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XMFSinchiruna (27.83)

Update on the Brigus Gold Turnaround

Recs

30

April 19, 2012 – Comments (29) | RELATED TICKERS: BRD.DL

I have just received a set of observations from geologist / analyst Joseph Hamilton with Primary Capital resulting from his recent visit to the Black Fox complex. Because Brigus is continuing with a very critical stage of its turnaround process, with the market's restored faith in the company certainly at stake, I am sure investors and interested parties will find these timely observations very valuable. I know I did.

I will be visiting the mine again for myself next month, and look forward to reporting my findings. I am hopeful that the stock will have reclaimed the $200m threshold by then so that I can write-up my observations in a published article (requiring a min. $200m mcap).

As arduous as the journey has been thus far, Brigus remains a top-ten holding of mine, and I have added to my stake on several occasions over the past couple of months.

Please enjoy the following observations from Joseph Hamilton of Primary Capital:

"Summary: A change in the diversity of mining methods and equipment has allowed the Company to have much better control over underground dilution. As underground development progresses the Company has more flexibility through a larger number of working areas (currently at 22 going to 30 in Q3) and this should soften any grade shocks from individual stopes. The open-pit continues to perform to plan. The Company should have little difficulty meeting it’s 77,000 to 85,000 oz guidance for this year. Fourth quarter should be able to demonstrate a 22,000 to 25,000 oz quarterly run-rate. Minesite cash costs will be high (probably about $850 to $900/oz) in the first quarter but should stabilize to around $700/oz by Q4 of this year. Some uncertainly exists in the cash cost forecasts until the mix of high-cost and lower-cost underground methods is known and the amount of expensed development is determined. The exploration at Contact and the 147 zones continues to demonstrate alternatives for enhancing the production profile or mine-life at Black Fox. PEAs should be available later this year."

"The underground is extracting ore from three areas: upper levels around the old workings and various stopes on the east and west ramp. Ore production increased from about 250 tpd in January and February to about 450 tpd in March and is expected to increase to about 800 tpd by July-Aug of this year. The objective is to hold the underground head grades to about 6 g/t and this should be attainable through a program of selective mining, predictive geological models and tighter underground levels. Approximately 40% to 50% of mill feed will come from underground when the underground is running at capacity, with the remainder from the open pit. Overall mill head grades should run about 3.5 to 4.0 g/t for this year, increasing to over 4 g/t in Q4 and into next year as a greater contribution from underground ore is realized. The mill is running smoothly at 2000 to 2200 tpd with a 95% recovery."

"Underground mining is using a variety of methods including shrinkage, cut and fill, resuing and ultimately some form of modified long-hole. Mining methods are tailored to the geometry of the ore zones in an effort to hold the underground head grade above 5.5 g/t. This is a huge change from Q4 last year where cut and fill with jumbos and large haul equipment was the only method being used. This resulted in massive dilution (in excess of 40%) as the ore zones meandered and the jumbos couldn't respond by turning drifts into ore. Jumbos are still being used but the introduction of jack legs has allowed better setup of cut and fill stopes and allowed dilution to be kept to a minimum. The results are apparent in the monthly production grades for Q1 of this year. There are currently 22 active mining areas, and this is expected to increase to about 30 areas by the end of June and up to 40 areas by the end of this year. This number of active areas should provide the underground mine with the flexibility that it needs to attain its production targets."

"The change in mining methods and in level spacing has resulted in higher mining and capital costs for the East Ramp Zones. The development of the West Ramp Zones into long-hole amenable stopes should allow a reduction in the capital and operating costs for these stopes. We believe that the Company should be able to attain a blended underground mining cost around the $90 to $110 per tonne range for about 40% of the mill feed. These costs will be the most variable on a month-to-month basis and depend on the type and intensity of mining methods utilized. Open pit ore should be delivered for about $40 per tonne. Mill costs are running between $11 and $13 per tonne. All-in costs per tonne treated are expected to range between $75 and $90 per tonne (includes transport to mill and mine-site G&A). If the combined head grade can be held to 4 to 4.5 g/t, Brigus should be able to attain $650/oz cash costs. Expensed development costs during the year will be variable but may be as high as $50 per ounce."

