Mineral Reserves

CLASSIFICATION PROPERTY TONNAGE
(Mt)
GOLD
(g/t)
SILVER
(g/t)
GOLD
(koz)
SILVER
(koz)
COPPER
(%)
COPPER
(klbs)
Proven San Dimas 1.0 4.6 361 146 11,514

Probable San Dimas 3.0 3.9 308 371 29,705

Proven & Probable San Dimas 4.0 4.0 322 517 41,220

Proven (Stockpile) Black Fox* 0.4 1.2
15


Probable Black Fox* 0.4 6.8
96


Proven & Probable Black Fox*0.8 4.1
111


Proven Cerro 28.2 0.7 15 643 13,655 0.08% 50,247
Probable Cerro 4.0 0.5 13 69 1,679 0.07% 6,179
Proven & Probable Cerro 32.2 0.7 15 712 15,335 0.08% 56,443
Total Proven &
Probable*




1,340 56,555
56,443

Mineral Resources

CLASSIFICATION PROPERTY TONNAGE
(Mt)
GOLD
(g/t)
SILVER
(g/t)
GOLD
(koz)
SILVER
(koz)
COPPER
(%)
COPPER
(klbs)
Measured San Dimas 1.46.345228020,165

Indicated San Dimas 3.64.836255241,714

Measured & Indicated San Dimas 5.0 5.2 387 832 61,879

Measured (Stockpile) Black Fox* 0.4 1.2
15


Indicated (Open Pit) Black Fox*0.052.2 3   
Indicated (Underground)Black Fox*1.67.6 384   
Indicated (Froome) Black Fox* 0.9 5.5
151


Measured & Indicated Black Fox* 2.9 6.0
554


Indicated (Open Pit) Grey Fox* 3.0 3.6
345


Indicated (Underground) Grey Fox* 1.7 5.9
323


Sub-total Indicated Grey Fox* 4.7 4.4
668


Measured Cerro 39.9 0.6 14 781 17,714 0.10% 88,790
Indicated Cerro 8.0 0.6 11 142 2,832 0.08% 14,608
Measured & Indicated Cerro 47.9 0.6 13 923 20,546 0.10% 103,398
Indicated Ventanas 0.2 2.5 258 12 1,286

Total Measured &
Indicated*




2,989 83,711
103,398
Inferred San Dimas 7.2 3.7 317 860 73,452

Inferred Black Fox* 0.3 6.9
57


Inferred Grey Fox* 1.3 4.2
174


Inferred Ventanas 0.2 2.3 412 17 3,039

Total Inferred*



1,108 76,491

Note: Primero completed the sale of the Cerro del Gallo project on November 27, 2017.

Note: Primero completed the sale of the Black Fox Mine and Complex to McEwen Mining Inc. on October 6, 2017.

  1. Mineral Reserves and Mineral Resources estimated as of December 31, 2016.
  2. San Dimas and Black Fox Complex Resources are calculated inclusive of Reserves while Cerro de Gallo Resources are calculated exclusive of Reserves.
  3. Figures may not add due to rounding.

Notes to the San Dimas Mineral Reserve Statement:

  1. Assumed gold price of US$1,200 per troy ounce and silver price of US$17 per troy ounce.
  2. A two-pass cut-off grade was applied at San Dimas; first-pass of 3.22 g/t gold equivalent based total all-in costs of $118.00/t ($81/t direct costs and $37/t sustaining capital), and second-pass of 2.22 g/t gold equivalent based on direct operating costs only.  Metal supply contract obligations have been referenced in determining overall vein reserve estimate viability.
  3. Assumed processing recovery factors at San Dimas for gold of 95% and silver of 92%.
  4. Exchange rate assumed is MXN$18.00/US$1.00.
  5. The Mineral Reserve estimates for San Dimas Mine set out in the table above have been reviewed and approved by Mr. Clifford Lafleur, P.Eng., Director of Technical Services, Primero and Mr. Patrick McCann, P.Eng., Principal Engineer, Primero and a Qualified Person ("QP") for the purposes of National Instrument 43-101 (“NI 43-101”).
  6. Mineral Reserves do not consider the silver purchase agreement which exists with Silver Wheaton Corp. such that the first 6.0 million ounces per annum of silver produced by the San Dimas mine, plus 50% of the excess silver above this amount, must be sold to Silver Wheaton Caymans at the lesser of $4.28 per ounce (adjusted by 1% per year) and market prices.

