Brigus Gold Provides Second Quarter Update
Brigus Gold Corp. ('Brigus? or the 'Company?) (NYSE Amex: BRD) (TSX:
BRD) is pleased to report operating results from the second quarter
ended June 30, 2011 and provide an update on continuing progress at its
Black Fox Mine.
The Black Fox Mine produced 15,688 ounces of gold in the second
quarter of 2011 (April to June), an 80% increase over first quarter
production. Production was 5% below the expected range for the quarter
due to a slower than expected ramp up in production from the
underground mine. The Company is making steady progress in building
its underground mining workforce in the tight and competitive labour
market of Timmins, Ontario. Slower recruitment of qualified staff,
along with additional required staffing changes, delayed underground
development in the second quarter.
For the second quarter of 2011, Brigus processed 181,488 tonnes at an
average grade of 2.86 grams per tonne and an average recovery of
94.1%. Over half of the production for Q2 was mined from the Phase 2
open pit while the remainder was split evenly between the underground
mine, including development ore, and existing low grade stockpiles.
Mill throughput averaged 1,994 tonnes per day during the second
quarter and 2,115 tonnes per day in the month of June.
Ore production from both the Phase 2 open pit and underground mine
began at the end of March 2011 and has been ramping up since then.
Commercial production was achieved from the Phase 2 open pit in April
2011 and commercial production is expected in the underground mine in
July 2011.
Underground production is a combination of ore from the four mining
stopes that are currently open and lower-grade development ore. Four
new mining stopes will be open during the third quarter. Underground
production is expected to increase to 800 tpd during the third quarter
and approximately 1,000 tpd by year-end. The mine plan calls for 10 to
12 mining stopes to be available by year-end.
The Phase 2 open pit is currently providing 1,000 to 1,500 tpd of ore
that together with underground production and when necessary,
low-grade stockpiles, is maintaining the Black Fox Mill′s 2,000 tpd
throughput capacity. As higher-grade underground ore production
increases through the year, mining from the open pit will continue
however lower-grade ore will be stockpiled.
Open pit mining was restricted during Q1 2011 while relocation and
construction of underground mine infrastructure was completed in the
pit area. During Q1, production from low-grade stockpiles was
approximately 8,700 ounces of gold as previously reported. With ore
provided from both open pit and underground, gold production levels
have significantly increased in Q2 and will continue to increase
quarter over quarter throughout 2011.
The Company announced at the end of June that it would proceed with an
initial expansion of the Black Fox Mill, which is expected to be
completed, and in service, during the first quarter of 2012. This
initial expansion will increase processing capacity at the Mill to
2,200 tonnes per day (tpd). Processing capacity and recovery will be
increased through optimization of existing equipment, some equipment
additions and elimination of production losses.
The Company continues to report excellent drilling results from its
newly discovered 147 Zone. The Zone now extends to a vertical depth of
240 metres below surface and remains open in all directions. Drilling
at the 147 Zone is progressing as planned with four drill rigs. The
fifth drill rig is in-fill drilling the Contact Main Zone located
approximately 400 m to the north of the 147 Zone and a sixth rig will
be added in early August.
'Production continues to ramp up at the Black Fox Mine,? said Rick Allan
of Brigus. 'Underground development is still in the early stages. As
additional stopes are opened this quarter, gold production will continue
to increase. Stronger production and ongoing positive drilling results
from our newly discovered 147 Zone are catalysts for a positive second
half of the year.?
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 Gold holds a 100 percent interest in the Ixhuatan Project
located in the state of Chiapas that is subject to a letter of intent
with Cangold. In the Dominican Republic, Brigus has a joint venture
covering three mineral exploration projects that is subject to a letter
of intent with Everton Resources.
Cautionary and Forward-Looking Statements
Statements contained in this news release that 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 targeted gold
production at its Black Fox Mine, including underground production, and
cash costs, meet capital construction schedules and costs, and the
continuation of a rising gold price 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 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 Corp.
Jennifer Nicholson CA
Vice President,
Investor Relations
902-422-1421
ir@brigusgold.com