Premier Gold reports update at Hardrock

Shares Issued: 151,496, 475

THUNDER BAY, ON, May 15, 2014 /CNW/ - PREMIER GOLD MINES LIMITED (News - Market indicators) is pleased to provide an update for the Company's 100% owned Hardrock Project.  The Company has commenced the formal Environmental Assessment (EA) and permitting process at the Hardrock Project, secured a range of consultants necessary for completion of a Feasibility Study expected in the first half of 2015 and has retained Mr. Bertho Caron, Eng. as Engineering & Construction Manager.   

Mr. Caron has more than 22 years of mining industry experience including engineering, construction and commissioning of various process plants and facilities necessary for mining operations. His experience includes assignments in Canada, Alaska and South America, principally with Cambior Inc. and Agnico Eagle Mines. More recently, he was construction manager at the Goldex Mine in Val d'Or, Quebec and at the Meadowbank Gold Mine located in Nunavut and managed the Feasibility Study a for a rare earth mine project located in Temiscaming, Quebec.

Premier Gold recently commenced the formal EA and permitting process in support of the development of the Hardrock Project. This began with its formal submission of a Project Description to the Canadian Environmental Assessment Agency, accepted on April 28, 2014. This process will ensure that the government, public, local, Aboriginal and other interested stakeholders will have the opportunity to comment and participate in the EA process. 

Premier has engaged the services of a number of consulting firms whose experience dovetail very well with its strong technical team.  These firms and their contribution to the Feasibility Study at Hardrock are summarized in Table 1.

"Having worked with Bertho during the building of Meadowbank, I am confident that his strong experience in engineering and construction will help to ensure that Hardrock is advanced safely, on time and on budget while respecting the communities that surround the project" commented Eric Lamontagne.  "Moreover, the strong ties between our development team and the various consultants we have engaged will provide for a smooth process to the completion of the Feasibility Study. As Premier moves forward at Hardrock, efforts will continue where possible to utilize local contractors, services and suppliers based in nearby communities. "

Highlights of the 2014 PEA Study (all currency amounts in Canadian dollars unless otherwise stated) at Hardrock included:

• Average annual gold production during the first 8 years of 253,100 ounces with life of mine "LOM" (15 years) annual production of 202,700 ounces (including low-grade stockpiles). 
• Average grade over the first 8 years of 1.50 grams per tonne gold "g/t Au" with a LOM average grade of 1.18 g/t Au (including low-grade stockpiles).
• Initial processing of 10,000 tonnes per day "tpd", expanding to 18,000 tpd in Year 3. 
• Pre-production capital costs of $410.6 million including $83 million for contingency.
• Pre-tax net present value "NPV" (at a 5% discount rate) of $519 million at US$1250 gold and an exchange rate of CAD$1.00 = US$0.95.
• Pre-tax internal rate of return "IRR" of 23.0% and a 3.5 year payback at US$1250 gold and an exchange rate of CAD$1.00 = US$0.95.

The Hardrock Project is located south of Geraldton, in Northwestern Ontario, along the Trans-Canada Highway.

The independent report, dated March 13, 2014, entitled "Trans-Canada Property Hardrock and Brookbank Projects Preliminary Economic Assessment" was issued by Stantec - Mining in North Bay, Ontario. The Report provides detail to the disclosure contained in the Company's news releases issued on January 28, 2014 and March 13, 2014.  The Report may be found on the Company website or under the Company's profile at www.sedar.com.

Stephen McGibbon, P. Geo., is the Qualified Person for the information contained in this press release and is a Qualified Person within the meaning of National Instrument 43-101.

Premier Gold Mines Limited is one of North America's leading exploration and development companies with a high-quality pipeline of gold projects focused in proven, safe and accessible mining jurisdictions in Canada and the United States. 

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties.  Actual events or results could differ materially from the Company's expectations and projections.

SOURCE Premier Gold Mines Limited