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Primero Trims 2017 Guidance For Gold-Equivalent Production

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Primero Mining Corp. (TSX: P) announces a reduction in 2017 production guidance to reflect delayed ramp-up of San Dimas operations following a strike and other labor disruptions, plus the intended sale of the Black Fox complex. Primero now projects 2017 production of between 125,000 and 135,000 gold-equivalent ounces, including 110,000 to 120,000 ounces of gold and 4.5 million to 5 million ounces of silver. This compares to previous guidance of between 140,000 and 170,000 gold-equivalent ounces. All-in sustaining costs are expected to be between $1,200 and $1,300 per gold ounce, the company says. Output at San Dimas is now listed at 75,000 and 85,000 gold-equivalent ounces. The sale of Black Fox to McEwen Mining Inc. (NYSE, TSX: MUX) is expected to close in early October, Primero says. Primero says it continues to operate in a “cash-conservation mode” as management works on possible alternatives to refinance or repay an upcoming debt obligation. The company also says negotiations continue on the potential sale of San Dimas or potential renegotiation of its silver stream. Primero says it had approximately $12 million in cash as of Aug. 31 and has fully drawn its $75 million revolving credit facility. Officials add that plans are to use the proceeds from Black Fox transaction to reduce total debt.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Pretium Resources: Ramp-Up Continues For Brucejack Gold Mine

Thursday September 21, 2017 09:02

Pretium Resources Inc. (TSX, NYSE: PVG) reports continued progress in the ramp-up of the Brucejack Mine in British Columbia, with steady state production targeted for the end of 2017. “With the grade ramping up and the mill now exclusively processing stope ore, production of doré and flotation concentrate has increased,” the company reports. As a result of this and the proceeds from the sale of doré and flotation concentrate, the company says it expects to achieve positive working capital by the end of this quarter. The plant is consistently operating at nameplate capacity of 2,700 tonnes per day or better, Pretium says. “Optimization of the gold recovery process is ongoing and the start-up issues encountered within the gold room have been addressed,” the company says. “The production of metallic slag has been eliminated. Gold recovery at the shaker table has significantly improved, and overall, gold recoveries are currently exceeding 95%.” Pretium says it plans to announce third-quarter gold production sometime in October.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Argonaut Gold Expands Mineral Resources

Thursday September 21, 2017 09:02
 
Argonaut Gold Inc. (TSX: AR) announces increases in pit-constrained mineral resource estimates for its operating mines. At La Colorada, the indicated mineral resource stood at an estimated 586,000 gold ounces and 9.9 silver ounces as of July 1, compared to 560,000 and 9.9 million at the end of 2016. The company added ounces to make up for depletion due to mining. At El Castillo, mineral resources stood at 751,000 ounces of gold, compared to 486,000 at year-end, with the increase not only due to drilling programs but acquisition of the nearby San Juan concession, the company says. “We are now preparing to publish updated life-of-mine plans at both El Castillo and La Colorada during the first quarter of 2018,” says Pete Dougherty, president and chief executive officer.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Alio Gold Gets Land-Use Approval For Ana Paula Project

Thursday September 21, 2017 09:02

Mexico’s secretary of environment and natural resources has approved an application to change the land use for Alio Gold Inc.’s (TSX, NYSE: ALO) Anna Paula project, the company says. “Obtaining approval for our change-of-land-use application is the second major milestone in the permitting of Ana Paula after approval of our environmental impact assessment back in April,” says Greg McCunn, chief executive officer. “As we launch an exciting exploration initiative to enhance the already robust economics of Ana Paula, we are also continuing to move the project forward towards an investment decision in the second quarter of 2018. Now that major permitting milestones are behind us, our focus is on completing the definitive feasibility study and arranging project financing.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

Alamos Gold Increases Existing Credit Facility

Thursday September 21, 2017 09:02

Alamos Gold Inc.’s (TSX, NYSE:AGI) undrawn revolving credit facility has increased from $150 million to $400 million, the company says. "The amended facility adds significant liquidity on very attractive terms,” says John A. McCluskey, president and chief executive officer. “Combined with existing cash and expected cash from the recently announced acquisition of Richmont Mines, Alamos will be debt free with more than $600 million of available liquidity. This greatly improves our financial flexibility as we fund development of our portfolio of growth projects.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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