Mr. Joseph Conway reports
PRIMERO ANNOUNCES HIGH-GRADE BLACK FOX COMPLEX DRILLING RESULTS AND REPORTS UPDATED RESERVES AND RESOURCES
Primero Mining Corp. has released new high-grade drilling results at depth at its Black Fox mine and Grey Fox property and also provided updated mineral reserves and mineral resources for the Black Fox complex (which includes the Black Fox mine and the Grey Fox exploration property) as at Dec. 31, 2013.
"We are very pleased to announce new drilling results from our recently acquired Black Fox complex," stated Joseph F. Conway, chief executive officer. "The results continue to confirm and expand the known high-grade mineralization approximately 200 metres below the current mining level at the Black Fox mine. With mines in the region extending to an average of approximately 1,600 metres below surface and the Black Fox mine currently only at 500 metres, there is significant exploration potential still to be realized. We also reported promising drill results from the adjacent Grey Fox property, further encouraging us that Grey Fox is a significant potential future ore source for the company.
"On the acquisition of the Black Fox complex, we reviewed the block model and mineral reserve and mineral resource estimation parameters. While we believe the block model estimation methodology is appropriate, we have elected to be more conservative on several estimation parameters. Accordingly we have increased the cut-off grade, reduced the area of influence around drill holes, used more detailed domaining, more conservative capping and have not included any drilling from 2014. We believe this more conservative approach is appropriate as we optimize the Black Fox operation. We were very encouraged by the increase in underground reserve grade and the large increase in ounces and grade of the inferred resource which reflects the future opportunity we see at this mine. While the new estimation has resulted in a reduction in reserves and resources, the advancement in underground development and significant increases in definition and delineation drilling are expected to position the company to materially increase resources and convert resources into reserves by the end of 2014."
High-grade drill results confirm extension of the Black Fox deposit at depth
The company's 2014 $16.8-million exploration program covers both the Black Fox mine and the adjacent Grey Fox exploration property. The exploration and delineation program includes 132,100 metres of drilling, broken into 55,700 metres at Black Fox and 76,400 metres at Grey Fox. Approximately 8,330 metres and 22,780 metres, respectively, have been drilled at each property to date in 2014.
In October, 2013, two high-grade gold intercepts were announced, located approximately 720 metres below surface and approximately 240 metres below current mining operations in the lower central zone of the Black Fox deposit. Today Primero announced results from six additional high-grade intercepts, giving the company further confidence that the Black Fox orebody extends at depth.
Drill holes 440-16-EB (which returned 24.4 grams per tonne (g/t) gold over 14.7 metres), 440-24-E, 440-25-E, 645-02-W and 440-23-EB (which returned 9.9 g/t over 31.8 metres), confirm and expand the area of known mineralization at depth in the lower central zone of the Black Fox deposit. This lower central zone remains a focus of the company's 2014 exploration program. Better drilling angles will be available in the second half of 2014 from the new 520 level exploration drift, with drilling targeting a zone located between 1,020 metres and 1,170 metres below surface.
A new mineralized area was also discovered in the lower west zone of the Black Fox deposit. Drill hole 345-23-W, a step-out drill hole testing for mineralization in the lower west zone, returned 3.5 g/t over five metres. Although the mineralization interval is lower grade than other mineralization at depth, it does indicate the potential for expanding the known mineralization at depth by up to 425 metres laterally to the west. Further drilling in the lower west zone is planned in the second half of 2014.
The remaining Black Fox 2014 exploration program will continue to test the full lateral and depth potential of the Black Fox mine. The lower east and Tamarack zones, both regions believed to be high exploration potential regions of the underground mine, will be drilled in the second half of 2014. The company has also begun a surface exploration program to drill the east and west extensions of the open pit, which is currently in its third pushback, with the objective of extending the open-pit life.
In the Black Fox mineral resource update released today, the inferred mineral resource includes approximately 50,000 ounces of gold at a grade of nine g/t which was estimated using the deep drill holes completed in 2013. The company is confident that the 40,000 metres of drilling planned outside of the existing mineral resource, will increase mineral resources and potentially convert mineral resources into mineral reserves in 2014.
