Today, Brigus Gold, the rapidly emerging mid-tier Canadian gold developer, offered a status and operational update report for the year, revealing a strong focus on improving output at the company's Black Fox Mine in Timmins, Ontario.
The company has slated a 25k ounce per quarter target for steady state output from Black Fox by year's end, and this project, combined with BRD's several other projects in North America, places the company squarely among the forefront of emerging Canadian mid-tier precious metal developers. From the head office in Halifax, BRD administrates a growing network of projects, with the Goldfields Project outside Uranium City, Saskatchewan, and interests in the Dominican Republic/Mexico amply reinforcing an aggressive, select acquisition strategy's effectiveness.
President and CEO of BRD, Wade Dawe, was very pleased about today's report, with underground operation ore grades handsomely living up to expectations as tonnage just continues to increase. Dawe cited the effect of decreased dilution and improved geological model of the underground ore body as being particularly encouraging, projecting that output from the underground operation would indeed increase steadily as the company opens up more faces to mine.
Significant change-up in the personnel and equipment mix at Black Fox, along with major process improvements towards the end of last month have resulted in a serious performance boost, with the underground operation being the largest benefactor.
Selective mining methodologies and advancing process technology, fused with a continual recruitment process of veteran ore raisers with vast experiential knowledge in conventional mining, supports the push to open up more faces of the resource, and the underground operation really takes center stage here:
• Grades - continual material improvement since the start of the year, with the average grade of ore from the underground up 99.3% to 5.96 grams per tonne for the first 75 days on 2012 (compared to Q4 2011)
• High-grade Tonnage - with 20 stopes open and another 10 planned in order to bring operational activity to 10-12 in operation at any one time; daily tonnage is expected to advance healthily from the average 400 tonnes plus per day that has come out in the first half of March. Projections of 800 tonnes per day for Q3 are serious as more faces are opened up and efficiencies improve
Chinese growth worries over potential flagging have shoved metals and commodities lower, but the obvious trailing concerns over more easing from the world's central banks should catch up with this vector. Gold and silver are in prime stacking territory again, taking another dip today to trade around $1645 and $31.80 as optimism from fund managers about the lack of need for more easing (Bank of America Merrill Lynch survey for March released Tuesday). It is very clear that the world's taste for precious metals is heating up on many fronts though and if consumers get their hands on more spending money, as the Chinese government in particular would like to see, the long-term growth vector should resolve clearly higher for producers like BRD.
For more information on Brigus Gold, visit www.brigusgold.com
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