06:19:02 EDT Thu 28 Mar 2024
Enter Symbol
or Name
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CA



Primero Mining Corp
Symbol P
Shares Issued 162,434,155
Close 2015-07-20 C$ 3.64
Market Cap C$ 591,260,324
Recent Sedar Documents

Primero Mining drills 8.8 m of 16.1 g/t Au at Black Fox

2015-07-20 07:31 ET - News Release

Ms. Tamara Brown reports

PRIMERO PROVIDES EXPLORATION UPDATE; EXPECTS TO REPLACE FULL-YEAR PRODUCTION WITH DRILLING FROM FIRST HALF OF 2015

Primero Mining Corp. is providing an update on its recent exploration activities at the Black Fox complex, located near Timmins, Ontario, Canada, and at the San Dimas mine located in Durango, Mexico. Based on the success of its exploration activities to date, the company expects to replace its estimated full year production with the results of exploration drilling from the first half of 2015. Additionally, the company has approved $6.1-million (U.S.) in capital expenditures to advance a ramp to access the Deep Central zone at Black Fox.

Highlights:

  • Black Fox Deep Central zone expanded: Results from the Deep Central zone, including 16.1 grams per tonne gold over 8.8 metres (520-L482-01), 11.0 g/t gold over 10.0 metres (520-L482-52) and nine g/t gold over 11.7 metres (520-EX401-24), have expanded the known width of the high-grade mineralization.
  • Grey Fox continues to grow: Highlights include 9.4 g/t gold over 12.9 metres (GF15-1019) near surface at Contact zone, 18.8 g/t gold over six metres (GF14-975) at Grey Fox South and 3.3 g/t gold over 39.0 metres (GF15-1011) at Gibson South.
  • Black Fox ramp to Deep Central zone approved: Based on its exploration success in the Deep Central zone, the company has approved capital expenditures of $6.1-million (U.S.) to advance the access ramp to this area by late 2015.
  • San Dimas Jessica vein extended to 300 metres: Highlights include 47.2 g/t gold and 5,994 g/t silver over 4.6 metres (SJE15_007), 59.3 g/t gold and 7,992 g/t silver over 2.3 metres (SJE15_017), and 61.3 g/t gold and 8,795 g/t silver over 1.1 metres (SJ15_040).
  • Ventanas scoping study commenced: Based on its exploration success at the Ventanas property in Mexico, the company has commenced an internal scoping study to determine the viability of producing 500 to 1,000 tonnes per day of ore feed, which is not subject to the silver purchase agreement with Silver Wheaton Corp., for the San Dimas mill.

"Our 2015 exploration program has been very successful so far," commented Joseph F. Conway, chief executive officer. "Exploration drilling during the first half of 2015 is expected to have already replaced our estimated full year production at both Black Fox and San Dimas. Drilling at the Black Fox mine has expanded the mineralization in the Deep Central zone and importantly indicates that mineralization is continuous between the current production level and at least 800 metres below surface. Exploration has been focused on delineating mineralization between the current 560-metre production level, which has an average grade of approximately six grams per tonne and the Deep Central zone with higher-grade mineralization extending to 800 metres, currently with an average grade of approximately 8.5 grams per tonne. As we continue to drill deeper at Black Fox we are encountering higher average grades and wider continuity, which is very promising for the future of the mine. In addition, drilling at San Dimas continues to expand the recently discovered Jessica vein and also delineate other high-grade veins such as Victoria and Perez."

Black Fox -- Canada

Expanding the high-grade Deep Central zone

Today Primero announced drilling results through the end of May, 2015, from the Black Fox mine. These results indicate that the company has expanded the high-grade mineralization in the Deep Central zone between the 600-metre level and the 800-metre level. This area remains open along strike and downdip, and is expected to continue to expand with the results of additional drilling.

The company has also materially infilled the gap between the current mining level, at 560 metres, and the top of the Deep Central zone at the 600-metre level. Drilling is focused on delineating the necessary tonnes per level to maximize returns for the ramp construction to this higher-grade, more continuous Deep Central zone, currently estimated at approximately 8.5 g/t.

Based on these exploration results, Primero expects to replace its estimated full year 2015 production from Black Fox.

