Primero Mining (TSX: P; PPP: NYSE) has given the green light to an expansion of its San Dimas gold-silver mine in Durango, Mexico, a move that will increase production by 25% at a cost of only $26.4 million.
The mill expansion, which will begin in early 2015 and should be complete in the second quarter of 2016, is expected to boost production to 215,000 gold equivalent oz – 25% above 2014 levels.
The $26.4-million (including a 30% contingency) capital investment will expand mill capacity to 3,000 t/d from 2,500 tonnes. Primero pegs the investment’s internal rate of return at 78% after taxes, assuming a gold price of US$1,300 per o. and US$22 per oz silver.
Read the complete article at NorthernMiner.com/news/primero