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Executives

Jennifer Nicholson – Executive Vice President

Wade K. Dawe – Chairman, Chief Executive Officer & President

Daniel Racine – Chief Operating Officer

Jon Legatto – Chief Financial Officer

Analysts

Jeff Wright – Global Hunter Securities

Steven Butler – Canaccord Genuity

Eric Winmill – Casimir Capital Inc.

Richard P. Gray – Cormark Securities, Inc.

Don Blyth – Paradigm Capital Inc

Ardem Keshishian – Haywood Securities

Brigus Gold Corp. (BRD) Q3 2012 Conference Call November 13, 2012 11:00 AM ET

Operator

Greetings and welcome to the Brigus Gold Third Quarter 2012 Earnings Conference Call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host Ms. Jennifer Nicholson, Executive Vice President of Brigus Gold. Thank you Ms. Nicholson. You may now begin.

Jennifer Nicholson

Thank you, Christine. Good morning everyone and thank you for joining us for our third quarter conference call. Joining me from Brigus Gold are Wade Dawe, President and Chief Executive Officer; Daniel Racine, Chief Operating Officer; Jon Legatto, Chief Financial Officer; Marc Bilodeau, Vice President of Operations; and by phone, Howard Bird, Senior Vice President of Exploration.

Brigus’ third quarter earnings release was distributed last night via newswire. Financial statements and management’s discussion and analysis are available on the company’s website at brigusgold.com. We expect the presentation segment to last approximately 10 minutes, after which we’ll be happy to take questions from analysts and institutional investors. Please note that all amounts are in U.S. dollars unless otherwise stated.

I will also take a moment to remind you that this conference call may contain forward-looking information, which involves certain assumptions and known and unknown risks and uncertainties that may cause actual results to be materially different from those that are expressed or implied by the comment. All statements regarding the ability of the company to achieve its production, total cash costs, steady state annual production and mining rate estimates, exploration and capital programs for 2012 including the estimated expenditures, increases in gold production, variations in profitability, exploration drill results and resource positions are forward-looking statements and estimates that involve various risks and uncertainties.

These 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 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.

Additional information with regards to risk can be found under the heading “Risk Factors” in Brigus’ most recent Management Discussion and Analysis. In addition, please note that this conference is being widely disseminated via live webcast.

And now, I will turn the call over to Wade.

Wade K. Dawe

Thank you, Jennifer. Good morning and welcome to Brigus’ third quarter conference call. We appreciate you taking the time to join us on today’ call. I will begin with an overview of our progress in the third quarter and for the year-to-date. Then I will discuss our plans and expectations for the rest of the year.

Daniel Racine will then provide a review of our operations and will outline key objectives for the remainder of 2012 and 2013, and Jon Legatto will then summarize our third quarter financial results.

I’m pleased with Brigus’ financial and operational results during the first three quarters of 2012 and I am optimistic and confident about Brigus’ growth potential. At the Black Fox Mine, our team is focused on increasing and optimizing gold production. Gold production is increasing grades in the open pit and underground are in line with reserve grades and cash cost on a per ounce basis are trending lower. Black Fox Mine orebody remains open at depth and the along strike and includes gold reserves to a maximum depth of 500 metres.

Ore bodies along the depth reported on fall in the Timmins gold camp often extend the depth in excess of 1,000 metres. An underground exploration program at the Black Box mine commenced in June of this year and will continue into 2013. The program is designed to expand the current gold resources through targeted drilling beyond 500 metres. Results received to-date demonstrates excellent potential with very good rates and thicknesses. Brigus Gold will report drill results from this ongoing program at regular interval.

Four kilometers from Black Fox our ongoing exploration program at Grey Fox has been successful. A 571,000 ounce resource has been defined including 480,850 ounces in the indicated category for the contact and 147 zones. Recently, our exploration team discovered a third zone at Grey Fox and kidded the name the Grey Fox South Zone. All three zones remain open for expansion and continue to provide excellent assays. We currently have four drill rigs working at the Grey Fox property, two rigs are on the contact zone and two are located on the new Grey Fox South Zone. We will continue to report assays as they are received.

