HALIFAX, Nova Scotia (Business Wire) -- (NYSE MKT: BRD; TSX: BRD) – Brigus Gold Corp. (“Brigus” or the “Company”) is pleased to announce that it has met its production guidance for a second consecutive quarter. During the second quarter of 2012, the Company produced 18,254 ounces of gold at an average grade of 3.30 grams per tonne (gpt) and a projected cash cost of between $800 and $825 per ounce. Production at the Company's Black Fox Mine continues to increase as development progresses towards larger ore zones at depth.
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In early June, a breakdown of the Company's tertiary cone crusher at the Black Fox Mill resulted in a temporary decrease in mill throughput and production. A contract crusher was mobilized to site while attempts were made to repair the damage. The contract crusher was unable to meet throughput quotas as it could not crush the ore small enough to achieve targeted gold recovery. This resulted in an 11 percent reduction in production for the month of June. A new cone crusher has been installed and throughput has returned to normal operating levels.
“We are pleased to have met our quarterly production target despite the challenges faced in the quarter,” said Wade Dawe, Brigus' President and CEO. “This speaks volumes to the progress that has been made at the Black Fox Mine and Mill and the quality of the staff and management. The team continues to ramp up underground production and is on track to develop larger ore zones at depth. As these larger zones are brought into production and the open pit continues to deliver higher grade ore, I am confident that we will continue to meet our targets for the remainder of the year.”
The open pit continues to perform as expected. Preparations for Phase 3 overburden removal are on-going and this work is scheduled to commence in the third quarter. Production from Phase 3 will begin in 2013.
The mill processed 178,002 tonnes of ore at an average grade of 3.30 grams of gold per tonne and an average recovery of 96.6% in the quarter. Throughput averaged 1,956 tonnes per day.
Brigus continues to forecast full year gold production of 77,000 to 85,000 ounces for 2012:
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 has granted Cangold Limited the option to acquire a 75% interest in the Company's 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 Corp.Jennifer Nicholson, CA
Executive Vice President
Phone: (902) 442-7186
Manager, Stakeholder Relations
Phone: (902) 442-7184