Conference Call.... First of all...I am really looking forward for the arrival of Daniel Racine who has been hired as Chief Operations Officer...his arrival is scheduled for on or about August 21, 2012.
He is not there...until he is there! The market should react postively once he comes aboard!
Contact Zone & 147 Zone: The Future of Brigus Gold.
The delineation drilling is being done using 15 metre centres....this is most excellent and very market friendly...the confidence level of the Updated NI 43-101 Resource Estimate which will be released some time in September, 2012 will be very high and will match accordingly with the upcoming Preliminary Economic Assessment due in November, 2012.
I am very impressed in the manner in which Management has progressed with both the Contact Zone and the 147 Zone...the planning has been most impressive and the focus has been to establish near term production instead of attempting to establish the actual size of the two discoveries and letting "things" get away from them in order to satisfy certain elements of the marketplace.
West Side Story: The Stope that they have defined in the West Ramp Area is very impressive...it will provide enough ore for a term of 18 months @ 400-500 t.p.d. beginning at 100 t.p.d. in November, 2012 and ramping up to full production in 3-4 months afterwards. This speaks well to the makeup of the Black Fox Deposit...very nice! More to come!
I believe that the Contact Zone & 147 Zone will have similar structures.
Wade Dawe, President & CEO did an excellent job during the Conference Call and furthermore he is doing just as well building the employee roster...Brigus is fully staffed! He is playing hardball at this point when it comes to raising further capital, he will attempt to get this baby higher before making a decision to add additional funds...25 million in the bank is significant...but..they must improve profitability to eliminate Private Placements...the cash burn moving forward will dictate further action. There is no doubt that the "forces that be" are putting the pressure on him by keeping the share price range bound...hitting targets will take care of that game!
I must be honest and say that I am skeptical at this time in terms of hitting their third quarter target of 21,500 to 23,000 ounces...I have not been able to figure out just how they are going to do it...yes..as previously posted I know what they have to do...but...how? is the question. Dawe was not willing to discuss where they are presently in terms of Underground Tonnage in August and July for that matter..there is an improvement from the 400 t.p.d. that they averaged in the second quarter, but I do not think that it is that much more. The March 2012 numbers were also the same. It appears to me that they are leaving their options wide open and may have to resort to exploiting a very high grade Stope. I have not sold any of my shares...they are making significant progress and I am on the same page with the Brigus Team in terms of where this is going...I will stay on this ride!
Mill Expansion: Slow or what? The fourth quarter is now their goal. I cannot wait to see Mill production improved by 5-10%...the timing will be just right...worth the wait...I hope!
It is very important to remember that the Contact Zone is still open to depth and to the North Dip...the 147 Zone is open to depth...they will explore this once the mining plans are well underway...expansion...I love that word!
I have a continued belief in Management and the Brigus Team and soon to be ...Daniel Racine...I will continue to hold and will add if the market pushes the share price lower...buying opportunity to be sure! I do not think that it is going much lower.
Digger144
P.S. Vision & Foresight...looks good!