Premier Gold Mines Ltd. updated reserves and resources at its Mercedes mine in Sonora, Mexico, replacing 18 months worth of mined gold reserves.
The company said March 26 that measured and indicated resources increased by 34%, while inferred resources were up by 23% in terms of contained gold compared to the previous estimate.
Mercedes hosts proven and probable reserves containing 417,000 ounces of gold and 2.6 million ounces of silver within 3.2 million tonnes grading 3.94 g/t of gold and 24.20 g/t of silver.
Reserves were reported exclusive of resources, with the estimate incorporating mining depletion since June 30, 2016.
Measured and indicated resources are estimated to contain 511,000 ounces of gold and 5.2 million ounces of silver within 3.7 million tonnes grading 4.32 g/t of gold and 43.70 g/t of silver, with inferred resources containing 222,000 ounces of gold and 1.8 million ounces of silver within 1.6 million tonnes grading 4.2 g/t of gold and 34.0 g/t of silver.
Premier Gold is working to complete underground infrastructure to support definition drilling on the Marianas deposit at Mercedes, aiming to incorporate the deposit into the mine plan.
The company outlined 2018 exploration and development plans for its properties in January, budgeted at up to US$82.7 million.