HALIFAX, Nova Scotia--(BUSINESS WIRE)--Brigus Gold Corp. (“Brigus” or the “Company”)(NYSE Amex: BRD; TSX: BRD) is pleased to announce that it produced 16,922 ounces of gold at an average grade of 3.04 grams per tonne (gpt) in the first quarter of 2012 – hitting the top end of its guidance.
| Month | Ounces Produced | Average Grade | ||||
| January | 5,128 | 2.81 | ||||
| February | 4,842 | 2.72 | ||||
| March | 6,952 | 3.55 | ||||
| Total | 16,922 | 3.04 |
Production ramped up through the quarter as operational improvements took effect. In March, underground production materially increased as more working faces were opened. Production from the underground mine will continue to improve through the year as the Company adds additional mining faces and continues developing towards larger ore zones at depth.
The open pit is performing well, grades are improving as the Company mines deeper into Phase 2, and the operating strip ratio will continue to decline as the year progresses.
The mill processed 181,263 tonnes of ore at an average grade of 3.04 grams of gold per tonne and an average recovery of 95.5% in the quarter.
The cash cost per ounce sold will be released once all reconciliations are completed. Costs are expected to be lower than originally forecasted for the first quarter of 2012.
“We are very pleased with these strong Q1 results at our Black Fox Mine,” said Wade Dawe, President and Chief Executive Officer of Brigus. “Our new team at Black Fox has done an exceptional job reducing dilution and ramping up underground production. As a result of these efforts, production was at the top end of our guidance and increased significantly in March. Current production levels put us on track to meet our guidance for the second quarter and we are confident that we will continue to meet our targets for the remainder of the year.”
The Company has also completed a sale-leaseback on certain Black Fox Mill assets, which generated $15 million cash at favourable interest rates to be repaid over the next five years. The Company ended the first quarter with over $30 million in cash which is more than sufficient to execute on near term growth plans.
OUTLOOK
Brigus continues to forecast full year gold production of 77,000 to 85,000 ounces for 2012:
| 2012 | Low | High | ||||
| Q1 | 15,500 | 17,000 | ||||
| Q2 | 18,000 | 21,000 | ||||
| Q3 | 21,500 | 23,000 | ||||
| Q4 | 22,000 | 24,000 | ||||
| Total | 77,000 | 85,000 |
Cash costs are targeted at $775 - $825 per ounce for the year, declining to approximately $700 per ounce at steady state production levels of 104,000 ounces per year in 2013.
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.