Primero sees clear sailing into 2017
The problems that hindered Primero Mining Corp in 2016 are behind it and it is confident that 2017 will result in a complete turnaround.
Ernest Mast, president and CEO, says “while Primero faced a number of significant challenges in 2016, I believe the changes we have already made, and will continue to make, will result in a considerable improvement in our 2017 results.
We have recently strengthened our management team with the addition of an experienced Chief Operating Officer and Chief Financial Officer, and expect to see marked improvement in the near-term as we work to reduce costs, increase production and simplify the way we mine.
These key steps will lay the foundations of Primero’s return to sustainable profitability.”
The company reported fourth quarter production of 45,794 gold equivalent ounces resulted in annual 2016 production of 176,139 gold equivalent ounces within the company’s 2016 revised production guidance range of 170,000 to 190,000 gold equivalent ounces.
Annual production totalled 156,052 ounces of gold and 5.3 million ounces of silver from the San Dimas and Black Fox Mines.
Cash costs were within revised guidance range. Preliminary 2016 consolidated total cash costs were expected to be $865 per gold equivalent ounce, and preliminary consolidated all-in sustaining costs (AISC) including corporate general and administrative expense (G&A) were expected to be $1,326 per gold ounce, slightly better than the company’s revised 2016 guidance range.
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.
Primero offers immediate exposure to un-hedged, below average cash cost gold production with a substantial resource base in politically stable jurisdictions. The company is focused on becoming a leading intermediate gold producer by building a portfolio of high quality, low cost precious metals assets in the Americas.
The Black Fox Mine (formerly the Glimmer Mine) is located in the wellestablished Timmins Gold Mining Camp 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 Porcupine-Destor Fault Zone (DPFZ) which has a total strike length of approximately 200 km and hosts many of Ontario’s richest gold mines.
The Black Fox is the key component of the Black Fox Complex which also includes the Black Fox mill, the GreyFox 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.
The San Dimas Mine is located approximately 125 km northeast of Mazatlán, on the border of Sinaloa and Durango States, in central-west Mexico. The site is accessed via a 45 minute flight from either Mazatlán or Durango, or a 10 hour drive from Durango.
The historic mining Town of Tayoltita, located adjacent to San Dimas, is an important population centre with approximately 8,000 inhabitants. San Dimas currently employs approximately 1,100 people.
The Grey Fox development project is located approximately 3 km south of the Black Fox Mine, also situated within the Timmins Gold Mining Camp. The Grey Fox property is 100% owned and not covered by any streaming agreements.
Gold resources at Grey Fox are hosted primarily in three mineralized zones: Contact, 147, and Grey Fox South, which all occur within close proximity to each other. Mineralization is consistent with Brittle Deformation emplacement, and bounded by the Porcupine Destor and Gibson-Kelore faults.