TORONTO, ON--(Marketwired - October 26, 2015) - Primero Mining Corp. ("Primero" or the "Company") (TSX:
P) (NYSE:
PPP)
today announces further extensions to the Deep Central Zone at the
Company's Black Fox mine, located near Timmins, Ontario, Canada. Primero
additionally reports the expansion of the Froome zone, located
approximately 1 kilometre west of the open-pit at its Black Fox Complex.
Highlights:
- Black Fox Continues to Grow at Depth: Wide intercepts demonstrate the continuation of high-grade mineralization at depth and include highlights of 16.0 grams per tonne ("g/t") gold over 11.9 metres (520-EX482-76) and 15.4 g/t gold over 10.9 metres (520-EX482-64) located over 800 metres below surface.
- Delineation Drilling Continues to Grow the High-Grade Deep Central Zone: Results from the Deep Central Zone including 10.9 g/t gold over 10.5 metres (580-F392-38A), 8.7 g/t gold over 9.1 metres (580-F392-37) and 9.2 g/t gold over 8.4 metres (580-F392-41) have given Primero increased confidence in the wide, high-grade mineralization characteristics of this zone.
- New Gold Zone Materializing at Black Fox:
Recent drilling from the Froome zone, located 1 kilometre west of the
Black Fox open-pit, include long mineralized intercepts of 5.1 g/t gold over 56.7 metres (15PR-G015),4.8 g/t gold over 52.4 metres (15PR-G007) and 5.1 g/t gold over30.9 metres (15PR-G013), demonstrating considerable continuity over long mineralized intervals.
- Gibson South Zone Shows Promise: Highlights include 5.2 g/t gold over 34.0 metres (GF15-1043), and 6.4 g/t gold over 7.0 metres (GF15-1045) at the Gibson South deposit, located 300 metres to the southwest of the Grey Fox Contact zone.
"Our
2015 exploration program at Black Fox continues to exceed expectations,
reaffirming our original investment thesis that the high-grade gold
mineralization is much more extensive than previously identified,"
commented Joseph F. Conway, Chief Executive Officer. "Exploration
drilling is already expected to have replaced our estimated full-year
underground production at Black Fox, encouraging us that with continued
success we'll be able to grow our resources beyond depletion this year.
The extension of the Froome zone into a wide, continuous mineralized
zone, located near the Black Fox mine confirms our belief that there
remains significant exploration upside outside of the identified
deposits at the Black Fox Complex."
Black Fox Continues to Grow at Depth
Today
Primero announces additional drilling from the Black Fox mine,
targeting the high-grade mineralization in the Deep Central Zone,
located between the mine's 600 metre level and the 820 metre level. Two
exploration holes have encountered the deeper extensions of this
mineralized zone, returning long intercepts including
16.0 grams per tonne ("g/t") gold over
11.9 metres (520-EX482-76) and
15.4 g/t goldover
10.9 metres (520-EX482-64). Both intersections are located over 800 metres below surface.
Delineation
drilling also targeting the Deep Central Zone continues to demonstrate
wide intervals of high-grade mineralization. Specific highlights include
10.9 g/t gold over
10.5 metres (580-F392-38A),
8.7 g/t gold over
9.1 metres (580-F392-37) and
9.2 g/t goldover
8.4 metres
(580-F392-41). The area remains open along strike and down dip and is
expected to continue to expand with the results of additional
exploration drilling.
Underground exploration drilling results are included in Table 1 with locations identified in Figure 1.
Table 1: Deep Central Zone - Highlighted Drilling Results
*All assays are capped at 30 g/t gold, average gold grades over core length widths.
Froome Zone Demonstrates Black Fox's Continued Prospectiveness
The
Company's surface drilling program at Black Fox has also been
successful in expanding the Froome zone discovery. The Froome zone,
located approximately 1 kilometre west of the Black Fox open-pit, was
initially encountered in late-2014 and intersected by the discovery hole
14BF-591 which targeted a strong Induced Polarization ("IP")
chargeability anomaly. Results from this initial hole were reported in
the Company's February 23, 2015 news release and highlighted a long
intercept of continuous mineralization grading
1.7 g/t gold over
66.0 metres. The Froome zone became a priority for 2015 surface exploration, and to-date 39 holes have targeted this new mineralized area.