Underground exploration drilling results are included in the table.

               BLACK FOX DRILLING RESULTS
                                                      
Hole                 From      To    Length  Gold grade
                       (m)     (m)       (m)       (g/t)

520-EX38-E          265.1   267.2       2.1        14.1
520-EX44-E          334.0   336.0       2.0        15.6
and                 340.0   344.0       4.0        15.8
520-EX401-24        330.3   342.0      11.7         9.0
520-EX401-32        325.0   328.1       3.1         6.4
520-EX401-46        360.5   364.0       3.5         5.3
520-L401-31         316.8   320.3       3.5        16.3
520-L401-38         327.3   329.5       2.2        18.9
520-L401-48         326.0   327.8       1.9         8.5
and                 332.8   337.5       4.8         6.3
520-L401-57         346.7   349.0       2.3         7.7
520-L482-01         312.2   314.3       2.1         7.1
and                 319.6   321.0       1.4        23.3
and                 325.5   334.3       8.8        16.1
520-L482-02         317.4   321.4       4.0         9.6
520-L482-03         315.6   319.4       3.8         8.0
and                 327.9   331.6       3.7        12.1
520-L482-09         301.5   304.5       3.0         9.6
and                 307.1   312.8       5.6         7.4
520-L482-10         298.9   307.4       8.5         9.5
520-L482-16         318.1   322.2       4.1         9.0
520-L482-20         306.5   308.2       1.6         6.7
and                 311.2   315.0       3.8        13.9
and                 318.3   322.6       4.3         6.5
520-L482-21         309.3   314.6       5.3         7.5
and                 320.2   321.2       1.0        10.8
520-L482-40         304.5   306.4       1.9        17.2
520-L482-45         332.5   334.5       2.0        17.0
520-L482-49         330.3   337.0       6.7        10.4
520-L482-50         328.8   338.0       9.2         5.8
520-L482-51         344.0   350.4       6.4         8.1
520-L482-52         337.6   339.2       1.6         5.8
and                 347.0   357.0      10.0        11.0
520-L482-56         343.0   348.9       5.9         6.5
530-L406-45         181.0   185.0       4.0        17.8
560-L430-05          51.9    54.2       2.3        11.9
560-L430-07          50.0    53.1       3.1         9.0
560-L430-08          45.3    52.1       6.8         7.7
560-L430-09          32.0    35.1       3.1        12.1
and                  45.0    48.2       3.2        20.0
560-L430-11          34.1    37.0       2.9        10.4
560-L430-14          49.0    53.0       4.0         9.4
560-L430-25          30.0    34.0       4.0         5.9
560-L430-26          91.1    97.9       6.8         5.5
580-L392-03         123.0   135.3      12.3         6.9
580-L392-04A         90.0    93.0       3.0         9.4
and                  96.5    98.5       2.0        16.3
and                 110.0   117.9       7.9         7.9
and                 121.5   132.0      10.5         9.7
580-L392-07          90.6    93.7       3.1         7.1
and                 102.0   105.3       3.3         5.3
and                 121.7   124.0       2.3        20.3
580-L392-08         114.0   118.0       4.0         7.9
580-L392-13          76.3    80.9       4.6        10.3  

*All assays are capped at 30 g/t gold, average gold 
grades over core length widths.

Access ramp to Deep Central zone approved

The company has approved an additional capital expenditure of $6.1-million (U.S.) in 2015 to advance the ramp down to the 640-metre level in order to commence mining the Deep Central zone in 2016.

Drilling during the first half of 2015 has effectively removed the gap in mineralization between the current production level at 560 metres and the Deep Central zone. It is anticipated that mineralized material will be encountered during the ramp's development that should reduce the associated capital costs.

The Deep Central zone is currently estimated to contain approximately 160,000 ounces of gold resources with an average grade of 8.5 g/t. The Deep Central zone remains open along strike and downdip, and will continue to be a focus of the company's 2015 exploration program. Additionally the ramp will provide access points for new drill pads to drill below the 800-metre level.