"The market will probably start coming back to this name as production levels are reported over the next few months. A larger impact may be felt when capital and operating costs numbers for the Contact and 147 zones are known, and the positive impact to operations is communicated to the market, probably in Q4 of this year."

29 Comments – Post Your Own

#1) On April 19, 2012 at 3:48 PM, TSIF (99.96) wrote:

Appreciate the update.   Sounds like a good time to attempt a dollar cost in another trench.

 Always appreciate the first hand inpu! 

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#2) On April 19, 2012 at 8:27 PM, SN3165 (< 20) wrote:

Kimber looks good here !

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#3) On April 20, 2012 at 9:44 AM, XMFSinchiruna (27.83) wrote:

It certainly does!

Kimber, Claude, Cardero, Primero, Impact, Pilot, Aurcana, Paramount, Sabina, Rainy River, Petaquilla, Brigus, Copper Fox, Alexandria, Cline, Rubicon, Endeavour, Huldra, First Majestic, Spanish Mountain, Volta ...

All of these names have looked terrific to me at these levels, and I have bought them all until I now find myself depleted of cash reserves.

I don't care if the stocks continue to dwell in weakness for a bit longer. I am more than comfortable with the valuations at which my recent purchases were made, and pinpointing a precise bottom is not my primary goal. It's about a disciplined system of selling into strength and buying into weakness, and as of yesterday my process of buying into weakness is complete.

The market is beginning to make noise about the valuations here, and my gut tells me it won't be too long before we start to get some positive movement here. Those who have stood strong in the face of another nasty correction for the stocks, I commend you.

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#4) On April 20, 2012 at 9:48 AM, XMFSinchiruna (27.83) wrote:

P.S. I had to sell a couple of relative dogs to make it happen, but after speaking further with Chris Marchese (speedybure) about Petaquilla Minerals, and devoting some time to my own due diligence process, I have initiated a significant stake in his new favorite gold stock.

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#5) On April 20, 2012 at 3:05 PM, reinman60 (< 20) wrote:

Chris,

What are your thoughts about GPL at these levels? Thanks.

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#6) On April 20, 2012 at 3:15 PM, SN3165 (< 20) wrote:

my new motto.... "Cash and Conviction!"

I might have to get a new tattoo now. 

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#7) On April 20, 2012 at 3:22 PM, SN3165 (< 20) wrote:

"Kimber, Claude, Cardero, Primero, Impact, Pilot, Aurcana, Paramount, Sabina, Rainy River, Petaquilla, Brigus, Copper Fox, Alexandria, Cline, Rubicon, Endeavour, Huldra, First Majestic, Spanish Mountain, Volta ..."

All great names... I am a little skeptical on Huldra right now, I feel like they might be having trouble getting the mine up and running? I'm holding off but keeping a close eye.

Kimber is an even more timely play here given the fact that they will be releasing their updated resources very soon! 

I've also been buying Metanor and Northern Tiger (the latter has been stomped down a bit but recent insider buying gives me more confidence in the company's potential going forward. Averaging down that position to about .16 cents). 

Also been buying some american eagles here and there. 

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#8) On April 20, 2012 at 3:23 PM, SN3165 (< 20) wrote:

Hey Sinch, speaking of Petaquilla... you may already know this but insiders have been buying like crazy.

http://canadianinsider.com/node/7?menu_tickersearch=Petaquilla+Minerals+Ltd.+|+PTQ

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#9) On April 20, 2012 at 3:49 PM, SN3165 (< 20) wrote:

Another note: "Gold ounces stockpiled as at February 29, 2012: 84,572."

Sinch what are your thoughts on this?

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#10) On April 20, 2012 at 10:52 PM, skypilot2005 (< 20) wrote:

On April 20, 2012 at 3:23 PM, SN3165 (< 20) wrote:

"Hey Sinch, speaking of Petaquilla... you may already know this but insiders have been buying like crazy."

SN3165,

Thanks, for the heads up.

It appears Mr. Fifer, the Chairman, and the company itself has been purchasing shares.

Sinchi is purchasing shares.

Speedy likes the company.

