Shares Outstanding: 363 Million
Symbol & Exchange: BN-TSX
MONTREAL, Aug. 25 /CNW Telbec/ - Blue Note Mining reports that it is deep
into the process of reducing costs at its Caribou mines located near Bathurst,
"On a non-GAAP production basis(*), operating costs per tonne of ore milled
were $93.09 in the first quarter. This was reduced to $89.68 per tonne milled
in the second quarter," said John Martin, Blue Note's Chief Operating Officer.
"With the increased mill throughput now being achieved and the planned cost
reductions, the operating cost is expected to range between $75 and $78 per
tonne milled during the third quarter of 2008, and between $70 and $74 per
tonne milled during the fourth quarter."
"The workforce, including employees, contractors and consultants will be
reduced from 370 during the first half of 2008 to the planned number of 300 in
the second half of the year," said Martin.
Non-labor related cost reductions are being realized through optimizing
production activities, streamlining processes, improving controls and
undertaking special initiatives in areas such as energy conservation.
Planned capital expenditures for 2008 have been reduced from $28.3M to
$17.8M. Only those capital expenditures required to protect the health and
safety of employees and the environment and to ensure continuous operations
will be undertaken. Capital spending will be re-evaluated when metal prices
Metallurgical performance at the Caribou mines continues to improve; Blue
Note achieved zinc recovery of 83.5% and a concentrate grade of 51.3% for the
month of July. Blue Note also achieved record lead recovery of 75.0% and a
concentrate grade of 43.3%.
Mill throughput was maintained for the second consecutive month at 95% of
capacity, averaging 2,885 tonnes per day.
"We just need metals prices to improve and this mine will kick off lots
of cash," said Michael Judson, Blue Note's President and CEO.
(*) Operating costs per tonne milled on a production basis is a
performance indicator. This performance indicator has no meaning within
Canadian Generally Accepted Accounting Principles ("GAAP") and,
therefore, operating costs per tonne milled on a production basis may not
be comparable to similar data presented by other mining companies. The
data is intended to provide additional information and should not be
considered in isolation or as a substitute for measures of performance
prepared in accordance with Canadian GAAP. It can, however, allow an
understanding of how production costs have changed between reported
John Martin, Chief Operating Officer of Blue Note Mining Inc. is a
Qualified Person and has reviewed the technical information contained in
this press release
Blue Note Mining is a Canadian mining company headquartered in Montreal
with operations in Bathurst, New Brunswick. The company's shares trade on
the TSX under the symbol BN.
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.
The TSX does not accept responsibility for the adequacy or accuracy of
this news release.
For further information:
For further information: Lorne Woods, Vice President Investor Relations,
Blue Note Mining, (800) 937-3095, email@example.com,