South Arturo Property

Transcription

1 South Arturo Property Carlin Trend, Nevada Button Hill March 25, 2015 Symbol: Exchange: PG TSX

2 South Arturo Property South Arturo Property Acquisition Terms US$20 Million for Goldcorp s 40% interest (Barrick holds 60% interest) Goldstrike Processing Facilities Transfer to Goldcorp additional 5% interest in the Rahill-Bonanza Joint Venture in Red Lake Goldcorp will complete a private placement with Premier in the amount of Cdn$12.5 Million Subject to Barrick right of first refusal in which event Goldcorp would pay Premier a break fee of not less than US$1.1 Million 2

3 Project Highlights Reasonable in ground purchase price for project with resources exceeding 1.1M ounces AuEq on a 40% basis excluding possible underground upside Phase 2 open pit mining project is fully-permitted and significantly de-risked currently being pre-stripped Highly professional and established team as operator Project execution risk is low Good leverage to even modest improvement in gold price Potential for open pit project to extend over 8 to 9-year period Underground mining opportunity provides further upside Opportunity to build a core Nevada relationship with a partner (Barrick) with substantial mine and mill infrastructure. 3

4 Why The Project Makes Sense Development stage asset in one of the world s most prolific gold districts Would Establish Premier as a producer in late 2015 De-risked asset in favourable mining district that is not a bet-the-farm opportunity Meets Premier s world class district and safe mining jurisdiction project criteria Allows Premier to continue exploration at McCoy-Cove and in Red Lake The partnership model has been an important part of Premier s past and recent successes Underground resource potential is open for expansion (not currently carried in property resource) 4

5 2014 Year end Reserves and Resources (40% basis) US$ Commodity Prices for Estimates For Reserves: US$1100 for Gold, US$17.00 for Silver For Resources: US$1400 for Gold, US$19.00 for Silver *See Goldcorp Press release dated February 19 th,

6 Barrick Guidance During Q2 2014, an Environmental Impact Assessment and Plan of Operations were approved for the 60%-owned South Arturo project, another near-mine discovery which is located approximately eight kilometers northwest of Goldstrike. Barrick has started development to mine the high grade, high return portion of the resource (a total of approximately 0.44 million ounces on a 100% basis) in 2016 and The bulk of the ore will be processed through Goldstrike s refractory facilities. Due to its high grade, near surface nature, the project is expected to have lower capital development and operating costs than Goldstrike. * From Barrick website 6

7 Expected News Flow Achieving commercial production prior to year end Drill program at the Phase 3 pit area in 2015 to further define high grade extents Drill program at the NE Button Hill will test for expansion potential of this underground target located below the Phase 2 pit Drill program at the East Dee underground target in 2015 to test for high-grade mineralization proximal to the Phase 3 pit and the Storm underground mine 7

8 ALL IN - SUSTAINING COSTS Total Cash Costs 596 Minesite CSR Accretion 551 Amortization of Environmental Asset Exploration (excludes Global) 2,895 Project Development Capital - Open Pit Stripping Capital - Underground Development Capital - Drilling Capital - Sustaining 1,875 TOTAL ALL IN - SUSTAINING COSTS 5, Minex - Dee Expensed - NE Button Hill $ 1,347, Minex - Dee Expensed - South Hinge $ 577, Minex - Dee Expensed - East Dee/Jerry's $ 971,000 Arturo Geotech Equipment $ 915,000 Mine Dewatering (Phase 2) $ 960,000 ALL IN - COSTS Total All In Sustaining Costs 5,917 Regional CSR Global Exploration Expansion Capital Pre Stripping 111,304 Expansion Capital 18,291 Development Capital TOTAL ALL IN COSTS 135,512 CAPITAL Capital Strip Cap UG Dev Cap Drilling Sustaining Capital 1,875 Expansion Capital Pre Stripping 111,304 Expansion Capital 18,291 Development Capital CAPITAL 131,470 8 Allocations from Mine Plan $ 111,303,924 Development Arturo Project $ 15,073,240 Rock Mechanics $ 500,000 South Arturo Expansion $ 100, Dee Capital $ 1,645, Dee Condemnation (capital) $ 972,699

9 Underground Potential NE Button Hill N 2015 drill program NE Button Hill: 9 core holes Testing the extent of the NE-trend of known mineralization; open ended down-dip and/or along strike? Phase 2 pit Located in the bottom of the Phase 2 Pit Potential to extend project mine life Upside potential with drilling, not carried in current resource 9

10 Summary Strategic opportunity that accelerates Premier to producer status (re-rating potential) Premier is executing on a strategy that has been consistently communicated since 2011 Provides significant upside exposure to rising gold prices Appreciable upside exposure to potential Phase 1, 3 & 4 open pit expansion and underground upside 10