TORONTO, ONTARIO–(Marketwired –
Exploration Highlights include:
- Discovery of another new high-grade vein in the West Block, including 7.4 g/t Au and 528 g/t Ag over 11.9 m (LYR13_002) and 12.0 g/t Au and 2,109 g/t Ag over 3.2 m (LYR13_009);
- Discovery of a “bonanza” area in the
Victoriavein, including 85.0 g/t Au and 2,716 g/t Ag over 9.1 m (VIC13_291) and 81.7 g/t Au and 4,536 g/t Ag over 7.2 m (VIC13_289) and extending the known mineralization in the Victoriavein to the west, including 19.2 g/t Au and 993 g/t Ag over 3.1 m (VIC13_290);
- Intercepting near surface mineralization within 2.0 kilometres of the Cerro del Gallo deposit, including 3.6 g/t Au and 116 g/t Ag over 8.1 m at a depth of 46.0 m (CP13-027).
Drilling results are summarized in Table 1 and 2.
“Exploration continues to add value for Primero,” stated
The Company’s 2013
San Dimas High Grade Veins Expand
Drilling approximately 3.0 kilometres north of the Alexa vein, in the Luz y Reyes area of the West Block, has discovered mineralization including 7.4 grams per tonne (“g/t”) gold (“Au”) and 528 g/t silver (“Ag”) over 11.9 metres (“m”) (LYR13_002) and 12.0 g/t Au and 2,109 Ag over 3.2 m (LYR13_009) (Table 1). The Company has named this new high grade mineralization the Perez vein (Figure 1).
The Company discovered the Alexa and
Recent drilling in the
The Company is optimistic that these results will have a positive impact on the average reserve grade of the
Delineation drilling on the Robertita vein in the Central Block continues to extend the economic ore shoot at depth (Figure 4). Reserves contained in the Robertita vein at year end 2012 averaged 6.2 g/t gold and this area remains an important contributor to the Company’s near term mine plan.
The Company remains focused on aggressively exploring in several blocks of the
Near Surface Mineralization Confirmed in Close Proximity to the Cerro del Gallo Deposit
Three drill rigs operating on the property have completed 15,179 metres of drilling year-to-date. Drilling has included in-fill drilling, condemnation drilling, and metallurgical and environmental drilling. Limited exploration drilling has been completed to date, however, in the first drilling completed on the San Anton property outside of the Cerro del Gallo deposit since 2008, the Company recently intersected near surface mineralization in the Carmen-Providencia vein system, within 2.0 kilometres of the Cerro del Gallo deposit. Results include 3.6 g/t gold and 116 g/t silver over 8.1 metres at a true depth of 46.0 m (CP13-027) and 9.5 g/t gold and 234 g/t silver over 0.3 metres at a depth of 62.0 metres (CP13-027) (Table 2) (Figure 3).
Drilling at Cerro del Gallo in 2013 is focused both on exploring the greater San Anton property, resource to reserve conversion and detailed metallurgical characterization of the Cerro del Gallo transition zone. The exploration work is an important component for the Cerro del Gallo construction decision as the Company believes that with continued positive exploration results from close high grade epithermal veins the economics of the low grade (0.7 g/t gold average reserve grade reported in the 2012 feasibility study2) Cerro del Gallo project can be improved.
