Blue Note Reduces Costs at Caribou Mine
Monday August 25, 9:27 am ET
biz.yahoo.com
Shares Outstanding: 363 Million Symbol & Exchange: BN-TSX
MONTREAL, Aug. 25 /CNW Telbec/ - Blue Note Mining reports that it is deep into the process of reducing costs at its Caribou mines located near Bathurst, New Brunswick.
"On a non-GAAP production basis(x), operating costs per tonne of ore milled were $93.09 in the first quarter. This was reduced to $89.68 per tonne milled in the second quarter," said John Martin, Blue Note's Chief Operating Officer. "With the increased mill throughput now being achieved and the planned cost reductions, the operating cost is expected to range between $75 and $78 per tonne milled during the third quarter of 2008, and between $70 and $74 per tonne milled during the fourth quarter."
"The workforce, including employees, contractors and consultants will be reduced from 370 during the first half of 2008 to the planned number of 300 in the second half of the year," said Martin.
Non-labor related cost reductions are being realized through optimizing production activities, streamlining processes, improving controls and undertaking special initiatives in areas such as energy conservation.
Planned capital expenditures for 2008 have been reduced from $28.3M to $17.8M. Only those capital expenditures required to protect the health and safety of employees and the environment and to ensure continuous operations will be undertaken. Capital spending will be re-evaluated when metal prices improve.
Metallurgical performance at the Caribou mines continues to improve; Blue Note achieved zinc recovery of 83.5% and a concentrate grade of 51.3% for the month of July. Blue Note also achieved record lead recovery of 75.0% and a concentrate grade of 43.3%.
Mill throughput was maintained for the second consecutive month at 95% of capacity, averaging 2,885 tonnes per day.
"We just need metals prices to improve and this mine will kick off lots of cash," said Michael Judson, Blue Note's President and CEO.
(x) Operating costs per tonne milled on a production basis is a
performance indicator. This performance indicator has no meaning within
Canadian Generally Accepted Accounting Principles ("GAAP") and,
therefore, operating costs per tonne milled on a production basis may not
be comparable to similar data presented by other mining companies. The
data is intended to provide additional information and should not be
considered in isolation or as a substitute for measures of performance
prepared in accordance with Canadian GAAP. It can, however, allow an
understanding of how production costs have changed between reported
periods.
John Martin, Chief Operating Officer of Blue Note Mining Inc. is a
Qualified Person and has reviewed the technical information contained in
this press release
Blue Note Mining is a Canadian mining company headquartered in Montreal
with operations in Bathurst, New Brunswick. The company's shares trade on
the TSX under the symbol BN.
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 and competitive pressures. These factors and others are more fully discussed in Company filings with Canadian securities regulatory authorities.
The TSX does not accept responsibility for the adequacy or accuracy of
this news release.
For further information
Lorne Woods, Vice President Investor Relations, Blue Note Mining, (800) 937-3095, lwoods@bluenotemining.ca, www.bluenotemining.ca
Source: Blue Note Mining Inc. |
