Primero acquired 69.2% of the Cerro del Gallo Project from Cerro Resources NL in May 2013 and the remaining 30.8% from Goldcorp Inc. in December 2013. Development of the Cerro del Gallo Project is subject to permitting and a decision to proceed to development is expected in early 2015.
Cerro del Gallo is located within the San Antón property. The San Antón Property is located in the state of Guanajuato in central Mexico, approximately 270 km northwest of Mexico City within a region of well established infrastructure. Access to the property is well serviced by road, rail, and air services, power and water supplies.
The San Antón Property covers an area of 25,269 hectares (approximately 15 km north-south by 16 km east-west) and consists of a total of twelve granted, contiguous mining concessions all owned by San Antón de las Minas S.A. de C.V. (SAM). The concessions entirely cover the San Antón de las Minas mining district, including the old mines formerly worked for high grade vein-hosted gold-silver mineralization.
Surrounding cities are capable of providing most of the services required for supporting a major mining operation. Guanajuato municipality has a population of 153,364 inhabitants while Dolores Hidalgo C.N.I. has a population of 134,641 inhabitants. The San Antón Property fully incorporates the San Antón de las Minas mining district, centred 23 km east northeast of Guanajuato city and the historic Guanajuato Mining District where production from 1700 to 2004 is reported to be 1.14 billion ounces of silver and 6.5 million ounces of gold.