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Premier upbeat on Mercedes, Hasaga hits

Premier Gold Mines (TSX: PG) has reported “compelling” high grade intercepts from drilling at its Mercedes gold and silver mine in Mexico and its Hasaga gold property in Ontario.
Premier upbeat on Mercedes, Hasaga hits Premier upbeat on Mercedes, Hasaga hits Premier upbeat on Mercedes, Hasaga hits Premier upbeat on Mercedes, Hasaga hits Premier upbeat on Mercedes, Hasaga hits

Premier reports intercepts ahead of investor day

Staff reporter

Among the highlights, Premier hit 18.3m at 38.28g/t gold and 25.98g/t silver at Mercedes' Aida Vein, and 75m at 3.1g/t gold at Hasaga's C-Zone.

"At Hasaga, the C-Zone and D-Zone targets are clearly structurally-controlled and appear to be open for further expansion, while defining such high grades close to our mine workings at Mercedes will support improved operational performance," executive vice-president Stephen McGibbon said.

The miner is aiming to meet or beat its 2018 guidance after a 40% year-on-year slump in gold and silver output in the March quarter. 

It has two new operations - the Phase 1 openpit and the El Nino underground mine - under construction at its South Arturo joint venture mine with Barrick Gold in Nevada.

Premier ended the quarter with cash and equivalents of US$98.4 million.

It has a budget of $93 million for exploration and development this year, according to its latest presentation, with more than 50% funded by partners.

Premier's shares closed up C5c yesterday to $3.02 but remain down 16.11% year-to-date, capitalising it at $611.9 million.