USGS releases first study to assess global earthquake risk to mineral supplies
Earthquakes have the potential to substantially affect mining operations, leading to supply chain disruptions that adversely affect the global economy.
Shares of Brigus Gold Corp. (TSX: BRD) gained 19% last week after the company reported new drill results from its 100% owned Black Fox Mine in the Timmins District of Ontario.
The results come one week after the companyannounced record production during the third quarter of 27,174 ounces of gold from operations at Black Fox.
Brigus has been conducting underground exploration drilling at Black Fox to test the down dip extension of the ore body.
Drill hole GF 454-01-W intersected 26.75 meters of 40.71 g/t gold, including 8.35 meters of 103.20 g/t gold, beginning from 339 meters.
“This high grade test hole along with underground exploration holes drilled earlier this year indicate the continuity of the Black Fox deposit both down dip and along strike,” said Brigus VP of Exploration Howard Bird. “We are very encouraged by the high grades and thickness of ore intersected in 2013. In 2014 our exploration team will focus on infill and expansion drilling from underground to increase the gold reserves and life of mine at Black Fox.”
Brigus acquired the Black Fox Mine in 2010 and produced 77,374 ounces of gold during 2012. In August the company raised 2013 guidance to between 95,000 and 105,000 ounces. All-in cash costs are anticipated to average $1,100 per ounce for the remainder of the year.
Black Fox is an open pit and underground mine that is being operated concurrently. Open pit production commenced in 2009 and operations moved underground in 2011. Ore is shipped to the nearby Black Fox Mill, which has capacity for 2,200 tonnes per day (tpd). Head grade of open pit and underground ore through 2013 has averaged 3.73 g/t gold and 6.37 g/t gold, respectively.
Current National Instrument (NI) 43-101 Proven plus Probable mineral reserves at Black Fox total 765,000 ounces. An additional 160,000 ounces resides in the Measured and Indicated categories. An updated resource estimate is scheduled for release prior to year end.
Sandstorm Gold Ltd. (TSX: SSL) holds an 8% stream on life of mine gold production from Black Fox and a 6.3% stream on the Black Fox extension at a fixed price of $504 per ounce. Sandstorm acquired the stream in 2010 for $32 million in cash.
The Black Fox ore body is situated along the Destor-Porcupine Fault within the Timmins Mining district of Ontario. Other nearby operators include St. Andrew Goldfields Ltd. (TSX: SAS) and Kinross Gold Corp. (TSX: K).
Shares of Brigus are traded on the TSX under the ticker symbol BRD. The company has 231 million shares outstanding and holds a market cap of $155 million as of Friday’s close. Shares are down -26% year-to-date and -33% over the last 52 weeks.
