MONTREAL, June 28 /CNW Telbec/ - Blue Note Mining Inc. (TSXV: BNT) ("the Company") is pleased to provide the following update on its gold projects in the Val d'Or region of Quebec as well as its corporate activities to date.
Croinor Gold Project
The Company is in the final stage of receipt of the operating permit for its Croinor gold project jointly owned with First Gold Exploration Inc. This will allow for the commencement of mine dewatering and surface infrastructure construction activities over the coming months.
The results of the NI 43-101 compliant Prefeasibility Study being compiled by InnovExplo Inc. for an underground operation at Croinor is expected by mid-July. A positive Preliminary Economic Assessment (PEA) was previously completed in May 2009 based on a much earlier reported measured and indicated resource of 620,218 tonnes at 10.37g/t gold at a cut-off grade of 5.00 g/t gold and lower gold prices. Since then, significant drilling has expanded the resource to 814,228 tonnes at 9.11 g/t gold at the same cut-off grade.
At today's gold price, the Croinor project presents good potential to be a reasonable size gold operation with production achievable by 2011. Existing infrastructure at the Croinor gold project includes a ramp to the 38-metre level and a shaft to the 160-metre level, in addition to 2 kms of drifts on four levels, surface access roads, water sedimentation pond and other surface infrastructure.
The previously announced two-phase drilling program currently underway at Croinor will be completed during the fourth quarter of 2010 (see news release of May 27, 2010). The first phase comprising 3,450 metres will largely target additional resources at depth, and the near surface mineralization west of the previously mined west pit will be tested for possible open pit potential. Phase 2 of the Croinor drill program will comprise 2,600 metres of follow up drilling.
The 100%-owned Chimo gold project is located 25 kms from Croinor and is on the same road leading to the Croinor project. The drilling program comprises two phases totalling 3,200 metres to follow up on gold mineralization delineated at and near the previously operated Chimo gold mine. The first phase is expected to be completed by the end of July while phase 2 is expected to be completed during the fourth quarter of this year (see news release of May 27, 2010). The Chimo gold deposit is contemplated to complement the Croinor mining project.
The Company intends to perform the minimum work requirement to maintain its other properties in Quebec and New Brunswick in good standing. These will be the subject of future drilling campaigns. Through its equity investment in Amex Exploration Inc., Blue Note has exciting leverage in the prolific Sierra Madre Gold-Silver Belt of Mexico including the 40,000 hectare Natora Project located in proximity to such gold operations as Minefinder's Dolores Mine and Alamos's Mulatos Mine. These Mexican properties are being advanced by Amex, with a large portion having been optioned by Bowmore Exploration, an exploration partner of Osisko Mining. An aggressive exploration program is being undertaken at these highly prospective projects.
A focus of Blue Note's management is the preservation of working capital. Accordingly, the Company has implemented cost control and cost reduction measures which it believes will keep expenditures in line as it pursues development through production of its Croinor gold project.
Annual Special Shareholders Meeting
The Annual Special Meeting of Shareholders will be held in Montreal, Quebec on Wednesday, June 30, 2010 at 1:30 p.m. at the offices of Blue Note Mining Inc., 1 Place Ville Marie, Suite 1511. Shareholders are welcome to attend.
John Martin, P. Eng., President and Chief Operating Officer of 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 top priority is to put the Croinor Gold Property into production.
This news release contains discussion of items that may constitute forward-looking statements within the meaning of securities laws that involve risks and uncertainties. Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ materially from expectations include the effects of general economic conditions, actions by government authorities, uncertainties associated with contract negotiations, additional financing requirements, market acceptance of the Company's products 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: Jean Mayer, Executive Vice President, Blue Note Mining Inc., (800) 937-3095 x 236, firstname.lastname@example.org; www.bluenotemining.ca