TORONTO, ONTARIO--(Marketwired - July 9, 2014) - Primero Mining Corp. ("Primero" or the "Company") (TSX:P)(NYSE:PPP) today announced 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 December 31, 2013.
"We are very pleased to announce new drilling results from our recently acquired Black Fox Complex," stated Mr. 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 ore body extends at depth.
Drill holes 440-16-EB (which returned 24.4 grams per tonne ("g/t") 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 5.0 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 push back, with the objective of extending the open-pit life.
In the Black Fox Mineral Resource update released today (see Table 4), the Inferred Mineral Resource includes approximately 50,000 ounces of gold at a grade of 9.0 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.
Primero also announced recent drilling results from the Grey Fox property, located 4.0 kilometres south-east 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 hanging wall 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.
Complete drill results and full details of reserves and resources update can be found at www.primeromining.com.
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