"Cash costs drop by roughly $110 per ounce from current levels to approximately $510 per gold equivalent ounce"
http://www.stockhouse.com/companies/stories/t.p/8640318
Primero Announces Expansion of Its San Dimas Mine
TORONTO, ONTARIO--(Marketwire - Oct. 15, 2012) -
(Please note that all dollar amounts in this news release are expressed in U.S. dollars unless otherwise indicated.)
Primero Mining Corp. ("Primero" or the "Company") (TSX:P)(NYSE:PPP) today announced a mine and mill expansion of its San Dimas gold-silver mine in Mexico. The Company has elected a staged approach to the full expansion and has approved the expenditure of a total $14.4 million to expand the San Dimas mine and mill to 912,500 tonnes per year ("TPY") or 2,500 tonnes per day ("TPD"). Construction of the mine and mill expansion will begin immediately, with an estimated completion during the first quarter of 2014.
Highlights:
Attractive Economics: 150% after-tax IRR1 and a payback period of less than 24 months;
Increases Production: Approximately 160,000 gold equivalent ounces2,3 average annual production over the next five years;
Reduces Cash Costs: Primero Announces Expansion of Its San Dimas Mine
Primero Announces Expansion of Its San Dimas Mine
TORONTO, ONTARIO--(Marketwire - Oct. 15, 2012) -
(Please note that all dollar amounts in this news release are expressed in U.S. dollars unless otherwise indicated.)
Primero Mining Corp. ("Primero" or the "Company") (TSX:P)(NYSE:PPP) today announced a mine and mill expansion of its San Dimas gold-silver mine in Mexico. The Company has elected a staged approach to the full expansion and has approved the expenditure of a total $14.4 million to expand the San Dimas mine and mill to 912,500 tonnes per year ("TPY") or 2,500 tonnes per day ("TPD"). Construction of the mine and mill expansion will begin immediately, with an estimated completion during the first quarter of 2014.
Highlights:
Attractive Economics: 150% after-tax IRR1 and a payback period of less than 24 months;
Increases Production: Approximately 160,000 gold equivalent ounces2,3 average annual production over the next five years;
Reduces Cash Costs: Cash costs4 drop by roughly $110 per ounce from current levels to approximately $510 per gold equivalent ounce, or $200 per gold ounce on a by-product basis, average over the next five years;
Low Capital Cost: Estimated $14.4 million for the mine and mill expansion;
Further Expansion Possible: Ongoing assessment to consider ultimate mill expansion to 3,000 TPD.
"We are pleased to announce our plans to expand our San Dimas mine, the after-tax internal rate of return is 150%, which will generate a significant value increase for Primero shareholders." said Joseph F. Conway, President and Chief Executive Officer. "The staged implementation of the project also de-risks the capital expenditures, as the optimization project to fill the current plant capacity of 2,150 tonnes per day is scheduled to be completed by the end of the first quarter of 2013. The expansion to 2,500 tonnes per day is expected to be completed by no later than the end of the first quarter of 2014.
The Company remains focused on expanding production at San Dimas with a target of ultimately producing at a rate of 200,000 gold equivalent ounces per year. A further plant expansion to 3,000 tonnes per day continues to be assessed and is dependent on future exploration success, with detailed engineering expected to be completed before the end of 2013. With continued positive exploration results, we remain confident that San Dimas has the potential to produce at our targeted rate of 200,000 gold equivalent ounces per year in the near future."
Staged Implementation: Optimization to Achieve Current Capacity of 2,150 TPD , or $200 per gold ounce on a by-product basis, average over the next five years;
Low Capital Cost: Estimated $14.4 million for the mine and mill expansion;
Further Expansion Possible: Ongoing assessment to consider ultimate mill expansion to 3,000 TPD.
"We are pleased to announce our plans to expand our San Dimas mine, the after-tax internal rate of return is 150%, which will generate a significant value increase for Primero shareholders." said Joseph F. Conway, President and Chief Executive Officer. "The staged implementation of the project also de-risks the capital expenditures, as the optimization project to fill the current plant capacity of 2,150 tonnes per day is scheduled to be completed by the end of the first quarter of 2013. The expansion to 2,500 tonnes per day is expected to be completed by no later than the end of the first quarter of 2014.
The Company remains focused on expanding production at San Dimas with a target of ultimately producing at a rate of 200,000 gold equivalent ounces per year. A further plant expansion to 3,000 tonnes per day continues to be assessed and is dependent on future exploration success, with detailed engineering expected to be completed before the end of 2013. With continued positive exploration results, we remain confident that San Dimas has the potential to produce at our targeted rate of 200,000 gold equivalent ounces per year in the near future."
Staged Implementation: Optimization to Achieve Current Capacity of 2,150 TPD |
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