Brigus Gold Reports Grey Fox Resource of 507,400 Indicated Ounces and 228,600 Inferred Ounces
Brigus Gold Reports Grey Fox Resource of
507,400 Indicated Ounces and 228,600 Inferred Ounces
HALIFAX, Nova Scotia--(BUSINESS WIRE)-- Brigus Gold Corp. ("Brigus" or the "Company") (NYSE MKT: BRD; TSX: BRD) is pleased to announce a new National Instrument 43-101 ("NI 43-101") mineral resource estimate for the 147, Contact and Grey Fox South (GFS) zones on the Grey Fox property. Highlights of the updated resource estimate include:
- 31% increase in open pit indicated grade & 14% increase in underground indicated grade
- Increase in underground ounces
- Significant prospect for economic extraction
|147, Contact and GFS Zones|
*Please see notes
*See appendix 1 for comparison at different cut-off grades
Brigus announced an initial resource estimate on the Grey Fox property in December 2011 and an updated resource in September 2012. The previous resource estimates were released without a constraining pit shell. The focus of the Company's exploration drilling program since the last resource estimate has been to convert Inferred ounces to Indicated ounces and to expand the resource through systematic drilling.
"This new resource estimate is an important milestone for Brigus and our growth plans for the Black Fox Mining Camp." Said Wade Dawe, Brigus Gold's Chairman and Chief Executive Officer. "The potential for future economic extraction in both open pit and underground development remains strong."
Brigus' exploration program continues to demonstrate the high potential to yield new gold discoveries within the Black Fox Complex which covers approximately 18 square kilometres within the Timmins Mining District. All all three zones at Grey Fox occur within close proximity to each other on the southern portion of the Black Fox Complex and provide Brigus with near term production growth opportunities.
The new resource statement reports the open pit potential constrained within Whittle optimized pit shells for the 147 and Contact Zones at $1,400 per ounce of gold. The constraining pit shell extends down to 195 metres below surface for the 147 Zone and down to 125 metres below surface for the Contact Zone. The potential underground resource for the 147 and Contact Zones is based on the remaining resource outside of the pit shells. The GFS Zone needs further drilling before it can have an optimized pit shell calculated. The entire GFS resource is reported as underground potential. The new mineral resource estimates are reported to reflect potential open pit and underground resource values at cut-off grades of 0.72 g/t of gold for open pit mining and 2.84 g/t of gold for underground mining.
Exploration drilling in 2011 discovered the 147 Zone and the mineral resource estimate is based on 395 drill holes. The core area of the zone is approximately 275m in a north-south direction dipping at approximately 80 degrees to the east. The gold mineralization primarily occurs within multiple quartz carbonate brecciated zones within bleached units of variolitic mafic volcanics and other parallel hanging wall and foot wall gold mineralized zones. Infill drilling and resource expansion drilling below 250 metres vertical from surface is ongoing. Recent deep targeted drilling has intersected the 147 Zone at a vertical depth of approximately 500 metres below surface. The 147 Zone remains open at depth.
The Contact Zone resource is based on 259 drill holes. The gold mineral resource estimate lies within approximately 450 metres of strike length. The Contact Zone consists of a steeply dipping mineralized fault contact between the north-south trending metasediments and mafic volcanic rocks, and includes parallel foot wall and hanging wall gold mineralized zones. Infill drilling and resource expansion drilling below 200 metres vertical from surface is continuing and the deepest drill intersected gold mineralization is at an approximate vertical depth of 425 metres below surface. The mineralization remains open along strike to the north and down dip.
Exploration drilling in 2012 discovered the new multiple horizon GFS gold zone located approximately 400 metres to the east and running sub-parallel to the 147 Zone. The GFS resource estimate is based on 98 drill holes. Gold mineralization primarily occurs within multiple quartz carbonate brecciated zones within bleached units of variolitic mafic volcanics and intrusives, and other parallel hanging wall and foot wall zones. Drilling has intersected the gold mineralized trend over an approximate 300 metre strike length and from near surface to the deepest drill hole at approximately 320 metres vertical below surface. Drilling is at an early stage and a significant increase in the resource is anticipated as in-fill and expansion drilling continues. The GFS zone remains open in all directions.
- The Independent and Qualified Persons for the Mineral Resource Estimate, as defined by Regulation 43-101, are Pierre-Luc Richard, MSc, PGeo (InnovExplo Inc), and Carl Pelletier, BSc, PGeo (InnovExplo Inc), and the effective date of the estimate is June 21, 2013.
- The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
- These Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability.
- While the results are presented undiluted and in situ, the reported mineral resources are considered to have reasonable prospects for economic extraction.
- CIM definitions and guidelines were followed for Mineral Resources.
- The resource was estimated using Gemcom GEMS 6.5. The database used for the estimate comprised diamond drill core composites and assays. All samples were collected by Brigus personnel. The estimate is based on 724 diamond drill holes (246,191m) drilled from 1993 to 2013, the vast majority (>95%) having been drilled between 2008 and 2013. A minimum true thickness of 5.0 m was applied, using the grade of the adjacent material when assayed or a value of zero when not assayed.
- Supported by statistical analysis and the high grade distribution within the deposit, a top cut varying from 50 g/t and 100 g/t was applied to assay grades prior to compositing grades for interpolation into model blocks using Ordinary Kriging and Inverse Distance Weighting Squared methods, and was based on 1.5 m composites within a 3m long x 3m wide x 3m high block model. The ordinary kriged grade model for part of the 147 and Contact zones and ID2 for the rest of the deposit was felt to best represent the continuity and distribution of the gold grade based on the current geological models.
