QUEBEC - Construction on the Croinor gold project 70 km east of Val d'Or can begin now that the certification has been issued by the Department of Sustainable Development, Environment and Parks. Montreal-based Blue Note Mining recently announced plans to buy out joint venture partner First Gold Exploration of Laval, QC, by the end of the year. Mine dewatering, surface infrastructure construction and underground mining are imminent.
Open pit mining at the Croinor property from 2003 to 2005 produced 8,081 oz of gold. The current plans are based on a proven and probable reserve of 689,829 tonnes grading 8.35 g/t Au or 185,260 oz. The daily mining rate will be 500 tonnes for five years including 14 months pre-production activities. Annual gold production will be 40,000 to 45,000 oz at a cash cost of US$572/oz. Capital expenditures to reach production will be C$130 million.
Gold mineralization at the Croinor deposit is typically associated with metasomatic pyrite located in quartz veins as well as in the strongly altered host rock material or tectonic breccia. Gold occurs as inclusions within and along the edges of pyrite grains. Minor amounts of chalcopyrite and pyrrhotite are sometimes present with the pyrite. Occasionally, free gold is found within quartz veins of shear zones as well as in their strongly metasomatized walls, according to information on the Blue Note website.
A fact sheet for the Croinor project is posted at www.BlueNoteMining.com.
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