HALIFAX, Nova Scotia--(BUSINESS WIRE)--Brigus Gold Corp. (“Brigus Gold” or the “Company”) (NYSE Amex: BRD) (TSX: BRD) has completed the review of historical information from the past producing underground Stock gold mine located on Brigus’ 100% owned 24 square kilometre Stock Mine property in the Timmins Mining District, Ontario. The review has confirmed the potential for further gold mineralization below the historical Stock Mine workings, as well as, for discovering new gold mineralized zones along strike. Brigus will launch an exploration drill program and plans to have two drill rigs active on the property beginning in the first quarter of 2011.
The Stock Mine is located directly adjacent to Brigus’ 2000 tonne per day gold mill which processes ore from the Company’s Black Fox gold mine. Brigus has recently received the results of a review completed by Mackie and Associates and EHA Engineering providing short and long-term recommendations including the identification of opportunities for increased future throughput at the mill. The recommendations are under review and demonstrate the potential for processing additional sources of ore.
The Stock Mine is hosted by the Destor-Porcupine Fault Zone (“DPFZ”). The Stock Mine comprises a 3-compartment shaft developed to a depth of 275 metres below surface. A production ramp extends from the 140 metre level to approximately 330 metres below surface. Between 1988 and December 2000, the Stock Mine operated intermittently and produced 131,000 ounces of gold from 824,000 tonnes of ore at an average of 5.5 grams of gold per tonne mined from the N2, West and East Zones.
The exploration potential of the Stock Mine property are highlighted by historic surface drill hole results at the Stock Mine include hole S96-02 which returned 6.5 gram per tonne gold over 5.2 metres (“m”) at an approximate depth of 150 m below mine workings, and drill hole S98-14 which intersected 14.5 gram per tonne gold over 3.0 m and 10.7 gram per tonne gold over 1.0 m and hole S03-11 (drilled 50 metres east of S98-14) which intersected 1.1 gram per tonne gold over 12.0 m including 6.1 gram per tonne gold over 2.0 m on the Discovery West zone, located 150 m west of existing mine workings.
Howard Bird, Brigus Gold’s Vice President of Exploration, said, “We will be commencing an aggressive drill program on the Stock Mine property, which covers approximately five kilometres of the DPFZ and is host to the past producing Stock Mine. Our objective is to identify new gold resources with the obvious advantage of having an operating mill and permitted tailings facility on site. The program will commence in January 2011 to test below and along strike of the historic underground Stock Mine workings and to test gold targets expected to be generated from a Titan deep IP geophysical survey which is underway and will be completed towards the end of December”.
Senior Exploration Project Manager John A. Dixon P. Geo reviewed the technical exploration information in this release as the Qualified Person for the Company.
About Brigus Gold
Brigus Gold 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 Gold is also advancing the Goldfields Project located near Uranium City, Saskatchewan, Canada, which hosts the Box and Athona gold deposits. In Mexico, Brigus Gold holds a 100 percent interest in the Ixhuatan Project located in the state of Chiapas, and an 80 percent interest in the Huizopa Joint Venture, an early stage, gold-silver exploration project located in the State of Chihuahua. In the Dominican Republic, Brigus Gold has a joint venture covering three mineral exploration projects.
Cautionary Note to U.S. Investors Concerning Estimates of Mineral Resources
This news release uses the term mineral “resources”. The Company advises U.S. investors that while these terms are defined in and required by Canadian regulations, these terms are not defined terms under the U.S. Securities and Exchange Commission (“SEC”) Industry Guide 7 and are generally not permitted to be used in reports and registration statements filed with the SEC. The SEC generally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves” as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.
Cautionary and Forward-Looking Statements
This news release includes “Forward-Looking Statements” within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements regarding the resource potential, resource addition or expansion, continuity of mineralization, plans for the Company’s surface and underground exploration drilling programs and the results associated therewith, the amount of surface drilling, the drill rigs operating at Black Fox Complex and the timing associated therewith, increase of Black Fox resources, matters relating to the geophysical survey of the Black Fox Complex and the timing thereof, release date of a National Instrument 43-101-compliant mineral resource estimate for the Contact Zone, and additions to resources in 2011 and 2012 are forward-looking statements and estimates that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. 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 Gold’s and its predecessor companies’ most recent annual report on Form 10-K filed with the United States Securities and Exchange Commission and elsewhere in Brigus Gold’s documents filed from time to time with the Toronto Stock Exchange, the NYSE Amex, 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.