Primero Mining Corp. is reporting its Black Fox gold complex in Timmins was a bright light in an otherwise disappointing third quarter in 2016.
The company released its third-quarter results on Nov. 9, noting a 10 per cent decrease in gold and silver production overall, compared to its second quarter of 2016. It also cited a net loss of $11.7 million over the third quarter.
Part of that is being attributed to the San Dimas silver mine in Mexico, which the company said was impacted by “high unplanned worker absences and lack of achievement of mine plans, which resulted in reduced underground development rates and delayed certain ventilation improvement projects,” according to a news release.
But at the Black Fox complex, located in Matheson, east of Timmins, the Deep Central Zone produced 16,230 ounces of gold over the third quarter, a seven per cent increase over the 15,172 ounces produced in the second quarter.
In addition, “the underground mine achieved increased production rates averaging 701 tonnes per day, representing a 10 per cent improvement over Q2 2016,” the release noted.
“Production from the Deep Central Zone began in September with initial stope production from the 660-metre level resulting in the highest production month of the year at 6,744 ounces.”
The Deep Central Zone continued to deliver good results in November, noted the company, and exploration drilling continues.
“Black Fox continues to mine from the Deep Central Zone in the fourth quarter and we expect improved profitability and cash flow from this mine going forward,” Ernest Mast, president and CEO, said in the release.
The company has additionally been conducting engineering work at the Froome Zone, located 800 metres west of the Black Fox Mine. Primero is looking to optimize design, reduce capital and operational costs, and “de-risk” the Froome project.
The company has developed an underground mine plan for Froome, in addition to a small open-pit option that would generate revenue for the company earlier than other proposed options.
Primero said it will start geotechnical work on this plan in the fourth quarter of 2016 and expects to make a production decision on Froome by early 2017.
