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Premier Gold Mines (TSX:PG) said Tuesday that it filed a preliminary economic assessment for its South Arturo Mine and the McCoy-Cove project located in Nevada.

The study was completed by Practical Mining LLC. The company highlighted the following results:

  • After-tax NPV5 of $178.0 million, and an after-tax internal rate of return ("IRR") of 36% based on a gold price of $1,400/oz – increasing to NPV5 of $306 million and IRR of 53% at a gold price of $1,680/oz
  • Average operating costs of $215/ton, Cash Cost of $859/oz Au and All-in Sustaining Cost (AISC) of $948/oz Au
  • Indicated mineral resources of 1,110,000 tons at 0.316 oz/t Au and 0.850 oz/t Ag for 351,000 ounces of gold and 943,000 ounces of silver
  • Inferred mineral resources of 4,262,000 tons at 0.317 oz/t Au and 0.602 oz/t Ag for 1,353,000 ounces of gold and 2,565,000 ounces of silver1
  • Metallurgical recoveries of 82.5% for gold and 67.1% for silver
  • Gold production of 743,000 ounces during 8-year life of mine (LOM)
  • Average LOM annual gold production of 102,000 ounces
  • LOM capital cost of $107.2 million after pre-development costs of $23.9 million
  • Mine construction capital of $81.9 million
  • After-tax payback period of 4.5 years
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