Brigus Gold Provides Black Fox Mine Update
June 07 2011 - 7:00AM
Business Wire
Brigus Gold Corp. (“Brigus” or the “Company”) (NYSE Amex: BRD)
(TSX: BRD) is pleased to provide an update on continuing progress
at its Black Fox Mine.
- The Company expects the Black Fox Mine
to produce between 16,500 and 18,000 ounces of gold in the second
quarter of 2011 (April to June).
- The Black Fox Mine is expected to reach
a steady state annual production level of 104,000 ounces of gold in
the third quarter of 2011.
- 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 from the
Phase 2 open pit was achieved in April 2011 and underground
production continues to ramp up with commercial production levels
expected to be attained in June 2011.
- The Company is currently mining 300 to
400 tonnes per day (tpd) from the underground. Underground
production is a combination of ore from the five mining stopes that
are currently open and lower-grade development ore. Underground ore
grades from the mining stopes are in line with the mine plan.
Underground production, at an average grade of 6.2 grams per tonne
(gpt), is expected to increase to 800 tpd by July 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 1,600 to 1,700 tpd of ore, at an average grade of 3.4
gpt, which together with underground production is maintaining the
Black Fox Mill’s 2,000 tpd throughput capacity. Open pit ore grades
are in line with the mine plan. Mining from the open pit will be
reduced as higher-grade underground ore production increases
through the year.
- Open pit mining was restricted in 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 8,500 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.
- 2011 gold production is expected to
total 73,000 to 80,000 ounces for the year. Cash costs will trend
downward through the year and are expected to be between $575 to
$625 per ounce by year-end.
“We are encouraged by the production growth at the Black Fox
Mine,” said Wade K. Dawe, President and CEO of Brigus. “Increasing
production levels and ongoing positive drilling results from our
newly discovered 147 Zone confirm that we have turned the corner at
Black Fox and set the stage for a positive second half of the year.
We will reach steady state production of over 100,000 ounces
annually in the third quarter.”
In conjunction with the ramp up of underground production and
ongoing exploration success, the Company has commissioned an
engineering study to review possible expansion scenarios for the
Black Fox Mill. The results from this initial conceptual study will
be provided before the end of June and will evaluate the
opportunity for a multi-year phased increase in throughput from the
current level of 2,000 tpd to a Phase 1 level of approximately
2,200 tpd and a Phase 2 level of approximately 3,000 tpd. As part
of the mill expansion, the implementation of a gravity circuit and
additional leach capacity, are expected to improve the recovery
rate as well as the overall production throughput capacity.
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.
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