MONTREAL, Sept. 8 /CNW Telbec/ - Blue Note Mining Inc. (TSXV: BNT) ("Blue Note") and First Gold Exploration Inc. (TSXV: EFG) ("First Gold") are pleased to announce that they have received the Certificate of Authorization from the Department of Sustainable Development, Environment and Parks (MDDEP) for the Croinor gold project located near Val-d'Or, Quebec.
This will allow for the commencement of mine dewatering, surface infrastructure construction activities and implementation of underground mining operations as outlined in the July 15, 2010 Prefeasibility Study (see news release of July 15, 2010). The study provides for an underground mining operation using custom milling at a fully permitted milling facility near Val-d'Or. Details are as follows:
HIGHLIGHTS OF PREFEASIBILITY STUDY*
<< Parameters Results Proven & probable mineral reserve 689,829 tonnes at 8.35g/t Total contained gold reserve 185,260 oz Mine life (including 14-month preproduction) 5 years Daily mine production 500 tonnes /day Gold recovery 97.5% Annual gold production 39,181 to 45,631 oz LOM recovered gold 170,556 oz Average cash operating cost $160 / tonne Average cash operating cost US$572/oz Capital cost (including $7.4M sustaining/ working capital) $ 26 million * Total cost per ounce US$715/oz Total revenue $182 million Total operating cost $104 million Total project cost $130 million Total operating cash flow (before tax & royalties) $52.4 million Net cash flow (pretax after royalties) $47.4 million NPV (pretax @ 7% discount) $35.9 million IRR (pre-tax) 97% Pre-production period (including 42,000t of production) 14 months *Includes capitalized preproduction operating cost net of associated revenue *Bloomberg base case consensus forecasts: 2011 to 2015 ------------ Gold Price ($US/oz) 1,178; 1,165; 1,123; 850; 850 Exchange Rate ($C/$US) 1.04; 1.06; 1.09; 1.05; 1.05 All currency in this report is in Canadian dollars unless otherwise noted >>
"This is a milestone for the Company as it brings us one step closer to placing our Croinor Gold Project into production", saidLeon Methot, Blue Note's Chairman and Chief Executive Officer. "The robust economics of the prefeasibility study complemented with the recently announced agreement with First Gold to consolidate 100% of Croinor, places us in an excellent position to maximize the potential of the project for our shareholders."
Other
Subject to approval of the TSX Venture Exchange, at Blue Note's annual and special shareholders meeting held on June 30, 2010, Blue Note's shareholders approved an amendment to the stock option plan regarding the number of reserved shares which can be issued. The number of reserved shares was previously fixed at 5,074,066. Under the new stock option plan, 10% of Blue Note's issued shares at the time of the stock option grant will be reserved for issuance.
John Martin, P. Eng., President and Chief Operating Officer of Blue Note Mining Inc., is a Qualified Person as defined under Regulation 43-101 guidelines 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.
About First Gold Exploration
The goal of the Company is to create shareholder value by acquiring promising projects that could be advanced to production stage in a short period of time. This has been achieved with its interest in the Croinor gold project, and the currently in progress Rare Metal Pivert/Rose property, among other promising projects in the pipeline including the San Javier silver property.
Forward-Looking Statements
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, technical uncertainties associated with operating an underground mine and competitive pressures. These factors and others are more fully discussed in Company filings with Canadian securities regulatory authorities.