BRD News! Brigus Gold Hits Q1 Production Target

BRD News! Brigus Gold Hits Q1 Production Target

Brigus Gold Corp. (“Brigus” or the “Company&rdquo(NYSE Amex: BRD; TSX: BRD) is pleased to announce that it produced 16,922 ounces of gold at an average grade of 3.04 grams per tonne (gpt) in the first quarter of 2012 – hitting the top end of its guidance.

Month Ounces Produced Average Grade
January 5,128 2.81
February 4,842 2.72
March 6,952 3.55
Total 16,922 3.04

Production ramped up through the quarter as operational improvements took effect. In March, underground production materially increased as more working faces were opened. Production from the underground mine will continue to improve through the year as the Company adds additional mining faces and continues developing towards larger ore zones at depth.

The open pit is performing well, grades are improving as the Company mines deeper into Phase 2, and the operating strip ratio will continue to decline as the year progresses.

The mill processed 181,263 tonnes of ore at an average grade of 3.04 grams of gold per tonne and an average recovery of 95.5% in the quarter.

The cash cost per ounce sold will be released once all reconciliations are completed. Costs are expected to be lower than originally forecasted for the first quarter of 2012.

“We are very pleased with these strong Q1 results at our Black Fox Mine,” said Wade Dawe, President and Chief Executive Officer of Brigus. “Our new team at Black Fox has done an exceptional job reducing dilution and ramping up underground production. As a result of these efforts, production was at the top end of our guidance and increased significantly in March. Current production levels put us on track to meet our guidance for the second quarter and we are confident that we will continue to meet our targets for the remainder of the year.”

The Company has also completed a sale-leaseback on certain Black Fox Mill assets, which generated $15 million cash at favourable interest rates to be repaid over the next five years. The Company ended the first quarter with over $30 million in cash which is more than sufficient to execute on near term growth plans.

OUTLOOK

Brigus continues to forecast full year gold production of 77,000 to 85,000 ounces for 2012:
2012 Low High
Q1 15,500 17,000
Q2 18,000 21,000
Q3 21,500 23,000
Q4 22,000 24,000
Total 77,000 85,000

Cash costs are targeted at $775 - $825 per ounce for the year, declining to approximately $700 per ounce at steady state production levels of 104,000 ounces per year in 2013.

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 is also advancing the Goldfields Project located near Uranium City, Saskatchewan, Canada, which hosts the Box and Athona gold deposits. In Mexico, Brigus has granted Cangold Limited the option to acquire a 75% interest in the Company’s Ixhuatan Project located in the state of Chiapas. In the Dominican Republic, Brigus has signed an agreement to sell its remaining interests in three mineral exploration projects.