Grey Fox mineralization continues to expand

Primero also announced drilling results from the first half of 2015 from its Grey Fox property, located approximately four kilometres southeast of the Black Fox mine. The Grey Fox property contains a number of mineralized zones (Contact, 147, Grey Fox South, Whisky Jack, Gibson and Gibson South zones), all within close proximity to each other. These zones have the potential to become additional sources of ore for the company and are within trucking distance of the Black Fox mill facility.

Exploration drilling continues to infill and expand the Contact zone and Grey Fox South areas of the Grey Fox property. Results have also confirmed that the previously identified Whiskey Jack zone is the continuation of the Contact zone to the north, increasing the length of the Contact zone by approximately 200 metres. Drilling has also extended the Grey Fox South zone to the north and positive correlation of the drilling with the 2010 airborne magnetometer survey has led to the identification of several additional target zones to the east. These will be tested as part of the remaining 2015 exploration program. Highlights from Grey Fox South include 18.8 g/t gold over six metres (GF14-975).

Drilling at the Gibson South zone, located approximately 600 metres west of the Contact zone and south of the historic Gibson decline, has returned results including 3.3 g/t gold over 39.0 metres (GF15-1011). The Gibson decline was used in 1989 to extract an 8,000-tonne bulk sample with an average grade of 27.4 g/t.

Highlights of Grey Fox exploration drill results are included in the table.

    GREY FOX -- H1 2015 EXPLORATION DRILLING RESULTS
                                                                      
Hole               From      To    Length     Gold grade
                     (m)     (m)       (m)          (g/t)

GF14-919           17.0    21.0       4.0            4.2
GF14-946           31.0    40.0       9.0            1.2
and               178.0   187.0       9.0            4.5
GF14-954           60.1    73.0      12.9            1.5
GF14-957           82.0    86.0       4.0            7.3
and               110.0   113.0       3.0            9.0
GF14-958           91.0    95.0       4.0           16.1
GF14-963          259.0   261.0       2.0            7.2
and               311.0   320.0       9.0            5.2
GF14-968          174.0   176.0       2.0           13.5
GF14-971           89.5    98.3       8.8            2.0
GF14-973          183.0   186.0       3.0           18.6
GF14-975           38.5    44.5       6.0           18.8
GF14-976          136.0   142.0       6.0            2.6
and               341.0   344.0       3.0           19.7
GF14-985           88.0    89.0       1.0           22.7
and               142.0   155.0      13.0            4.6
and               209.0   219.0      10.0            4.0
GF14-987           52.0    58.0       6.0            3.9
and               122.0   125.0       3.0            6.3
and               135.0   138.0       3.0            5.2
GF14-991          131.4   135.0       3.6           13.0
GF14-996           57.0    63.0       6.0            3.1
and               203.8   206.0       2.3           22.3
GF14-998           55.0    63.4       8.4            3.6
and                68.0    91.0      23.0            2.9
and               153.0   164.0      11.0            6.4
GF14-1000         288.0   290.0       2.0           15.5
GF15-1011         172.0   211.0      39.0            3.3
including         202.0   205.9       3.9           14.3
and               288.0   302.0      14.0            2.8
GF15-1014         105.0   113.0       8.0            8.7
and               217.0   221.0       4.0            9.0
GF15-1018          45.0    47.0       2.0            5.9
and               166.0   169.0       3.0           12.1
GF15-1019          74.0    78.0       4.0            2.4
and                98.1   111.0      12.9            9.4
and               236.0   239.6       3.6           10.1
GF15-1041         341.0   352.0      11.0            5.8

* All assays are capped at 100 g/t gold, average gold 
grades over core length widths.

Black Fox complex 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 for the company for the purposes of National Instrument 43-101. All samples are one-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, AGAT Laboratories of Mississauga, Ont., which is ISO 9001/IEC17025 certified, Accurassay Laboratories, which is ISO/IEC 17025 certified, ALS Laboratories, which is ISO 9001/IEC17025 certified, SGS Canada Laboratories, which is ISO9001/IEC17025 certified, using fire assay with ICP-OES finish or using gravimetric finish for values generally over 10 g/t gold, or Swastika Laboratories, which is ISO 17025 certified. 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.

