Page 38 By Gregory Reynolds Corp has been increased by a decision to reduce the percentage of its gold stream held by an investor The company operates the wholly owned Black Fox Mine and mill in the T immins Gold District of Ontario Brigus announced Oct 10 that it has with 264 million slated to repur chase four per cent of the existing 12 per cent goldstream with Sandstorm Gold Ltd Under the agreement with Sandstorm the company may repurchase up to six per cent of the goldstream until Jan 1 2013 Brigus will make a decision on the re maining two per cent prior to the end of the year Streams are metal purchase agree ments that provide in exchange for an upfront payment the right to purchase all or a portion of one or more met als produced from a mine at a preset price The company also announced that it produced 19526 gold ounces in the third quarter of 2012 an increase of seven per cent over second quarter production of 18254 ounces W e are pleased with the growth in gold production at Black Fox during the third quarter said W a de Dawe Brigus president and CEO Gold production continues to in crease quarter over quarter as expect ed Brigus repurchase of the goldstream is an accretive transaction providing an immediate and advantageous in Brigus continues to forecast full year gold production of 77000 to 85000 ounces for 2012 Production from the under ground por tion of the Black Fox Mine is steadily increasing as crews develop and ac cess lar ger ore zones at depth The open pit continues to perform as expected Phase 3 overburden remov al has commenced and production from Phase 3 is scheduled to begin in 2013 The mill processed 190879 tonnes of ore at an average grade of 334 grams of gold per tonne and an average re covery of 951 percent in the quarter Throughput averaged 2075 tonnes per day Cash costs are tar geted at 775825 per ounce for the year declining to approximately 700 per ounce by the end of 2012 ture fee of 277 per cent is payable in exchange for Casimir s services The company will issue 30 million in senior secured debt with a three year term Principle payments of 2 million will be paid quarterly com mencing on June 30 2013 The notes will bear interest which shall be paid monthly based on the closing Bloomber g Composite New Y ork Gold Price from the prior month Brigus is a growing Canadian gold producer committed to maximizing shareholder value through a strategy ploration and select acquisitions The Black Fox Complex encompass es the Black Fox Mine the new Grey Fox property and adjoining proper ties in the T o wnship of Black River Matheson The Black Fox Mine is in production and the Grey Fox Mine located four kilometres from Black Fox is in de velopment Brigus Grey Fox area is comprised of three main zones the 147 Contact and the newly discovered Grey Fox South These zones provide the company with near term production growth op portunities due to their proximity to the existing Black Fox Mine infra structure Brigus is continuing its exploration program in 2012 through an 8 mil lion surface exploration program fo cused on expanding the 147 Contact and Grey Fox South Zones as well as other high potential zones on the Black Fox Complex Brigus is also advancing the Gold City Saskatchewan which hosts the Box and Athona gold deposits In Mexico Brigus owns the Ixhuatan Project located in the State of Chi apas In the Dominican Republic Brigus has signed an agreement to sell its remaining interests in three mineral exploration projects Brigus Gold buying back part of its annual gold pr oduction