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Premier Gold cashing in for Hardrock project

Thunder Bay’s Premier Gold announced it has received $11 million from Centerra Gold, its joint venture partner to develop its gold mine properties in northwestern Ontario.
Premier-Geraldton_Cropped
Thunder Bay’s Premier Gold announced it has received $11 million from Centerra Gold, its joint venture partner to develop its gold mine properties in northwestern Ontario.

Thunder Bay’s Premier Gold announced it has received $11 million from Centerra Gold, its joint venture partner to develop its gold mine properties in northwestern Ontario.

The flow of capital is part of the 50/50 arrangement Premier and Centerra struck last March to advance the Trans-Canada Property in the Geraldton-Beardmore area.

Centerra made an initial $85-million contribution for its 50 per cent buy-in last spring as part of its larger $185 million to develop the property.

Greenstone Gold Mines LP is the subsidiary corporation the two mining companies formed to develop the Trans-Canada Property, which is host to multiple gold deposits, including the Hardrock Project.

Premier reports it’s in the final stages of completing work related to an upcoming feasibility study for an open-pit gold mine at the Hardrock site.

In a Sept. 17 news release, Premier president-CEO Ewan Downie said Centerra’s latest payment is a big boost to his company’s strong financial position with $80 million in cash, investments and other North American mine projects.

“With our treasury, we are in the unique position to fully fund active exploration and development programs at five company projects, including the South Arturo Gold Mine in Nevada where production is slated to commence early in 2016.”

Earlier in the month, Premier announced it’s continuing to find more gold mineralization at its wholly-owned Hasaga Project in Red Lake.

The company is in the midst of a 40,000-metre drilling program at the 677-hectare site beside the town.

The latest drill results yielded assays of up to 1.06 grams per tonne across 93 metres and 1.19 grams per tonne across 107 metres.

“Drilling to date suggests persistent near-surface gold mineralization is widespread at Hasaga,” said Stephen McGibbon, Premier’s executive vice-president, in a statement.

The Hasaga Project contains two former mines, the Hasaga and Gold Shore, both underground mines that ceased production in the early 1950s. Premier believes the project may be amenable to open pit mining methods, plus higher grade underground mining.