First gold pour at South Arturo in Nevada

Premier Gold Mines Ltd celebrates first gold pour at South Arturo and provides an update of ongoing development and mining activities at the company’s 40%-owned South Arturo mine located in the Carlin Trend, Nevada. The mine is a joint venture between Premier and Barrick Gold Corp’s wholly-owned subsidiary Barrick Gold Exploration Inc. Barrick as the operator, processes the ore from South Arturo at the Goldstrike facility located approximately 5 km to the south.

Development of the mine was completed on-time and on budget with ore being processed beginning on August 1. To the end of July, approximately 55 Mt of material (ore and waste) has been mined in 2016. The Q2 average mining cost was $1.16/t versus a budgeted cost of $1.28/t. The savings are primarily related to Barrick’s company-wide cost savings program. The 2016 gold production attributable to Premier is estimated to be 80,000 oz and the project is expected to be cash flow positive for the year, net of capital.

Ewan Downie, President & CEO: “It has been almost ten years to the day, that Premier’s shares were listed for trading on the TSX Exchange and it is with great pride that we have celebrated this landmark event with the company’s first ever gold pour. Premier’s vision has been to transform from explorer to a mid-tier producer by operating in worldclass mining jurisdictions. Successful mine development at South Arturo, the recently announced acquisition of the Mercedes mine, and advancing our best-in-class portfolio of advanced-stage projects will ensure that we can continue to realize this vision”.

The joint venture continues to assess additional opportunities for future development including other potential open pit and underground deposits on the property. Drilling from the Arturo pit will be completed to further define the El Nino underground deposit situated down plunge of the current Phase 2 pit. Permitting work associated with a potential underground ramp to be driven from the pit is currently underway. Bulk samples from the underground portal at the historic Storm mine as well as additional planned drilling will be used to complete more detailed metallurgical test work to refine the economic opportunity of additional open pits on the property.