Premier Gold Mines (TSX: PG) produced more than 19,000 ounces of gold during the third quarter of 2020, meeting the high-end of its expectations, the company reported on Wednesday.
Production from the wholly owned Mercedes mine in Mexico reached 12,183 ounces, exceeding the mine’s new operating plan, which was developed during the care and maintenance period in Q2 to focus on enhanced productivity and reducing costs.
Significant progress has been made with respect to cost reduction initiatives laid out in the new Mercedes operating plan, the company said, and this will be reflected in unit operating costs reported for Q3.
At the 40%-owned South Arturo joint venture in Nevada, the El Nino underground mine continued its trend of strong quarterly production, producing a total of 7,096 ounces from more than 650 tonnes of ore per day, surpassing its annual production plan.
Premier and its partner Nevada Gold Mines will continue to advance additional development opportunities at South Arturo, including the Phase 1 and Phase 3 open-pit projects, and are assessing the potential for an on-site heap leach facility.
Shares of Premier Gold Mines rose 3.1% by 2:15 p.m. EDT, giving the company a market capitalization of C$675.3 million.