(NYSE MKT: BRD; TSX: BRD)
Dear Fellow Shareholders:
With 2012 coming to an end, I wanted to take this opportunity to share with you our successes, challenges, and plans.
Over the course of the past year, the Brigus team worked diligently to strengthen the Company and we are well positioned for growth. We have the right people in place, a rich ore body at our Black Fox mine and tremendous exploration potential at the Black Fox Complex. Gold production increased every quarter in 2012, a trend that will continue into 2013 as we reach annual steady state production levels of 90,000 to 100,000 ounces.
Increasing Gold Reserves and Resources through Targeted Exploration
For the first time since 2007, we are conducting underground exploration drilling at the Black Fox mine. The drill program, which began in June of this year, is exploring below the 500-metre level since ore bodies in the region often extend to depths of more than 1,000 metres. We have two rigs working from a new exploration drift on the East side of the underground mine. Initial results show excellent gold grades over significant widths. We are encouraged by these results and believe the ongoing drill program will extend the Black Fox ore body to deeper levels, increasing the known gold resource at the mine and the life of Black Fox.
Over the past two years, Brigus has also led a very successful exploration program on the southeast portion of the Black Fox Complex. The Company discovered three mineral zones in this area: 147, Contact and Grey Fox South. The new mineral resource estimate released in September for the 147 and Contact zones defined a resource of 571,000 ounces, including 480,850 ounces in the indicated category. The recently discovered Grey Fox South Zone is in its early stages but is already showing great potential to significantly increase the Company’s gold resources.