In 2011, 55,756 ounces of gold were produced at Black Fox at an average grade of 2.54 grams per tonne and Brigus has forecasted between 77,000 to 85,000 ounces of gold production for 2012. Brigus also has an aggressive drilling program underway that is testing to identify resource additions from underground and from surface.
Black Fox Gold Stream
Sandstorm has a gold stream agreement to purchase 12% of the life of mine gold produced from Black Fox and 10% of the life of mine gold produced from the Black Fox extension (which includes a portion of the Pike River concessions) at US$500 per ounce of gold. Sandstorm made an upfront payment of US$56.3 million to acquire the stream in November 2010.
Brigus has the option, until the end of 2012, to repurchase 50% of the gold purchase agreement by making a US$36.6 million payment to Sandstorm, upon receipt of which, the percentage of gold Sandstorm is entitled to purchase shall be decreased to 6% for the Black Fox mine and 4.5% for the Black Fox extension.