Primero Mining (TSX: P; NYSE: PPP) is using the turnaround strategy that it applied to its San Dimas underground gold-silver mine in Mexico to its recently acquired Black Fox gold mine near Timmins, ON, where it aims for another success story.
Primero acquired a 100% interest in the San Dimas mine in 2010 and in the following years transformed the struggling 1,500-t/d operation into a 2,500-t/d mine.
“I think the challenge with San Dimas when we bought it was there was a lack of underground development so there weren’t enough physical faces available to get ore from for the mill. And really what we did over a two-and-half-year period, let’s say, was continue to put capital back into the mine to make sure we had enough working faces to fill the mill. We’ve done that, and, in fact, we’ve expanded the mine and possibly we will do a further expansion,” says Joseph Conway, the company’s president and CEO, in a recent interview.
With the San Dimas mine, which borders Durango and Sinaloa states, humming along nicely, Conway says Primero will now transform the Black Fox mine that it received early this March through the $220-million acquisition of Brigus Gold.
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