Hmmmm

Sky

 

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#11) On April 20, 2012 at 11:47 PM, skypilot2005 (< 20) wrote:

April 2012

Brigus Corporate Presentation

http://www.snl.com/Cache/1001165036.PDF?D=&O=PDF&IID=4288058&Y=&T=&FID=1001165036

Sky

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#12) On April 21, 2012 at 11:14 AM, skypilot2005 (< 20) wrote:

http://finance.yahoo.com/news/atna-reports-progress-development-pinson-120100076.html

 

4/16/12

 Atna Reports Progress on Development of the Pinson Mine

 

http://finance.yahoo.com/news/atna-resources-reports-fourth-quarter-113000534.html

3/26/12

Atna Resources Reports Fourth Quarter and 2011 Fiscal Year Results and Highlights

http://finance.yahoo.com/news/Atna-Increases-Reward-Gold-prnews-3510940815.html?x=0

I have some shares tucked up in the visor.

Sky

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#13) On April 21, 2012 at 11:39 AM, ShawPaul (< 20) wrote:

my classmate's mother-in-law brought home $19858 the previous month. she gets paid on the laptop and bought a $534000 house. All she did was get blessed and set to work the tips made clear on this site  (Click on menu Home more information)    http://goo.gl/84vnH

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#14) On April 21, 2012 at 12:44 PM, cuuvette350 (< 20) wrote:

I see you like CUU.   Read my summary on it:

 http://www.vette350.com/p/current-top-pick.html

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#15) On April 22, 2012 at 8:38 AM, skypilot2005 (< 20) wrote:

http://finance.yahoo.com/news/aurizon-mines-ltd-higher-grade-113000634.html

Aurizon Mines Ltd.: Higher Grade Mineralization Discovered on the Heva and Hosco Zones at the Joanna Property

4/16/12

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#16) On April 22, 2012 at 8:55 AM, skypilot2005 (< 20) wrote:

http://finance.yahoo.com/news/merriman-capital-announces-sponsorship-caza-130000012.html

 

April 20, 2012 /PRNewswire/ -- Merriman Capital, Inc., a wholly owned subsidiary of Merriman Holdings, Inc. (OTCQX: MERR.PK - News), today announced that it will serve as the Principal American Liaison (PAL) for Caza Gold Corp.(OTCQX: CZGDF | TSXV: CZY) as it begins trading on OTCQX®.

 

http://finance.yahoo.com/news/caza-gold-finds-high-sulfidation-125900789.html

 

4/10/12

 

Caza Gold Finds New High-Sulfidation Epithermal Gold Target on the La Borbona Property in Nicaragua

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#17) On April 22, 2012 at 9:39 AM, skypilot2005 (< 20) wrote:

Hopefully, not too far off topic.

A company trying to build the nation's first new uranium mill in more than 30 years has agreed to buy the United States' only existing conventional uranium mill.

The Grand Junction Daily Sentinel reported Monday that Energy Fuels Inc. plans to buy Denison Mines Corp.'s White Mesa Mill, near Blanding, Utah, as well as its mines along the Colorado-Utah border, and elsewhere in Utah and Arizona. Energy Fuels will exchange about 425.4 million shares for the properties, valued at about $107.1 million

Energy Fuels wants to build a uranium mill in Colorado's Montrose County and owns potential mining properties in Colorado, Utah, Arizona, Wyoming and New Mexico.

Energy Fuels president Steve Antony said the deal "reshapes the landscape of the uranium sector within the U.S."


Read more:Energy Fuels to buy Utah's White Mesa uranium mill - The Denver Posthttp://www.denverpost.com/business/ci_20419970/energy-fuels-buy-utahs-white-mesa-uranium-mill#ixzz1smAEErQr
 

http://energyfuels.com/news/media.html

April 17, 2012

Denison Mines shares jump after news of US asset sale to Energy Fuels

April 17, 2012

Uranium companies to join forces

World Nuclear News

17 April 2012

Denison's American mining division will be combined with the uranium development company Energy Fuels to create the largest "pure-play" uranium producer in the USA.

http://www.denverpost.com/business/ci_20419970/energy-fuels-buy-utahs-white-mesa-uranium-mill

April 18, 2012

Energy Fuels to buy Utah’s White Mesa uranium mill

Denver Post

Sky

I have some shares of Energy Fuels stuffed in the bread box.

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#18) On April 22, 2012 at 9:39 AM, skypilot2005 (< 20) wrote:

Hopefully, not too far off topic.