Mining is underway to develop the gold deposits of Grey Fox. Initial engineering studies have been started and will continue through the rest of the year to determine project economics, as well all production timeline. Brigus initially planned to release a preliminary economic assessment on Grey Fox in the fourth quarter of this year. However, we recently decided that it would be more appropriate to release a full feasibility on a larger, more complete gold resource. Therefore, we will release the full feasibility study for Grey Fox during the second half of 2013.

This feasibility study will incorporate the September 2012 resource, as well as a significant number of metres of deeper drilling, which will define a resource suitable for underground mining. Drilling at Grey Fox regularly intercepts high grade mineralization at depth in excess of 400 metres and all zones remain open.

We are enthusiastic about the resource potential at Grey Fox and believe it will be an important component of Brigus’ future. We are also in the process of reviewing historical data on Brigus’ Stock Mine which is a [half] gold producer. The Stock Mine is located on the properties that host the Black Fox Mill. The mine’s deep production approximately 10 years ago, because of low gold prices. We believe that Stock Mine has good potential to recommence commercial production.

In October, we secured a $10 million flow-through financing at an attractive premium to our share price. These funds enable Brigus to expand drilling at the 147 Zone, the Contact Zone and the Grey Fox South Zone.

We also completed a $30 million debt financing, which closed at the end of October. $24.4 million of these proceeds was used to repurchase 4% of the gold stream on the Black Fox Mine, reducing it to 8%. At present 92% of our gold production is now sold into the stock markets at the prevailing prices.

We are pleased to welcome Daniel Racine to Brigus as the Company’s Chief Operating Officer. Daniel joined the Company in August and is a valuable addition to the Black Fox and to the Brigus team. Daniel will now review the operational performance of Black Fox during the quarter and he will outline Brigus’ objectives for the remainder of 2012 and 2013.

Daniel Racine

Thank you, Wade. First I want to say that I’m very happy to be part of the Brigus team. Being with the Company since the end of August, I’m very impressed by the quality and the work experience of our team.

On the production side, the Black Fox Mine has an excellent safety record, having operated over a 1,030 days without a lost time accident enduring. During the quarter, the third quarter, Brigus was in compliance with all environmental requirements and it still remains a sub-priority for the Company.

Goal at the Black Fox Mine continues to increase quarter-over-quarter. As we had indicated, overall rate at Black Fox are in line with reserves grade and underground the average was over 6 grams per tonne. The quantity of ore mined from the underground continue to increase during the quarter, the third quarter, and we have started mining in the West Zone. Production from this year is ramping up and will reach steady-state production during quarter one of 2013. Although the development of the West zone requires more upfront capital expenditure, the long-hole mining method utilized results and lower overall mining cost and higher overall recovery rate than traditional cut and fill mining methods.

The open pit is operating as planned and is producing ore at the lowest dripping ratio as we are approaching the volume of Phase II. The Phase III overburden removal is on schedule and production will begin in 2013. The mill continues to perform very well. The initial mill optimization project has been completed and throughput has been increased to 2,200 tonnes per day.

Moving forward Brigus objective for the fourth quarter and 2013 are as follows. Number one, at the Black Fox mine, we will continue to increase and optimize the production from the underground. Number two at the Black Fox we will explore below 500 metres and we will produce a new reserve and resource calculation by mid-year 2013. We are very encouraged by the initial drilling result and we see potential for significant increases.

Number three; at Grey Fox we will complete the full feasibility study for the second half of 2013. Number four, at the stock mine we will evaluate the potential to put the mine back into production. We will release a timeline for the stock mine during the first quarter of 2013. Number five; at Gold field we will analyze the current pre-feasibility study and the current construction timeline. We plan to demonstrate the very high potential of this ore buddy and the future mine.

The Black Fox mine is a strong base for Brigus Gold and will be the foundation to build a strong company. Within Brigus we have already the properties, the mine and gold deposit to grow internally without the need to purse mergers or acquisitions.

I will now turn the call to John who will provide a review of our financial performance for the quarter. Thank you.

