Premier owns a 100% interest in Mercedes, a 2000 tonnes per day high grade underground gold-silver mine located in the State of Sonora in northern Mexico. Gold production attributable to Premier from Mercedes began in early October 2016. The Mercedes property is located some 250 kilometres northeast of Hermosillo and 300 kilometres south of Tucson, Arizona. Power supply to the mine is provided by a 65-kilometre, 115 kV power line, from the town of Magdalena de Kino.
The geology of north-central Sonora displays a complex history of tectonic and magmatic activity. Gold-silver mineralization on the Mercedes Property is hosted within epithermal low sulphidation veins, stockworks, and breccia zones. Over 15 kilometres of veins have been identified within or marginal to the andesite-filled basins, which constitute the primary exploration target on the Project. Since 2000, no less than 13 significant discoveries have been at Mercedes.
Premier’s recent purchase of Mercedes further diversifies its growing production base. (July 28, 2016 press release)