Premier Gold Mines Ltd. is evaluating asset reorganization options, which could potentially include spinning out the company’s U.S. subsidiary that holds its Nevada assets, the company said. If the spinout is completed, it is expected to be a stand-alone, U.S.-domiciled, publicly listed gold company that will include the South Arturo and McCoy-Cove properties. Premier said it was assessing additional acquisition opportunities through its U.S. subsidiary.
“We are exploring the attractiveness of creating two companies that would benefit from streamlined property portfolios and a simplified domestic investment thesis,” Premier President and CEO Ewan Downie said. “Premier has assembled a high-quality portfolio of assets spanning exploration to mining operations and we believe the market is not fully valuing the sum of the parts. This is one option we are considering to change that.”
The South Arturo mine, located in the heart of the Carlin Trend in Nevada, is operated by Premier’s joint venture partner Nevada Gold Mines. The El Nino underground mine was brought into production during the second half of 2019 and the partners said they are currently assessing additional developments on the property, including the Phase 1 and Phase 3 open-pit projects and a potential on-site heap-leach facility.
Premier is currently completing an updated technical report for South Arturo and is drill-testing the down-dip extension of the El Nino mine and upper targets within and proximal to the proposed Phase 1 and Phase 3 pits.
The McCoy-Cove property, which is also located in Nevada, hosts a high-grade undeveloped gold deposit. In 2018, Premier announced a Preliminary Economic Assessment for the project that highlighted indicated mineral resources of more than 1 million tons at 0.327 ounces per ton (oz/t) of gold (or 342,000 oz) and inferred mineral resources of more than 4 million tons at 0.327 oz/t of gold (or more than 1.3 million oz). Nominal amounts of silver are also credited in the resources.
Premier is currently completing a hydrological modeling study and additional metallurgical work in advance of beginning construction of a ramp to complete delineation drilling, bulk sampling and a feasibility study.
In addition to the mines and projects in the U.S., Premier also operates the Mercedes gold mine in Mexico and holds a 50% interest in the Greenstone gold property — formerly the Trans-Canada Property — in northwestern Ontario.