A company trying to build the nation's first new uranium mill in more than 30 years has agreed to buy the United States' only existing conventional uranium mill.

The Grand Junction Daily Sentinel reported Monday that Energy Fuels Inc. plans to buy Denison Mines Corp.'s White Mesa Mill, near Blanding, Utah, as well as its mines along the Colorado-Utah border, and elsewhere in Utah and Arizona. Energy Fuels will exchange about 425.4 million shares for the properties, valued at about $107.1 million

Energy Fuels wants to build a uranium mill in Colorado's Montrose County and owns potential mining properties in Colorado, Utah, Arizona, Wyoming and New Mexico.

Energy Fuels president Steve Antony said the deal "reshapes the landscape of the uranium sector within the U.S."


Read more:Energy Fuels to buy Utah's White Mesa uranium mill - The Denver Posthttp://www.denverpost.com/business/ci_20419970/energy-fuels-buy-utahs-white-mesa-uranium-mill#ixzz1smAEErQr
 

http://energyfuels.com/news/media.html

April 17, 2012

Denison Mines shares jump after news of US asset sale to Energy Fuels

April 17, 2012

Uranium companies to join forces

World Nuclear News

17 April 2012

Denison's American mining division will be combined with the uranium development company Energy Fuels to create the largest "pure-play" uranium producer in the USA.

http://www.denverpost.com/business/ci_20419970/energy-fuels-buy-utahs-white-mesa-uranium-mill

April 18, 2012

Energy Fuels to buy Utah’s White Mesa uranium mill

Denver Post

Sky

I have some shares of Energy Fuels stuffed in the bread box.

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#19) On April 22, 2012 at 10:05 AM, skypilot2005 (< 20) wrote:

Sorry for the double post.  Running 2 different types of browsers simultaneously.

Sky

http://community.nasdaq.com/News/2012-04/pele-mountain-sells-highland-gold-project-to-focus-on-rare-earths-and-uranium-project.aspx?storyid=134514

Pele Mountain Sells Highland Gold Project, To Focus on Rare Earths and Uranium Project

Read more: http://community.nasdaq.com/News/2012-04/pele-mountain-sells-highland-gold-project-to-focus-on-rare-earths-and-uranium-project.aspx?storyid=134514#ixzz1smHuWoD0

OK.

I am done with Uranium until, I receive permission from Sinchi.

Sky

Long: GOLDF OTCQX, GEM.V

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#20) On April 22, 2012 at 10:24 AM, skypilot2005 (< 20) wrote:

http://blogs.wsj.com/dealjournalaustralia/2012/04/17/be-wary-of-ivanhoe-australias-funding-needs-jpm/?mod=yahoo_hs

4/17/12

Be Wary of Ivanhoe Australia’s Funding Needs: JPM

Excerpts:

The company is set to begin production in March at its Osborne copper and gold project, which it bought from Barrick Gold in 2010. Its Cloncurry portfolio also includes the Mount Dore cathode copper project and Mount Elliott copper-gold project.

Ivanhoe Australia is 59% owned by Ivanhoe Mines, which was founded by Robert Friedland who also serves as chief executive. Anglo-Australian mining titan Rio Tinto earlier this year took majority control of Ivanhoe Mines, increasing its stake two percentage points to 51%.

Related:

·         January 31, 2012, 11:41 AM

Ivanhoe Appoints UBS to Find Strategic Partner

http://blogs.wsj.com/dealjournalaustralia/2012/01/31/ivanhoe-appoints-ubs-to-find-strategic-partner/

The company is set to begin production in March at its Osborne copper and gold project, which it bought from Barrick Gold Corp. in 2010. Its Cloncurry portfolio also includes the Merlin molybdenum-rhenium project, Mount Dore cathode copper project and Mount Elliott copper-gold project.

Ivanhoe Australia is 59% owned by Ivanhoe Mines, and its chairman is Ivanhoe Mines founder and CEO Robert Friedland. Anglo-Australian mining titan Rio Tinto this month took majority control of Ivanhoe Mines, increasing its stake two percentage points to 51%.

Sky

I have shares of IVN stuffed under the sofa.