Jon Legatto, CA

Thank you, Daniel. Q3 2012 was another positive quarter for the company, as all of our key financial metrics strengthened. Revenue for the three months ended September 30, 2012 totaled $30.2 million, a 57% increase over Q3 2011. It is important to note, however that the comparative revenue balance in Q3 2011 does not include $8.9 million relating to the sale of pre-production underground ore. The underground mine had not yet entered commercial production in Q3 2011 therefore all revenue relating to the underground ore at that time was offset against underground capital development costs.

After adjusting for this balance, revenue increased by $2.1 million or 7%, the increase in revenue can be attributed to the increase in the total ounces produced and sold. In Q3 2012 the company produced 19,526 ounces and sold 19,064 ounces of gold. This compared to reduction of 16,838 ounces of gold and sales of 17,119 ounces in Q3 2011. Increased gold production in Q3 2012 is a result of higher volumes of underground ore tonnes compared to the same quarter in 2011.

Cash costs for the quarter ending September 30, 2012 was $728 per ounce, a 10% reduction from cash cost in Q3 2011 which were $807 per annum. Cash costs for the third quarter included $700,000 dollar reversal of previously recorded impairment charges on the company’s low grade stock pile, the reversal was recorded due to the increase in the price of gold in Q3 2012 compared to Q2 2012 excluding this adjustment cash costs for the third quarter would have been $766 a 5% improvement for Q3 2011 and a 4% improvement over Q2 2012. Improvements in the cash costs per ounce were offset by a 4% decrease in the average realized sales price from $1,643 in Q3 2011 to $1,583 in Q3 2012.

Cash flow from operations before working capital adjustments were $12.5 million during Q3 2012 this compared to $10.5 million in Q3 2011. The increase in cash flow from operations is a result of higher production as previously discussed. Capital expenditures in the third quarter of 2012 totaled $15.2 million including $7.3 million for underground development and capital stripping in the open pit, $6 million for plant, property and equipment and other capital expenditures and $1.9 million related to exploration.

Capital spending for the year-to-date, have totaled $41.1 million the cash balance at the end of the quarter was $16.3 million the continued improvement in cash flow from operations as well as proceeds from financings completed subsequent to the end of quarter three will provide the company with ample cash in the operating needs.

I will now turn the call back to Wade.

Wade K. Dawe

Thanks, Jon. The company’s production guidance for 2012 is 77,000 to 85,000 gold ounces as previously disclosed. Quarter four 2012 is on track to be our strongest of the year and gold production will continue to increase as we enter 2013. Brigus Gold, has a valuable portfolio of assets including a producing mine at Black Fox, a growing gold discovery and development project at Grey Fox, the fast producing Stock Mine and over a 1 million ounces of reserves at Goldfields property, which is located in the province of Saskatchewan.

As we conclude 2012 and enter 2013 with the Black Fox mine generating significant profits and cash flows. We will capitalize on its strength by pursuing measured growth through the advancement and developments of our portfolio of gold assets. That concludes our commentary and review of Q3, 2012 operations and finances. Thanks again for your time. We'll now open the call for questions.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) Our first question comes from the line of Jeff Wright with Global Hunter Securities. Please proceed with your question, your line is live.

Jeff Wright – Global Hunter Securities

Hey, good morning everybody. A couple of questions, I guess on the operational side first. So we got these mill up to 2,200 tonnes a day is waiting capacity. Dan, would you think they can run an excess of 2,200 tonnes a day with any consistency or you pretty comfortable right at 2,200.

Daniel Racine

We are very comfortable with 2,200.

Jeff Wright – Global Hunter Securities

Okay. And moving on to the Grey Fox feasibilities, we have any estimated to, how much the feasibility study budget is how much you think like will cost?

Daniel Racine

Yeah, I will provide a number in the December.

Jeff Wright – Global Hunter Securities

Okay. Then, the West Zone, the underground, are you guys indicating you are going to be getting 4,000 tonnes to 500 tonnes a day, do you have an average grade on the West Zone?

Daniel Racine

It’s over six grams, we have mined quartile so far and all of them were over 4 grams to 6 grams.

