Shares Outstanding: 363 Million
Symbol & Exchange: BN-TSX
MONTREAL, Oct. 17 /CNW Telbec/ - Blue Note Mining Inc. announced that it
will be initiating a temporary care and maintenance program at its Caribou and
Restigouche zinc and lead mines, owned through its wholly-owned subsidiary
Blue Note Caribou Mines Inc.
Since commercial production was achieved in January 2008, operating
performance has continuously improved with all of the original planned
production targets being achieved or surpassed. The concentrator processes
3000 tonnes per day of ore from the mines with zinc and lead recoveries
exceeding 83% and 70% respectively. Despite this excellent operating
performance, current zinc and lead prices make the mine unprofitable.
"We have made dramatic reductions in our operations costs over the last
several months," said Michael Judson, President and Chief Executive Officer of
Blue Note Mining, "Production performance has exceeded all forecasts. Caribou
is an operational success. We look forward to its re-opening when
The processing plant and mine infrastructure are being prepared for the
orderly suspension of all activities. Staff at the mine is being reduced to a
level that will meet care and maintenance requirements while capital will be
deployed only for essential environment or safety related purposes.
Blue Note commenced mining at the mines in July 2007 and achieved
commercial production as of January 1st, 2008 producing approximately
80 million pounds of zinc and 42 million pounds of lead to date in 2008. Over
the past eighteen months, the Company has invested approximately $116 million
in the completion of a major capital investment program that revived the
former producer of zinc and lead concentrate. Breakwater Resources Inc. owns a
twenty percent (20%) interest in the mines.
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 Blue Note's products and
competitive pressures. These factors and others are more fully discussed in
Blue Note' 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: Glenn Massad, Director of Communications, Blue
Note Mining Inc., (800) 937-3095, firstname.lastname@example.org,