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#21) On April 22, 2012 at 10:41 AM, skypilot2005 (< 20) wrote:

 

http://www.chinagoldintl.com/i/pdf/E-China-Gold-NR-2011-Results-and-2012-Outlook.pdf

China Gold International Provides 2011 Year-End Results and

 2012 Outlook

3/29/12

I own JINFF.PK and a pair of chop sticks

Sky

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#22) On April 22, 2012 at 9:33 PM, skypilot2005 (< 20) wrote:

http://pilotgold.com/news/pilot-gold-reports-year-end-financial-results http://pilotgold.com/sites/default/files/news_pdfs/PilotGoldnews_12-04_YearEnd.pdf

3/29/12

“On March 23, 2012 we subscribed to  6,250,000 common shares and 3,125,000 share purchase warrants of Nevada Sunrise Gold Corporation ("NSGC"). A subsidiary of NSGC will be our partner at  the Kinsley Mountain Project following the initial earn-in.  The market value of our equity holdings of  NSGC at the date of this release is approximately $1.42 million.”

http://www.nevadasunrise.com/View_webpage.asp?Title=Home%20Page http://www.nevadasunrise.com/PDF_News_Releases/2012-03-23%20NSGC%20Closes%20Private%20Placement%20with%20Pilot%20Gold%20Inc.PDF.pdf http://www.nevadasunrise.com/View_webpage.asp?Title=Home%20Page

NSGC is listed on the TSX Venture Exchange under the symbol NEV OTC: NVSGF **

http://pilotgold.com/sites/default/files/news_pdfs/PilotGoldnews_12-03_HalilagaNI43101.pdf

PILOT GOLD FILES NI 43-101 TECHNICAL REPORT ON HALILAGA COPPER-GOLD PORPHYRY

3/26/12

http://www.marketwire.com/press-release/nevada-sunrise-closes-private-placement-with-pilot-gold-inc-tsx-venture-nev-1635643.htm

Sky

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#23) On April 22, 2012 at 10:41 PM, skypilot2005 (< 20) wrote:

http://www.newswire.ca/en/story/959213/copper-fox-announces-first-quarter-results

 

4/20/12

Copper Fox Announces First Quarter Results “During the quarter, the Company announced the final assay results from the 2011 drill program and recently completed metallurgical testwork on the Paramount zone of the Schaft Creek deposit.  The interpretation that the Schaft Creek Mineral Resource could host other deposits is strongly supported by the mineralization in DDH CF422-2011, which represents the "discovery" of a new zone of mineralization on the Schaft Creek Project.”

Sky

I have a few share stuffed in my sock drawer.

 

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#24) On April 22, 2012 at 10:48 PM, skypilot2005 (< 20) wrote:

I just couldn't resist:

http://blogs.wsj.com/marketbeat/2012/03/05/buffett-vs-gold-who-do-you-bet-on/?mod=yahoo_hs

March 5, 2012, 3:14 PM

 

Buffett Vs. Gold: Who Do You Bet On?

 

By Matt Phillips

"As long as we’re on the topic, gold price gains — on a percentage basis — have thrashed Berkshire Hathaway over the last 10 years. Since March 1, 2002, gold futures prices are up 473% through Friday’s close. Berkshire is up 60%, though Berkshire A shares were already at more than $73,000 each back in 2002, while gold was worth less than $300 an ounce."

Warren who?

 Sky

 

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#25) On April 23, 2012 at 5:29 PM, SN3165 (< 20) wrote:

Wildcat and Soltoro are two silver stocks I have an eye on now. They've been beaten up pretty badly...

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#26) On April 24, 2012 at 9:07 AM, XMFSinchiruna (27.83) wrote:

@#25, I was notcing that as well yesterday. I like both names.

Here is a letter to shareholders from Brigus CEO Wade Dawe:

HALIFAX, Nova Scotia--(BUSINESS WIRE)-- (NYSE Amex: BRD; TSX: BRD)

Dear Fellow Shareholders,

I write today to provide you with an overview of Brigus' accomplishments and challenges during 2011 and our expectations for 2012. Throughout 2011, we continued the process of building the company that was formed when Linear Gold and Apollo Gold merged in June 2010 to create Brigus Gold.

