An updated mineral reserve and resource estimate for Premier Gold Mines Ltd.'s recently acquired Mercedes gold mine in Sonora, Mexico, showed a 21% increase in total gold reserves from 2015, net of depletion.
The deposit now hosts proven and probable reserves of 2.9 million tonnes at 4.31 g/t of gold and 35.7 g/t of silver containing 403,000 ounces of gold and 3.3 million ounces of silver, according to an Oct. 3 release.
Reserves were estimated using average prices of US$1,150 per ounce of gold and US$18 per ounce of silver.
Measured and indicated resources, meanwhile, total 2.9 million tonnes at 4.14 g/t of gold and 48 g/t of silver for 381,9000 ounces of gold and 4.4 million ounces of silver. The Mercedes property also hosts inferred resources of 1.2 million tonnes at 4.6 g/t of gold and 33 g/t of silver for 180,000 ounces of gold and 1.3 million ounces of silver.
An average gold price of US$1,600 per ounce was used to estimate resources.
The company will continue to seek to increase reserves and resources by maintaining aggressive exploration and development activities, Premier President and CEO Ewan Downie said in the statement.