Table 1: Significant San Dimas Drill Results
|Area||Drill Hole||Purpose||Gold||Silver||True Width (m)|
|West Block (Perez)||LYR13_001||Exploration||2.3||351||0.6|
|West Block (Perez)||LYR13_002||Exploration||7.4||528||11.9|
|West Block (Perez)||LYR13_003||Exploration||5.6||445||0.8|
|West Block (Perez)||LYR13_004||Exploration||1.8||296||0.5|
|West Block (Perez)||LYR13_005||Exploration||5.4||803||0.7|
|West Block (Perez)||LYR13_007||Exploration||12.3||206||2.6|
|West Block (Perez)||LYR13_008||Exploration||1.0||230||0.4|
|West Block (Perez)||LYR13_009||Exploration||12.0||2,109||3.2|
|West Block (Perez)||LYR13_009||Exploration||3.8||517||3.8|
|West Block (Victoria)||VIC13_282||Delineation||5.7||142||1.1|
|West Block (Victoria)||VIC13_284||Delineation||25.8||318||0.4|
|West Block (Victoria)||VIC13_287||Delineation||8.7||507||0.7|
|West Block (Victoria)||VIC13_288||Delineation||3.2||57||2.9|
|West Block (Victoria)||VIC13_289||Delineation||81.7||4,536||7.2|
|West Block (Victoria)||VIC13_290||Delineation||19.2||993||3.1|
|West Block (Victoria)||VIC13_291||Delineation||85.0||2,716||9.1|
|West Block (Victoria)||VIC13_293||Delineation||57.8||1,724||1.1|
|West Block (Victoria)||VIC13_294||Delineation||20.8||1,043||11.4|
|Central Block (Robertita Vein)||ROB13_305||Delineation||10.6||601||1.9|
|Central Block (Robertita Vein)||ROB13_307||Delineation||4.0||281||0.4|
|Central Block (Robertita Vein)||ROB13_310||Delineation||21.5||567||0.6|
|Central Block (Robertita Vein)||ROB13_312||Delineation||14.9||552||3.1|
Table 2: Significant Cerro Del Gallo Drill Results
|Area||Drill Hole||Purpose||Gold||Silver||True Width (m)|
|Carmen Providencia Vein||CP13-027||Exploration||3.6||116||8.1|
|Carmen Providencia Vein||Exploration||9.5||234||0.3|
Figure 1: San Dimas Plan View: http://media3.marketwire.com/docs/P1204-F1.jpg
Figure 2: Victoria Vein Drill Locations – Longitudinal Section: http://media3.marketwire.com/docs/P1204-F2.pdf
Figure 3: Perez Vein Drill Hole Locations – Longitudinal Section: http://media3.marketwire.com/docs/P1204-F3.pdf
Figure 4: Robertita Vein Drill Locations – Longitudinal Section: http://media3.marketwire.com/docs/P1204-F4.pdf
Figure 5: Cerro del
- Refer to the Company’s news releases of
March 28, 2012, “Primero Reports 2011 Reserves and Resources and Announces New High-Grade Discovery” and June 25, 2012, “Primero Discovers New High-Grade Vein in West Block”, available on the Company’s website www.primeromining.com or Sedar www.sedar.com.
- Refer to “Technical Report, First Stage Heap Leach Feasibility Study,
Cerro del Gallo Gold Silver Project, Guanajuato, Mexico, Effective Date: 11th May 2012, Report Date: 29th June 2012” filed on www.sedar.com.
Primero’s website is www.primeromining.com.
TECHNICAL INFORMATION AND QUALIFIED PERSON/QUALITY CONTROL NOTES
The scientific and technical information contained herein is based on information prepared by or under the supervision of Mr.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This news release contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, concerning the business and operations of
The assumptions made by the Company in preparing the forward-looking information contained in this news release, which may prove to be incorrect, include, but are not limited to: the expectations and beliefs of management including with respect to market conditions; the specific assumptions set forth above in this news release; that the Company does not change its exploration plans; that the geology and vein structures in the Sinaloa Graben and the West Block, and on the Cerro del Gallo property are as expected and that certain veins remain open at depth. Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, performance or achievements of Primero to be materially different from those expressed or implied by such forward-looking statements, including changes in commodity prices and the costs of project development and construction; the Company may not be able to timely assess and to complete matters necessary to make a construction decision respecting Cerro del Gallo; the ability to obtain permits and lands necessary to bring the Cerro del Gallo project into production; the ability of the Company to generate significant free cash flow; the ability to fund exploration and development expenditures and for the expenditures to discover mineralization in minable quantities; possible variations in ore reserves, grade or recovery rates, mine development and operating risks; and the ability to build a portfolio of precious metals assets in the
In addition, although Primero has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Primero does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.