Brigus Gold Corp. (“Brigus” or the “Company”) (NYSE Amex: BRD);
(TSX:BRD) produced 15,688 ounces of gold from its Black Fox Mine in
the Timmins Mining district during the second quarter of 2011, an
80% increase over first quarter production of 8,772 ounces. Net
income for the six months ended June 30, 2011 was $0.9 million
compared to a net loss of $20.9 million for the six months ended
June 30, 2010. The Company incurred a net loss of $3.8 million for
the quarter ended June 30, 2011 compared to a net loss of $19.1
million for the same period in 2010.
Production from the Phase 2 of the open pit commenced during the
quarter but was somewhat constrained in the initial stages while
the mining area of the pit was developed. Initial grades from the
Phase 2 open pit are meeting expectations. Production in the
underground mine also began but consisted primarily of
pre-production development ore. Underground production from mining
stopes is continuing to increase and grades are in line with the
mine plan. Development of the underground mine has been slower than
anticipated and has resulted in a longer ramp up period for
underground production.
(All dollar amounts in this news release are in U.S. dollars
unless otherwise noted.)
Among the highlights for Q2 2011 and to the date of this
release, the Company:
- Produced 15,688 ounces of gold in the
second quarter, an 80% increase over first quarter production.
- Processed 181,488 tonnes of ore at an
average grade of 2.86 grams of gold per tonne and an average
recovery of 94.1%.
- Sold 15,178 ounces of gold at an
average realized price of $1,463 per ounce in Q2 2011.
- Achieved commercial production from the
Phase 2 open pit in April 2011.
- Commenced Phase 1 of the Black Fox Mill
expansion, which is expected to be completed and in service by the
second quarter of 2012, increasing processing capacity by 5 to
10%.
- Filled several key mine positions and
made progress with recruiting underground mining employees. At
present 90% of positions are filled.
- Reported positive drill results from
the newly discovered 147 Zone, which now extends to a vertical
depth of 240 metres below surface and remains open for
expansion.
- Signed an Impact Benefit Agreement with
the Wahgoshig First Nation.
- Will achieve commercial production from
the underground mine in the third quarter of 2011.
“We are encouraged by the continuing progress at our Black Fox
Mine. We significantly increased gold production in the second
quarter and expect further quarter over quarter increases for the
rest of 2011 as operations ramp up. We are working toward
definition of a resource on the recently discovered 147 Zone and
Contact Zone within the Black Fox Complex and expect to increase
profitability through the remainder of the year,” said Wade K.
Dawe, President and CEO for Brigus. “Development of the underground
mine has been slower than expected due primarily to staffing and
equipment challenges. We have recently made several key hires and
at present 90% of our mine positions are filled.”
Operational Summary
Three monthsended
June 30, 2011
Three monthsended
June 30, 2010
Six monthsended
June 30, 2011
Six monthsended
June 30, 2010
Production: Open pit ore tonnes mined 87,760 228,400 117,569
418,400 Open pit operating waste tonnes mined 1,533,069 1,459,304
1,624,136 3,264,416 Open pit capital stripping tonnes mined 712,273
340,756 2,896,404 407,244 Total open pit tonnes mined 2,333,102
2,028,460 4,638,109 4,090,060 Total underground ore tonnes mined
30,316 – 39,132 – Tonnes milled at Black Fox Mill 181,488 178,357
360,717 356,357 Tonnes milled per day 1,994 1,960 1,993 3,938 Head
grade of ore (gpt) 2.86 3.43 2.26 3.06 Recovery (%) 94% 92% 93% 93%
Total gold ounces produced 15,688 18,028
24,460 32,203 Total gold ounces sold
15,178 18,430 25,181 34,226
Overview
Phase 2 of the Black Fox open pit mine began producing ore in
April 2011 and is currently producing at a rate of 1,000 to 1,500
tonnes per day (“tpd”). During the second quarter 87,760 tonnes of
ore, at an average grade of 4.03 grams per tonne (“gpt”), were
produced from the open pit mine and 30,316 tonnes at an average
grade of 3.54 gpt were mined from the underground which resulted in
a credit to underground development cost of $4.3 million.
