Brigus Gold Reports Strong First Quarter 2013 Financial Results

HALIFAX, Nova Scotia -- (BUSINESS WIRE) -- Brigus Gold Corp. (“Brigus” or the “Company”) (NYSE MKT: BRD; TSX: BRD) today reported strong financial results for the quarter ended March 31, 2013.

First quarter 2013 production of 26,316 ounces of gold was the highest ever achieved by the Company. Cash operating costs of $630 per ounce were 27% lower than in the first quarter 2012 and contributed to a material increase in cash flow from operations.

Wade Dawe, Chairman and CEO of Brigus Gold, commented: “We are pleased with the financial results for the quarter. Our strong cash flow generation is a result of record gold production combined with effective cost management throughout the organization. We are confident that the Black Fox mine will continue to perform well throughout the year and the company is well positioned for success in this gold price environment. I would also like to acknowledge and thank our operations and mining team for their excellent work.”


First Quarter 2013 Financial Highlights

- Sold 27,818 ounces of gold, a 38% increase over Q4 2012 and a 74% increase over Q1 2012

- Cash costs of $630 per ounce decreased 27% versus Q1 2012

- Cash position of $31.3 million as of March 31, 2013 increased by $1.5 million

- Adjusted cash flow from operations increased by 174% from $8.9 million in the year ago quarter to $24.4 million

- Operating margin increased by 26% from $753 per ounce in the year ago quarter to $946 per ounce

- Income from operations increased by 334% from $3.5 million in the year ago quarter to $15.2 million


First Quarter 2013 Operational Highlights

- Produced 26,316 ounces of gold, a 16% increase over Q4 2012 and a record for quarterly production

- Processed 183,819 tonnes of ore at 4.74 grams per tonne (“gpt”) and a 94% recovery, compared to 180,965 tonnes of ore at 3.04 gpt and a 96% recovery in Q1 2012


Consolidated Financial Results

(in thousands, except per share amounts and ounces)

                                      For the three months ended
                                   March 31 2013     March 31 2012
Revenue from the sale of gold            $43,828           $25,823
Direct operating costs                   $17,525           $13,758
Income from operations                   $15,189            $3,480
Total comprehensive income               $13,682            $5,520
Basic and diluted earnings per share       $0.06             $0.03
Adjusted cash flow from operations (1)   $24,362            $8,866
Gold sales in ounces                      27,818            16,033
Cash cost per ounce gold sold (1)           $630              $858

(1) Adjusted cash flow from operations and cash cost per ounce gold sold are non-GAAP measures and are not necessarily comparable to similar titled measures of other companies due to potential inconsistencies in the method of calculation. Please see the Company’s Q1 2013 Management Discussion and Analysis for a reconciliation of these non-GAAP measures.


Results from Operations

                                                       For the three months ended
(in thousands, except per share amounts and ounces)   March 31, 2013    March 31, 2012
Metal Sales 	  	  	  	  	  	  	  	 
  Gold (ounces)                                            27,818           16,033
  Silver (ounces)                                           1,383              858
Average realized gold price ($/ounce)                      $1,576           $1,611
Production
Open Pit Mine 
  Ore tonnes mined                                        198,999          220,580
  Operating waste tonnes mined                            626,868        1,327,362
  Capital stripping tonnes mined                          103,446          753,360
  Overburden tonnes mined                               1,876,339                –
Total tonnes mined – Open Pit Mine                      2,805,652        2,301,302

Underground Mine
  Ore tonnes mined                                         71,417           35,147
Total Tonnes Mined                                      2,877,069        2,336,449

Tonnes milled                                             183,819          180,965
Tonnes milled per day                                       2,042            1,989
Head grade of ore (gpt)                                      4.74             3.04
Recovery (%)                                                   94%              96%
Gold ounces produced                                       26,316           16,922

Cash costs ($/ounce)                                         $630             $858
Operating margin ($/ounce)                                   $946             $753

Outlook

Brigus is forecasting production of 90,000 to 100,000 ounces of gold in 2013, at a per ounce cash cost between $650 - $700. This cash cost is lower than our previously forecasted guidance of $700 - $750 per ounce.

Production from the underground mine continues to be strong. The underground mine averaged 794 tpd during the quarter and achieved grades above the reserve model. Production from phase three of the open pit is set to commence in Q2 2013, as the overburden removal was completed in April.

The Black Fox property continues to be a proven source for new gold discoveries. Successful drilling results outside of current reserves during the first quarter are highly encouraging and reinforce our view that the Black Fox mine has significant potential for increased gold reserves and a long mine life.

The Company continued to drill the 147, Contact and Grey Fox South zones since the September NI 43-101 compliant resource estimate which expanded the Indicated Resource at Grey Fox to 480,850 ounces. An updated resource report for the Grey Fox property will be released in June, however further work on the feasibility study will be deferred until 2014.


Cost Management

Cost management has been a focus for the Company, which is reflected in the Company’s cash costs. In response to reduced gold price expectations for the year, Brigus conducted a company-wide review of operating and capital costs and has identified additional cost management opportunities. As a result of this review, a total of $4 million in forecasted capital spending has been eliminated or deferred, as follows: $2 million relating to the completion of the Grey Fox Feasibility study; $1 million in relation to the underground drilling program at the Black Fox mine and $1 million from other capital projects. The revised capital forecast calls for total spending in 2013 of $41.5 million on open pit and underground sustaining capital and other capital projects, and $10 million on exploration and mine development activities. As of March 31, 2013 $9.8 million has been spent on the underground, open pit and sustaining capital, and $3.8 million has been spent on exploration and mine development activities. This leaves a balance of $37.9 million for the remainder of the year. These capital reductions will not impact the Company’s mine plan or forecasted gold production in 2013.


First Quarter Webcast and Conference Call

A webcast and conference call will be held, Tuesday, May 14 at 12 noon Atlantic time (11:00 a.m. EST). Analysts and other interested parties wanting to participate in the call should dial 1-877-407-8133 (international 201-689-8040) at least 10 minutes prior to the start of the call. No pass code is required. The teleconference will be recorded. If you are unable to join the teleconference live, you can dial for playback, toll-free at 1-877-660-6853 (international 201-612-7415), please use conference ID 412216. The event will be archived and available for replay until midnight on May 28, 2013. The teleconference will also be accompanied by a presentation made available on the Company’s website at www.brigusgold.com.


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 also owns the Goldfields Project located near Uranium City, Saskatchewan, Canada, which hosts the Box and Athona gold deposits. In the Dominican Republic, Brigus has signed an agreement to sell its remaining interests in three mineral exploration projects. In Mexico, Brigus owns the Ixhuatan Project located in the state of Chiapas.


Cautionary Note to U.S. Investors Concerning Estimates of Mineral Resources

This news release uses the term mineral “resources”. The Company advises U.S. investors that while these terms are defined in and required by Canadian regulations, these terms are not defined terms under the U.S. Securities and Exchange Commission (“SEC”) Industry Guide 7 and are generally not permitted to be used in reports and registration statements filed with the SEC. The SEC generally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves” as in‐place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.


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 www.sedar.com and annual report on Form 40F filed with the United States Securities and Exchange Commission at www.sec.gov 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.



Contacts

Brigus Gold Corp.
Morgan Tyghe, 416-214-9867
Director of Investor Relations
mtyghe@brigusgold.com