Sydney, April 28, 2017 AEST (ABN Newswire) - Primary Gold (ASX:PGO) has released a positive Scoping Study for their Mt Bundy gold project in the Northern Territory. The study assumes ore would be mined from three existing deposits; the low strip ratio Rustlers Roost deposit (795koz at 1.1g/t Au), the high grade Tom's Gully U/G mine (315koz at 8.9g/t Au) and the Quest 29 deposit (148koz at 1.4g/t Au).

Highlights of the study include:

- All-In Sustaining Costs (AISC) - LOM A$1050;
- AISC - first three yrs of production - A$900/oz;
- Total initial capex - A$155M;
- 3.0Mtpa processing facility;
- Low strip ratio (LOM) - 1.8:1; and
- Mine life - 9 years.

Analyst Comment: The Scoping Study has provided a strong platform for the future development of the Mt Bundy project, with the highlights including low AISC of $1,050 (LOM) as well as the relatively low initial capex of $155m for a project of this size (3Mtpa processing facility).

We however believe there are a number of areas that could potentially improve when the PFS is released later this year. This includes increasing the processing facility's throughput, operating and capital costs reductions, as well as increased gold recoveries (different processing technologies eg: resins).

The success of the upcoming drill program at the Rustlers Roost and Quest 29 deposits, which is the first drill program at these deposits for more than 20 years, will be central to these potential improvements. We look forward to this program commencing during May 2017.

The information in this video should not be the only trigger for your investment decision. We strongly recommend you seek professional financial advice whenever making financial investment decisions.

Valuation: We have updated our valuation for Primary to $0.35 / share (price - $0.07/share).

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About Primary Gold Ltd

Primary Gold Ltd ASX PGOPrimary Gold Limited (ASX:PGO) is an Australian-listed emerging gold producer and explorer with multiple near-term production and advanced exploration assets located in the Northern Territory and Western Australia.

Primary Gold's flagship asset is the Mount Bundy Gold Project in the NT, which includes the Rustlers Roost open pit project, Toms Gully high grade underground mine and 250ktpa processing facility, the Quest 29 deposit and a large lease holding of approximately 1,500km2 of underexplored tenure across the Pine Creek region. All deposits are located within a 10km radius, providing the opportunity for development of a large scale long life centralised processing facility.


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Adam Kiley
TSI Capital Pty Ltd
E: adam.kiley@tsicapital.com.au

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