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Wednesday, February 22, 2012 9:26:27 PM
BRD - Smack in the heart of gold country
From the moment you arrive in the town of Timmins, Ontario, there is no mistaking it: You've arrived in gold country. The mining-themed mural at the airport, the historic mine-shaft headframes on the horizon, a billboard for an exploration drilling contractor, and Goldcorp's (NYSE: GG ) sprawling Porcupine mine and mill complex on the outskirts of town; everything you see speaks to the legendary productivity of the Destor-Porcupine Fault Zone. This 250-kilometer geological trend has yielded more than 70 million ounces of historical gold production, which today would ring the register at more than $100 billion!
Brigus Gold's producing Black Fox Mine, the nearby high-grade discoveries within the Pike River and Grey Fox project areas, and the Black Fox Mill some 20 kilometers to the west all lie along this proven gold-rich structure. The company also boasts noteworthy mineral assets in northwest Saskatchewan, with 1.09 million gold-equivalent ounces of measured and indicated resources, and will retain enticing upside exposure to recently monetized assets in the Dominican Republic and Mexico. But the Black Fox complex is the springboard for the company's imminent growth and the sole focus of this discussion.
Preparing for the next round of growth
Brigus Gold's Black Fox mill is already capable of processing 2,000 tons of ore per day and recovering an impressive 93% or more of contained gold. With growing mining capacity in the works, Brigus will first pursue a phase 1 expansion plan for the mill that includes the addition of a concentrator circuit, additional leach tanks, and a new circuit to recover gold from "carbon fines" recovered from the leach circuits.
In conjunction with the envisioned fast-track to production for the high-grade darlings of Brigus' ongoing exploration campaign -- the Contact Zone and the newly discovered 147 Zone -- the company is mulling the addition of a SAG mill to substantially increase throughput capacity for the growing Black Fox complex.
The rapidly expanding gold deposits at the Contact and 147 zones, and the additional targets nearby, are of particular interest to Brigus Gold investors. A pre-existing underground portal and ramp at the adjacent historic Gibson deposit offers Brigus the opportunity to fast-track permitting and underground development to potentially initiate production in the span of about one year. Wardrop Engineering is already conducting resource modeling in preparation for an initial resource estimate for the Contact Zone expected for the fourth quarter of this year. The 147 Zone has quickly established a strike length of 250 meters and remains "wide open" to expansion in all directions with five exploration drills active in the zone. Recent drill highlights include 3.66 grams per ton over an impressive width of 66.85 meters, and bonanza grades as high as 136.18 grams per ton (over 4.43m). With multiple assays pending on recent exploration drilling, I anticipate a series of potential catalysts for share-price appreciation over the coming months as the significance of these high-grade deposits -- and the strong potential for fast-tracked production -- comes into clearer view.
From the moment you arrive in the town of Timmins, Ontario, there is no mistaking it: You've arrived in gold country. The mining-themed mural at the airport, the historic mine-shaft headframes on the horizon, a billboard for an exploration drilling contractor, and Goldcorp's (NYSE: GG ) sprawling Porcupine mine and mill complex on the outskirts of town; everything you see speaks to the legendary productivity of the Destor-Porcupine Fault Zone. This 250-kilometer geological trend has yielded more than 70 million ounces of historical gold production, which today would ring the register at more than $100 billion!
Brigus Gold's producing Black Fox Mine, the nearby high-grade discoveries within the Pike River and Grey Fox project areas, and the Black Fox Mill some 20 kilometers to the west all lie along this proven gold-rich structure. The company also boasts noteworthy mineral assets in northwest Saskatchewan, with 1.09 million gold-equivalent ounces of measured and indicated resources, and will retain enticing upside exposure to recently monetized assets in the Dominican Republic and Mexico. But the Black Fox complex is the springboard for the company's imminent growth and the sole focus of this discussion.
Preparing for the next round of growth
Brigus Gold's Black Fox mill is already capable of processing 2,000 tons of ore per day and recovering an impressive 93% or more of contained gold. With growing mining capacity in the works, Brigus will first pursue a phase 1 expansion plan for the mill that includes the addition of a concentrator circuit, additional leach tanks, and a new circuit to recover gold from "carbon fines" recovered from the leach circuits.
In conjunction with the envisioned fast-track to production for the high-grade darlings of Brigus' ongoing exploration campaign -- the Contact Zone and the newly discovered 147 Zone -- the company is mulling the addition of a SAG mill to substantially increase throughput capacity for the growing Black Fox complex.
The rapidly expanding gold deposits at the Contact and 147 zones, and the additional targets nearby, are of particular interest to Brigus Gold investors. A pre-existing underground portal and ramp at the adjacent historic Gibson deposit offers Brigus the opportunity to fast-track permitting and underground development to potentially initiate production in the span of about one year. Wardrop Engineering is already conducting resource modeling in preparation for an initial resource estimate for the Contact Zone expected for the fourth quarter of this year. The 147 Zone has quickly established a strike length of 250 meters and remains "wide open" to expansion in all directions with five exploration drills active in the zone. Recent drill highlights include 3.66 grams per ton over an impressive width of 66.85 meters, and bonanza grades as high as 136.18 grams per ton (over 4.43m). With multiple assays pending on recent exploration drilling, I anticipate a series of potential catalysts for share-price appreciation over the coming months as the significance of these high-grade deposits -- and the strong potential for fast-tracked production -- comes into clearer view.
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