Brigus Gold Reports 27% Increase in Gold Production in Second Quarter Over First Quarter
Brigus Gold Corp. ('Brigus Gold? or 'the Company?) (TSX: BRD)(NYSE Amex:
BRD) reports that its wholly owned and operated Black Fox Mine and Mill
('Black Fox?) produced approximately 18,000 ounces of gold in the second
quarter of 2010 ('Q2 2010?), an increase of 27% over the first quarter
of 2010 ('Q1 2010?). During the quarter, gold sales increased by 17%
over Q1 2010 as the mine continues to show improvement in the average
gold grade mined resulting in increased production, with this trend
forecast to continue during the remainder of 2010.
The higher second quarter production was achieved at the Black Fox Mill
from 178,357 ore tonnes processed at an average gold throughput grade of
3.4 grams per tonne ('gpt?) and an average recovery rate of 92%.
Compared to Q1 2010, the average gold grade showed a 27% increase, with
similar ore tonnes processed at a slightly lower recovery rate.
Gold Sales Increased
A total of 18,430 ounces of gold were sold in the second quarter
including 3,872 ounces of gold (21%) that were sold into the spot market
at an average gold price of $1,237 per ounce.
Table One: Q2 2010 Operating Highlights
| Q2 2010 | Q1 2010 | First Half 2010 | |||
Ore tonnes mined | 228,000 | 190,000 | 418,000 | ||
Total tonnes mined | 2,028,000 | 2,062,000 | 4,090,000 | ||
Tonnes milled | 178,000 | 178,000 | 357,000 | ||
Tonnes per day milled | 1,956 | 1,976 | 1,972 | ||
Head grade of ore (gpt) | 3.4 | 2.7 | 3.1 | ||
Recovery(%) | 92% | 93% | 93% | ||
| Gold produced (oz) | 18,000 | 14,175 | 32,175 | ||
| Gold sold (oz) | 18,430 | 15,796 | 34,226 |
Notes: | 1. Tonnes above are rounded to the nearest thousand. | |
2. Recovery is rounded to the nearest whole number. | ||
3. Production commenced in late May 2009. |
Wade K. Dawe, Chief Executive Officer and President of Brigus Gold,
said, 'The Black Fox operations performed well during the quarter as our
continued efforts to address grade control and start-up mining issues
are beginning to pay off. With our recent appointment of Rick Allan as
Brigus Gold′s Chief Operating Officer, we will continue to seek
operating improvements at the Black Fox Mine and expect to continue to
build value in this quality asset in the heart of the Timmins Gold
District.?
Gold production is forecast to increase through the remainder of 2010
and into 2011 as the underground mine ramps up to a steady state
production level of 750 tonnes per day ('tpd?). Brigus Gold expects to
produce approximately 24,000 ounces of gold in the third quarter of 2010
and approximately 28,500 ounces in the fourth quarter of 2010 for total
forecast production of approximately 85,000 ounces for full year 2010.
Total cash costs for the year are unchanged at $500 to $550 per ounce.
Second Quarter Operating Results
During Q2 2010, total ore tonnes mined increased by 20% from the prior
quarter to 228,000 tonnes. Total tonnes mined decreased slightly as the
strip ratios have improved as a result of mining deeper in the Phase 1
open pit. Although the mill recovery rate was impacted during the latter
part of Q2 2010 by electric power supply interruptions and temporary
recovery issues related to carbon quality, there has been a general
continuing improvement trend in the ore grade mined during Q2 2010.
From sales of 18,430 ounces of gold in Q2, 2010, Brigus Gold delivered
14,558 ounces at an average price of $876 per ounce into the gold hedge
book, which leaves a balance to be delivered of 27,292 ounces for the
second half of 2010, or approximately half of estimated production.
Brigus Gold expects to sell the balance of its gold production at spot
gold prices.
The Company expects to report its Q2 2010 financial results, including
total cash costs, by mid August 2010.
Underground Development and Capital Program Update
Underground development drilling from the 235-m level drift at the Black
Fox Mine has confirmed gold grade estimates for underground production.
Slower mobilization of the underground development contractor and
associated infrastructure work has resulted in some underground
production stopes being postponed to the fourth quarter of 2010.
Brigus Gold has completed significant infrastructure upgrades, including
administration and technical offices, miners′ change house, sample
preparation and core logging facilities. Construction is underway for a
new maintenance facility.
All assay work was completed by SPJ Labs of Sudbury, Ontario, which is
ISO 9001:2000 certified in North America. This news release was reviewed
by Richard F. Nanna, Professional Geologist, who is a designated
'Qualified Person? under Canada National Instrument 43-101.
FORWARD-LOOKING STATEMENTS
This news release includes 'Forward-Looking Statements? within the
meaning of section 21E of the United States Securities Exchange Act of
1934, as amended. Forward-looking statements can be identified by the
use of words such as 'may,? 'should,? 'expects,? 'plans,? 'anticipates,?
'believes,? 'estimates,? 'schedules,? 'targets,? 'predicts,? 'intends,?
'continue,? or the negative of such terms, or other comparable
terminology. All statements regarding estimated gold production,
production from and development of the underground mine, improvements to
operational efficiency, total cash costs, operating improvements, the
timing of the completion of the maintenance facility and other
construction, and the timing of the future reporting of financial
results are estimates that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate
and actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause
actual results to differ materially from these forward-looking
statements include: unexpected lower ore grades, additional operational,
geotechnical and processing problems at the Black Fox Mine and mill,
further toll milling, unexpected changes in business and economic
conditions, political or economic instability, significant decreases in
gold prices, difficulties or delays in permitting at Black Fox, changes
in interest and currency rates, local and community impacts and issues,
labor accidents, environmental risks and other factors disclosed under
the heading 'Risk Factors? in Brigus Gold′s and its predecessor
companies′ most recent annual report on Form 10-K filed with the United
States Securities and Exchange Commission and elsewhere in Apollo′s
documents filed from time to time with the Toronto Stock Exchange, The
NYSE Amex, 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.
Brigus Gold
Wendy Yang, 720-886-9656 Ext. 217
Vice
President of Investor Relations
ir@apollogold.com
Toll
Free: 1-877-465-3484
Website: www.apollogold.com
or
Sean
Tufford, 902-422-1421
Director of Investor Relations
info@lineargoldcorp.com
Toll
Free: 1-866-785-0456
Website: www.lineargoldcorp.com