At the time of the merger, we recognized significant value and future potential in the assets at the Black Fox Mine. We estimated it would take approximately 12 to 15 months to make necessary changes, implement a turnaround, build the underground portion of the mine and begin unlocking the considerable value of the assets. Although this process has taken longer than first estimated, our confidence in the Black Fox Mine, the quality of the ore body and the exploration potential has never been higher. Today, the turnaround is well underway, we are beginning to see results, and we expect this positive trend to continue throughout the year.

Significant accomplishments over the past year have made the company fundamentally stronger and provide Brigus with a solid foundation to support future growth. However, the accomplishments and positive developments during 2011 were overshadowed by gold production levels below our targets and market expectations. During the third and fourth quarters shortfalls in gold production resulted from a slower ramp up of the underground portion of the mine and poor ore dilution practices.

I confirm that we have taken corrective action and we are seeing results. We identified the underlying reasons for the shortfalls, found appropriate solutions and implemented a series of improvements and management changes at the Black Fox Mine. These actions have resulted in measurable and material improvements in performance during the first quarter of 2012, and we are confident problems experienced in the second half of 2011 are now behind us.

We reported strong Q1-2012 gold production from the Black Fox Mine hitting the top end of our guidance. The new operating team has done an excellent job reducing ore dilution and ramping up gold production from the underground. Current production levels put us on track to meet our guidance for the second quarter and we are confident the mine will continue to meet targets and reach a steady state production level of approximately 25,000 ounces per quarter by year-end.

2011 Accomplishments:

All surface and infrastructure facilities at the Black Fox Mine were upgraded. Production commenced in Phase Two of the open pit in April. The underground achieved commercial production in October. Brigus issued $50.0 million of unsecured convertible debentures in March 2011 to strengthen its balance sheet, and completed an $8.2 million private placement financing of flow-through shares to fund exploration programs in 2012. Brigus' exploration team made a new, significant gold discovery on the southern portion of the Black Fox Complex. An independent 43-101 report, released in December, increased gold resources on the property by more than 50 percent. The new discovery remains open for further expansion and drilling continues. A mill enhancement began in the third quarter and is expected to increase ore processing capacity by 5-10% to up to 2,200 tonnes per day. The Black Fox Mine was recognized with the Angus D. Campbell award for safety two years in a row, recently reaching a milestone of operating for over 22 months and 1,200,000 person-hours without a lost time injury. An independent 43-101 report on the Goldfields development project, located in northern Saskatchewan, was completed and published. Non-core assets in Mexico and the Dominican Republic were divested.

These were important milestones along the path to reach our goal of becoming a leading Canadian gold producer.

Black Fox Mine, Ontario

Operations at the Black Fox Mine continue to ramp up and will deliver increased gold production quarter over quarter in 2012, reaching our steady state level of approximately 25,000 ounces per quarter by the end of the year.

The open pit at Black Fox, which commenced production in May 2009, performed well during 2011 and is meeting our expectations.

The underground portion of the mine continues to improve with average grades of approximately 6 grams per tonne ("gpt") of gold during Q1-2012, consistent with the mine reserves, up from less than 3 gpt during the previous quarter. Daily tonnage from the underground continues to increase and is expected to reach 800 tonnes per day ("tpd") by the end of the third quarter and 800 to 1,000 tpd by year-end. There are currently 21 underground stopes open and we expect approximately 30 stopes will be open by Q3-2012. The team at Black Fox continues to focus on optimizing underground grades while effectively managing dilution and throughput on an on-going basis.

The Black Fox underground ore body is open for expansion with grades that trend higher at depth. We are confident the mine will prove to be a long-life mining asset for Brigus.

Production Growth - 2012

During the first quarter of 2012 we produced 16,922 ounces of gold, and we expect quarter over quarter production growth through the year. We are forecasting annual production of 77,000 to 85,000 ounces of gold in 2012 and expect to reach a steady state annual production rate of approximately 100,000 ounces at year-end.

Increasing Canadian Gold Reserves and Resources

A key priority for Brigus is to increase our inventory of gold reserves and resources through targeted, systematic exploration. At present we have 1.86 million ounces of gold reserves; 840,000 ounces at the Black Fox Mine in Timmins, Ontario and 1,020,000 ounces at Goldfields in Uranium City, Saskatchewan. Both the Black Fox and Goldfields deposits remain open for expansion with considerable potential for new reserve additions.

