The Q3 results for South Arturo Mine in Nevada, a joint venture operated by Barrick Gold Corporation which owns 60% and co-owned 40% by Premier Gold Mines, were recently reported. The mine continued to over perform during the quarter. Processing of stockpiled ore from the Phase 2 open pit during the third quarter contributed to gold production in excess of initial 2018 guidance with a total of 20,403 oz delivered to Premier year-to-date.

Construction at two new mining centres at South Arturo has commenced with stripping of the Phase 1 open pit and development of the El Nino underground mine.

South Arturo produced a total of 2,635 oz of gold during the third quarter compared to 8,113 oz during the corresponding period last year. This was expected, as the source of Phase 2 production transitioned to lower grade stockpiled ore.

Processing of lower grade Phase 2 ore is expected to continue on a limited basis for the remainder of the year. El Nino underground development and Phase 1 open pit stripping continue to ramp up in anticipation of production in 2019. Cash costs for Q3 2018 were $396 and AISC were $498 per ounce of gold sold.

Capital expenditures of $2.8 million were mainly related to stripping for the Phase 1 open pit, along with exploration at El Nino. Both portals are now collared at El Nino and stripping of the Phase 1 pit has proceeded to several benches utilising a fully-autonomous trucking fleet. Stockpiling of potential heap leach material has started. The autonomous fleet currently consists of five Komatsu 930E Ultra Class haul trucks retrofitted to autonomous operation using technology from ASI Mining.

Drilling in 2018 will continue to focus on near-pit delineation, underground expansion, and testing of additional prospective target areas.