THUNDER BAY, ON, Nov. 14, 2018 /CNW/ - PREMIER GOLD MINES
LIMITED (TSX:PG) ("Premier", "the Company") is pleased to
announce that it has entered into an Option Agreement with Ely
Gold Royalties Inc. (TSX-V: ELY, OTCQB: ELYGF) ("Ely
Gold") to acquire a 100% interest in the Rodeo Creek Property
located in the Carlin Trend of Nevada ("Rodeo Creek" or the
"Project").
The Rodeo Creek Property is a 510 acre land package consisting
of 31 unpatented claims strategically located adjoining Premier's
40% owned South Arturo Property in the heart of the Carlin Trend,
and approximately 10 kilometers northwest from Barrick Gold's ("Barrick") Goldstrike
Operations (See Figure 1). The
Project also abuts against Halliburton's Rossi Barite mine at its
north boundary.
Pursuant to the terms of the transaction, Premier will have the
Option to acquire a 100% interest in the Project by making payments
to Ely Gold in the amount of
US$500,000 over a 5 year period and
Ely Gold will retain a 2.0% Net
Smelter Royalty ("NSR").
The Rodeo Creek acquisition increases Premier's exposure to one
of the world's most prolific gold districts, the Carlin
Trend. The Carlin Trend is host to multiple mining operations
owned by Newmont and Barrick and has seen production in excess of
150 million ounces.
Premier is currently participating in the construction of two
new mining operations at its South Arturo joint venture that are
located within three kilometers of Rodeo Creek. Production at
South Arturo is anticipated to ramp-up in 2019 and the partnership
is drilling multiple targets in an effort to increase reserves and
resources.
The Rodeo Creek Property is strategically located along the
Bootstrap Reef/Margin, is underlain by the same rock units as the
mines in the area, and is host to multiple faults and dike swarms,
similar to the nearby gold mines.
"This acquisition is consistent with Premier's strategy of
growing land positions in the heart of prolific gold districts",
stated Ewan Downie, President and
CEO. "The Rodeo Creek Property has seen little exploration compared
to the rest of the Carlin Trend and we are excited to get to work
on this project"
Premier also announces the departure of Charlie Ronkos, Executive Vice-President,
Development, Americas. Premier is thankful for his important
input during the integration of the Mercedes Mine and his
exploration efforts over the last two years.
Stephen McGibbon, P. Geo., is the
Qualified Person for the information contained in this press
release and is a Qualified Person within the meaning of National
Instrument 43-101.
Premier Gold Mines Limited is a gold producer and
respected exploration and development company with a high-quality
pipeline of precious metal projects in proven, accessible and safe
mining jurisdictions in Canada,
the United States, and
Mexico. Premier's team is focused
on creating a low-cost, mid-tier gold producer through its two
producing gold mines; and two advanced multi-million ounce million
ounce development projects where permitting and pre-construction
initiatives are in progress.
This Press Release contains certain information that may
constitute "forward-looking information" under applicable Canadian
securities legislation. Forward-looking information includes, but
is not limited to, statements about strategic plans, including
future operations, future work programs, capital expenditures,
discovery and production of minerals, price of gold and currency
exchange rates, timing of geological reports and corporate and
technical objectives. Forward-looking information is necessarily
based upon a number of assumptions that, while considered
reasonable, are subject to known and unknown risks, uncertainties,
and other factors which may cause the actual results and future
events to differ materially from those expressed or implied by such
forward-looking information, including the risks inherent to the
mining industry, adverse economic and market developments and the
risks identified in Premier's annual information form under the
heading "Risk Factors". There can be no assurance that such
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue
reliance on forward-looking information. All forward-looking
information contained in this press release is given as of the date
hereof and is based upon the opinions and estimates of management
and information available to management as at the date
hereof. Premier disclaims any intention or obligation to
update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as
required by law.
SOURCE Premier Gold Mines Limited