San Dimas -- Mexico

High-grade Jessica vein extended to 300 metres

Today Primero announced drilling results through the end of June, 2015, from the San Dimas mine. Based on these results, detailed below, the company also expects to replace its estimated full year 2015 production.

The discovery of the Jessica vein late in 2014, via exploration drifting, was important for Primero as it proved the continuity of the mineralization under the upper volcanic (rhyolite) capping at San Dimas. The company continued to develop along, and explore for, the continuation of the high-grade Jessica vein during the first half of 2015. The Jessica vein is now open with drifting along approximately 300 metres of strike length and 30 metres of dip, with an average grade of approximately 10.0 g/t gold and 1,500 g/t silver. Drilling has increased the vein's known extent to approximately 300 metres of strike length and 350 metres of dip, including past minor faulting and remaining open laterally for 1.7 kilometres between two major faults, Limoncito to the west and La Huerta to the east. Drilling highlights include 47.2 g/t gold and 5,994 g/t silver over 4.6 metres (SJE15_007), 59.3 g/t gold and 7,992 g/t silver over 2.3 metres (SJE15_017), and 61.3 g/t gold and 8,795 g/t silver over 1.1 metres (SJ15_040).

The Jessica vein was not included in the company's year-end 2014 reserve and resource estimation, but has since been included in its 2015 mine plan and is expected to provide approximately 5 per cent of San Dimas total mill feed in 2015. The Jessica vein will continue to be a key focus of the 2015 exploration program.

Highlights from underground exploration drilling of the Jessica vein are included in the table.

Perez and Victoria veins expanded

Another key exploration target on the 22,500-hectare San Dimas property is the Perez vein, discovered in late 2013 and located in the Sinaloa Graben block. Previously released results, including 7.4 g/t gold and 528 g/t silver over 11.9 metres (LYR13_002), and 12.0 g/t gold and 2,109 g/t silver over 3.2 metres (LYR13_009), gave geologists confidence the Perez vein could be an important discovery for the company.

Drilling from surface in the first half of 2015 has intersected a second ore shoot of the Perez vein, approximately 350 metres east of the ore shoot discovered in late 2013. Drilling results from Perez include 5.6 g/t gold and 369 g/t silver over 5.4 metres (PE15_026), and 11.3 g/t gold and 2,803 g/t silver over 2.2 metres (PE15_048). The company continues to advance development toward the Perez vein from the Central block in order to further explore the vein via underground drilling, with initial mining access planned in mid-2017.

Delineation drilling also continued to define the Victoria vein with mineralized intercepts including 86.4 g/t gold and 2,179 g/t silver over 2.5 metres (VIC15-340A), and 16.5 g/t gold and 984 g/t silver over 6.1 metres (VIC15-347). The Victoria vein is an important contributor to current and future ore supply at San Dimas, and hosted 2014 year-end reserves of 168,000 ounces of gold and 7.9 million ounces of silver with average grades of 9.1 g/t gold and 428 g/t silver.

Highlights from underground exploration drilling of the Perez and Victoria veins are included in the table.

    SAN DIMAS -- HIGHLIGHTED H1 2015 EXPLORATION DRILLING RESULTS
                                                                          
Hole                From      To   Estimated  Gold grade  Silver grade
                      (m)     (m) true width        (g/t)         (g/t)
                                          (m)