Highlighted recent drill results from the Froome zone include
5.1 g/t gold over
56.7 metres (15PR-G015) and
4.8 g/t gold over
52.4 metres (15PR-G007)
both less than 200 metres below surface, and provide the Company with
confidence that this area could continue to expand. The Froome zone
continues to be a priority for surface exploration through the remainder
of 2015 and 2016.
The Froome zone demonstrates considerable
continuity of mineralization and extends laterally over 500 metres
dipping 70 to 75 degrees and is located along the highly prospective
Gibson-Kelore Fault Zone ("GKFZ"). The GKFZ has been interpreted to be a
southeast trending 2
nd order splay of the Destor Porcupine
Fault Zone ("DPFZ"), which is the major fault structure controlling much
of the gold mineralization in the Timmins Gold Camp. The GKFZ is
projected to originate from the DPFZ a few kilometres west-northwest of
the Black Fox deposit, trending southeast and gradually splitting near
the Grey Fox 147 zone at the south boundary of the Black Fox Complex
properties.
The GKFZ is an economically important regional
structure hosting a series of significant gold deposits including the
147, Contact, Gibson, and Gibson South zones at Grey Fox. It also hosts
the two Hislop open-pit deposits, and the Ross Gold Mine. These deposits
are all hosted along a 4 to 5 kilometre stretch of this fault.
Additional
drilling is still required to fully define the extension of the Froome
zone, which is open to the east, west, and at depth. The zone has been
traced to the bedrock surface, located 30 metres below the ground
surface level. Primero expects to complete approximately 9,000 metres
(30 holes) of additional drilling in 2015 at the Froome zone.
Highlighted
exploration drilling results from the Froome zone are included in Table
2 with locations identified in Figure 2. The true depth of the Froome
intercepts listed below is approximately 100 metres below surface.
Table 2: Froome Zone - Highlighted Surface Exploration Drilling Results
*All assays are capped at 100 g/t gold, average gold grades over core length widths.
**90 assay intervals (less than 1.0 metre each) are still pending for hole 15PR-G015.
Gibson South Zone Continues to Show Promise
Primero
also announces recent drilling results from its Grey Fox project,
located approximately 4 kilometres south-east of the Black Fox mine. The
Grey Fox project currently includes two potential open-pits at the
Contact and 147 zones, but the Grey Fox property also contains a number
of other mineralized zones (Grey Fox South, Whisky Jack, Gibson, and
Gibson South zones), all within close proximity to each other. These
zones also have the potential to become additional sources of ore as
part of the Black Fox Complex and are within trucking distance of the
Black Fox mill facility.
Similar to the Froome zone, as described
above, the Gibson South zone is also located along the GKFZ. The Gibson
South zone is located approximately 300 metres southwest of the Contact
Zone and south of the historic Gibson Decline, which was used in 1989 to
extract an 8,000 tonne bulk sample with an average grade of 27.4 g/t.
Recent drilling at the Gibson South zone has returned results including
5.2 g/t gold over
34.0 metres (GF15-1043).
Highlights of Gibson South zone exploration drill results are included in Table 3 with locations identified in Figure 3.
Table 3: Gibson South Zone - Highlighted Surface Exploration Drilling Results
*All assays are capped at 100 g/t gold, average gold grades over core length widths.
The
majority of 2015 drilling has been focused on infilling the Contact
zone. This drilling continues to confirm the continuity mineralization
within that zone. The two main Grey Fox area deposits, Contact zone and
147 zone have now been drilled off at 15 metre centres.
Highlights of Contact zone infill drill results are included in Table 4 with locations identified in Figure 3.
Table 4: Contact Zone - Highlighted Surface Exploration Drilling Results
*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. Mr. Gabriel Voicu, P. Geo., Vice President
Geology and Exploration, reviewed the technical exploration information
in this news release as the Qualified Person ("QP") for the Company for
the purposes of National Instrument 43-101 ("NI 43-101"). All samples
are 1/2 core and analyses reported herein were performed by the
independent laboratories Polymet Labs of Cobalt, Ontario, which is ISO
9001:2000 certified in North America using standard fire assay
procedures, AGAT Laboratories of Mississauga, Ontario, 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 twenty samples one
will be a duplicate, one will be a standard and one will be a blank.
