Primero Provides Cerro Del Gallo Project Update; Appoints Louis Toner Vice President, Project Development and Construction

Primero Provides Cerro Del Gallo Project Update; Appoints Louis Toner Vice 
President, Project Development and Construction 
TORONTO, ONTARIO -- (Marketwired) -- 07/29/13 -- Primero Mining Corp.
("Primero" or the "Company") (TSX:P) (NYSE:PPP) (ASX:PPM) is pleased
to provide an update on its 69.2% owned Cerro del Gallo
gold-silver-copper development project in Guanajuato, Mexico,
following its acquisition in May 2013.  
Primero has reduced its estimated capital spending in 2013 for the
Cerro del Gallo project to approximately $15 million (on a 100%
ownership basis) in order to advance the project to a construction
decision and expects to complete all outstanding permitting, land
acquisition, basic engineering of the mine and the processing
facilities, and a preliminary exploration program, including
condemnation drilling, in 2013. The Company expects to make a
construction decision early in the fourth quarter of 2013, with Cerro
del Gallo potentially adding a minimum of approximately 95,000 gold
equivalent ounces (on a 100% ownership basis) of annual production
starting in mid-2015. 
"Development of the Cerro del Gallo project is an important next
phase for Primero," stated Joseph Conway, President & Chief Executive
Officer of Primero. "Although the project offers the Company
diversification and low-risk, low-cost growth in a mining friendly
jurisdiction that we're very experienced in, we remain focused on
maximizing shareholder value. Given the recent profound decline in
the gold price we are committed to advancing the project to a
construction decision with a limited investment and will make a
construction decision based on the market conditions and the return
expected from the project at the end of the year. We remain
opportunistic about our growth alternatives." 
Senior Management Addition 
The Company is pleased to announce the appointment of Mr. Louis Toner
as Vice President, Project Development and Construction, effective
July 29, 2013, with primary responsibility for the Cerro del Gallo
project. 
The appointment of Mr. Toner is in line with the Company's stated
goal of building a multi-mine, precious metals producer in the
Americas. With over 30 years of engineering and construction
management experience ranging from $10 million projects to
 $1 billion
large-scale projects, Mr. Toner will lead Primero's project
development team. He will be responsible for the Company's growth
projects and will work with Primero's operations teams on projects
throughout Latin and North America. He holds a B.Eng. Civil
Engineering from McGill University and was most recently a Senior
Project Manager with BBA Inc. and Lafarge Canada Inc.  
"I would like to welcome Louis to the senior management team at
Primero. He brings extensive project management and construction
experience to our team and has the capital discipline we were looking
for to advance the Cerro del Gallo Project in Mexico. Louis has been
involved with the Cerro del Gallo project for the last five months
and is focused on maximizing the value of the project. Louis will
also be responsible for overseeing the completion of the San Dimas
mine expansion to 2,500 tonnes per day on time and on budget, and he
will assist Primero through the Company's next stages of growth and
development," said Renaud Adams, Chief Operating Officer of Primero. 
Cerro del Gallo Development Plan for 2013 
The May 2012 Definitive Feasibility Study ("DFS")1 on the Cerro del
Gallo project contemplated only a phase one ("Phase I") heap leach of
4.5 million tonnes per year of oxidized and partially oxidized ore
for 7.2 years of production. In March 2011, a preliminary assessment
identified a potential phase two ("Phase II") addition of
carbon-in-leach ("CIL") processing of fresh rock commencing in year
5. 
Following the acquisition of the Cerro del Gallo project Primero
commenced an assessment of the alternatives for the long term
development of the project which include a heap leach only operation
(Phase I), an accelerated timetable for the CIL processing facility
(Phase II) and a CIL only operation. The key elements of the
assessment will be the trade-off between capital and metal recovery
as well as the impact of various processing approaches to the reserve
and resource base. Further drilling is part of this assessment
program and will focus on the detailed metallurgical characterization
of the transition zone as well as the unoxidized mineralization at
depth and lateral to the ore zone currently considered in the Phase I
development plan. The exploration work also being conducted
concurrently will be an important component for the development
decision. The Company expects to complete its assessment by early in
the fourth quarter of 2013 concurrent with its construction decision. 
Permitting 
The permitting process for the construction of Phase I heap leach
project of Cerro del Gallo commenced in early 2012. Environmental
baseline studies and site surveys have been completed and the
Expression of Environmental Impact documentation, Manifestacion de
Impacto Ambiental (MIA) for the Secretariat of Environment and
Natural Resources, Secretaria del Medio Ambiente y Recursos
Naturales, (SEMARNAT) is nearly complete and awaiting advancement of
land acquisition before lodging the formal documentation. The Company
currently expects to complete permitting for Phase I of the Cerro del
Gallo project by the end of 2013, pending the finalization of all
required land acquisition. 
Land Acquisition 
A total of 363 hectares of surface rights are required for the
execution of Phase I, which includes an additional 25 hectares as a
buffer zone around the potential pit contour in order to secure
sufficient space for potential Phase II mining. To date, a total of
149 hectares (41%) has been acquired, however 100% of the proposed
pit is included within these 149 hectares.  
Engineering  
Primero expects to complete basic engineering for the construction of
Phase I of the Cerro del Gallo project by the beginning of the fourth
quarter of 2013. The Company expects to make a decision regarding
full or partial engineering, procurement, and construction management
("EPCM") by the end of 2013. 
Exploration 
Primero expects to spend approximately $4 million of the budgeted $15
million in 2013 on exploration. The exploration program includes
12,000 metres of infill drilling and condemnation drilling as well as
regional mapping and geochemical assessment. This is the first
exploration program conducted since 2008.  
The Cerro del Gallo Project is located within the San Anton property,
an area in the state of Guanajuato in central Mexico, approximately
270 km northwest of Mexico City, near the historic Guanajuato Mining
District. The Guanajuato Mining District has a long record of
silver/gold mining and production dating back to 1558, reportedly
producing approximately 1.14 billion ounces of silver and 6.5 million
ounces of gold over its 450 year mining history. 
The San Anton property comprises twelve mining concessions covering a
combined area of approximately 25,270 hectares. The last exploration
program was completed in 2008 and resulted in promising exploration
targets that Primero's exploration team will start to assess in 2013. 
The infill drilling program is designed to convert inferred resources
to indicated resources in the central part of the mineralized zone.
The Company expects to publish an updated reserve and resource
estimate for Cerro del Gallo in early 2014. The condemnation drilling
program is designed 
to sterilize the area for future waste dump and
leach pads.  
The regional exploration is designed to test the numerous known
surface expressions of mineralization, many of which the previous
owner of Cerro del Gallo reported to have significantly higher grade
than the current reserve and resource grade. Should these surface
expressions develop into mineral deposits capable of being additional
material for processing via heap leach or CIL, the scope of the mine
development plan could change. 


