Gold production in 2012 from Brigus sets record

By Gregory Reynolds

Having achieved record gold production levels in 2012, Brigus Gold Corp. is looking forward to an even better 2013 at its Northeastern Ontario operations.

Key milestones for the year include a 39% increase in production, 77,374 ounces as compared to 55,756 ounces in 2011, and achieving cash costs of $685 per ounce in the fourth quarter.

Wade Dawe, chairman and CEO of Brigus Gold, commented: “In 2012, we successfully achieved many key objectives that align with our vision of becoming a leading Canadian gold producer.

We realized record production levels at our Black Fox mine, significantly lowered our cash costs, increased profitability and continued to invest in exploration on the Grey Fox property to increase our gold resources.

These positive trends will continue during 2013 as we further increase gold production and revenues while carefully managing costs and expenditures at the Black Fox mine.”

Brigus is a growing Canadian 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.

The Black Fox Complex encompasses the Black Fox mine, the new Grey Fox property and adjoining properties in the Township of Black River-Matheson, just east of the City of Timmins. The Black Fox mine is in production and the Grey Fox mine, located four kilometres from Black Fox, is in development.

Brigus is also advancing the Goldfields Project located near Uranium City, Saskatchewan, Canada, which hosts the Box and Athona gold deposits.

In Mexico, Brigus owns the 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.

The Black Fox mine is approximately 75 km east of Timmins and 11 km east of Matheson. The mill is located approximately 31 km west of the mine, off Highway 101.

The Black Fox Complex comprises the mine, mill and the Grey Fox property.

Brigus controls a total contiguous land package of 18 sq. km. of the mine and adjoining Grey Fox-Pike River property. This strategic land package includes 6.5 km of strike of the well-known Destor-Porcupine Fault Zone (DPFZ).

The DPFZ is a major east-west trending, fault system of the Pre-Cambrian Abitibi Greenstone Belt and together with its numerous splays are associated with many past and current producing gold mines of the Timmins Gold District.

2012 Achievements included:

. Significantly increased average head grade to 3.43 gpt in 2012 compared to 2.54 gpt in 2011.

. Generated cash flow from operations, before working capital adjustments and the goldstream repurchase, of $52.4 million, compared to $20.2 million in 2011.

. Generated positive income from mining operations of $23.3 million, compared to a loss of $4 million in 2011.

. Capital spending for the year totaled $53.5 million, below the prior year’s capital spending of $60.2 million.

Daniel Racine, Brigus’ president and chief operating officer, said “Brigus enters 2013 in a strong position with a management team committed to delivering shareholder value.

This year, our efforts will be focused on increasing mined tonnage and gold production levels at the underground mine while continuing to lower our cost profile.

For Grey Fox, some key milestones are forthcoming including the release of an updated NI 43-101 resource estimate in second quarter, followed by the release of a bankable feasibility study in quarter three.”

Looking at 2013, the company says:

. Recovered gold grades from the underground mine will continue to exceed reserve grades.

. Gold production for the year will be in the range of 90,000 - 100,000 ounces, and cash costs will be within $700-$750.

. Capital spending for mining operations in 2013 is estimated at $43.5 million, consisting of the following:

--$16.0M for underground sustaining capital;

--$6.0M for development capital relating to the underground;

--$13.0M for open pit capital stripping and overburden removal;

--$6.0M for other plant, property and equipment, including equipment overhauls and

capital spending at the Black Fox mill; and

--$2.5M for underground exploration.