Premier: PEA Shows Project Would Produce 740,000 Gold Ounces
PremierGold Mines Ltd. (TSX: PG) says the preliminary economic assessment for the Coveproject in Nevada shows mining would result in life-of-mine gold production of740,000 ounces during eight years of operations, which would an average of92,400 annually. The company reports indicated mineral resources of 1,045,000tons at 0.327 ounces of gold per ton and 0.861 ounce of silver per ton, meaning342,000 ounces of gold and 900,000 ounces of silver. Inferred mineral resourceswere put at 4,032,000 tons at 0.328 oz/t gold and 0.609 oz/t silver for1,322,000 ounces of gold and 2,457,000 ounces of silver. The mine would requireconstruction capital of $46.6 million with an after-tax payback period of fouryears. “These results support our plan for the construction of an explorationramp to further define and expand the deposits in advance of a futurefeasibility study,” says Ewan Downie, president and chief executive officer.
By Allen Sykoraof Kitco News; asykora@kitco.com
Dominic Duffy Named CEO Of Mandalay Resources
Tueday May 15, 2018 09.08
MarkSander has resigned as president, chief executive officer and director ofMandalay Resources Corp. (TSX: MND) and has been succeeded as president and CEOby Dominic Duffy, who is currently chief operating officer, the company says.The company says the board selected Duffy to have an operations-oriented leaderwith a detailed understanding of Mandalay's existing operations and experienceat productivity and cost management. He successfully restarted Cerro Bayo afterits acquisition from Coeur D'Alene Mines in 2010.
GivenDuffy's operational expertise, Mandalay says it will not be appointing a newchief 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 lossfor the first quarter as output eased slightly from a year ago, but thecompany’s chief executive says production should now rise. The first-quarternet 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 losswas $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-commercialounces 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 asexpected, with the first quarter anticipated to be the weakest of the year,”says Chris Bradbrook, president and chief executive officer. “Undergroundproduction levels and costs were disappointing, although the result of thedecision to mine lower-grade material to ensure that none of the better-grademineralization was sterilized. We anticipate the grade in the second quarter toimprove in accordance with the mine plan. The company is maintaining its 2018production guidance at 100,000 to 110,000 ounces of gold with this growth beinginternally funded.”
Seabridge Gold Reports First-Quarter Loss
Tueday May 15, 2018 09.08
SeabridgeGold (TSX, NYSE: SA) reports a net loss of $10.7 million, or 18 cents pershare, in the first quarter, compared to a loss of $1.8 million, or 3cents, for the same period in 2017. Thegreater loss was due largely to a $7.4 million charge against earnings toreflect the revised estimated cost of rehabilitating the old Johnny MountainMine located on the Iskut project, acquired by Seabridge in 2016, the companysays. 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 nocomparable costs were recorded in the same period of 2017. “One of the blackmarks against our industry is the number of old mine sites that were neverproperly reclaimed and closed,” says Rudi Fronk, chairman and chief executiveofficer. “When we acquired Iskut in 2016, we knew we were getting one of theserelics, the old Johnny Mountain Mine....Since acquiring the project, we decidedthat we, not the government or past operators, would voluntarily clean up thissite to the standards of today, at our expense, even though we were notresponsible for the mess. This commitment has helped to solidify our reputationas a responsible operator and a reliable development partner of the TahltanNation.” The company notes it completed a $19.7 million flow-through financingin May.
By Allen SykoraFor Kitco News
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asykora@kitco.com 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.