Brigus Gold Completes Construction of Underground Infrastructure
Brigus Gold Corp. ('Brigus? or the 'Company?) (TSX: BRD)(NYSE Amex: BRD)
reports the successful completion of construction of the new underground
infrastructure at its Black Fox Mine ('Black Fox?) and the commencement
of underground ore production.
Underground and Open Pit Mining
On March 24, 2011, Black Fox achieved a significant milestone with the
completion of the new 1.1 kilometre ramp leading from surface to the 235
metre level underground. The new ramp enables the Company to use its
much larger and more productive haulage fleet as part of the underground
mine plan. Underground mining is expected to exceed 250 tonnes per day
('tpd?) of ore at the end of March 2011, achieve commercial production
in April 2011 and ramp up to 1,100 tpd by the end of 2011.
Mining of ore from the Phase 2 open pit also began on March 23, 2011
following commissioning of the new ventilation and service raise and
removal of the old facility. Mining of ore from the Phase 1 of the open
pit had been restricted beginning in December 2010 as the Company
completed construction of underground infrastructure.
The Black Fox Mill is expected to operate at 2,000 tonnes per day with
feed coming from both the underground and the open pit. In 2011 the
underground mine is expected to produce an average grade of 6.2 grams of
gold per tonne ('gpt?) with open pit ore grading at an average of 3.2
gpt. During April 2011, as production from the underground and Phase 2
operations ramps up, less than 20% of ore will come from the low-grade
ore stockpiles at an average grade of 1.4 gpt. The combination of these
feeds to the mill is expected to enable Brigus to increase gold
production quarter-over-quarter in 2011.
Wade K. Dawe, Chief Executive Officer and President of Brigus, said,
'The completion of the underground development is an important
achievement for our company. In the nine months since Brigus was formed,
we have focused on completion of the underground development,
strengthening our balance sheet and positioning our Company for the
future. Now that ore is being mined from both the underground and open
pit, we will focus on generating positive cash flow and profitability.?
Q1 2011 Production
As previously reported, during the underground construction, the Black
Fox Mill processed ore from the low-grade stockpiles. In the first
quarter of 2011 ('Q1 2011?), the Company estimates that 90% of ore
throughput at the 2,000 tpd Black Fox Mill was from these ore
stockpiles. The balance of throughput was from open pit ore from the
remnants of Phase 1 and initial pre-production underground ore. The
Company projects Q1 2011 production of approximately 8,500 ounces of
gold.
Brigus will provide further information about its 2011 outlook in its
announcement of fourth quarter and full year 2010 financial results by
the end of this week.
The Qualified Person who reviewed the above technical information
related to operations of the Black Fox Mine and Mill is Chief Operating
Officer and Vice President Richard Allan, P. Eng.
Safety Award
In March 2011, Black Fox Mill was recognized by the Porcupine Northern
Ontario Mines Safety Group with the Angus D. Campbell trophy for the
member mining company with the lowest lost time accident frequency
record.
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
Complex in the Timmins gold district of Ontario, Canada. The Black Fox
Complex encompasses the Black Fox Mine and Mill, and adjoining Grey
Fox-Pike River property, all in the Township of Matheson, Ontario,
Canada. Brigus is also advancing its Goldfields Project located near
Uranium City, Saskatchewan, Canada, which hosts the Box and Athona gold
deposits. In Mexico, Brigus holds a 100% interest in the Ixhuatan
Project located in the state of Chiapas. In the Dominican Republic,
Brigus Gold has a joint venture covering 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 and maintain
targeted gold production at Black Fox, including commercial production
and ramp up of the underground mine, future gold production at Black
Fox, throughput at the Black Fox Mill, the ore grades for underground
and open pit ores, the generation of positive cash flow and
profitability, and the timing of future disclosure of financial results
and 2011 outlook are forward-looking statements and estimates that
involve various risks and uncertainties. This forward-looking
information includes, 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
Gold′s most recent annual report on Form 10-K filed with the United
States Securities and Exchange Commission and elsewhere in Brigus Gold′s
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.
Brigus Gold
Jennifer Nicholson, 902-422-1421
Vice
President of Investor Relations
ir@brigusgold.com
Toll
Free: 1-866-785-0456
or
Wendy Yang, 303-524-3203
Vice
President
or
Website: www.brigusgold.com