GOLD: Premier offers PEA reports on Hardrock, Brookbank deposits

ONTARIO – Premier Gold Mines of Thunder Bay, ON, is examining preliminary economic assessments for its Hardrock and Brookbank deposits in the northwestern part of the province.

ONTARIO – Premier Gold Mines of Thunder Bay, ON, is examining preliminary economic assessments for its Hardrock and Brookbank deposits in the northwestern part of the province.

The Hardrock PEA was prepared as an open pit mine based on the resources reported in October 2013. The project has a pre-tax net present value (5% discount) of C$519 million at US$1,250/oz gold prices. The pre-tax internal rate of return will be 23.0%, and the project will pay for itself in 3.5 years.

Pre-production capital costs for Hardrock are estimated to be C$410.6 million including C$83 million for contingency. The initial mining rate will be 10,000 t/d, rising to 18,000 t/d in the third year. The average over the first eight years of operation will be 1.50 g/t Au and average 1.18 g/t over the life of the mine. Annual gold output during the first eight years will be 253,000 oz/year, falling to 202,700 oz/year over the LOM. The Hardrock deposit is 260 km by road northeast of Thunder Bay.

The Brookbank PEA considers a combined open pit and underground project based on resources reported in December 2012. This deposit is 77 km west of Hardrock. Brookbank has a pre-tax NPV (5% discount) of C$76 million and an IRR of 30.7% at US$1,250/oz gold. Average annual gold production during a seven-year LOM will be 48,700 oz.

Additional details are available on Premier's website, PremierGoldMines.com, in the news release dated Jan. 28, 2014.

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