Jeff Wright – Global Hunter Securities

Okay, an excess of six grams, okay, then what additional information can you guys give us from the historical production on the Stock Mine, what type of grade, what type of tonnage, how many ounces you were produced on an annual basis?

Wade K. Dawe

The Stock Mine consistent grades with the (inaudible) camp sort of five, six gram type material. We will release additional information on that in the coming weeks as we indicated as we layout our plan for the property. But we don’t have the specific numbers in front of us right now regarding the historical production, but the grades were in the line of five grams, six grams, up to seven grams historically, it shutdown in 2,000 with very low gold prices that reopen briefly in 2003, for a very short period, similar situation and it has not reopened since. The mine is currently flooded, when they stock mining, they were in ore, they were in ore zone, ore grade zone, the mine is not exhausted, in fact we are confident that there is ore remaining in the mine. It will require drilling, dewatering and our disclosure in December will outline our planed budget and so forth for the Stock Mine, but we see it as a near-term producer for the company.

Jeff Wright – Global Hunter Securities

Okay and you are not at the Dell to even into a timeline but is it so currently permitted or do you really have to go back to your permitter?

Wade K. Dawe

It’s permitted, so we do not have to go through permitting. We see there is a fast track situation but in terms of capital cost, budgets and production profile. We are not in a position to outline any further information on that today.

Jeff Wright – Global Hunter Securities

I understand that. I guess one last question on the Stock Mine, so we should look at this as a near term production opportunity in the next say 12 months to 18 months timeframe not 24 months, 36 months out?

Wade K. Dawe

We’ll have more to say on that in December, but we see it as a near-term certainly less than two years.

Jeff Wright – Global Hunter Securitiess

Okay, thanks. I will get back in the queue.

Wade K. Dawe

Thank you, I appreciate your questions.

Operator

Thank you. Our next question comes from the line of Steven Butler with Canaccord Genuity. Please proceed with your question. Your line is live.

Steven Butler – Canaccord Genuity

Oh, yeah, good morning guys. Question for you on Grey Fox Daniel. With four rigs going there, are you going to be positioned to add any more rigs to the programs. I’m kind of wondering about how quickly we’ll be able to scribe a greater resource to the small one that exists right now on the underground scenario for Grey Fox? Thanks.

Daniel Racine

Hi, Steve, yes we are planning to have more drill on Grey Fox before we have four now running and then we then we’re going to have a discussion with Howard, but will probably he could at least one or two more, on Grey Fox. We are planning to add one on surface also on Black Fox. We want to extend the phase we had indication that the zone there, so gold (inaudible) one also on (inaudible) Black Fox in the short-term.

Steven Butler – Canaccord Genuity

So would you guys look at a resource update preceding or in time exactly with the feasibility study, in other words we’re pretty backend loaded late 2013 for resource update and fees?

Daniel Racine

Fees will be second half like I mentioned and Wade mentioned. We’ll release a new resource calculation before that, so sometime end of second half also but beginning of second half or end of first half. So we need to realize in say six seven more months to increase resources mainly from underground. The open pit part is very well known.

Steven Butler – Canaccord Genuity

Right. As we come back to Black Fox and the underground drilling that’s going on there, are you guys going to be in a position to potentially add to the reserve basis here or do we see more reflection in indicated in (inaudible) resources at the end of this year or at the end of 2012. Are we looking more like 2013 for the program to finish in earnest before you consider a bigger resource addition to Black Fox? Thanks.

Daniel Racine

Yeah, we are drilling right now as you know but we’ll produce a new rate we only want the resource calculation late or beginning of second half. Again, there we are drilling, getting ready to go mine there, but before we release a new reserve we need to drill and we just started to drill like we mentioned so we need more drilling.

Steven Butler – Canaccord Genuity

Great. And guys your underground mining rate has increased nicely from in Q2 402 tonnes per day at 473. We should recently expect the annual that you will continue to increase the tonnes per day in the fourth quarter. You won’t be fully ramped up, but I guess the West Zone you will be incremental cost relation to throughput per day on into Q4 correct?

