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Premier lifts gold output 26%

Canadian miner Premier Gold Mines (TSX:PG) has produced 26% more gold in the September quarter than in the prior period as the Mercedes mine, in Mexico, performed to plan.
Premier lifts gold output 26% Premier lifts gold output 26% Premier lifts gold output 26% Premier lifts gold output 26% Premier lifts gold output 26%

Despite a difficult September quarter, Mercedes produced 26% more gold than the prior period

Staff Reporter

Mercedes, where production was forecast to be weighted towards the second half of 2018, produced 17,465 ounces gold in the period, despite a ground fall that delayed production in September.

The company reported production was now back to normal, but the operation was expected to record higher costs because of infrastructure adjustments and increased definition drilling, combined with lower-than-forecasted to date output compared to 2017.

During the quarter, work started on expanding the tailings capacity, and development of a drift from the Lagunas mine to access the higher-grade Marianas deposit, located along the main Mercedes mine trend, progressed to plan.

Production from the South Arturo mine, in Nevada, owned 40% by Premier in a joint venture with Barrick Gold, exceeded plan because of a decision to accelerate processing of stockpiled Phase 2 ore.

The partners are assessing future production opportunities and construction is underway on both the Phase 1 openpit and the El Nino underground mine, where production is expected in the second half of 2019.

The company expects to report third quarter financial results on November 7.

Premier, with a market value of C$393.75 million, closed 2.65% higher Tuesday at C$1.94 a share, but the equity has suffered a 48% fall in the past 12 months.