BLACK FOX MINE RECENT DRILLING RESULTS
Metal factor
From To Core width Gold grade (grade by
Hole (m) (m) (m) (g/t) width)
345-23-W 296.0 301.0 5.0 3.5 17.3
440-16-EB 213.1 227.8 14.7 24.4 357.9
231.3 235.0 3.7 17.7 65.6
239.5 251.4 11.9 7.5 88.8
257.4 259.1 1.7 2.9 5.0
440-23-EB 222.0 253.8 31.8 9.9 315.1
440-24-E 241.9 245.4 3.4 3.9 13.5
249.8 259.5 9.7 4.4 42.9
265.1 273.0 7.9 2.6 20.6
440-25-E 254.0 260.0 6.0 4.9 29.2
645-02-W 351.8 357.8 6.0 6.9 41.8
359.4 364.0 4.6 1.3 6.1
366.1 370.0 3.3 6.9 22.6
645-01-W 339.6 366.4 26.8 26.0 695.2
339.7 348.0 8.4 66.3 553.6
645-34-W 316.9 354.7 37.8 18.1 683.8
329.5 339.8 10.4 39.5 408.3
Grey Fox drill results bolster confidence in project
Today Primero also announced recent drilling results from the Grey Fox property, located four kilometres southeast of the Black Fox mine. The Contact, 147 and Grey Fox South zones all occur within close proximity of each other and provide Primero with near-term production growth opportunities due to their proximity to the Black Fox mine infrastructure.
The Contact zone drill results show continuation of the newly identified hangingwall zone as drilling is extended to the north and east. Drilling in the second half of 2014 will continue to infill the Contact zone and these results will be included in the 2014 year-end mineral resource estimate for the Grey Fox property.
The Grey Fox South results are encouraging as they indicate the zone is wider than previously anticipated with more consistent grade than in earlier drilling.
Full details of recent drill results from the Grey Fox property including the Contact, 147 and Grey Fox South zones are listed in the associated table.
GREY FOX EXPLORATION PROPERTY RECENT DRILLING HIGHLIGHTS
Metal
factor
Core width Gold grade (grade by
Hole From (m) To (m) (m) (g/t) width)
GF13-804 205.0 248.0 43.0 2.7 114.8
GF13-810 19.4 41.6 22.2 7.0 154.9
GF14-848 369.0 411.8 42.8 3.7 156.6
GF14-862 289.0 325.0 36.0 4.4 156.6
GF14-867 499.0 542.0 43.0 3.6 153.2
GF14-852 155.0 168.0 13.0 11.4 148.5
GF14-857 215.0 236.0 21.0 9.4 198.2
Black Fox complex mineral resources and mineral reserves at Dec. 31, 2013
The company retained InnovExplo Inc., an independent mining and exploration consulting firm based in Val d'Or, Que., to perform the Black Fox complex mineral resource estimation. The mineral resource estimation included two estimations, one for the Black Fox mine and a second for the Grey Fox exploration property. The Black Fox mineral reserve estimation was performed by Black Fox mine personnel.
The mineral resource estimate for the Black Fox mine was made using 3-D block modelling. The inverse distance squared (ID2) interpolation method was used on an area of the Black Fox mine with a strike length of 1.5 kilometres and a width up to approximately one kilometre, down to a vertical depth of 900 metres below surface. Twenty-four mineralized zones have been interpreted in transverse sections, plan views, and 3-D views, as well as one mineralized envelope containing 23 of the 24 mineralized zones. InnovExplo used cut-off grades of 0.9 g/t (open-pit potential) and three g/t Au (underground potential) in the resource estimation.
The mineral resource estimate for the Grey Fox exploration property was made using 3-D block modelling. Ordinary kriging (OK) and the ID2 interpolation methods were used on an area of the Grey Fox deposit with a strike length of 1.3 km and a width of up to approximately one km, down to a vertical depth of 600 metres below surface. Sixteen geological zones have been interpreted in transverse sections spaced 12.5 metres apart, 13 of which host mineralization and three are sterile. At Grey Fox, InnovExplo used cut-off grades of 0.9 g/t (open-pit potential) and three g/t Au (underground potential) in the resource estimation.