Daniel Racine

Well, we already sized in the first month in the quarter, October, November is the same were producing are lot more from the West and it’s according to gram, so total Q4 will be a big increase compared to Q2 with Q3.

Steven Butler – Canaccord Genuity

I have maybe missed it, did you guys have closed October throughput or would you give us an estimate to how you did in October on the (inaudible)?

Daniel Racine

We won’t.

Wade K. Dawe

We won’t do that.

Steven Butler – Canaccord Genuity

Thank you.

Wade K. Dawe

Difficult to-date our quarter’s production of one month or one week as you know, but thus far in the quarter its going very well and we had a good plan for the reminder of the quarter. So quarter four as it close will be a record quarter for the mine and for the company and we look forward to publishing that in due course.

Steven Butler – Canaccord Genuity

Great, and then the last question I guess just Jon keep you awake on the G&A side of things; costs were little bit higher in the quarter, could you maybe explain that and sort of the timeline necessary or the variances there on G&A in the quarter? Thanks.

Jon Legatto

Yeah, there was a spike in the quarter for G&A costs, both are really attributable to some one time cost related to some restructuring and personal related cost, so between both cash and non-cash components. So we expect cash costs on a go forward basis on an annualized basis to $7 million and $8 million, so what you thought in Q3 was really just inflated by some investing of various options in DSUs and ESPD plan that we implemented during the year as well as some of the restructuring and personal cost that I just mentioned.

Steven Butler – Canaccord Genuity

Okay. Thanks guys. Thank you.

Jon Legatto

Thanks Steven.

Operator

Thank you. Our next question comes from the line of Eric Winmill with Casimir Capital. Please proceed with your question. Your line is live.

Eric Winmill – Casimir Capital Inc.

Great thanks very much, good morning everyone. I just wanted to dig into the underground mining costs little more if I could obviously they were down quarter-over-quarter. Should we assume obviously the big component of fixed costs there in the underground and what should we be looking for in terms of underground costs in Q4 and 2013?

Wade K. Dawe

Yeah, the underground cost per ton is really based on the number of more tones are pulled out of there. We’re happy with the costs per ton this quarter and we think we’re going to be within the $90 to a $100 range that we talked about and that should be in effect for 2013.

Eric Winmill – Casimir Capital Inc.

And sort of same level for Q4?

Wade K. Dawe

Yes.

Jon Legatto

Yes.

Eric Winmill – Casimir Capital Inc.

Okay, thank you. And I don’t know if I saw you mentioned the grades here are up over six grams. How does that compare on the underground in terms of what you’re seeing earlier in the year?

Wade K. Dawe

Since the beginning of the year the grades on the ground have been reasonably consistent in six plus grants is that has been flowing a little, but the big change between now sort of in the first quarter is we did get grades on the control over the tonnage. We started the year 200 tonnes, 300 tonnes per day and that’s consistently ramped up while maintaining the grade. So we’re seeing good consistent grades in line or maybe slightly better than the reserve grade and the tonnage is certainly seen a material increase from the underground.

Eric Winmill – Casimir Capital Inc.

Okay, thank you. And in terms of stock piles at the mine sites. Can you comment in terms of what sort of levels you have there and obviously it doesn’t sound like you will be needing the drop for many of those or?

Wade K. Dawe

Yeah, now we hope to be able to maintain the nil capacity through current production of high grade ore from the underground, as well as medium-to-high grade ore from the open pit, not drawing down on any of the stockpiles. The largest stockpile we have is the low-grade ore stockpiles, about 330,000 tonnes, which has increased since the end of 2011 due to the increased production from the underground. The other stockpiles are kind of short-term stockpiles without a large volume in those. So we don’t expect any significant changes in those.

Eric Winmill – Casimir Capital Inc.

Okay. And in terms of Grey Fox, here I know, obviously the study has been pushed into next year, but have you put anything out there in terms of what you might be looking at in terms of CapEx or production rates or various treatment alternatives?

