Primero Mining Corp. today announced that unionized employees at the Company’s San Dimas mine in Mexico have initiated a strike action, resulting in the complete stoppage of mining and milling activities at the site.
“Our solid operating performance in 2016 enabled us to deliver record low all-in sustaining costs, resulting in strong margins and cash flow,” stated Hannes Portmann, President and Chief Executive Officer. “Our three primary areas of focus in 2017 are enhancing our financial flexibility, executing our updated Rainy River plan and continuing to deliver operationally. Looking further ahead, we feel well positioned for the long-term with a robust gold reserve base of 15 million ounces.”
“Our strong operating performance in 2016 exceeded guidance, setting records at Pinto Valley, Minto and for Capstone as a whole,” said Darren Pylot, President and CEO of Capstone. “All three of our mines generated positive net earnings, with throughput success at Pinto Valley and processing of high grade Minto North ore being key drivers in 2016.”
“Exploration advanced aggressively across the Company’s project portfolio during the fourth quarter of 2016, in line with the brownfields strategic focus of reserve replacement, as well as providing a pipeline of future opportunities for evaluation,” said Paul Harbidge, Senior Vice-President, Exploration. “During the quarter, we also continued to advance generative studies across a number of the districts for re-interpretation of the geological information, with the aim of extending the reserves and resources of our current operations. In 2017, with an exploration budget currently targeted at $100 million, we are focused on expanding and upgrading the quality of our reserves and resources through the continuation of our drill programs and the review of the results as we complete our generative study work.”
The error related to adjusted earnings (a non-GAAP measure) for the fourth quarter of 2016 and for the full 2016 year. The error is due to net realizable value adjustments on the heap pad inventory at the Dolores mine. The impact of this error, after adjusting for the effect on taxes, was to overstate adjusted earnings for Q4 2016 and for the full 2016 year by $8.6 million.
Riversides President and CEO, John-Mark Staude, stated: We continue to be encouraged by the results of the geochemical and geophysical surveys completed to date at the Glor Project, which show positive indications of an orogenic gold system. The quartz-sericite alteration, veining and deformation styles are similar to such features commonly seen at Sonoran orogenic gold deposits, including the nearby Chanate Gold Mine. We now look forward to further results from the current trenching and structural mapping program, with plans in place to drill in 2017.
Kootenay President and CEO, James McDonald states, We are very pleased with results from the 13 holes of our current drill program on La Negra with Pan American. The confirmation of additional, multiple zones of high-grade silver mineralization within a 600 meter strike length of the breccia, remaining open at depth, further underscores the future development potential of La Negras contained silver resource. We are excited with the continued success at La Negra and look forward to receiving results from the remaining four holes of the program.
Warren Rehn, President and Chief Executive Officer of Golden Minerals, commented, We are pleased with the results of this independently?prepared PEA, as it presents a low cost and profitable operation at current metals prices. If we go ahead with the project, production at Santa Maria would mark Goldens re?emergence as a producer of close to one million silver equivalent ounces annually, with the potential to move the company to positive net cash flow. We believe there is also excellent potential for expansion of the project which could lead to continued production beyond the initial three?year period considered in the PEA.
Thomas Atkins, President and CEO of Mammoth commented on this agreement and investment stating: “The Company has built a strong relationship with this drill contractor and the senior executive of this contracting firm, himself having studied and worked as a geologist, upon seeing the potential of the Tenoriba property was keen to consider a structure whereby his firm could assist us in the challenge of raising capital for drilling while at the same time gain some exposure to the success of the drill program and the advancement of exploration at Tenoriba. We think this can be a win-win situation and are very pleased to arrive at such an agreement. Following the field program which is expected to start shortly at Tenoriba and will include trenching and road access and pad construction to facilitate drilling, Mammoth hopes to begin an approximate 2,500 diamond drill program to test various targets on the property. As a result of this agreement with the contractor the Company will be required to raise far less capital in the equity market for this program. We’re equally pleased that the contractor has shown confidence in the Company and the Tenoriba project by investing in the recently announced Private Placement.”
“In 2016 we added 38.1 million ounces of new silver mineral reserves, more than replacing the 32.4 million ounces depleted through mining,” said Christopher Emerson, Pan American’s Vice President Business Development and Geology. “We increased our exploration budget mid-year, investing a total of $14 million during 2016, and completed 136,000 metres of drilling on mine and near-site exploration, as well as 7,000 metres on regional projects.”
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