drilling at the Rey de Oro
zone.
The broad widths and high grades—which are three to six times the current resource
grades for gold (4.2-4.3 g/t Au) and silver (34-43 g/t Ag), respectively—bode well for the
potential to add to the mine life of the Mercedes operation.
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As we have previously highlighted, the 2018 production guidance for Mercedes is weighed to
the second half of the year.
Therefore, it is critical that the company achieve a higher throughput than the first half to lower its cost base and generate positive cash flow.
Full production has been achieved at the Diluvio zone, and the ramp up to production at Rey de
Oro continues after delays in the receipt of a permit for a ventilation shaft.
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End Quote.
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RJ