Wade K. Dawe

No, there’s been no disclosure of any kind thus far. Most of the drilling that was subject to the resource estimate, as released in September 2012, was sub-200 metres. So most of the drilling, most of gold ounces we [envisage] will be open-pittable ounces. We’ve completed a fair amount of drilling underground before and since that time and we’re pushing now to add ounces underground. We’re currently drilling at depths up to 450 metres with very good grades and thicknesses at the Grey Fox underground, specifically at the Contact and the 147 zone. It’s early days yet at the Grey Fox South Zone, but we are seeing some very interesting results there as well.

So we have two zones that are currently in that resource estimate, 200 metres in length, 200 metres into surface, from below 200 metres there’s limited ounces thus far. However, we do see a very substantial increase coming in the underground ounces that will be in that resource estimate mid-next year.

As Daniel indicated, and we hope to have some initial answers from the Grey Fox South Zone as well. In terms of capital costs and so on, it’s a little early for that yet, what we do now is that the Black Fox mill will be upgraded as part of the Great Fox development with the addition of a SAG mill. So we will install a SAG mill at the Black Fox site and in terms of dollar estimates we haven’t released anything, nor we are in a position to do so at this point.

Eric Winmill – Casimir Capital Inc.

Okay, great, thank you. And last question just on stock, I know we will see some more stock in the next few weeks, but can you give any comments in terms of what’s required to rehabilitate and get in there and do expiration?

Daniel Racine

Yeah, first thing we have to dewater the mine, so that one of the thing we have to do, we have to install a new hoist and then drive system, because it’s the one that bears just an old hoist and an old system then change the up train, the up train is not good anymore. So that’s the main thing we have to do and we water the mine. We water the mine it would like simple is not a de-filtration; it’s not a lot of excavation, so it could be simple. But it’s mainly that you train, hoist and drives that.

Eric Winmill – Casimir Capital Inc.

Okay, great, thank you and good quarter.

Daniel Racine

Thank you.

Wade K. Dawe

Thank you very much, I appreciate it Eric.

Operator

Thank you. Our next question comes from the line of Richard Gray with Cormark. Please proceed with your question. Your line is live.

Richard P. Gray – Cormark Securities, Inc.

Hi guys. Most of my questions have been answered. And it’s nice to see so many questions on the call, but just on the cost per ton, what you have targeted milling cost per ton. You gave the mining cost, but what you are targeted milling costs from the 18 or so?

Unidentified Company Representative

Yeah, (inaudible) because this quarter we think it’s a little high. It’s not really indicative what we expect the run rate to be. We hope to be down closer to between $16 and $17 on a go-forward basis.

Richard P. Gray – Cormark Securities, Inc.

Okay. That’s great and just I guess more finer detail on your 2013 you said you are going to – your targeted annual run rate was 90,000 to 100, 000 ounces by the end of next year, what’s your kind of your total number for 2013 that you are throwing out there?

Unidentified Company Representative

No, our guidance – our official guidance for next year is 85,000 to 100,000 ounces for the year. We are currently producing at a run rate well in excess of 80,000 a year. It’s certainly closer to 90,000 at present that’s our current run rate. But we are comfortable with guidance for next year at 85,000 to 100,000 and we will have more to say on that in December. We may tighten up those numbers a little bit in December, but our guidance for 2013 will certainly be in that range.

Richard P. Gray – Cormark Securities, Inc.

Okay, thanks very much. That’s all I got.

Unidentified Company Representative

Thank you.

Operator

Thank you. Our next question comes from the line of Don Blyth with Paradigm Capital. Please proceed with your question. Your line is live.

Don Blyth – Paradigm Capital Inc.

Thanks, certainly a good looking quarter there Wade and guys. Just a question on the open pit average grade during the quarter, what’s actually mined during the quarter was about 2.13 grams and that’s about 15% lower than open pit grades that were put through the mill in the first half of 2012. Can you provide any outlook on the open pit grades moving forward?

Unidentified Company Representative

Hey Don, it’s important to recognize that as the underground ramps up the open pit, the high grade ore from the open pit sort of the reserve grade, higher-grade ore is not insufficient quantity to fill the mill. So the grade you'd see that 2.1 gram material is the average grade of all of the ore, including the higher-grade material and in lower-grade material that we draw down from stockpiles as the underground is ramping up. So our steady state production number from the mine is 802,000 tones per day from the underground with the balance coming from the open fit. As we're ramping up, there was a need to augment the open fit high-grade ore with lower-grade material on that take down the average.