 
1.  Refer to "Technical Report, First Stage Heap Leach Feasibility Study,
    Cerro del Gallo Gold Silver Project, Guanajuato, Mexico, Effective Date:
    11th May 2012, Report Date: 29th June 2012" filed under the Company's
    profile on www.sedar.com (the "Feasibility Study").

 
About Primero 
Primero Mining Corp. is a Canadian-based precious metals producer
with operations in Mexico, including the 100% owned San Dimas
gold-silver mine. Primero is focused on delivering superior,
sustainable value for all stakeholders with low-risk exposure to
gold. The Company intends to become an intermediate gold producer by
building a portfolio of high quality, low cost precious metals assets
in the Americas.  
Primero's website is www.primeromining.com.  
TECHNICAL INFORMATION AND QUALIFIED PERSON/QUALITY CONTROL NOTES 
The scientific and technical information contained herein is based on
information prepared by or under the supervision of Mr. Gabriel Voicu
P.Geo., Vice President, Geology and Exploration, Primero, who is a
"Qualified Person" for the purposes of NI 43-101. Mr. Voicu has
reviewed and approved the contents of this news release with respect
to the scientific and technical information.  
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION 
This news release contains "forward-looking statements", within the
meaning of the United States Private Securities Litigation Reform Act
of 1995 and applicable Canadian securities legislation, concerning
the business and operations of Primero Mining Corp. and its
consolidated subsidiaries (collectively, "Primero" or the "Company").
All statements, other than statements of historical fact, are
forward-looking statements. Generally, forward-looking statements can
be identified by the use of forward-looking terminology such as
"plan", "planned", "expects", "is expected", "future", "next",
"continues", "remain", "goal", "estimated", "intends", or variations
of such words and phrases or statements that certain actions, events
or results "may", "could", "would", "might" or "will", "occur" or "be
achieved", or that they have "commenced" or are subject to
"assessment" that is ongoing, or the negative connotations thereof.  
Forward-looking statements in this news release include, but are not
limited to, statements regarding: the Company's plans, estimates and
expectations for the Cerro del Gallo project including the capital
budget, timing of activities to lead to a construction decision, the
exploration and drilling program including the timing, budget,
purpose and anticipated results thereof, the anticipated annual
production from the project, the assessment of alternatives for
mineral processing, and expectations respecting permitting and land
acquisition; the intended role and responsibilities of Mr. Toner; the
ability to identify new resources and convert resources and
exploration potential into reserves and resources; and the Company's
growth alternatives and intentions to become an intermediate gold
producer..  
The assumptions made by the Company in preparing the forward-looking
information contained in this news release, which may prove to be
incorrect, include, but are not limited to: the expectations and
beliefs of management including with respect to market conditions;
the specific assumptions set forth above in this news release; that
planning, engineering and metallurgical assessments, exploration and
drilling, permitting and land acquisition for the Cerro del Gallo
project and development and expansion at San Dimas proceeds on a
basis consistent with current expectations and the Company does not
change its capital expenditure, development and exploration plans.  
Forward-looking statements are subject to known and unknown risks,
uncertainties and other important factors that may cause the actual
results, performance or achievements of Primero to be materially
different from those expressed or implied by such forward-looking
statements, including: changes in commodity prices and the costs of
project development and construction; the ability to fund capital and
exploration and development expenditures; the ability of the Company
to timely assess and to complete matters necessary to make a
construction decision; the ability to obtain permits and lands
necessary to bring the Cerro del Gallo project into production; the
ability of the Company to discover mineralization in minable
quantities; possible variations in ore reserves, grade or recovery
rates, mine development and operating risks; and the ability to build
a portfolio of precious metals assets in the Americas. Certain of
these factors are discussed in greater detail in Primero's
registration statement on Form 40-F on file with the U.S. Securities
and Exchange Commission, and its most recent Annual Information Form
on file with the Canadian provincial securities regulatory
authorities and available at www.sedar.com. Should one or more of
these risks and uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from
those described in forward-looking statements. In addition, although
Primero has attempted to identify important factors that could cause
actual actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that such statements
will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. Forward-looking statements are made as of
the date hereof and accordingly are subject to change after such
date. Forward-looking statements are provided for the purpose of
providing information about management's current expectations and
plans and allowing investors and others to get a better understanding
of our operating environment. Primero does not undertake to update
any forward-looking statements that are included in this document,
except in accordance with applicable securities laws.
Contacts:
Primero Mining Corp.
Tamara Brown
VP, Investor Relations
(416) 814 3168
tbrown@primeromining.com
www.primeromining.com
 
 
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