The Black Fox mineral reserve estimate includes open-pit, underground and stockpile reserves. Mineral resources were converted to mineral reserves by applying mining cut-off grades, mining dilution and mining recovery factors. Mine cut-off grades of one g/t and 3.4 g/t Au were used for open-pit and underground mineral reserve estimates, respectively.
The open-pit mineral reserves were constrained to the phase 3 pit design, completed in November, 2013. The pit optimization was based on a gold price of $1,150 per ounce, a gold processing recovery factor of 94 per cent and an exchange rate of $1 (U.S.) to $1.04.
Two methods were used for estimating the underground mineral reserves at Black Fox. Primero assumed that resources below level 235 will be mined by bulk mining methods, such as long-hole mining, and created mining stope shapes that were then evaluated against the block model. The underground resources above level 235, on the other hand, are typically narrower veins and Primero assumed this ore to be mined by shrinkage stoping and mechanized cut and fill. For these resources, Primero applied dilution and recovery factors to blocks above the cut-off grade.
BLACK FOX MINE MINERAL RESERVES AS AT DEC. 31, 2013
Gold Contained
Classification Category Tonnes grade (g/t) gold (oz)
Proven stockpile 716,200 1.1 24,700
Total proven 716,200 1.1 24,700
Probable open pit 1,468,500 3.7 173,900
Probable underground 1,663,900 6.3 339,100
Total probable 3,132,500 5.1 513,000
Total proven and probable 3,848,700 4.3 537,700
BLACK FOX MINE MINERAL RESOURCES AS AT DEC. 31, 2013
(inclusive of mineral reserves)
Gold Contained
Classification Category Tonnes grade (g/t) gold (oz)
Measured stockpile 716,200 1.1 24,706
Total measured 716,200 1.1 24,706
Indicated open pit 1,423,900 4.0 182,518
Indicated underground 1,852,800 7.5 445,336
Total indicated 3,276,700 6.0 627,854
Total measured and
indicated 3,992,800 5.1 652,560
Inferred open pit 364,100 5.8 67,897
Inferred underground 326,300 9.5 99,889
Total inferred 690,400 7.6 167,786
GREY FOX MINE MINERAL RESOURCES AS AT DEC. 31, 2013
Gold Contained
Classification Category Tonnes grade (g/t) gold (oz)
Indicated open pit 3,882,000 2.5 314,615
Indicated underground 1,394,300 5.4 243,041
Total indicated 5,276,300 3.3 557,655
Inferred open pit 486,500 2.8 43,309
Inferred underground 1,065,100 5.1 175,511
Total inferred 1,551,600 4.4 218,820
Surface drilling was conducted by Norex Drilling supervised by Primero's exploration team. Gabriel Voicu, PGeo, vice-president, geology and exploration, reviewed the technical exploration information in this news release as the qualified person (QP) for the purposes of National Instrument 43-101 for the company. All samples are half core and analyses reported herein were performed by the independent laboratories Polymet Labs of Cobalt, Ont., which is ISO 9001:2000 certified in North America using standard fire assay procedures or AGAT Laboratories of Mississauga, Ont., which is ISO 9001/IEC17025, using fire assay with ICP-OES finish or using gravimetric finish for values over 10 g/t gold. Intercepts cited do not necessarily represent true widths, however, drilling is generally intersecting interpreted mineralized zones at a high angle. Primero's quality control program includes systematic insertion of blanks, standard reference material and duplicates to ensure laboratory accuracy. Generally, in a block of 20 samples one will be a duplicate, one will be a standard and one will be a blank.
The mineral resource and mineral reserve estimates for the Black Fox complex have been prepared under the supervision of Dr. Harold Brisson, PhD, Eng, resource manager of Primero and a QP for the purposes of NI 43-101. Gabriel Voicu, PGeo, vice-president, geology and exploration, of Primero and QP for the purposes of NI 43-101, has approved the mineral resource and mineral reserve estimates for the Black Fox complex. The scientific and technical information regarding exploration results contained herein is based on information prepared by or under the supervision of Mr. Voicu. An NI 43-101 report, disclosing the updated mineral resource and mineral reserve estimates for the Black Fox complex has been prepared and filed on SEDAR by Primero. Both of the above QPs have reviewed and approved the contents of this news release.
