Primero Mining Corp (NYSE:PPP) reported operations update of its working mines, the Black Fox mine in Ontario and the San Dimas gold-silver mine in Durango. The company continues to witness operational improvements at its mines. It is on-track to meet its 2017 production projection of 140,000 ounces – 170,000 ounces of gold equivalent.
Primero is progressing the restart of the San Dimas mine after the resumption of businesses on April 17, 2017. Daily output rates have been growing as per plan, and prospects for further productivity enhancements have been identified. The company remains confident in its site’s ability to meet its 2017 production projection of 90,000 – 110,000 gold equivalent ounces.
San Dimas’ unionized workforces have been responding positively to the new shift structure and application of the realigned bonus structure is ongoing. Relations between unionized employees and management have been improving, and conversation remains ongoing with respect to the yearly bonus payout pertaining to 2016.
Black Fox produced gold of almost 8,200 ounces in May 2017. The strong performance in last month mainly came from consistent and improved mining rates from the underground and better-than-anticipated grades from the Deep Central Zone. This site continues to work at a cash-flow neutral state, funding its exploration plans, and Black Fox anticipates to achieve 2017 production projection of 50,000 ounces to 60,000 gold ounces.
Primero is looking for a deep drilling program to evaluate the continuity and extension of the Black Fox deposit between 1 kilometer and 1.5 kilometer below surface. The company will progress this deep exploration plan subject to capital availability.
As previously reported, the firm’s Board has started a strategic review procedure to explore alternatives to enhance shareholder value. The alternatives comprise such things as obtaining additional financing, joint ventures, strategic investments, revision of the firm’s streaming agreement and asset sales.