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Cove property

Premier Gold Mines Ltd. recently completed a rapid infiltration basin at its Cove property south of Battle Mountain for treating water as the company plans to begin developing an underground gold mine.

THUNDER BAY, Ontario — Premier Gold Mines Ltd. filed a technical report for the Cove project, a 100 percent owned property located near Battle Mountain.

Highlights of the preliminary economic assessment results and life-of-mine plan include:

  • After-tax net present value of $142 million, and an after-tax internal rate of return of 48 percent.
  • Average operating costs of $199 per ton, cash cost of $790 per ounce of gold and all-in sustaining cost of $924 per ounce of gold.
  • Indicated mineral resources of 1,045,000 tons at 0.327 ounces per ton of gold and 0.861 ounces per ton of silver for 342,000 ounces of gold and 900,000 ounces of silver.
  • Inferred mineral resources of 4,037,000 tons at 0.327 ounces per ton of gold and 0.609 ounces per ton of silver for 1,322,000 ounces of gold and 2,457,000 ounces of silver.
  • Resource modelling indicates average recoveries of 82.7 percent for gold and 21.6 percent for silver based on preliminary metallurgical projections and testing.
  • Life of mine gold production of 740,000 ounces during eight years of operations.
  • Average life of mine annual gold production of 92,000 ounces.
  • Life of mine capital cost of $115 million after pre-development costs of $26 million.
  • Mine construction capital of $47 million.
  • After-tax payback period of four years.

The independent report dated June 29, 2018 — the Preliminary Economic Assessment for the Cove Project, Lander County, Nevada — was completed by Practical Mining LLC.

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