Black Fox Mine work
$51.7 million in new financing
A bought $51.7 million financing deal will allow Primero Mining Corp. to undertake exploration and development at the company’s San Dimas and Black Fox Mines. Funds also will be used for working capital and general corporate purposes.
Primero is a Canadian-based precious metals producer that owns 100% of the San Dimas gold-silver mine and the Cerro del Gallo gold-silver-copper development project in Mexico and 100% of the Black Fox Mine and adjoining properties in the Township of Black River-Matheson near the City of Timmins, Ontario.
Black Fox (formerly the Glimmer Mine) is located in the well-established Matheson-Timmins mining area in Northern Ontario. It is positioned approximately 10 km east of the community of Matheson, 65 km east of Timmins, and adjacent to Provincial Highway 101. The 1,750 hectares of contiguous land covers a significant section of the Destor Porcupine Fault Zone (DPFZ) which has a total strike length of approximately 200 km and hosts many of Ontario’s richest gold mines.
Black Fox is the key component of the Black Fox Complex which also includes the Black Fox mill, the Grey Fox development project, and the Pike River exploration property. Commercial production from the open pit mine began in May 2009 (depleted in September 2015) and underground mining commenced in October 2011. Primero acquired the Black Fox Complex following a takeover of Brigus Gold Corp. completed in March 2014.
Existing infrastructure was upgraded in 2010 to facilitate modern mine development which included construction of a new truck shop, laboratory, administration building, firewater/freshwater pump house, and other ancillary buildings. The company says given the mine’s close proximity to Matheson and Timmins, and that this Region’s primary industries are mining and forestry, local supplies and services are easily available and can be typically delivered within 12 hours.
Water at Black Fox is supplied via an on-site fresh water well, and water produced from dewatering activities is channelled to the holding pond for process recycling and/or discharge through the Black Fox water treatment facility. The Black Fox mill site is located at the past-producing Stock Mine, 28 km by road from the Black Fox site. Electricity is supplied to the mill from a local 27 kilovolt power line.
On June 14, Primero announced that it has acquired a large concession area adjacent to its San Dimas Mine in Durango, Mexico. The company has added 30,192 hectares substantially covering the area between the mine and the Ventanas exploration property located 32 km to the south. It brings Primero’s total concession area in the district to 68,628 hectares. The newly acquired concession is not covered by the San Dimas silver purchase agreement,
The company says this Greenfield property is largely unexplored but displays similar geological characteristics as found on both the San Dimas and Ventanas properties. The acquisition reinforces Primero’s dominant position in a highly prospective area, with the potential to identify mineralization on a scale potentially comparable to the current San Dimas Mine.
The Expanded Lechuguilla concession is covered extensively by the regional upper volcanic sequence, however the discovery of the Jessica vein in late 2014 demonstrated to Primero’s exploration geologists that the volcanic capping was a post-mineralization event and that precious metal bearing veins continue to exist under this geological sequence. The Expanded Lechuguilla concession contains identified “geological windows” through the upper volcanic capping with multiple vein outcroppings already noted.
Primero says it offers immediate exposure to un-hedged, below average cash cost gold production with a substantial resource base in politically stable jurisdictions. The company says it is focused on becoming a leading intermediate gold producer by building a portfolio of high quality, low cost precious metals assets in the Americas.