- Two passes for each of the geological zones were used for interpolation. Based on geostatistics, the ellipse maximum ranges for interpolation were 102m x 38m x 10m for the 147 Main geological zone, 76m x 42m x 10m for the Contact Main geological zone and 60m x 30m x 10m for remaining zones.
- Bulk densities were calculated for individual interpreted lithological domains based on 638 density measurements. The calculated bulk densities vary from 2.76 g/cm3 to 2.96 g/cm3.
- A Whittle optimized constraining shell was generated to constrain the potential open pit material for the 147 and Contact Zone. The potential underground material for the 147 and Contact Zones is based on the remaining resource outside of the pit shells. No open pit constraining shell was run for the Grey Fox South zone and all of the resource is classified as underground potential material. In-Pit and Underground resources were compiled at cut-off grades from 0.40 to 5.00 g/t Au (for sensitivity characterization). A cut-off grade of 0.72 g/t Au was selected as the official in-pit cut-off grade and a cut-off grade of 2.84 g/t Au was selected as the official underground cut-off grade. Cut-off grades must be re-evaluated in light of prevailing market conditions (gold price, exchange rate and mining cost).
- A gold price of US$1,400/oz and an exchange rate of US$1.00=C$1.01 was utilized in the gold cut-off grade calculations of 2.84 g/t for potential underground and 0.72 g/t for potential open-pit Mineral Resources. Underground and open-pit mining costs, process costs and G&A costs were estimated using experience gained from Brigus' Black Fox mine.
- The Indicated category is defined by combining various statistical criteria, such as a minimum of three drill holes within the search area, a maximum distance of 15m to the closest composite, and a maximum average distance of 25m to composites. Finally, a clipping boundary was interpreted to either upgrade or downgrade some of the resource based on confidence and geological continuity.
- The pit shell used for the resource estimate extends slightly beyond the property limits in its southern portion of the 147 zone. Although the entire resource lies within the property limits, some material outside the property limits will need to be removed to access some of the resource. Consequently, this portion of the pit may need to be re-considered in a future economic study. For the purpose of this study, such material outside the property limits was attributed a grade of 0 g/t Au.
- Ounce (troy) = metric tons x grade / 31.10348. Calculations used metric units (metres, tonnes and g/t).
- The number of metric tons was rounded to the nearest thousand. Any discrepancies in the totals are due to rounding effects; rounding followed the recommendations in Regulation 43-101.
- InnovExplo is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political or marketing issues or any other relevant issue that could materially affect the Mineral Resource Estimate.
Qualified Persons and Technical Report
The new mineral resource estimate announced in this release was prepared by Mr. Pierre-Luc Richard, MSc, PGeo and Mr. Carl Pelletier, BSc, PGeo, both from InnovExplo of Val D'Or, Quebec (InnovExplo), and are Independent Qualified Persons ("QP"), as defined by Section 1.5 of NI 43-101. Mr. Pierre-Luc Richard, Mr. Carl Pelletier and Senior Exploration Project Manager Mr. John A. Dixon, P. Geo., have reviewed and approved the technical exploration information in this release. Mr. Dixon is the Qualified Person for the Company.
InnovExplo is preparing a NI 43-101 Technical Report to support disclosure of the new mineral resource estimate. This report will be filed by Brigus in its entirety on SEDAR ( www.sedar.com ) within 45 days of the date of this news release, and the report will also be available on Brigus' website at www.brigusgold.com
All sample analyses were performed by Polymet Labs of Cobalt, Ontario, SGS Laboratories of Sudbury, Ontario, Swastika Laboratories of Swastika, Ontario and AGAT Labs of Mississauga, Ontario using standard fire assay procedures. Brigus Gold's quality control checks include insertion of blanks, standards and duplicates to ensure laboratory accuracy.
About Brigus Gold
Brigus 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 also owns the Goldfields Project located near Uranium City, Saskatchewan, Canada, which hosts the Box and Athona gold deposits. In the Dominican Republic, Brigus has signed an agreement to sell its remaining interests in three mineral exploration projects. In Mexico, Brigus owns the Ixhuatan Project located in the state of Chiapas.
Cautionary and Forward-Looking Statements
Statements in this news release, which are not historical facts, are forward-looking statements that involve risk, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. All statements regarding the Company's ability to successfully expand the Black Fox Complex gold resource, add to Black Fox and Grey Fox resources, advance new discoveries to production, convert resource estimates into near-term production, underground mine exploration drilling program and continue to obtain positive down dip continuity of significant gold mineralization 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 most recent Annual Information Form and Management Discussion and Analysis filed under the company's name at www.sedar.com and annual report on Form 40-F filed with the United States Securities and Exchange Commission at www.sec.gov 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. Source: Brigus Gold Corp.
Appendix 1 : Potential Open Pit and Underground Mineral Resource Estimate at Different Cut-Off Grades
|147, Contact and GFS Zones|
|147, Contact and GFS Zones|
|147, Contact and GFS Zones|
Brigus Gold Corp.
Investor Relations Contact Information
Morgan Tyghe, 416-214-9867
Director of Investor Relations
KEYWORDS: North America Canada
The article Brigus Gold Reports Grey Fox Resource of 507,400 Indicated Ounces and 228,600 Inferred Ounces originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.