About Primero
Primero
Mining Corp. 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 Timmins, Ontario, Canada. 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.
Primero's website is
www.primeromining.com.
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 Mr. Gabriel Voicu P.Geo., Vice President, Geology and
Exploration, of Primero and a QP for the purposes of National Instrument
43-101 ("NI 43-101"). Mr. Voicu has reviewed and approved the contents
of this news release.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This
news release contains "forward-looking statements", within the meaning
of the United States Private Securities Litigation Reform Act of 1995
and applicable Canadian securities legislation, concerning the business
and operations of Primero Mining Corp. and its consolidated subsidiaries
(collectively, "Primero" or the "Company"). All statements, other than
statements of historical fact, are forward-looking statements.
Generally, forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects", "is expected",
"in order to", "is focused on" (a future event), "estimates",
"forecasts", "intends", "anticipates", "believes" or variations of such
words and phrases or statements that certain actions, events or results
"may", "could", "would", or the negative connotation thereof.
Forward-looking information is also identifiable in statements of
currently occurring matters which will continue in future or other
statements that may be stated in the present tense and are not
historical facts.
Forward-looking statements include, but are not
limited to, statements regarding the Company's estimation of mineral
reserves and resources and the realization of mineral reserve estimates
(including all assumptions), the ability to identify new resources and
convert resources into reserves and resources, the ability to access or
find ore below the current mining level, the timing, nature and success
of exploration activities, the ability to replace its estimated 2015
full-year production, and intentions to becoming an intermediate gold
producer. The assumptions made by the Company in preparing the
forward-looking information contained in this news release, which may
prove to be incorrect, include, but are not limited to: the expectations
and beliefs of management; the specific assumptions set forth above in
this news release; that there are no significant disruptions affecting
operations; that the Company does not change its development and
exploration plans; that prices for gold and silver remain consistent
with the Company's expectations; that the Company identifies new
mineralization and extensions of existing mineralization, that the
Company's current estimates of mineral reserves, mineral resources,
mineral grades and mineral recovery are accurate, the discovery of
additional ounces close to infrastructure and that mine development
progresses as planned.
Forward-looking statements are subject to
known and unknown risks, uncertainties and other important factors that
may cause the actual results, performance or achievements of Primero to
be materially different from those expressed or implied by such
forward-looking statements, including: the ability to achieve planned
production levels; the ability to fund exploration and development
expenditures and for the expenditures to discover mineralization in
minable quantities; possible variations in ore reserves, grade or
recovery rates, mine development and operating risks; that there are no
significant disruptions affecting operations, whether due to labour
disruptions, supply disruptions, damage to or loss of equipment, whether
as a result of natural occurrences including flooding, political
changes, title issues, intervention by local landowners, loss of
permits, or environmental concerns or otherwise; uncertainty of mineral
reserves, mineral resources, mineral grades and mineral recovery
estimates; uncertainty of future production, exploration and development
plans; mining risks, including unexpected formations and cave-ins,
which delay operations or prevent extraction of material; risks
associated with foreign operations; governmental and environmental
regulation; landowner dissatisfaction and disputes; damage to equipment;
and the ability to build a portfolio of precious metals assets in the
Americas. Certain of these factors are discussed in greater detail in
Primero's registration statement on Form 40-F on file with the U.S.
Securities and Exchange Commission, and its most recent Annual
Information Form on file with the Canadian provincial securities
regulatory authorities and available at
www.sedar.com.
Should one or more of these risks and uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary
materially from those described in forward-looking statements. In
addition, although Primero has attempted to identify important factors
that could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that such statements
will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements.
Forward-looking statements are made as of the date
hereof and accordingly are subject to change after such date.
Forward-looking statements are provided for the purpose of providing
information about management's current expectations and plans and
allowing investors and others to get a better understanding of our
operating environment. Primero does not undertake to update any
forward-looking statements that are included in this document, except in
accordance with applicable securities laws.
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