DRILL RESULTS FROM GREY FOX PROPERTY -- CONTACT, 147 AND GFS ZONES
Metal
factor
From To Core width Gold grade Mineralized (grade by
Hole (m) (m) (m) (g/t) zone width)
GF13-804 205.0 248.0 43.0 2.7 Contact zone 114.8
including 218.0 220.0 2.0 9.5 Contact zone 19.1
GF13-810 19.4 41.6 22.2 6.96 Contact zone 154.9
including 40.6 41.6 1.0 100.0 Contact zone 100.0
85.0 108.3 23.3 2.6 Contact zone 59.4
including 96.0 99.0 3.0 11.6 Contact zone 34.7
405.0 406.0 1.0 30.9 Contact zone 30.9
485.0 499.0 14.0 2.2 Contact zone 30.8
GF14-830 27.0 29.0 2.0 2.3 Contact zone 4.5
GF14-840 86.0 87.0 1.0 1.2 Contact zone 1.2
251.0 252.0 1.0 40.6 Contact zone 40.6
253.2 254.0 0.8 2.3 Contact zone 1.8
GF14-846 137.0 143.0 6.0 2.4 Contact zone 14.1
183.0 184.0 1.0 1.1 Contact zone 1.1
263.0 264.0 1.0 1.4 Contact zone 1.4
282.6 284.0 1.4 1.5 Contact zone 2.1
289.0 294.0 5.0 1.4 Contact zone 7.1
349.0 350.0 1.0 5.0 Contact zone 5.0
GF14-848 83.7 84.7 1.0 1.2 Contact zone 1.2
125.3 126.3 1.0 2.1 Contact zone 2.1
273.0 273.8 0.8 2.2 Contact zone 1.6
285.0 286.0 1.0 1.2 Contact zone 1.2
369.1 411.9 42.8 3.7 Contact zone 156.6
including 376.0 380.0 4.0 15.3 Contact zone 61.2
and 386.1 388.2 2.1 17.5 Contact zone 36.4
454.3 469.0 14.8 3.2 Contact zone 46.6
including 454.3 457.3 3.0 9.8 Contact zone 29.3
GF14-851 26.7 28.5 1.9 1.1 Contact zone 1.9
47.9 49.0 1.1 1.3 Contact zone 1.4
75.7 77.7 2.0 1.2 Contact zone 2.4
153.4 154.4 1.0 8.4 Contact zone 8.4
238.5 240.5 2.0 10.4 Contact zone 20.8
251.5 255.3 3.8 2.8 Contact zone 10.6
306.0 308.0 2.0 1.3 Contact zone 2.7
370.0 377.0 7.0 3.0 Contact zone 21.1
386.0 400.0 14.0 1.3 Contact zone 17.6
GF14-860 46.0 49.0 3.0 1.3 Contact zone 3.9
94.0 97.0 3.0 9.6 Contact zone 28.7
102.0 104.0 2.0 2.2 Contact zone 4.4
147.0 148.0 1.0 1.2 Contact zone 1.2
200.9 203.0 2.1 9.8 Contact zone 20.2
225.0 244.5 19.5 4.7 Contact zone 92.3
323.0 326.0 3.0 1.1 Contact zone 3.2
399.9 400.9 1.0 2.8 Contact zone 2.8
GF14-862 47.0 48.0 1.0 4.1 Contact zone 4.1
73.0 74.5 1.5 12.0 Contact zone 17.9
229.0 234.0 5.0 7.6 Contact zone 38.0
289.0 325.0 36.0 4.4 Contact zone 156.6
334.0 340.0 6.0 1.1 Contact zone 6.7
368.0 369.0 1.0 2.9 Contact zone 2.9
376.0 377.0 1.0 1.2 Contact zone 1.2
382.8 384.3 1.5 2.1 Contact zone 3.2
447.0 454.0 7.0 1.7 Contact zone 12.0
508.0 511.0 7.0 1.9 Contact zone 13.6
