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Brigus Gold Provides Black
Fox Mine Update
Halifax, Nova
Scotia; June 7, 2011� Brigus Gold
Corp. (�Brigus� or the �Company�) (NYSE Amex: BRD;
TSX: BRD) is pleased to provide an update on continuing progress at its Black
Fox Mine.
- The
Company expects the Black Fox Mine to produce between 16,500 and 18,000
ounces of gold in the second quarter of 2011 (April to June).
- The
Black Fox Mine is expected to reach a steady state annual production
level of 104,000 ounces of gold in the third quarter of 2011.
- 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 from the Phase 2 open pit was achieved in April
2011 and underground production continues to ramp up with commercial
production levels expected to be attained in June 2011.
- The
Company is currently mining 300 to 400 tonnes
per day (tpd) from the underground.
Underground production is a combination of ore from the five mining stopes that are currently open and lower-grade
development ore. Underground ore grades from the mining stopes are in line with the mine plan.
Underground production, at an average grade of 6.2 grams per tonne (gpt), is expected
to increase to 800 tpd by July 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 1,600 to 1,700 tpd of ore, at an average grade of 3.4 gpt, which together with underground production is
maintaining the Black Fox Mill�s 2,000 tpd
throughput capacity. Open pit ore grades are in line with the mine
plan. Mining from the open pit will be reduced as higher-grade
underground ore production increases through the year.
- Open
pit mining was restricted in 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 8,500 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.
- 2011
gold production is expected to total 73,000 to 80,000 ounces for the year.
Cash costs will trend downward through the year and are expected to be between $575 to $625 per ounce by year-end.
�We are
encouraged by the production growth at the Black Fox Mine,� said Wade K. Dawe, President and CEO of Brigus.
�Increasing production levels and ongoing positive drilling results from our
newly discovered 147 Zone confirm that we have turned the corner at Black Fox
and set the stage for a positive second half of the year. We will reach
steady state production of over 100,000 ounces annually in the third
quarter.�
In conjunction with the ramp up of underground production and ongoing
exploration success, the Company has commissioned an engineering study to
review possible expansion scenarios for the Black Fox Mill. The results
from this initial conceptual study will be provided before the end of June
and will evaluate the opportunity for a multi-year phased increase in
throughput from the current level of 2,000 tpd to a
Phase 1 level of approximately 2,200 tpd and a
Phase 2 level of approximately 3,000 tpd. As
part of the mill expansion, the implementation of a gravity circuit and
additional leach capacity, are expected to improve the recovery rate as well
as the overall production throughput capacity.
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.
Contact
Information:
Jennifer Nicholson CA
Vice President, Investor Relations
Phone: 902/422-1421
Email: ir@brigusgold.com
Wendy Yang, Vice President
Phone: 303-524-3203
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.
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