Brigus Gold Corp. (“Brigus” or the “Company”) (NYSE Amex: BRD)
(TSX: BRD) is pleased to announce an initial National Instrument
43-101 (“NI 43-101”) compliant, independent mineral resource
estimate for the 147 and Contact zones on the Black Fox Complex.
Highlights of the initial resource estimate include:
Zone Indicated ounces Inferred ounces
Number of Holes Included Number of
Holes Pending 147 43,820 351,910
86 59 Contact 72,890
107,510 169 36
TOTAL
116,710 459,420
255 95
“We are very pleased with the initial resource estimate,” said
Howard Bird, Brigus’ Vice President of Exploration. “We believe
these resource ounces represent near-term production opportunities
given their proximity to our Black Fox infrastructure including the
Black Fox mill which is currently being expanded. In addition,
there are another 95 drill holes, with assays pending, that have
not been included in the initial resource calculation and will
increase our resource area drill hole data by 37% upon receipt of
final assays. We expect the results from these holes will expand
the resource and convert Inferred ounces to Indicated ounces in
2012.”
Brigus’ exploration program continues to confirm the potential
for new gold discoveries within the Black Fox Complex, which covers
approximately 18 square kilometres within the Timmins Mining
District. The 147 and Contact zones are located approximately four
kilometres (“km”) southeast of Brigus’ operating Black Fox gold
mine.
Summary of Initial Mineral Resource
Estimate – 147 and Contact Zones
The reported mineral resource estimates reflect resource values
which include calculated cut-off grades of 2.63 grams per tonne
(“g/t”) of gold for a potential underground mine at the Contact
Zone and 0.65 g/t of gold for an initial open pit mine at the 147
Zone.
147 and Contact Zones RESOURCE CLASSIFICATION
Cut-Off Grade Tonnes Gold Grade (g/t)
Ounces
Indicated Potential
Underground >2.63 g/t Au 323,800
6.991 72,890 Potential Open Pit
>0.65 g/t Au 543,300 2.505
43,820
TOTAL 867,100
4.180 116,710 RESOURCE CLASSIFICATION
Cut-Off Grade Tonnes Gold
Grade (g/t) Ounces
Inferred Potential
Underground >2.63 g/t Au 565,700
5.902 107,510 Potential Open Pit
>0.65 g/t Au 4,898,800 2.231
351,910
TOTAL 5,464,500
2.611 459,420
Notes:
1) Mineral resources, which are not mineral reserves, do not
have demonstrated economic viability.
2) The quantity and grade of reported Inferred resources in this
estimation are uncertain in nature and there has been insufficient
exploration to define these Inferred resources as an Indicated or
Measured mineral resource and it is uncertain if further
exploration will result in upgrading them to an Indicated or
Measured mineral resource category.
3) CIM definitions and guidelines were followed for mineral
resources.
4) The resource was estimated using Gemcom version GEMS 6.3.1.
The database used for the estimate comprised diamond drill core
composites and assays. All samples were collected by Company
personnel. A top cut of 100 g/t was applied to assay grades prior
to compositing grades for interpolation into model blocks using
Inverse Distance Weighting Squared and was based on 1.5 m
composites within a 3m long x 3m wide x 3m high block model.
Ordinary kriging and nearest neighbor interpolation were also used
for grade estimation and validation. The inverse distance grade
model was felt to best represent the continuity and distribution of
the gold grade based on the current geological model.
5) A bulk density of 2.90 t/m3 was used for all tonnage
calculations.
6) A gold price of US$1,250/oz and an exchange rate of
US$1.00=C$1.00 was utilized in the gold cut-off grade calculations
of 2.63 g/t for potential underground and 0.65 g/t for potential
open-pit mineral resources. Underground and open-pit mining costs,
process costs and G&A costs were estimated using experience
gained from Brigus’ Black Fox mine. Process recovery was assumed at
95%.
7) See “Cautionary Note to U.S. Investors Concerning Estimates
of Mineral Indicated and Inferred Resources” at the end of this
press release for an important note regarding indicated and
inferred resources.
The 147 Zone mineral resource estimate is based on 86 core drill
holes. The samples lie within the central area of the zone which is
approximately 275 m in a north-south direction dipping at
approximately 80 degrees to the east. The gold mineralization
occurs primarily within multiple quartz carbonate brecciated zones
hosted within bleached units of variolitic mafic volcanics and
other parallel hanging wall and foot wall gold mineralized zones.
The 147 Zone has returned positive gold drill results to a vertical
depth of approximately 300 m below surface and recent deep targeted
drilling has intersected the 147 Zone at a vertical depth of
approximately 435 m below surface (assays are pending).
The Contact Zone resource is based on 169 core holes drilled at
relatively close spacing. The gold mineral resource estimate lies
within approximately 450 m of strike length and mineralization
remains open along strike to the north and down dip. The Contact
Zone consists of a steeply dipping mineralized fault contact
between the north-south trending metasediments and mafic volcanic
rocks, and includes parallel foot wall and hanging wall gold
mineralized zones.
A conceptual desktop study has been initiated to examine
operating the 147 Zone as a combined open pit and underground mine
and the Contact Zone as an underground mine. It is envisioned that
the Contact Zone will be accessed by drifting approximately 250 m
eastward from the existing Gibson Deposit portal and ramp system.
