Brigus Gold Corp. (NYSE MKT: BRD; TSX: BRD)(“Brigus” or the “Company”) provides a corporate update for the third quarter of 2012. Production Brigus Gold has revised and optimized production and development priorities at the Black Fox Mine. Gold production continues to increase, but the Company is making adjustments to mining and development plans in order to develop new ore zones which will enable growth and higher production levels for the long term. Brigus is currently in the process of allocating more resources and work crews for the development of a large ore block on the western side of the underground mine. This ore zone extends deeper and is larger than indicated by historical drilling and therefore requires more resources in the short term to meet current development schedules. While development of this zone is progressing, mining in other areas will be marginally reduced. Production will commence on schedule during quarter four, as previously reported. To compensate for reduced tonnage from underground in the short term, the Company is processing lower grade stockpiled material from the open pit. Grades from the underground continue to meet expectations. As a result of revisions to the Company’s work plan, gold production in quarter three will be incrementally higher than quarter two but will be less than previous estimates. Cash flows and operating profitability will increase in quarter three and cash costs per ounce will continue to trend lower. The ore zone under development on the western side of the orebody has an average grade of approximately 6.0 grams per tonne. To properly develop the long-hole stope it is important to begin mining from the bottom of the zone to prevent a significant quantity of ounces from being sterilized. While the development of the long-hole stope is very positive for the future of the Black Fox Mine, there is a modest impact on gold production in the short term. Brigus made the decision to allocate more time and resources to develop this ore zone in order to maintain its production timelines for quarter four as planned. The long-hole mining method will result in lower costs and higher ore recovery rates than traditional cut and fill mining methods. It is expected to provide 400 to 500 high-grade tonnes per day for at least 18 months once it is fully operational.
The Company is also pleased to report that diamond drilling on the eastern side of the underground is producing encouraging results. Drilling is in progress from a new exploration drift at the 9674 metre level and is targeting the eastern down plunge of the orebody. Initial drill results indicate that the eastern zone extends at depth and remains open for expansion. The Company will report on its progress as drilling continues."The large ore zone on the western side and the initial diamond drilling results on the eastern side indicate a positive future for the Black Fox Mine” said Daniel Racine, Brigus newly appointed Chief Operating Officer. “We are working hard to balance short term objectives, while investing for the future with a long term corporate plan that will provide the best return for our shareholders.” Appointment of New Chief Financial Officer Dana Hatfield has resigned as Brigus’ Chief Financial Officer to pursue other opportunities. Jon Legatto, Brigus Vice President Finance has been appointed as CFO. The Company will eliminate the VP Finance position and will consolidate all related duties in the CFO role. “I want to thank Dana for his contribution to the Company and wish him the best with his future endeavours,” said Wade Dawe, Brigus President and Chief Executive Officer. ”Jon is a key member of our management team and I am confident he will excel as our new CFO.” Grey Fox Resource Planning is underway to develop the Grey Fox Mine located on the southeast portion of the Black Fox Complex. The initial resource estimate from this area, announced in December 2011, added more than 50 percent to the gold resource at the Black Fox Complex. Brigus is in the process of expanding the resource and converting Inferred ounces to Indicated ounces through systematic in‐fill drilling. An updated resource estimate will be released later this month. Initial engineering studies have been initiated and will continue through 2012 to determine project economics as well as development and production timelines. A preliminary economic assessment (“PEA”) for Grey Fox will be released in Q4, and will incorporate the new resource.
Gold Production OutlookBrigus is on track to meet its annual gold production guidance for 2012. 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 has granted Cangold Limited the option to acquire a 75% interest in the Company’s Ixhuatan Project located in the state of Chiapas. In the Dominican Republic, Brigus has signed an agreement to sell its remaining interests in three mineral exploration projects. Cautionary and Forward-Looking Statements 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 its production, total cash costs, steady state annual production and mining rate estimates; estimated average gold grades for the open pit and underground operations; increase in gold production; increase in profitability; exploration drill results and resource additions, are forward-looking statements and estimates that involve various risks and uncertainties. This forward-looking statements include, 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’ most recent Annual Information Form and Management Discussion and Analysis filed under the Company’s name at www.sedar.com and annual report on Form 40-F filed with the United States Securities and Exchange Commission at www.sec.gov as well as elsewhere in Brigus’ 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.