Targeting gold zones never fully tested
MONTREAL, May 27 /CNW Telbec/ - Blue Note Mining Inc. (TSXV: BNT) reports that it has engaged Forages M. Rouillier Inc. / M. Rouillier Drilling Inc. to execute drill programs on the Company's Croinor and Chimo gold projects located near Val-d'Or, Québec. The contract provides for up to 9250 meters of drilling on the two properties and is scheduled to start on May 26, 2010.
Work on the Croinor gold project will be jointly funded by Blue Note and joint venture partner, First Gold Exploration Inc. The initial phase of drilling at Croinor has three objectives. 450 meters of drilling will be completed to test the ground stability of the crown pillar in the Croinor gold deposit. This will provide key information for the mine engineering plan for future mining operations. 2750 meters of drilling will be completed to delineate potential resources below the current resource and to further test the mineralized diorite sill at depth. 250 meters of drilling will be completed to test near surface mineralization located west of the previously mined west pit for possible open pit potential. Phase 2 of the Croinor drill program consists of 2600 meters of Phase 1 follow up drilling.
Measured and indicated resources at Croinor, as reported in September 2009, are estimated at 814,228 tonnes grading 9.11 g/t gold. Mineralization remains open at depth and potential exists to increase the current resource with infill drilling. A scoping study conducted by Golder Associates Ltd. and released in July 2009 based on a smaller resource and lower gold price provided for a pre-tax undiscounted cash flow of $19.1 million for the project. Based on gold at US$1,200/ounce and otherwise using the same parameters as Golder Associates Ltd., the project would generate a pre-tax undiscounted cash flow of $34.3 million.
The program for Blue Note's 100% owned Chimo project includes 3,200 meters of drilling to follow up on gold mineralization delineated at and near previously operated Chimo gold mine.
Planned drill holes include:
- Two holes to follow up Zone 6P where historical drilling intersected
57.73 grams of gold over 1.54 meters in hole 497-86-08, 22.73 grams
over 3.34 meters in hole 120-760 and 16 grams of gold over 3 meters in
drill hole 497-86-09.
- One hole to test Zone 2 West below the mine workings where historical
hole 497-80-35 intersected 3 meters grading 29.1 g/t gold.
- Two holes planned to test the Nova Dyke where assays from four holes
ranged from 6.1 grams gold over 0.6 meters to 6.8 grams gold over
- One hole to follow up three mineralized drill holes on a vertical
section that include CH-95-05, which intersected 3.1 g/t gold over
12.8 meters and includes 4.4 g/t gold over 4.5 meters.
Blue Note's 100 per cent-owned Chimo gold property is located 25 kilometers from the Croinor gold project of which Blue Note is operator and 50 percent interest holder.
John Martin, P. Eng., Chief Operating Officer, Blue Note Mining Inc., is a Qualified Person and has reviewed the technical information contained in this press release.
About Blue Note Mining
Blue Note Mining is a mineral exploration and mining company headquartered in Montreal with properties located in known gold regions of Canada, including the prolific Val-d'Or region of Quebec and northern New Brunswick. Blue Note's first goal is to put the Croinor Gold Property into production. The company's shares trade on the TSX Venture Exchange under the symbol BNT.
Forward-looking statements included or incorporated by reference in this document include statements with respect to (i) First Gold Exploration Inc.'s participation in the planned work described in the news release on the Croinor gold project (the "Work"), (ii) Blue Note's participation in the Work and (iii) the revenues that may be derived from the Croinor gold project. Although Blue Note believes the expectations reflected in these forward-looking statements are based on reasonable assumptions, they can give no assurances that these expectations will be achieved. Such assumptions, which may prove incorrect, include the following: (i) that First Gold Exploration Inc. has and will continue to have the financial resources to participate in the Work, (ii) that the amounts budgeted by Blue Note are sufficient so as to allow it to pursue the Work, (iii) that the Work can be achieved without unforeseen delays or expenses, (iv) that the Croinor gold project conforms in all material respects with the reports prepared under NI43-101 with respect to that deposit, and (v) if and when the Croinor gold project becomes operational, that the price of gold will remain no less than $1,200 per ounce during its operating life. Factors that could cause actual results to differ materially from expectations include the effects of general economic conditions, the price of metals, actions by government or regulatory authorities, uncertainties associated with contract negotiations and execution, additional financing requirements, market acceptance of the products of Blue Note and competitive pressures. These factors and others are more fully discussed in Company filings with Canadian securities regulatory authorities.
"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
SOURCE Blue Note Mining Inc.
For further information: For further information: Glenn Massad, Vice President, Investor Relations, Blue Note Mining Inc., (800) 937-3095 x230, firstname.lastname@example.org; www.bluenotemining.ca