Brigus Gold Completes Construction of
Scotia; March 28, 2011� Brigus Gold
Corp. (�Brigus� or the �Company�) (TSX and NYSE
Amex: BRD) reports the successful completion of construction of the new
underground infrastructure at its Black Fox Mine (�Black Fox�) and the
commencement of underground ore production.
Open Pit Mining
On March 24, 2011, Black Fox achieved a significant milestone with the
completion of the new 1.1 kilometre ramp leading
from surface to the 235 metre level
underground. The new ramp enables the Company to use its much larger and
more productive haulage fleet as part of the underground mine plan.
Underground mining is expected to exceed 250 tonnes
per day (�tpd�) of ore at the end of March 2011,
achieve commercial production in April 2011 and ramp up to 1,100 tpd by the end of 2011.
Mining of ore from the Phase 2 open pit also began on March 23, 2011
following commissioning of the new ventilation and service raise and removal
of the old facility. Mining of ore from the Phase 1 of the open pit had
been restricted beginning in December 2010 as the Company completed
construction of underground infrastructure.
The Black Fox Mill is expected to operate at 2,000 tonnes
per day with feed coming from both the underground and the open pit. In 2011
the underground mine is expected to produce an average grade of 6.2 grams of
gold per tonne (�gpt�)
with open pit ore grading at an average of 3.2 gpt.
During April 2011, as production from the underground and Phase 2
operations ramps up, less than 20% of ore will come from the low-grade ore
stockpiles at an average grade of 1.4 gpt.
The combination of these feeds to the mill is expected to enable Brigus to increase gold production quarter-over-quarter
Wade K. Dawe, Chief Executive Officer and President
of Brigus, said, �The completion of the underground
development is an important achievement for our company. In the nine
months since Brigus was formed, we have focused on
completion of the underground development, strengthening our balance sheet
and positioning our Company for the future. Now that ore is being mined
from both the underground and open pit, we will focus on generating positive
cash flow and profitability.�
Q1 2011 Production
As previously reported, during the underground construction, the Black Fox
Mill processed ore from the low-grade stockpiles. In the first quarter of
2011 (�Q1 2011�), the Company estimates that 90% of ore throughput at the
2,000 tpd Black Fox Mill was from these ore
stockpiles. The balance of throughput was from open pit ore from the
remnants of Phase 1 and initial pre-production underground ore. The Company
projects Q1 2011 production of approximately 8,500 ounces of gold.
Brigus will provide further information about its
2011 outlook in its announcement of fourth quarter and full year 2010
financial results by the end of this week.
The Qualified Person who reviewed the above technical information related to
operations of the Black Fox Mine and Mill is Chief Operating Officer and Vice
President Richard Allan, P. Eng.
In March 2011, Black Fox Mill was recognized by the Porcupine Northern
Ontario Mines Safety Group with the Angus D. Campbell trophy for the member
mining company with the lowest lost time accident frequency record.
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 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 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 holds a 100% interest in the Ixhuatan
Project located in the state of Chiapas. In the Dominican Republic, Brigus Gold has a joint venture covering three mineral
Jennifer Nicholson, Vice President of Investor Relations
Toll Free: 1-866-785-0456
Wendy Yang, Vice President
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 and maintain targeted gold production at Black Fox, including
commercial production and ramp up of the underground mine, future gold
production at Black Fox, throughput at the Black Fox Mill, the ore grades for
underground and open pit ores, the generation of positive cash flow and profitability,
and the timing of future disclosure of financial results and 2011 outlook 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 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
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.