HALIFAX, Nova Scotia (Business Wire) --
Brigus Gold Corp. (“Brigus” or the
“Company”) (NYSE MKT:
BRD;
TSX:
BRD) is pleased to announce a new
National
Instrument 43-101 (“NI 43-101”) mineral resource estimate for the 147 and
Contact zones on the Grey Fox property of the Black Fox Complex, which covers
approximately 18 square kilometres within the Timmins Mining District.
Highlights of the updated resource estimate include:
| Zone |
|
Indicated
Ounces |
|
Inferred Ounces
|
|
| 147
|
|
279,244
|
|
51,261
|
|
| Contact |
|
201,606
|
|
39,800
|
|
| Total |
|
480,850
|
|
91,061 | | | |
|
|
Brigus announced an initial resource estimate from Grey Fox in December 2011.
The focus of the Company's exploration drilling program over the last year has
been to convert Inferred ounces to Indicated ounces through systematic in‐fill
drilling. The new resource is based on a total of 488 holes and approximately
65,000 metres of drilling.
“
We have increased the Indicated gold resource at Grey Fox from 116,710 to
480,850 ounces. This is a
material increase in the Company's total Indicated
resource and adds substantial value to the Black Fox Complex,” said Howard Bird,
Brigus Gold's Senior Vice President of Exploration. “Both the 147 and Contact
zones remain open at depth and the Contact Zone remains open along strike to the
north. We are excited about the near term potential to further increase this
resource with on-going drilling.”
Approximately 84 percent of the new resource occurs within 200 m from surface
where most of the drilling has taken place and therefore has open pit mining
potential. Over the next year Brigus will focus on extending and expanding both
the 147 and Contact zones through systematic drilling below the 200m level and
along strike to build a resource suitable for underground mining.
“Exploration drilling over the last year has converted a large portion of our
Inferred gold resource to Indicated,” said Wade Dawe, Brigus Gold's President
and Chief Executive Officer.
“We are confident that the Grey Fox property has
the potential to host in excess of one million ounces of gold.”
This new resource
does not include results from Brigus' newly discovered Grey
Fox South Zone.
This multiple horizon gold zone is located approximately 400
metres to the east and running sub-parallel to the 147 Zone. Drilling is
on-going at Grey Fox South and has intersected the gold mineralized trend over a
275 metre strike length. The zone remains open in all directions. Two drilling
rigs are focused on defining the orientation and size of gold mineralized shoots
and extending the mineralization along strike.
All three zones occur within close proximity of each other and provide Brigus
with near term production growth opportunities because of their proximity to the
Black Fox Mine infrastructure.
Summary of New Mineral Resource Estimate – 147 and
Contact Zones
The new mineral resource estimates are reported to reflect potential open pit
and underground resource values for both the 147 and Contact Zones which include
calculated cut-off grades of 0.65 g/t gold for potential open pit mining and
2.63 g/t gold for potential underground mining based on parameters from the
Black Fox Mine. The reported potential open pit resource was based on the
resources above a plane approximately 200 m below surface level and the
potential underground resource estimate was based on the remaining resources
below the 200 m level plane.
|
Black
Fox Complex - 147 and Contact Zones |
|
Resource
Class
|
|
Cut-off Grade
(g/t Au)
|
|
Potential
Material
|
|
Tonnes |
|
Capped
Au (g/t)
|
|
Contained
Au (oz)
|
|
| Indicated |
|
2.63
|
|
Underground |
|
231,478
|
|
5.4
|
|
40,506
|
|
|
0.65
|
|
Open Pit |
|
6,873,900
|
|
2.0
|
|
440,342
|
|
|
Total
Indicated |
|
7,105,378
|
|
2.1
|
|
480,849
|
|
| Inferred |
|
2.63
|
|
Underground |
|
143,852
|
|
3.7
|
|
17,219
|
|
|
0.65
|
|
Open Pit |
|
1,548,415
|
|
1.5
|
|
73,843
|
|
|
Total
Inferred |
|
1,692,267
|
|
1.7
|
|
91,061
|
|
|
|
Notes:
1) The effective date of this resource estimate is 14 August,
2012.
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 version Gemcom GEMS 6.4.1 . 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 Ordinary Kriging and Inverse
Distance Weighting Squared methods, and was based on 1.5 m composites within a
3m long x 3m wide x 3m high block model. Nearest neighbor interpolation was also
used for grade estimation and validation. The ordinary kriged grade model for
the Contact and 147 Zones was felt to best represent the continuity and
distribution of the gold grade based on the current geological model.
5) Bulk
densities were assigned to the five of the six interpreted lithological domains
based on 1,162 density measurements. The average of the bulk density
measurements, 2.88 t/m
3, was used for all other lithologies.
6) No
recoveries were applied to the estimated grades.
7) 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%.
The 147 Zone mineral resource estimate is based on 266 core holes. The core
area of the zone is approximately 275 m in a north-south direction dipping at
approximately 80 degrees to the east. The gold mineralization primarily occurs
within multiple quartz carbonate brecciated zones within bleached units of
variolitic mafic volcanics and other parallel hanging wall and foot wall gold
mineralized zones. The 147 Zone remains open at depth. Most recently, targeted
drilling has intersected the 147 Zone at a vertical depth of approximately 435 m
below surface.
The Contact Zone resource is based on 222 core holes. 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.
All potential future mining on the 147 and Contact zones in the Grey Fox area
will be supported by the nearby Black Fox mine infrastructure. This area falls
within the ongoing environmental monitoring program associated with the Black
Fox mine operation. Initial hydrogeological test work and Acid Base Accounting
(ABA) testing of various rock types is complete. Good progress is being made
with Baseline Terrestrial Studies, Closure Plan, Mine Water Ponds, and
Preliminary Review for Air Emissions and Metallurgical test work. A preliminary
economic assessment (“PEA”) for Grey Fox will be released in Q4, and will
incorporate the new resource.
Qualified Persons and Technical Report
The new mineral resource estimate announced in this release was prepared by
Mr. Paul Daigle, P.Geo., an employee of Tetra Tech (Tetra Tech), and an
Independent Qualified Person ("QP"), as defined by Section 1.5 of NI 43-101. Mr.
Paul Daigle and Senior Exploration Project Manager Mr. John A. Dixon, P. Geo.,
have reviewed and approved 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 to support disclosure of
the new 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 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 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.
Brigus Gold Corp.Jennifer Nicholson, CA
Executive Vice
President
(902) 442-7186
Email:
jnicholson@brigusgold.com
or
Katherine Burgess
Manager, Stakeholder
Relations
(902) 442-7184
Email: kburgess@brigusgold.com
