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Premier: PEA Shows Project Would Produce 740,000 Gold Ounces

Kitco News

Premier Gold Mines Ltd. (TSX: PG) says the preliminary economic assessment for the Cove project in Nevada shows mining would result in life-of-mine gold production of 740,000 ounces during eight years of operations, which would an average of 92,400 annually. The company reports indicated mineral resources of 1,045,000 tons at 0.327 ounces of gold per ton and 0.861 ounce of silver per ton, meaning 342,000 ounces of gold and 900,000 ounces of silver. Inferred mineral resources were put at 4,032,000 tons at 0.328 oz/t gold and 0.609 oz/t silver for 1,322,000 ounces of gold and 2,457,000 ounces of silver. The mine would require construction capital of $46.6 million with an after-tax payback period of four years. “These results support our plan for the construction of an exploration ramp to further define and expand the deposits in advance of a future feasibility study,” says Ewan Downie, president and chief executive officer.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Dominic Duffy Named CEO Of Mandalay Resources

Tueday May 15, 2018 09.08

Mark Sander has resigned as president, chief executive officer and director of Mandalay Resources Corp. (TSX: MND) and has been succeeded as president and CEO by Dominic Duffy, who is currently chief operating officer, the company says. The company says the board selected Duffy to have an operations-oriented leader with a detailed understanding of Mandalay’s existing operations and experience at productivity and cost management. He successfully restarted Cerro Bayo after its acquisition from Coeur D’Alene Mines in 2010.
Given Duffy’s operational expertise, Mandalay says it will not be appointing a new chief operating officer for now.

 

Superior Gold Posts Loss In First Quarter

Tueday May 15, 2018 09.08

Superior Gold Inc. (TSX.V:SGI), which owns the Plutonic gold operations in Western Australia, reports a loss for the first quarter as output eased slightly from a year ago, but the company’s chief executive says production should now rise. The first-quarter net loss was put at $5.6 million, or 6 cents per share, compared to 3 million, or 5 cents, in the year-ago period. Excluding special items, the adjusted loss was $2.2 million, or 2 cents, compared to an adjusted profit of $2.1 million, or 3 cents, a year ago. Superior produced 19,232 ounces of gold, including 5,054 of pre-commercial ounces from Hermes, where commercial production was achieved ahead of schedule, the company says. The output was down from 20,769 in the same quarter of 2017. “The ramp-up of quarterly production towards annual guidance proceeded as expected, with the first quarter anticipated to be the weakest of the year,” says Chris Bradbrook, president and chief executive officer. “Underground production levels and costs were disappointing, although the result of the decision to mine lower-grade material to ensure that none of the better-grade mineralization was sterilized. We anticipate the grade in the second quarter to improve in accordance with the mine plan. The company is maintaining its 2018 production guidance at 100,000 to 110,000 ounces of gold with this growth being internally funded.”

 

Seabridge Gold Reports First-Quarter Loss

Tueday May 15, 2018 09.08

Seabridge Gold (TSX, NYSE: SA) reports a net loss of $10.7 million, or 18 cents per share, in the first quarter, compared to a loss of $1.8 million, or 3 cents,  for the same period in 2017. The greater loss was due largely to a $7.4 million charge against earnings to reflect the revised estimated cost of rehabilitating the old Johnny Mountain Mine located on the Iskut project, acquired by Seabridge in 2016, the company says. The company has estimated total costs for full closure of the mine to be $9.1 million, with costs expected to be incurred over five years, after no comparable costs were recorded in the same period of 2017. “One of the black marks against our industry is the number of old mine sites that were never properly reclaimed and closed,” says Rudi Fronk, chairman and chief executive officer. “When we acquired Iskut in 2016, we knew we were getting one of these relics, the old Johnny Mountain Mine….Since acquiring the project, we decided that we, not the government or past operators, would voluntarily clean up this site to the standards of today, at our expense, even though we were not responsible for the mess. This commitment has helped to solidify our reputation as a responsible operator and a reliable development partner of the Tahltan Nation.” The company notes it completed a $19.7 million flow-through financing in May.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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