Underground production consisted of a combination of pre-production
ore and initial ore from a limited number of accessible stopes. The
balance of production during the quarter consisted of 63,412 tonnes
of low-grade ores drawn from existing stockpiles that were milled
at an average grade of 0.91 gpt.
The Black Fox underground mine is expected to reach commercial
production in the third quarter of 2011. Underground ore production
is expected to reach 800 tpd during the third quarter and
approximately 1,000 tpd by year-end, as previously announced, once
additional stopes are opened up.
Mill throughput averaged 1,994 tpd during the quarter and 2,115
tpd in the month of June 2011. Mill throughput is expected to
average 2,000 tpd for the balance of the year.
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 half of 2012. This
initial expansion will increase processing capacity at the mill to
up to 2,200 tpd. Processing capacity and recovery will be increased
through optimization of existing equipment, equipment additions and
elimination of production losses.
Continued positive exploration drill results from targets such
as the Contact Zone, the newly discovered 147 Zone, Gibson and Grey
Fox South represent near term potential to expand gold resources
and reserves.
2011 Outlook
Brigus projects increasing gold production quarter over quarter
during 2011 with higher-grade underground ore augmenting open pit
ore for a total throughput of 2,000 tpd at the Black Fox Mill. The
Company is projecting third quarter 2011 production of
approximately 17,500 ounces and quarter four production of
approximately 19,500 ounces.
Planned capital expenditures related to underground development
and mine equipment are estimated to be $37 million for 2011 as
previously guided. As a result of the adoption of IFRS,
approximately $15M in stripping costs will be capitalized in 2011,
which would have been charged to operating costs under US GAAP. The
Company has also initiated the Phase 1 mill expansion announced in
June 2011 and expects to incur $3.5 million of expenditures in
2011.
Exploration expenditures are expected to be approximately $12.4
million related primarily to increased drilling at the 147 Zone and
Contact Zones of the Black Fox Complex.
At the Goldfields Project in Saskatchewan, the Company expects
to complete an updated National Instrument (“NI”) 43-101 technical
report during the second half of 2011.
Please note a copy of the Company’s MD&A and financial
statements can be found on the website, www.brigusgold.com.
About Brigus
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 Black River-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 has a letter of intent to sell 75% of its
Ixhuatan silver-gold projected located in the state of Chiapas. In
the Dominican Republic, Brigus has a letter of intent to sell its
remaining interests in three mineral exploration projects.
Cautionary Note to U.S. Investors Concerning Estimates of
Mineral Resources
This news release uses the term mineral “resources”. The Company
advises U.S. investors that while these terms are defined in and
required by Canadian regulations, these terms are not defined terms
under the U.S. Securities and Exchange Commission (“SEC”) Industry
Guide 7 and are generally not permitted to be used in reports and
registration statements filed with the SEC. The SEC generally only
permits issuers to report mineralization that does not constitute
SEC Industry Guide 7 compliant “reserves” as in-place tonnage and
grade without reference to unit measures. U.S. investors are
cautioned not to assume that any part or all of mineral deposits in
these categories will ever be converted into reserves.
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; to achieve
ramping up the Black Fox underground mine to reach commercial
production by the end of the third quarter of 2011; estimated
average gold grades for the open pit and underground operations;
exploration and capital programs for 2011, including the estimated
expenditures; expansion of the Black Fox Mill capacity; increase in
gold production; increase in profitability; exploration drill
results and resource additions; and the Company’s ability to
deliver gold pursuant to the gold stream agreement, 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 Corp Ordinary Shares (Canada) (AMEX:BRD)
Historical Stock Chart
From Aug 2024 to Sep 2024
Brigus Gold Corp Ordinary Shares (Canada) (AMEX:BRD)
Historical Stock Chart
From Sep 2023 to Sep 2024