Brigus Gold not rewarded for stellar Ontario drill results

Brigus Gold Corp.(TSE: BRD) trended lower amid a weak gold sector on Friday, despite announcing a second set of excellent drill results at its Black Fox complex in Ontario, Canada.

The second hole at the operating Black Fox mine in the Timmins Gold District of Ontario, hit 18.09 g/t gold over 37.8 metres, including 39.45 grams per tonne gold over 10.35 metres.

In mid-day dealings the explorer was trading down 3.8% at $0.75 on the Toronto big board, in above average volumes. More than 620,000 shares versus usual daily volume of 435,000 shares had changed hands by 12.15pm EDT on Friday.

The $173 million company has escaped the worst of the carnage among junior miners which have been decimated this year. Brigus is down less than 20% since the start of year.

What makes this set of results more significant is that the hole ended in mineralization. The company said in a statement the mineralized intercept is from a drill interval of 316.9 to 354.7 metres, and remains open and the last sample at 354.7 metres graded 15.34 grams per tonne gold.

"Therefore, the full thickness of this high grade intercept is unknown at this time. Hole 645-34-W intersected high grade mineralization 30 metres to the west of hole 645-01-W, which assayed 40.71 grams per tonne gold over 26.75 metres, including 103.20 grams per tonne gold over 8.35 metres," according to the Halifax-based company.

Brigus added that in light of these results, a third drill hole is now in progress with $1 million being spent for 12 to 15 additional holes still to be drilled from underground to further test and define the new zone.

"This thick, high grade gold intersection directly below current mining operations confirms the potential to expand our orebody and add significant ounces to the underground mine at Black Fox," said Wade Dawe, Brigus' Chairman and CEO.

Independent brokers Haywood Securities in a report on the drill results noted that: "Assuming all these holes intersect the zone and widths remain close to current widths, the implied tonnage would be in the 300,000 to 400,000 tonne range – and with grades over 10 g/t the ounces can mount up pretty quickly."