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Brigus Gold Completes New
Ventilation Raise and Prepares for Commercial Production from Underground
Mining at Black Fox
Halifax, Nova
Scotia � February 23, 2011� Brigus
Gold Corp. (�Brigus� or the �Company�) (TSX: BRD;
NYSE Amex: BRD) is making steady progress towards the commencement of
commercial production from underground operations at its Black Fox Mine in
the Timmins Gold District, Ontario, Canada.
Underground ore production from new mining stopes
is expected to exceed 250 tonnes per day (�tpd�) by March 15, 2011, ramping up to an average of 800 tpd in the second quarter of 2011 (�Q2 2011�) and to
1,100 tpd by the fourth quarter of 2011 (�Q4
2011�). The higher grade underground ore will augment production from
the Black Fox open pit, resulting in projected increases in
quarter-over-quarter gold production for 2011.
Underground
Development Update
Construction of the ventilation and service raise, which includes the
secondary egress manway, was completed on February
12, 2011. The associated underground services, including fans, heaters,
compressed air and power supply are undergoing final connection and
commissioning. The connection to the upgraded power supply, serving the
underground operations, will enable increased utilization of major mining
equipment and result in an acceleration of development progress.
Several other systems including radio communications,
have been installed and are functioning.
Immediately following the commissioning of the ventilation and service raise,
the old infrastructure will be removed. The removal of the old
infrastructure is expected to be completed by March 15, 2011, following which
ore mining and production will recommence in the open pit. During this
period, Brigus will continue to process existing
stockpiles of lower grade ore (~1.4 gpt) at the
2,000 tpd Black Fox Mill. Overburden removal
for Phase 2 of the open pit commenced in July 2010 and was substantively completed
at the end of 2010. Waste mining in Phase 2 of the open pit has
progressed well since commencement in December 2010.
The new portal and ramp access is over 80% complete, with only one short
section near surface remaining. Brigus� mine
team is driving the ramp from surface, while the mining contractor is
advancing up from underground. To date, 820 metres
have been completed in the new ramp, with the longest section from the
235-metre level to the 140-metre level completed on February 8, 2011.
Final commissioning of the new ramp will occur by March 24,
2011.
Underground development continues on both the eastern and western limbs of
the ore body. On the east side of the underground mine, ore development
has begun on the 260-metre level and the main ore zone has been
intersected. The main decline ramp is continuing at depth towards the
next mining horizon. On the 260-metre level, multiple ore development
headings are currently being advanced in order to establish new working stopes to achieve the commercial production rate of 800 tpd of ore from underground during Q2 2011. The
2011 mine plan is being adjusted to reflect the updated schedule and guidance
will be provided following completion and commissioning of the portal and
ramp.
Richard Allan, Vice President and Chief Operating Officer, said, �The ongoing
commissioning of the ventilation and service raise is a critical milestone in
being able to accelerate the underground development. We are nearing
completion and commissioning of the new portal and ramp to allow commercial
production to be achieved by the end of March 2011. Our open pit mining
will resume normal operations in March 2011 and we look forward to beginning
Q2 2011 with both the underground and open pit mines going full bore. We are
well positioned to achieve quarterly production increases over 2011.�
Recruiting of the underground workforce has been ongoing since the beginning
of the year and is progressing well, with 41 miners hired at Black Fox.
Brigus expects to be fully staffed for the
underground operations by mid 2011. In the interim period, Brigus will continue to augment its workforce with
contract miners.
The Company believes that there is significant upside opportunity for
additions to reserves and resources from its ongoing exploration drilling
program within the Black Fox Complex, including potential extensions to the
Black Fox ore body. Continuing exploration drilling success at the
Contact and Gibson Zones and planned 2011 exploration at the former Stock
gold mine, located at the Black Fox Mill, provide additional upside
potential. Brigus will commence drilling from
underground at the Black Fox mine mid year, as the orebody remains open for expansion in several
areas.
Qualified Persons
The Qualified Persons who reviewed the technical information of this news
release were Richard Allan, P. Eng., Vice President and Chief Operating
Officer for Brigus.
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 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 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
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
exploration projects.
Cautionary
and Forward-Looking Statements
This news release includes �Forward-Looking Statements� within the meaning of
section 21E of the United States Securities Exchange Act of 1934, as
amended. All statements regarding the ability of the Company to
successfully complete the underground infrastructure, including commissioning
of a new ventilation raise and portal; to commence underground and resume
open pit mining as projected; to increase gold production
quarter-over-quarter; to be able to hire sufficient skilled workers; to
ensure that the underground contractor meets its schedules; and to be able to
add to reserves and resources 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 and its predecessor companies� 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, 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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