Notes to the San Dimas Mineral Resource Statement:

  1. Mineral Resources are total and include those resources converted to Mineral Reserves.
  2. Assumed gold price of US$1,200 per troy ounce and silver price of US$17 per troy ounce.
  3. San Dimas cut-off grade of 2.0 g/t gold equivalent was applied.
  4. The Mineral Resource estimates for the San Dimas Mine set out in the table above have been reviewed and approved by Mr. Dave Laudrum, P.Geo., Senior Resource Manager, Primero and a QP for the purposes of NI 43-101.

Notes to Black Fox Mineral Reserve estimate:

  1. Assumed gold price of US$1,200 per troy ounce.
  2. A two-pass cut-off grade was applied at Black Fox underground; first-pass of 4.74 g/t gold based on total all-in costs of C$214.00/t (C$166/t direct costs and C$48/t sustaining capital), and second-pass of 3.47 g/t gold based on direct operating costs only.
  3. Assumed processing recovery factors at Black Fox for gold of 95%.
  4. Exchange rate assumed is CDN$1.30/US$1.00.
  5. The Mineral Reserve estimates for Black Fox Mine set out in the table above have been reviewed and approved by Mr. Clifford Lafleur, P.Eng., Director of Technical Services, Primero and Mr. Patrick McCann, P.Eng., Principal Engineer, Primero and a QP for the purposes of NI 43-101.
  6. A gold purchase agreement exists with Sandstorm Inc. such that 8% of the gold produced by the Black Fox mine must be sold to Sandstorm at the lesser of $500 per ounce of gold (subject to an inflationary adjustment beginning in 2013, not to exceed 2% per year) and market prices.

Notes to Black Fox Mineral Resource estimate:

  1. Mineral Resources are total and include those resources converted to Mineral Reserves.
  2. Assumed gold price of US$1,200 per troy ounce.
  3. Black Fox open-pit cut-off grade of 0.9 g/t gold and underground cut-off grade of 3.4 g/t were applied.
  4. The Mineral Resource estimates for the Black Fox Mine set out in the table above have been reviewed and approved by Mr. Dave Laudrum, P.Geo., Senior Resource Manager, Primero and a QP for the purposes of NI 43-101.

Notes to Grey Fox Mineral Resource estimate:

  1. Assumed gold price of US$1,200 per troy ounce.
  2. Grey Fox open-pit cut-off grade of 0.9 g/t gold and underground cut-off grade of 3.0 g/t were applied.
  3. The Mineral Resource estimate for Grey Fox was prepared by Mr. Rodney Webster MAusIMM, MAIG of AMC Mining Consultants (Canada) Ltd. and a QP for the purposes of NI 43-101.

Notes to the Cerro del Gallo Mineral Reserve and Mineral Resource Statement:

  1. As reported in the technical report entitled "Technical Report, First Stage Heap Leach Feasibility Study, Cerro del Gallo Gold Silver Project, Guanajuato, Mexico" (the "Technical Report") with an effective date of May 11, 2012. Qualified Persons included:
    • Mr. Timothy Carew, P.Geo of Reserva International LLC. (Reserva). Mr. Carew is responsible for the supervision of the preparation of this report and completed an inspection of the property on 15th of December 2009. At that time he reviewed the surface areas of the Cerro del Gallo project, drilling results, sampling and shipping procedures, geological and geotechnical logging techniques, surveying records and documentation procedures with the field geological personnel. Mr. Carew is responsible for the overall review of the geological modelling and for the estimation of resources used for the feasibility study.
    • Mr Thomas Dyer P.E. of Mine Development Associates (MDA). Mr Dyer is responsible for the reserves, mine production, and mine capital and operating cost estimates. Mr Dyer visited the property in June 2010.
  2. Refer to the technical report entitled "Technical Report, First Stage Heap Leach Feasibility Study, Cerro del Gallo Gold Silver Project, Guanajuato, Mexico" (the "Technical Report") with an effective date of May 11, 2012. Mr. Gabriel Voicu, Vice President, Geology and Exploration, who is a "qualified person" for the purposes of NI 43-101, has reviewed the Technical Report on behalf of Primero. To the best of Primero's knowledge, information and belief, there is no new material scientific or technical information that would make the Technical Report inaccurate or misleading.
  3. Proven and probable reserves are reported using gold equivalent cut-off grades of 0.24 and 0.29 for weathered and partially oxidized material respectively. Cut-off grades were applied to gold equivalent grades which include both gold:silver price and recovery ratios.