SJE15_006          121.2   128.6         4.5         4.4         1,353
SJE15_007          132.6   139.4         4.6        47.2         5,994
SJE15_008           76.6    78.6         1.8        12.1         1,888
SJE15_010           82.9    84.5         1.4         9.0         1,453
SJE15_012          155.3   155.9         0.3        71.6        12,078
SJE15_016A         181.3   191.5         7.2         6.3         1,294
SJE15_017           76.3    78.8         2.3        59.3         7,992
SJE15_023          144.2   147.2         2.7         5.8         1,346
SJE15_029          156.0   161.0         3.0         3.6           988
and                172.6   175.3         2.5         5.4         1,459
SJE15_034          118.3   120.8         2.1        10.3         1,527
SJE15_037          143.8   146.4         2.4        26.5         3,519
SJE15_040          139.5   141.2         1.1        61.3         8,795
SJE15_041          114.9   116.8         1.5        38.7         4,958
PE15_026           203.7   210.8         5.4         5.6           369
PE15_029           211.9   220.1         6.2         2.6           481
PE15_030           166.6   168.0         1.3        10.5         1,146
PE15_033           226.6   230.1         1.3        10.2         1,709
PE15_036           241.6   242.7         0.5        20.3         6,282
and                247.7   253.2         3.6         3.5           421
and                266.1   267.8         1.3        13.0         2,381
PE15_038           202.0   213.3         7.5         2.3           201
PE15_044           210.4   213.2         1.4        11.7         1,856
and                222.1   234.5         8.9         2.2           376
PE15_048           223.4   228.2         2.2        11.3         2,803
and                236.1   239.4         2.6         6.3           986
PE15_052           217.9   222.7         3.9         6.3           841
VIC15_336          192.6   194.9         2.0        11.3           615
VIC15_340A         224.0   227.1         2.5        86.4         2,179
including          225.0   225.5         0.4       183.0         3,832
VIC15_342          265.7   268.2         1.5        41.5            72
VIC15_343          248.8   252.4         2.3         5.2           174
VIC15_347          133.3   140.1         6.1        16.5           984
VIC15_348          132.9   134.5         1.1        14.7           827

Promising high-grade channel sample results from Ventanas

The company's Ventanas property is located in the southern part of the San Dimas district, 32 kilometres south of the productive San Dimas mine, along the western flank of the Sierra Madre Occidental mountain range in Durango state, Mexico. The Ventanas concessions cover approximately 3,470 hectares and contain 17 old mine workings.

"We are very interested in the strategic value that the Ventanas property could provide Primero," stated Ernest Mast, president and chief operating officer. "The company is very encouraged by the exploration and channel sampling results from this property, located 32 kilometres south of the San Dimas mine. We have commenced an internal scoping study to assess the potential economics of the property as it provides an opportunity for additional ore feed that is not covered by the silver purchase agreement with Silver Wheaton."

Primero continued its exploration program at Ventanas during the first half of 2015, including ramp and tunnel rehabilitation, and channel sampling of the Mala Noche vein. The results continue to demonstrate significant exploration potential and the company has initiated an internal scoping study to determine the economic viability of Ventanas becoming 500 to 1,000 tonnes per day of ore feed for the San Dimas mill. The project economics will be driven by optimizing hauling costs and crushing ore at the Ventanas site. The Ventanas property is not subject to the silver purchase agreement, so all precious metals produced from Ventanas will be sold into the spot markets. The company currently estimates it could be processing Ventanas ore at the San Dimas mill within the next three years.

The company is focused on rehabilitating the old workings located in the Mala Noche vein (Mala Noche and San Pedro ore shoots). Channel sampling during the first half of 2015 from the Mala Noche ore shoot (level 10) returned an average of 2.8 g/t gold and 270 g/t silver, resulting in 6.8 g/t gold-equivalent (using $1,200 (U.S.) per ounce of gold and $18 (U.S.) per ounce of silver) along 112 metres of open workings.

Channel sampling from the San Pedro ore shoot returned an average of 2.3 g/t gold and 274 g/t silver, resulting in 6.4 g/t gold-equivalent (using $1,200 (U.S.) per ounce of gold and $18 (U.S.) per ounce of silver) along 140 metres of open workings.

Drilling at San Dimas and Ventanas was conducted 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 for the purposes of National Instrument 43-101 for the company. All drill hole samples are one-half core and analyses reported herein were performed in the ISO-certified independent laboratory SGS Servicios Minerales in Durango, Mexico, using fire assay with atomic absorption finish or gravimetric finish for values over 10 g/t gold. Intercepts cited represent true widths and 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 5 per cent of rejects is reassayed to ensure laboratory accuracy. Generally, in a block of 20 samples one will be a standard and one will be a blank.

Technical information and qualified person notes

The scientific and technical information regarding exploration results contained herein is based on information prepared by or under the supervision of Gabriel Voicu, PGeo, vice-president, geology and exploration, of Primero and a qualified person for the purposes of National Instrument 43-101. Mr. Voicu has reviewed and approved the contents of this news release.

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