Mine at Gold Producer's JV Project in Nevada Commercially Producing
Observations from a recent site visit there are provided in a BMO
Capital Markets report.
1.jpg In an Oct. 22 research note, BMO Capital Markets analyst Andrew
Mikitchook reported the main takeaways from a site visit to
Premier Gold Mines Ltd.'s (PG:TSX) South Arturo joint venture project
with Nevada Gold Mines.
The primary highlight, Mikitchook indicated, is that
the El Niño mine at South Arturo in Nevada is now in
commercial production, which began in September.
Further, mine output could reach 30,000 ounces in 2019, which would
surpass the previous expectation of 21,000 ounces. Of note as well, the analyst wrote, is that "El Niño has
extra capacity to mine existing reserves faster or to extend
the mine plan to depth toward additional resources and
new exploration intercepts."
In addition, the potential exists via exploration to expand the
mineralization not only at El Niño but also at
Phase 3 and East Dee.
As for work in progress at the South Arturo property, noted
Mikitchook, testing by five autonomous trucks at
Phase 1's prestrip is scheduled to be completed by year-end 2019.
Also, the joint venture is constructing and evaluating an
oxide heap leach at Phase 1
as a standalone development at South Arturo or
for processing at the North Area.
Further, geological and metallurgical studies are being conducted on
Phase 3 to inform the decision on whether or not to add
the Phase 3 pit to the reserves and mine plan.
BMO has an Outperform rating and a CA$4.75 per share target price on
The stock is currently trading at around CA$1.95 per share.
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
Disclosures from BMO Capital Markets, Premier Gold, October 22, 2019
I, Andrew Mikitchook, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.
Disclosure 16: A research analyst has extensively viewed the material operations of Premier Gold.
Disclosure 17: Premier Gold has paid or reimbursed some or all of the research analyst's travel expenses.
For Important Disclosures on the stocks discussed in this report, please click here.
Tags: INDUSTRIAL METALS & MINERALS
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