Blue Note Mining Inc TSXV:BNT in joint venture with Critical Elements Corp TSXV:CRE announced assays from their Croinor Project near Val-d’Or, Quebec. Results include
13.12 g/t gold over 6 metres
(including 17.63 g/t over 4.3 metres)
15.11 g/t over 4.1 metres
(including 27.61 g/t over 1 metre)
10.92 g/t over 3.7 metres
(including 19.24 g/t over 1.3 metres)
15.08 g/t over 0.8 metres
The two companies each hold a 50% interest in Croinor. The project has a 2009 measured and indicated resource of 814,228 tonnes grading 9.11 g/t for 238,414 ounces gold at a 5 g/t cut-off.
Blue Note Executive Vice-President Jean Mayer tells ResourceClips.com, “We’re very pleased with these high-grade results and they are in line with our previous releases. Our campaign follows massive and intensive historic drilling by previous companies.
“We’ve been drilling for three years. We released a prefeasibility study in July 2010 which was based on a resource calculation done in 2009. Obviously, the drilling that we’ve done in the last two years wasn’t included. Now we’re in the process of preparing a new prefeasibility study that will include all that drilling. We hope to increase the resource and the reserve. Also, with higher gold prices, we expect the already robust economics of last year’s prefeasibility study will improve even more. We expect to have the updated prefeas out by the end of the year for sure, maybe quite a bit earlier.
Now’s the time to invest. We’re very much undervalued—we’re trading at six cents, which is not even a $10-million market cap—Jean Mayer
“We’re in a 50-50 joint venture with Critical Elements, which was formerly First Gold Exploration. It’s our intention to acquire 100% of the project and we hope to do so before the end of the year.” he says.
“Croinor is about 50 kilometres east of Val-d’Or, so obviously there’s great infrastructure. There’s a main road that leads directly to the mine; there’s available capacity at various mills in the area. About three or four of them have more than 50% capacity. We’re already in discussion with some of them to get quotes and at some point get a milling contract signed so we can include those costs in the prefeasibility study. Our operation would be custom milling, so it’s a pretty simple operation. As far as mining goes, nothing’s simple, but it’s a comparatively simple custom-milling operation. We would extract the ore and just ship it by truck to a nearby mill which we will be choosing in the next few weeks.”
Mayer emphasizes, “Blue Note intends to put Croinor into production ourselves.
“Now’s the time to invest,” he declares. “We’re very much undervalued—we’re trading at six cents, which is not even a $10-million market cap. We have no debt. In the 2010 prefeasibility study, which itself was based on a 2009 resource estimate and previous gold prices, the NPV was $67 million for an IRR of 124%. Now we’re updating that, and we think that these already very robust economics will improve even more with the report. We own seven million shares of Amex Exploration, which we got when we sold them some Mexican gold properties. We feel Amex has very good potential to start a large open-pit mine there. We wanted those properties to advance right away, so we sold them to a highly capable team while we focused on Croinor. Amex has already started to publish some exploration results, and they are very encouraging.”
Mayer concludes, “So at six cents we have the Amex holdings and the Croinor Property with prefeas coming out. And gold prices are where they are. So if there’s a time to invest in Blue Note, it’s now.”
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Blue Note Mining Inc
Executive Vice President
Critical Elements Corp
by Greg Klein