Brigus Gold Reports Q3 Production and Goldstream Repurchase
Brigus Gold Corp. ('Brigus? or the 'Company?) produced 19,526 gold
ounces in the third quarter of 2012 ? an increase of 7 percent over
second quarter production of 18,254 ounces.
The Company is also pleased to announce that it has secured $30 million
in debt financing. $26.4 million of the debt proceeds will be used to
repurchase 4 percent of the existing 12 percent goldstream with
Sandstorm Gold Ltd. ('Sandstorm?). The debt financing was arranged by
Casimir Capital and a finance structure fee is payable in exchange for
Casimir′s services.
Under the agreement with Sandstorm, the Company may repurchase up to 6
percent of the goldstream until January 1, 2013. Brigus will make a
decision on the remaining 2 percent prior to the end of the year.
'We are pleased with the growth in gold production at Black Fox during
the third quarter.? said Wade Dawe, Brigus′ President and CEO. 'Gold
production continues to increase quarter over quarter as expected.
Brigus' repurchase of the goldstream is an accretive transaction
providing an immediate and advantageous increase in cash flow.'
Production from the underground portion of the Black Fox mine is
steadily increasing as crews develop and access larger ore zones at
depth.
The open pit continues to perform as expected. Phase 3 overburden
removal has commenced and production from Phase 3 is scheduled to begin
in 2013.
The mill processed 190,879 tonnes of ore at an average grade of 3.34
grams of gold per tonne and an average recovery of 95.1 percent in the
quarter. Throughput averaged 2,075 tonnes per day.
? | ? | Ounces Produced | ? | Average Grade |
| Q1 | ? | 16,922 | ? | 3.04 |
| Q2 | ? | 18,254 | ? | 3.30 |
| Q3 | ? | 19,526 | ? | 3.34 |
| Total | ? | 54,702 | ? | 3.23 |
OUTLOOK
Brigus continues to forecast full year gold production of 77,000 to
85,000 ounces for 2012:
2012 | ? | Low | ? | High | ? | Actual |
Q1 | ? | 15,500 | ? | 17,000 | ? | 16,922 |
Q2 | ? | 18,000 | ? | 21,000 | ? | 18,254 |
Q3 | ? | 21,500 | ? | 23,000 | ? | 19,526 |
Q4 | ? | 22,000 | ? | 24,000 | ? | ? |
| Total | ? | 77,000 | ? | 85,000 | ? | ? |
Cash costs are targeted at $775-$825 per ounce for the year, declining
to approximately $700 per ounce by the end of 2012.
About Brigus Gold
Brigus is a growing Canadian 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, the new
Grey Fox property and adjoining properties in the Township of Black
River-Matheson, Ontario, Canada. The Black Fox Mine is in production and
the Grey Fox Mine, located four kilometres from Black Fox is in
development. Brigus is also advancing the Goldfields Project located
near Uranium City, Saskatchewan, Canada, which hosts the Box and Athona
gold deposits. In Mexico, Brigus owns the 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 www.sedar.com
and annual report on Form 40-F 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.
Brigus Gold
Jennifer Nicholson, CA, 902-442-7186
Executive
Vice President
jnicholson@brigusgold.com
or
Kate
Wood, 902-442-7184
Manager, Stakeholder Relations
kwood@brigusgold.com