QUEBEC – No sooner had Montreal’s Blue Note Mining and First Gold Exploration announced their joint venture had a positive prefeasibility study for the Croinor gold project, than the two companies signed a binding agreement for Blue Note to acquire 100% of the project. The former Croinor mine is located 75 km east of Val d’Or.
Blue Note will make cash payments to First Gold consisting of $100,000 in five equal monthly instalments until Dec. 31, 2010, and $2,250,000 to be paid upon the closing of the transaction, which is expected to occur as soon as financing is arranged, but no later than Dec. 31, 2010. The agreement includes First Gold’s 71% ownership in the Matchi-Manitou property and is subject to TSX Venture Exchange and other regulatory approvals.
Blue Note acquired its 50% of the Croinor project when it amalgamated with X-Ore Resources in January 2010. The measured and indicated resource is 814,228 tonnes grading 9.11 g/t Au at a cutoff of 5 g/t or 238,414 oz. The property has a 200-metre shaft, 300-metre ramp and 2,000 metres of underground development. Long hole and room and pillar mining is anticipated at a rate of 400 t/d. The ore will be custom milled nearby. Blue Note puts operating costs at US$588/oz. Commercial production may begin next year.
Results of the prefeasibility study are posted at www.BlueNoteMining.ca.