PRIMERO MINING CORP. is a Canadian-based precious metals producer with operations in Mexico. The Company is focused on building a portfolio of high quality, low cost precious metals assets in the Americas through acquiring, exploring, developing and operating mineral resource properties. Primero currently has one producing property, the San Dimas Mine, located in Mexico’s San Dimas district, on the border of Durango and Sinaloa states, one project in the Development stage, Cerro del Gallo, located in the state of Guanajuato in central Mexico and one exploration property, Ventanas, located in Durango state, Mexico.
San Dimas is historically one of the richest precious metals deposits in Mexico, being located in the central part of the Sierra Madre Occidental. The mine has already produced approximately 11 million ounces of gold and 580 million ounces of silver.
Upon the acquisition of the San Dimas mine, Primero assumed the obligation to sell silver at below market prices according to a silver purchase agreement. Silver sales under the silver purchase agreement realize approximately $4 per ounce.
With the recent addition of the Cerro del Gallo development project, Primero is well positioned as an emerging mid-tier gold producer. The San Dimas Mine is an established property with a long operating history and a record of Mineral Reserve replacement, Mineral Resource conversion and exploration success. The addition of the Cerro del Gallo project increased the Company's reserves and resources and could potentially deliver an additional 95,000 gold equivalent ounces per year of production. Primero is focused on optimizing the San Dimas mine, making a construction decision at Cerro del Gallo and, if appropriate, making further acquisitions of precious metal properties in low risk regions of the Americas.