Brigus Gold Corp. (NYSE MKT: BRD; TSX: BRD)('Brigus? or the 'Company?)
provides a corporate update for the third quarter of 2012.
Production
Brigus Gold has revised and optimized production and development
priorities at the Black Fox Mine. Gold production continues to increase,
but the Company is making adjustments to mining and development plans in
order to develop new ore zones which will enable growth and higher
production levels for the long term. Brigus is currently in the process
of allocating more resources and work crews for the development of a
large ore block on the western side of the underground mine. This ore
zone extends deeper and is larger than indicated by historical drilling
and therefore requires more resources in the short term to meet current
development schedules. While development of this zone is progressing,
mining in other areas will be marginally reduced. Production will
commence on schedule during quarter four, as previously reported. To
compensate for reduced tonnage from underground in the short term, the
Company is processing lower grade stockpiled material from the open pit.
Grades from the underground continue to meet expectations.
As a result of revisions to the Company′s work plan, gold production in
quarter three will be incrementally higher than quarter two but will be
less than previous estimates. Cash flows and operating profitability
will increase in quarter three and cash costs per ounce will continue to
trend lower.
The ore zone under development on the western side of the orebody has an
average grade of approximately 6.0 grams per tonne. To properly develop
the long-hole stope it is important to begin mining from the bottom of
the zone to prevent a significant quantity of ounces from being
sterilized. While the development of the long-hole stope is very
positive for the future of the Black Fox Mine, there is a modest impact
on gold production in the short term. Brigus made the decision to
allocate more time and resources to develop this ore zone in order to
maintain its production timelines for quarter four as planned. The
long-hole mining method will result in lower costs and higher ore
recovery rates than traditional cut and fill mining methods. It is
expected to provide 400 to 500 high-grade tonnes per day for at least 18
months once it is fully operational.
The Company is also pleased to report that diamond drilling on the
eastern side of the underground is producing encouraging results.
Drilling is in progress from a new exploration drift at the 9674 metre
level and is targeting the eastern down plunge of the orebody. Initial
drill results indicate that the eastern zone extends at depth and
remains open for expansion. The Company will report on its progress as
drilling continues.
'The large ore zone on the western side and the initial diamond drilling
results on the eastern side indicate a positive future for the Black Fox
Mine? said Daniel Racine, Brigus newly appointed Chief Operating
Officer. 'We are working hard to balance short term objectives, while
investing for the future with a long term corporate plan that will
provide the best return for our shareholders.?
Appointment of New Chief Financial Officer
Dana Hatfield has resigned as Brigus′ Chief Financial Officer to pursue
other opportunities. Jon Legatto, Brigus Vice President Finance has been
appointed as CFO. The Company will eliminate the VP Finance position and
will consolidate all related duties in the CFO role. 'I want to thank
Dana for his contribution to the Company and wish him the best with his
future endeavours,? said Wade Dawe, Brigus President and Chief Executive
Officer. ?Jon is a key member of our management team and I am confident
he will excel as our new CFO.?
Grey Fox Resource
Planning is underway to develop the Grey Fox Mine located on the
southeast portion of the Black Fox Complex. The initial resource
estimate from this area, announced in December 2011, added more than 50
percent to the gold resource at the Black Fox Complex. Brigus is in the
process of expanding the resource and converting Inferred ounces to
Indicated ounces through systematic in?fill drilling. An updated
resource estimate will be released later this month. Initial engineering
studies have been initiated and will continue through 2012 to determine
project economics as well as development and production timelines. A
preliminary economic assessment ('PEA?) for Grey Fox will be released in
Q4, and will incorporate the new resource.
Gold Production Outlook
Brigus is on track to meet its annual gold production guidance for 2012.
About Brigus Gold
Brigus is a growing gold producer committed to maximizing shareholder
value through a strategy of efficient production, targeted exploration
and select acquisitions. The Company operates the wholly owned Black Fox
Mine and Mill in the Timmins Gold District of Ontario, Canada. The Black
Fox Complex encompasses the Black Fox Mine and adjoining properties in
the Township of Black River-Matheson, Ontario, Canada. Brigus is also
advancing the Goldfields Project located near Uranium City,
Saskatchewan, Canada, which hosts the Box and Athona gold deposits. In
Mexico, Brigus has granted Cangold Limited the option to acquire a 75%
interest in the Company′s Ixhuatan Project located in the state of
Chiapas. In the Dominican Republic, Brigus has signed an agreement to
sell its remaining interests in three mineral exploration projects.
Cautionary and Forward-Looking Statements
Statements contained in this news release, which are not historical
facts, are forward-looking statements that involve risk, uncertainties
and other factors that could cause actual results to differ materially
from those expressed or implied by such forward-looking statements. All
statements regarding the ability of the Company to achieve its
production, total cash costs, steady state annual production and mining
rate estimates; estimated average gold grades for the open pit and
underground operations; increase in gold production; increase in
profitability; exploration drill results and resource additions, are
forward-looking statements and estimates that involve various risks and
uncertainties. This forward-looking statements include, or may be based
upon, estimates, forecasts, and statements as to management's
expectations with respect to, among other things, the outcome of legal
proceedings, the issue of permits, the size and quality of the Company's
mineral resources, progress in development of mineral properties, future
production and sales volumes, capital and mine production costs, demand
and market outlook for metals, future metal prices and treatment and
refining charges, and the financial results of the Company.
Important factors that could cause actual results to differ materially
from these forward-looking statements include environmental risks and
other factors disclosed under the heading 'Risk Factors? in Brigus′ most
recent Annual Information Form and Management Discussion and Analysis
filed under the Company′s name at and annual report on Form 40-F filed with the United States Securities
and Exchange Commission at as well as elsewhere in Brigus′ documents filed from time to time with
the Toronto Stock Exchange, the NYSE Amex Equities, the United States
Securities and Exchange Commission and other regulatory authorities. All
forward-looking statements included in this news release are based on
information available to the Company on the date hereof. The Company
assumes no obligation to update any forward-looking statements, except
as required by applicable securities laws.
