Business & Finance
Business and Finance
Business and Finance
Mon, June 28, 2010 First Gold Exploration: Croinor Prefeasibility Study Expected in July
LAVAL, QUEBEC--(Marketwire - June 28, 2010) - First Gold Exploration Inc. (TSX VENTURE:EFG) (FRANKFURT:F12) is pleased to provide the following update on its Croinor gold project in the Val-d'Or region of Quebec.
Croinor Gold Project
The Company is in the final stage of receipt of the operating permit for its Croinor gold project jointly owned with Blue Note Mining (TSX VENTURE:BNT). This will allow for the commencement of mine dewatering and surface infrastructure construction activities over the coming months.
The results of the NI 43-101 compliant Prefeasibility Study being compiled by InnovExplo Inc. for an underground operation at Croinor is expected by mid-July. A positive Preliminary Economic Assessment (PEA) was previously completed in May 2009 based on a much earlier reported measured and indicated resource of 620,218 tonnes at 10.37g/t gold at a cut-off grade of 5.00 g/t gold and lower gold prices. Since then, significant drilling has expanded the resource to 814,228 tonnes at 9.11 g/t gold at the same cut-off grade.
At today's gold price, the Croinor project presents good potential to be a reasonable size gold operation with production achievable by 2011. Existing infrastructure at the Croinor gold project includes a ramp to the 38-metre level and a shaft to the 160-metre level, in addition to 2 kms of drifts on four levels, surface access roads, water sedimentation pond and other surface infrastructure.
The previously announced two-phase drilling program currently underway at Croinor will be completed during the fourth quarter of 2010 (see news release of May 27, 2010). The first phase comprising 3,450 metres will largely target additional resources at depth, and the near surface mineralization west of the previously mined west pit will be tested for possible open pit potential. Phase 2 of the Croinor drill program will comprise 2,600 metres of follow up drilling.
John Martin, P. Eng., President and Chief Operating Officer of Blue Note Mining Inc., is a Qualified Person and has reviewed the technical information contained in this press release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