Don Blyth – Paradigm Capital Inc.

Okay, fair enough. You did mention rigs without examine the goldfield asset again. Are you finding to lease any sort of update on the project economic today?

Wade K. Dawe

We – in terms of the economies, we are recently comfortable with the feasibility study that we completed in September 2011. The review will be down in the context of our current assets, including the stock mining Grey Fox, just a review we'll scroll the numbers again, but we want to make sure that we have it in the right priority in our Q with you will in terms of future production. So we're doing a review of all of our assets including, the Grey Fox deposits the stock mine is annual indicated the goldfield assets and there is potential to recalibrate perhaps some of the timelines and the order our production from those assets. So that’s the main reason for doing our review of goldfield.

Don Blyth – Paradigm Capital Inc.

Okay, thanks very much.

Wade K. Dawe

Thank you, Don.

Operator

Thank you. Our next question comes from the line of Ardem Keshishian with Haywood Securities. Please proceed with your question. Operator

Thank you. Our next question comes from the line of Ardem Keshishian with Haywood Securities. Please proceed with your question. Your line is live.

Ardem Keshishian – Haywood Securities

Good morning, everyone. First, I would like to congratulate Mark on his promotion. And moving on, I just had a question for your CapEx for next year. Wade, if you could give me an idea what to expect, what’s the number like going to be?

Wade K. Dawe

Sure. Our guidance for next year for CapEx, the capital, the CapEx in underground development, the CapEx related to general capital and underground development will decline from $45 million in 2012 to $30 million next year. The capital stripping will be consistent at $15 million and our current budget for exploration is $10 million, which is focused, as you know, on the Grey Fox area.

Ardem Keshishian – Haywood Securities

All right, okay. And in terms of personnel, you guys have everyone that you need or you’re still looking to hire?

Wade K. Dawe

Hand this over to Jennifer.

Jennifer Nicholson

Hi, Ardem. We are in pretty good shape with our personnel now. We certainly found the market has improved for all of our different roles that we need to fill, certainly much better than it was at the beginning of the year. Now that Mark has been promoted we are searching for a new Mine Manager and we have a candidate in mind for that. So we’re actually in very good shape on the HR side.

Ardem Keshishian – Haywood Securities

Perfect. Okay. Thank you very much. Good quarter. Congrats.

Wade K. Dawe

Thanks, Ardem.

Jennifer Nicholson

Thanks, Ardem.

Operator

Thank you our next question comes from the line of Steven Butler with Canaccord Genuity. Please proceed with your question. Your line is live.

Steven Butler – Canaccord Genuity

Okay. Just a follow-up for you. On the Stock Mine, can you direct us to the last public record or if it is just on reserves and resources at the Stock Mine, which company that was in the hands over the time?

Wade K. Dawe

What we will do Steven

is we’re going to be compiling information moving that together updating our website and our disclosure, but at this time we have no information to share with you regarding the resources or historical reserves at the mine.

Steven Butler – Canaccord Genuity

Okay. And then last one, just housekeeping on the Phase III for Black Fox open pit the [consenters] from ratio was lower than I expected in the quarter at six to one, as you sell down phase II, What’s the phase III number (inaudible) about the right number for a (inaudible)? Thanks.

Jon Legatto

Yes Steven.

Steven Butler – Canaccord Genuity

Yeah okay, perfect, perfect. Thank you.

Jennifer Nicholson

Thank you.

Wade K. Dawe

Thanks.

Operator

Thank you. (Operator instructions) There are no further questions at this time. I’d like to turn the floor back over to you for any closing comments you may have.

Wade K. Dawe

Okay, we appreciate the participation in our Q3 conference call and welcome each of you to follow our progress during quarter four and into 2013. Have a great day. Bye, bye.

Operator

Ladies and gentlemen this does conclude today’s conference. You may disconnect your lines at this time. And we thank you all for your participation. Good day.

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