At Black Fox we recently began driving an exploration drift from the deepest portion of our east ramp. Exploration drilling from underground drill stations will commence in June with an objective of increasing reserve ounces and extending the mine life. We are excited about the potential and are confident the program will positively impact and expand gold reserves at Black Fox.

Elsewhere on the Black Fox property, Brigus' ongoing drill program was successful with the discovery of the 147 Zone along with a significant extension of the Contact Zone. Both zones are in close proximity to the Black Fox Mine and remain open for further expansion. In December, we released an initial National Instrument 43-101 resource estimate on these zones resulting in more than a 50 percent increase of gold resources on the Black Fox Complex. An in-fill drilling program is in progress to convert inferred ounces to indicated ounces while continuing to expand the resource with deeper drilling. We look forward to releasing an updated resource statement later in the year.

Simultaneously, we recently commenced a preliminary economic assessment (PEA) on the 147 and Contact zones and expect to release results during the third quarter. We believe these zones have the potential for robust economics. A project manager has been hired to oversee this work and begin the permitting and planning process for a new mine, to be named Grey Fox.

Numerous high priority drill targets remain to be tested and 75 percent of the property remains unexplored.

GoldFields Project, Saskatchewan

The Goldfields Project, located in northern Saskatchewan, is host to 1,020,000 ounces of reserves. Brigus released an updated independent 43-101 report for Goldfields in the fall of 2011, which calls for a 13-year mine life and 100,000 ounces of production for each of the first six years. This mine is permitted and will require a two-year construction period once a production decision is made. The pre-feasibility study indicated a net present value of approximately $144 million at a 5 percent discount rate with an internal rate of return of 19.6 percent, assuming a gold price of $1,250 per ounce. At gold prices of $1,600 per ounce, Goldfields returns a net present value of over $300 million. We will not make a production decision on this mine until Black Fox is operating at its steady state production rate of 25,000 ounces a quarter, and we will fund this project in an optimal manner.

Maintaining a Strong Balance Sheet and Increasing Cash Flow

Since the beginning of 2011, we have strengthened our balance sheet and overall financial position. The Company issued US$50.0 million of unsecured convertible debentures in March 2011, a $8.2 million flow through financing to fund 2012 exploration in December 2011, and a bought deal financing for $15 million in February 2012.

With $34 million on hand today, Brigus is well positioned to capitalize on the growth opportunities before us. Mining operations will be profitable this year with cash flows building as gold production increases quarter over quarter.

Looking Forward

We believe in the future of gold bullion and are undeterred by the recent weakness in gold equities across the marketplace. Brigus is well positioned to benefit from strong gold prices, now and in the future.

Increasing production at Black Fox, promising exploration drill results, new gold discoveries and growing cash flows signal Brigus' evolution to become a mid-tier gold producer.

I want to thank our dedicated team of employees who continue to work tirelessly to build value for Brigus Gold. Their skill and expertise are essential to our success, and I am very proud of their excellent mining safety record. The health and safety of Brigus employees is our top priority.

I would like to thank you for your continued support and look forward to a successful year ahead.

Sincerely,

Wade K. Dawe

President and Chief Executive Officer

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#27) On April 26, 2012 at 9:47 PM, skypilot2005 (< 20) wrote:

http://www.aurcana.com/s/NewsReleases.asp?ReportID=521413

 

April 26, 2012 
Aurcana Reports: Record Silver Production at La Negra Mine

 Sky Pilot

Official Web Link Assistant to Sinchi 

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#28) On May 05, 2012 at 8:07 AM, skypilot2005 (< 20) wrote:

http://www.snl.com/Cache/1500041237.PDF?D=&O=PDF&IID=4288058&Y=&T=&FID=1500041237

5/3/12

Brigus Gold is on Track to Hit Q2 Production Target

 

 

Sky

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#29) On May 15, 2012 at 2:53 PM, StapleGreen (< 20) wrote:

Hi Sinch,

 

If you could only invest in one miner between Kimber and Brigus, who do you like for the long term?  It seems from your posts that Brigus has the bigger upside, but maybe Kimber is the bigger takeover target?

 Thanks for your help on this one. 

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