All future mining on the 147 and Contact zones will be supported by
the nearby Black Fox mine infrastructure. As the first step in the
permitting process, hydrogeological studies and waste rock
characterization test work in the 147 and Contact zone area began
in September 2011. This area falls within the ongoing environmental
monitoring program associated with the Black Fox mine
operation.
2012 Black Fox Complex Surface
Exploration Drilling Program
Brigus has an $8.0 million surface exploration budget for 2012
and will focus on an aggressive exploration program to expand the
147 and Contact zones as well as convert the inferred resource to
the indicated resource category. An updated 147 and Contact zone
mineral resource estimate will be released in 2012.
Surface drilling will also test the potential of the Grey Fox
South Zone, the historic Gibson Deposit Zone and other areas of the
Black Fox Complex.
- The Grey Fox South Zone was discovered
in December 2010 with three drill holes that intersected up to
10.65 g/t gold over a core length of 6.0 m that included 23.32 g/t
over 1.0 m.
- The historic Gibson deposit underwent
limited underground bulk sampling in the late 1980s returning a
grade of 9.5 g/t gold from 8,000 tonnes. The deposit was accessed
via a ramp system and is developed on two levels. Brigus recently
completed 20 drill holes to further test the deposit. Assay results
are pending.
- Approximately 200 m to the north of the
Contact Zone, hole GF11-337 was released in November 2011 and
intersected 3.59 g/t of gold over a core length of 9.00 m, that
included 10.63 g/t gold over 1.00 m. Assay results are pending for
an additional five drill holes over a 50 m strike length near this
hole.
The Black Fox gold mine is hosted by the Destor Porcupine Fault
Zone. Brigus’ Black Fox Complex covers approximately six km of the
productive gold mineralized trend all of which represents an
attractive exploration target. In addition, Brigus’ exploration
program will test several Titan 24 Deep Induced Polarization (IP)
and Magnetotellurics (MT) geophysical survey anomalies completed in
2010. The survey identified at least 35 geophysical anomalies with
the potential for gold mineralization from near surface to more
than 1,500 m depth. Twelve IP anomalous zones have been classified
as first priority for drilling, and 14 as second priority targets.
Nine MT resistivity-low anomalous zones have been delineated from
700 m to more than 1,500 m depth and may represent mineralization,
structures and/or alteration at depth for follow-up evaluation.
2012 Black Fox Mine Underground
Exploration Program
The Black Fox underground mine exploration drilling program is
expected to begin in 2012. The program is intended to expand the
Black Fox gold deposit along strike and down-dip. The program is
designed to offset drill results from the 2004 underground fan
drilling program from the last southeast drill station located at
the end of the 235 m level exploration drift. This drilling
returned significant true width gold results including 31.16 g/t
over 6.25m (hole 235-296) and 7.48 g/t over 3.49 m (hole
235-295).
Qualified Persons and Technical
Report
The mineral resource estimates announced in this release, with
an effective date of December 14, 2011 were prepared by Mr. Tim
Maunula, P.Geo., of Wardrop, A Tetra Tech Company (Tetra Tech) of
Toronto, Ontario, an Independent Qualified Person ("QP"), as
defined by National Instrument 43-101. Mr. Tim Maunula and Senior
Exploration Project Manager Mr. John A. Dixon, P. Geo., reviewed
the technical exploration information in this release. Mr. Dixon is
the Qualified Person for the Company.
Tetra Tech is preparing a NI 43-101 Technical Report in support
of the mineral resource estimate. This report will be filed by
Brigus in its entirety on SEDAR (www.sedar.com) within 45 days of
the date of this news release, and the report will also be
available on Brigus’ website at www.brigusgold.com.
All sample analyses were performed by Polymet Labs of Cobalt,
Ontario, SGS Laboratories of Sudbury, Ontario and Swastika
Laboratories of Swastika, Ontario using standard fire assay
procedures. Brigus Gold’s quality control checks include insertion
of blanks, standards and duplicates to ensure laboratory
accuracy.
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 Mine and Mill in the Timmins gold
district of Ontario, Canada. The Black Fox Complex encompasses the
Black Fox Mine and adjoining properties, 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 Gold has completed its transaction to sell a 75% interest in
the Ixhuatan Project located in the state of Chiapas to Cangold. In
the Dominican Republic, Brigus has signed an agreement to sell its
remaining interests to Everton Resources.
Cautionary Note to U.S. Investors
Concerning Estimates of Indicated and Inferred
Resources
This news release uses the term “indicated resources” and
“inferred 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. The estimation of indicated and
inferred resources involves greater uncertainty as to their
existence and economic feasibility or viability than the estimation
of proven and probable reserves. U.S. investors are cautioned not
to assume that any part or all of mineral resources in these
categories will ever be converted into reserves or that estimates
of inferred resources exist, are economically minable, or will be
upgraded into measured or indicated mineral resources.
Cautionary and Forward-Looking
Statements
Statements 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 Company's ability to successfully
expand the Black Fox Complex gold resource, add to Black Fox
resources, advance new discoveries to production, convert resource
estimates into near-term production, release of an updated mineral
resource estimate in 2012 and the Black Fox underground mine
exploration drilling program and continue to obtain positive down
dip continuity of significant gold mineralization are
forward-looking statements and estimates that involve various risks
and uncertainties. There can be no assurance that such statements
will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements.
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 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 and
elsewhere in Brigus Gold’s documents filed from time to time with
the Toronto Stock Exchange, the NYSE Amex, 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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