Image via Wikipedia 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.
SOURCE: Brigus Gold Corp.
-- 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.
SOURCE: Brigus Gold Corp.
Brigus Gold Corp. Jennifer Nicholson CA Vice President, Investor Relations 902-422-1421 ir@brigusgold.com
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