GF14-867 77.0 78.0 1.0 2.4 Contact zone 2.4
86.0 91.0 5.0 6.3 Contact zone 31.3
213.4 214.4 1.0 1.9 Contact zone 1.9
220.1 221.0 0.9 2.2 Contact zone 2.0
452.0 453.0 1.0 8.8 Contact zone 8.8
499.0 542.0 43.0 3.6 Contact zone 153.2
Grey Fox
GF14-842 211.0 221.6 10.6 3.0 South 31.4
Grey Fox
230.0 231.0 1.0 4.1 South 4.1
Grey Fox
GF14-852 36.0 38.0 2.0 1.5 South 3.0
Grey Fox
46.0 47.0 1.0 1.4 South 1.4
Grey Fox
51.0 52.0 1.0 1.9 South 1.9
Grey Fox
95.0 97.0 2.0 27.0 South 53.9
Grey Fox
148.0 149.0 1.0 1.7 South 1.7
Grey Fox
155.0 168.0 13.0 11.4 South 148.5
Grey Fox
including 159.0 163.0 4.0 25.0 South 99.8
Grey Fox
and 166.0 167.0 1.0 21.4 South 21.4
Grey Fox
177.0 188.0 11.0 2.0 South 21.6
Grey Fox
205.0 209.0 4.0 1.3 South 5.1
Grey Fox
GF14-853 113.5 115.7 2.2 1.6 South 3.3
Grey Fox
147.5 147.9 0.4 25.2 South 8.8
Grey Fox
283.3 284.0 0.7 2.2 South 1.5
Grey Fox
309.7 310.2 0.5 1.5 South 0.8
Grey Fox
338.5 342.4 3.9 1.3 South 5.2
Grey Fox
355.3 382.0 26.7 1.1 South 29.6
Grey Fox
GF14-857 65.0 70.0 5.0 1.9 South 9.6
Grey Fox
77.0 83.0 6.0 1.3 South 7.6
Grey Fox
90.0 98.0 8.0 2.5 South 19.8
Grey Fox
107.0 108.0 1.0 1.8 South 1.8
Grey Fox
119.0 120.0 1.0 1.4 South 1.4
Grey Fox
215.0 236.0 21.0 9.4 South 198.2
Grey Fox
251.0 254.0 3.0 2.5 South 7.4
Grey Fox
260.0 264.0 4.0 16.8 South 67.0
Grey Fox
GF14-859 79.0 80.0 1.0 5.6 South 5.6
Grey Fox
122.0 123.0 1.0 1.8 South 1.8
Grey Fox
174.0 175.0 1.0 1.6 South 1.6
Grey Fox
197.0 198.0 1.0 7.9 South 7.9
Grey Fox
215.0 216.0 1.0 1.3 South 1.3
Grey Fox
230.0 231.0 1.0 2.8 South 2.8
Grey Fox
238.3 241.0 2.8 1.6 South 4.4
Grey Fox
302.0 304.0 2.0 1.6 South 3.2
Grey Fox
337.0 349.0 12.0 4.3 South 51.0
Grey Fox
357.0 364.0 7.0 8.3 South 58.2
Grey Fox
369.0 370.0 1.0 1.2 South 1.2
Grey Fox
GF14-863 32.0 33.0 1.0 2.7 South 2.7
Grey Fox
43.0 47.0 4.0 1.6 South 6.3
Grey Fox
116.0 121.0 5.0 2.9 South 14.4
Grey Fox
197.0 197.4 0.4 68.0 South 27.2
Grey Fox
333.0 336.0 3.0 11.1 South 33.2
Grey Fox
348.0 349.0 1.0 1.0 South 1.0
Grey Fox
GF14-864 40.0 41.0 1.0 1.8 South 1.8
Grey Fox
45.0 46.0 1.0 1.0 South 1.0
Grey Fox
56.0 57.0 1.0 1.0 South 1.0
Grey Fox
97.0 107.0 10.0 3.5 South 34.5
Grey Fox
133.0 137.0 4.0 3.0 South 11.8
Grey Fox
242.0 244.0 2.0 1.2 South 2.4
We seek Safe Harbor.
© 2024 Canjex Publishing Ltd. All rights reserved.