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San Dimas gold/silver mine expansion project, Mexico

5th September 2014

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name and Location
San Dimas gold/silver mine expansion project, Mexico.

Client
Primero Mining.

Project Description
The expansion project involves the expansion of the San Dimas mine and mill from 2 500 t/d to 3 000 t/d.

The expansion of the San Dimas mill will include an improvement and/or expansion of the current crushing, grinding, leaching and tailings thickening facilities.

Net Present Value/Internal Rate of Return
The project has an internal rate of return of 78% after tax and a payback period within 12 months of project completion.

Value
$26.4-million.

Duration
Construction of the mill expansion is expected to begin during the first quarter of 2015. The project is expected to be completed in the second quarter of 2016.

Latest Developments
Primero has retained an engineering firm with extensive plant design experience in the mining sector to optimise the project, which could significantly reduce the estimated capital cost to expand the San Dimas mill to 3 000 t/d.

The project could also create operating cost savings through process improvement. Together with the engineering firm, Primero will not only finalise the debottlenecking and process equipment sizing that have been started by the company’s plant engineers, but also proceed with detailed engineering and procurement of the plant modifications.

The main areas of focus include the crushing plant and conveying; the grinding plant feed systems; leaching, thickening and pumping systems; tailings pumping and filtration; and overall plant automation and control systems.

Further, Primero will need to modify its existing permit to process at the expanded doré rate.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Primero Mining VP investor relations, Tamara Brown, tel +1 416 814 3168 or email tbrown@primeromining.com.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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