48 48 Page 48 By Gregory Reynolds The problems that hindered Primero Mining Corp in 2016 are behind it and it is confdent that 2017 will result in a complete turnaround Ernest Mast president and CEO says while Primero faced a number of sig nifcant challenges in 2016 I believe the changes we have already made and will contin ue to make will result in a considerable improvement in our 2017 results W e have recently strengthened our management team with the addition of an experienced Chief Operating Ofcer and Chief Financial Ofcer and expect to see marked improve ment in the near term as we work to reduce costs increase production and simplify the way we mine These key steps will lay the founda tions of Primero s return to sustain able proftability The company reported fourth quarter production of 45794 gold equivalent ounces resulte d in annual 2016 pro duction of 176139 gold equivalent ounces within the company s 2016 revised production guidance range of 170000 to 190000 gold equivalent ounces Annual production totalled 156052 ounces of gold and 53 millio n ounc es of silver from the San Dimas and Black Fox Mines Cash costs were within revised guid ance range Preliminary 2016 consoli dated total cash costs were expected to be 865 per gold equivalen t ounce and preliminary consolidated allin sustaining costs AISC including corporate general and administrative expense GA were expected to be 1326 per gold ounce slightly bet ter than the company s revised 2016 guidance range Primero is a Canadianbased precious metals producer that owns 100 of the San Dimas goldsilver mine and the Cerro del Gallo goldsilver cop per development project in Mexico and 100 of the Black Fox Mine and adjoining properties in the T ownship of Black RiverMatheson near the City of T immins Ontario Primero ofers immediate exposure to unhedged below average cash cost gold production with a substantial re source base in politically stable juris dictions The company is focused on becoming a leading intermediate gold producer by building a portfolio of high quality low cost precious metals assets in the Americas The Black Fox Mine formerly the Glimmer Mine is located in the well established T immins Gold Mining Camp in Northern Ontario It is positioned approximately 10 km east of the community of Matheson 65 km east of T immins and adjacent to Provincial Highway 101 The 1750 hectares of contiguous land covers a signifcant section of the PorcupineDestor Fault Zone DPFZ which has a total strike length of ap proximately 200 km and hosts many of Ontario s richest gold mines The Black Fox is the key component of the Black Fox Complex which also includes the Black Fox mill the Grey sees clear sailing into 2017 Primer o Page 49 Fox development project and the Pike River explora tion property Commercial production from the open pit mine began in May 2009 depleted in September 2015 and under ground mining commenced in October 201 1 Primero acquired the Black Fox Complex following a takeover of Brigus Gold Corp completed in March 2014 The San Dimas Mine is located approximately 125 km northeast of Mazatlan on the border of Sinaloa and Durango States in centralwest Mexico The site is ac cessed via a 45 minute fight from either Mazatlan or Durango or a 10 hour drive from Durango The historic mining T own of T ayoltita located adjacent to San Dimas is an important population centre with approximately 8000 inhabita nts San Dimas currently employs approximately 1100 people The Grey Fox development project is located approxi mately 3 km south of the Black Fox Mine also situated within the T immins Gold Mining Camp The Grey Fox property is 100 owned and not covered by any stream ing agreements Gold resources at Grey Fox are hosted primarily in three mineralized zones Contact 147 and Grey Fox South which all occur within close proximity to each other Mineralization is consistent with Brittle Deformation emplacement and bounded by the PorcupineDestor and GibsonKelore faults CREA TING OPPOR TUNITY IN NOR THERN ONT ARIO TSX P NY SE PPP www pr imer om in ing c o m