This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.
While the price of gold has slid recently, this doesn’t mean that precious metals explorers and developers have been operating in a holding pattern waiting for a price rebound. Companies have been making adjustments, striving to control costs, advancing projects and building reserves. They know vagaries of gold price movements can be volatile both in going up and tumbling down.
The second quarter of 2013 saw a 13% decrease in average gold prices to US$1,414 per ounce. This marks the largest quarterly decline in gold prices since 1980. During that period, Brigus Gold stayed on course for its exploration program, announcing increases in the quantity and quality of its ore reserves, and production targets.
The company recently updated the resource estimated of its Grey Fox discovery, which was first identified in December 2011. It announced a 31% increase in open pit indicated grade and a 14% improvement in its underground indicated grade. This increase in ounces of gold in the ground enhances the prospects of future production.
“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.”
Precious metal production from the Black Fox mine and mill continued on pace. During the first quarter of 2013, 26,316 ounces of gold were produced and half year production of gold was announced at 49,620 ounces.
“The second quarter production of 23,304 ounces of gold is a positive accomplishment for the Company,” said Daniel Racine, Brigus Gold’s President and Chief Operating Officer. “Despite the temporary suspension of milling activities during this quarter the Company is on track to meet its original guidance of 90,000 to 100,000 ounces of gold in 2013.”
Along with the Black Fox Timmins area production and exploration property, Brigus Gold is evaluating its Goldfields project near Uranium City in northern Saskatchewan. Black Fox is situated 75 kilometres east of Timmins and 11 kilometres east of Matheson. It also has a gold project in Mexico.
Brigus Gold bills itself as an “emerging Canadian mid-tier gold producer.”
With its headquarters in Halifax, Brigus Gold operates the Black Fox mine and mill complex, which covers 18 square kilometres in the Timmins gold district. The three main exploration projects – 147, Contact and Grey Fox South – are grouped together and are located in the southern sector of the larger Black Fox property. Grey Fox is situated four kilometres from the Black Fox Mine.
In the Timmins area, Brigus has about 240 employees. The company has an impact benefit agreement with the Wahgoshig First Nation. It is a significant contributor to the local community and has committed $165,000 to the hospital in Matheson.
For more information on Brigus Gold, which is a member of the OMA, you can go to its website at www.brigusgold.com. This article is the twenty-second in a series of profiles of OMA member companies and their contributions to the vitality of Ontario’s society and economy.