Primero Mining Corporation
|Primero Mining Corporation|
|Key People||Joseph F. Conway President & Chief Executive Officer|
|Products||Precious metals mining and exploration|
Primero Mining Corporation operates as Canadian-based precious metals producer with operations in Mexico. It owns 100% of the San Dimas gold-silver mine in Mexico that consists of three underground gold-silver mines located in Mexico's San Dimas district. Primero Mining Corp. is based in Toronto, Canada.
The company was formerly known as Mala Noche Resources Corp. and changed its name to Primero Mining Corp. in August 2010.
Products and Services
Primero owns the Ventanas property in the Ventanas Mining District or southern part of the San Dimas District along the western flank of the Sierra Madre Occidental mountain range in Durango State, Mexico. The Sierra Madre Occidental is one of the largest volcanic belts in the world and most prospective in terms of gold and silver, and polymetallic (Pb-Zn-Au-Ag) deposits. The Ventanas property is composed of 28 near-contiguous mining concessions covering approximately 3,470 hectares or 35 square kilometres, near the border of Sinaloa and Durango states and 120 kilometres west of the city of Durango, the capital of Durango State.
The Ventanas property is considered to be a mid-stage exploration project containing multiple low to intermediate sulphidation epithermal veins systems. The property is divided into three vein areas: the Mala Noche, Ventanas and San Cayetano areas. Each has numerous previously explored and worked veins that have a style of mineralization that is similar to the productive Tayoltita District 32 kilometres to the north. The property contains 17 old mines and workings.
In addition to gold, San Dimas is also a significant low-cost producer of silver, having produced over 580 million ounces of silver in its long history.
A silver purchase agreement with Silver Wheaton Corp. was entered into by Goldcorp Inc. in 2004. The agreement originally included 100% of the silver produced by San Dimas. Primero renegotiated this silver purchase agreement so it now shares in selling silver at spot prices. The revised agreement includes only the first 3.5 million ounces plus 50% of the excess silver produced until 2014, and then the first 6 million ounces plus 50% of the excess produced thereafter. The silver purchase agreement is based on the anniversary of the agreement, August 6 each year, not the calendar year.
With an estimated average 7.1 million ounces of silver produced at San Dimas between 2011 and 2014, this increases Primero’s exposure to an estimated 1.8 million ounces of silver at spot prices, or an approximately $20 million extra cash flow per year.
- Joseph F. Conway, President & Chief Executive Officer
- Eduardo Luna, Executive Vice President & President, Mexico
- David Blaiklock, Chief Financial Officer
- Stephen Wortley, Corporate Secretary
- Wade Nesmith, Executive Chairman