Montreal QC, October 17, 2008 - Blue Note Mining Inc. announced that it will be initiating a temporary care and maintenance program at its Caribou and Restigouche zinc and lead mines, owned through its wholly-owned subsidiary Blue Note Caribou Mines Inc.
Since commercial production was achieved in January 2008, operating performance has continuously improved with all of the original planned production targets being achieved or surpassed. The concentrator processes 3000 tonnes per day of ore from the mines with zinc and lead recoveries exceeding 83% and 70% respectively. Despite this excellent operating performance, current zinc and lead prices make the mine unprofitable.
"We have made dramatic reductions in our operations costs over the last several months," said Michael Judson, President and Chief Executive Officer of Blue Note Mining, "Production performance has exceeded all forecasts. Caribou is an operational success. We look forward to its re-opening when circumstances permit."
The processing plant and mine infrastructure are being prepared for the orderly suspension of all activities. Staff at the mine is being reduced to a level that will meet care and maintenance requirements while capital will be deployed only for essential environment or safety related purposes.
Blue Note commenced mining at the mines in July 2007 and achieved commercial production as of January 1st, 2008 producing approximately 80 million pounds of zinc and 42 million pounds of lead to date in 2008. Over the past eighteen months, the Company has invested approximately $116 million in the completion of a major capital investment program that revived the former producer of zinc and lead concentrate. Breakwater Resources Inc. owns a twenty percent (20%) interest in the mines.
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.
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Blue Note Mining Inc.
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.
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