Notes to the Ventanas Mineral Resource Statement:

  1. As reported in the technical report entitled "Technical Report On The Ventanas Epithermal Silver-Gold Property Durango State Mexico For Mala Noche Resources Corp." (the "Technical Report") with an effective date of January 27, 2009. The Qualified Person for the report was Ian Trinder, Associate Geologist with Howe (Canada) and qualified person for the purposes of NI 43-101.
Black Fox
  • Subscribe
  • Connect
  • Contact

Subscribe

Email Address *
Mailing Lists *


Connect

TelephoneTelephone Mail

Disclaimer

Read the following disclaimer before continuing:
Please note that you are now entering an “External Website” directly or indirectly maintained by third party provider (“Virtua”) and that you do so at your own risk.

Primero Mining Corp. (“P:TSX”;“PPP:NYSE”;”ASX:PPM”) has no control over the External Site, any data or other content contained therein or any additional linked websites. The link to the External Site is provided for convenience purposes only. When used below “Primero” means Primero Mining Corp. and its affiliates and subsidiaries.

By clicking “Accept” you acknowledge and agree that neither Primero nor third party provider Virtua is responsible, or accepts or assumes any responsibility or liability whatsoever for, the content, the data or the technical operation of the Linked Site. Further, by entering the External Site, you also acknowledge and agree that you completely and irrevocably waive any and all rights and claims against Primero and Virtua and further acknowledge and agree that in no event shall P or Virtua, and their respective officers, employees, directors and agents be liable for any (i) indirect, consequential, incidental, special, compensatory or punitive damages, (ii) damages for loss of income, loss of business profits, business interruption, loss of data or business information, loss of or damage to property, (iii) claims of third parties, or (iv) other pecuniary loss, arising out of or related to the Legal Notice, this disclaimer or the External Site.

By entering the External Site, you further acknowledge and agree that the disclaimer of warranties and limitations of liability set out in this disclaimer shall apply regardless of the causes, circumstances or form of action giving rise to the loss, damage, claim or liability, even if such loss, damage, claim or liability is based upon breach of contract (including, without limitation, a claim of fundamental breach or breach of a fundamental term), tort (including, without limitation, negligence), strict liability or any other legal or equitable theory, and even if Primero and Virtua are advised of the possibility of the loss, damage, claim or liability. The waiver and release specifically includes, without limitation, any and all rights and claims pertaining to the processing of personal data, including but not limited to any rights under any applicable data protection statute(s).

If in any jurisdiction, any part of this disclaimer is held to be unenforceable by a court of competent jurisdiction, such part of this disclaimer shall be restricted or eliminated to the minimum extent and the remaining disclaimer shall otherwise remain in full force and effect.

Please note the information presented is deemed representative at the time of its original release. Changes in historical information may occur due to adjustments in accounting and reporting standards & procedures.

Non-GAAP Information

In addition to disclosing results determined in accordance with GAAP, Primero may also disclose certain non-GAAP information, including certain ratios, operational and miscellaneous data, as well as net income and income per share income that make certain adjustments or exclude certain charges and gains that are outlined in the schedules included in this website. Management believes that this non-GAAP information provides investors with additional information to assess Primero’s operating performance and assists investors in comparing our operating performance to prior periods. Management uses this non-GAAP information, along with GAAP information, in evaluating its historical operating performance.

The non-GAAP information is not prepared in accordance with GAAP and may not be comparable to non-GAAP information used by other companies. The non-GAAP information should not be viewed as a substitute for, or superior to, other data prepared in accordance with GAAP.

Accept | Decline