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Brigus Gold Reports Strong Q1 Financial Results

Brigus Gold Corp. (“Brigus” or the “Company”)(NYSE Amex: BRD; TSX: BRD) announces results for the first quarter of 2012 (“Q1-12”).

This press release should be read in conjunction with the Company’s condensed consolidated interim financial statements for the quarter ended March 31, 2012 and the December 31, 2011 consolidated financial statements and associated Management’s Discussion and Analysis (“MD&A”), which are available from the Company's website ( www.brigusgold.com) and on SEDAR ( www.sedar.com). All dollar amounts are expressed in US dollars unless otherwise specified. All financial results are presented in accordance with International Financial Reporting Standards (“IFRS”).

Key milestones include producing 16,922 ounces of gold - hitting the top end of our production guidance and achieving average grades of 5.28 grams per tonne (gpt) from the underground mine, up 95% from Q4-11.

First Quarter 2012 Financial Highlights

  • Gold sales improved by 60% to 16,033 ounces compared to 10,003 in Q1-11.
  • Operating margin increased 191% to $753 per ounce in Q1-12 from $259 per ounce in the prior year.
  • Cash flow from operations, before working capital adjustments, was $9.9 million during Q1-12, compared to $0.7 million in Q1-11.
  • Cash costs decreased to $858 per ounce, a 22% reduction from Q1-11 and 11% lower than Q1-12 guidance of $962.
  • Capital expenditures at Black Fox totaled $17.8 million, consisting of $8.1 million for underground development, $4.3 million for property, plant and equipment, $2.3 million related to capital stripping and $3.1 million related to exploration expenditures.
  • Raised $15.0 million from the issuance of common shares.
  • Raised $15.0 million from the sale leaseback of certain Black Fox Mill assets.
  • Subsequent to the quarter, Brigus divested of the Calais Notes for proceeds of $6.0 million to be received in the second and third quarters.
 

CONSOLIDATED FINANCIAL RESULTS

   

 

 

 

($ thousands, except per share and ounces)

       

For the three months ended

         

March 31, 2012

   

March 31, 2011

Revenue from the sale of gold         $ 25,823     $ 13,570
Direct operating costs         $ 14,032     $ 10,972
Income (loss) from operations         $ 3,480     $ (3,376)
Net income and comprehensive income         $ 5,520     $ 4,261
Basic earnings per share         $ 0.03     $ 0.02
Cash flows from operations, before working capital adjustments         $ 9,942     $ 741
Gold sales in ounces           16,033       10,003
Total cash cost per ounce of gold sold         $ 858     $ 1,097
 

First Quarter 2012 Operational Highlights

  • Gold production increased by 93% to 16,922 compared to 8,773 in Q1-11.
  • Underground production steadily improved during the quarter with average grade increased by 95% to 5.28 gpt compared to 2.71 gpt in Q4-11.
  • The open pit mined 220,580 ore tonnes at an average grade of 2.29 gpt, a 60% increase over the ore tonnes mined in Q4-11.
  • The Black Fox Mill processed 180,965 tonnes of ore, at a grade of 3.04 gpt and a recovery of 95.7%.
  • Continued positive drilling results from Grey Fox including 5.95 gpt over 56.7 m and 26.83 gpt over 15.50 m during the quarter.
 

RESULTS OF OPERATIONS

   
        For the three months ended
March 31     March 31
2012     2011
Metal Sales
Gold (ounces) 16,033 10,003
Silver (ounces) 858 436
Average realized gold price – including Sandstorm $ 1,611 $ 1,356
Average realized gold price – excluding Sandstorm $ 1,687 $ 1,380

Production

Open pit ore tonnes mined 220,580 29,809
Open pit operating waste tonnes mined 1,327,362 91,067
Open pit capital stripping tonnes mined 753,360 1,890,451
Open pit overburden tonnes mined           293,680  
Total open pit tonnes mined 2,301,302 2,305,007
Total underground ore tonnes mined   35,147         8,816  
Total tonnes mined   2,336,449         2,313,823  
 
Tonnes milled 180,965 179,229
Tonnes milled per day 1,989 1,991
Head grade of ore (gpt) 3.04 1.67
Recovery (%) 96 % 91 %
Gold ounces produced 16,922 8,773
 
Total cash costs ($/ounce): $ 858 $ 1,097
Operating Margin ($/ounce): $ 753 $ 259
 

“We are pleased with Brigus’ progress so far this year,” said Wade Dawe, President and CEO of Brigus. “Gold production continues to increase and costs are lower than expected. Current production levels put us on track to meet our guidance for Q2 and we are confident the mine will reach a steady state production level of approximately 25,000 ounces per quarter by year-end”.

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