RE:RE:RE:RE:RE:RE:Primero positioned for big changes.......But Terry and Stanlet assured us all that Brigus was doing a fantastic job, truth is without the takeout they would be closed by now....
Black Fox is an Opportunity to Create Value Primero acquired the Black Fox complex in March 2014. The Black Fox complex is located near Timmins, Ontario and comprises the Black Fox mine, two adjacent exploration properties, Grey Fox and Pike River, and the Black Fox mill located on the Stock Mill property.
The Black Fox mine has historically been owned by a number of under-capitalized junior gold producers. The mine had an irregular production history until 2012 when long-hole mining was introduced and in 2013 the mine produced 98,710 ounces of gold.
As a result of the commodity price decline and the previous owner's lack of funding, the Black Fox mine was under-capitalized in the second half of 2013 resulting in lower underground production due to insufficient underground development, definition and delineation drilling. This resulted in lower than anticipated Q1 2014 production results. Primero is well capitalized and has the technical expertise required to invest sufficiently in underground development and exploration, while still focusing on cost control, mine productivity and exploring the depth potential of the Black Fox mine. With the increased investment planned by Primero, management is confident the mine can return to operating at Q3 2013 production levels within a six month period.
In 2014 Primero will increase exploration and delineation drilling and exploration drifting at Black Fox in order to open new mining faces and expand underground production. Additional underground equipment will be acquired in 2014 to increase productivity. The Company has a target of producing approximately 1,000 tonnes per day from the Black Fox underground by the end of 2014.