NEW BRUNSWICK - Montreal-based BLUE NOTE METALS is making plans to raise at least $50 million for the reopening of the Caribou and Restigouche base metal mines. The arrangement calls for the company to create units consisting of one common share and four subscription receipts for additional shares. The offering may be increased by a further $7.5 million.
Blue Note can acquire the two properties from BREAKWATER RESOURCES by issuing a $15-million convertible debenture and agreeing to replace the vendor's $9 million reclamation deposit with the province. The Caribou mine is 50 km west of Bathurst and includes an underground mine currently being kept under care and maintenance, a 3,000-tonnes/day concentrator and a permitted tailings facility. The Restigouche mine site, located 30 km further west, includes an open pit mine and associated infrastructure and is also currently under care and maintenance.
Blue Note recently filed a NI 43-101 report for the properties. At the Caribou mine there are measured and indicated resources totalling 3.81 million tonnes averaging 3.26% Pb, 7.50% Zn and 92 g/t Ag. Inferred resources add another 3.94 million tonnes averaging 3.59% Pb, 7.36% Zn and 107 g/t Ag to the estimate. At the Restigouche mine, measured and indicated resources total 1.45 million tonnes grading 5.50% Pb, 7.10% Zn and 104 g/t Ag. The company says the feasibility report is nearing completion.
The total capital cost of reopening the operations will be about $43.1 million. A new metallurgical process and flowsheet has been developed for the Caribou mill. The simplified flowsheet includes a reduced circulating load, fewer flotation stages, a copper recovery circuit, a reduced number of reagents, and reconfigured zinc cleaner circuits. Ball mills with pebbles and stirred attrition mills are specified for the grinding circuit. Other changes to the concentrator will address material-handling systems, reagent mix and distribution, flotation cell capacity, SAG mill mechanical problems, mill services, and process control. Total operating costs are budgeted to be US$0.499/lb of zinc.
John Martin, Blue Note president and former manager of the Heath Steele and Brunswick mines, may be contacted at jmartin@BlueNoteMetals.com.
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