Blue Note tries to rebuild by going to the ground

The latest results from Blue Note Mining’s drill program at its Armstrong properties in New Brunswick shows some promising signs for a miner that has fallen on hard times.

The company had to put its Caribou Mine in New Brunswick on care and maintenance back in October of last year.

The news furthered the stocks steady decline until it was delisted from the TSX at the beginning of March. On March 26 the company announced it would list on NEX Board of the TSX Venture Exchange and it announced it was putting its wholly-owned
Subsidiary Blue Note Caribou Mines Inc. into creditor protection.

Its shares now trade under the ticker symbol BN.H.

Blue Note’s president and chief executive, Michael Judson, said at the time that he expected the move to the NEX Board to be only temporary and that a re-structuring would revive the company.

The company, no doubt, would love to do that re-structuring with some hefty intersections under its belt.

Towards that end, it has been drilling at Armstrong which is 25 km east of the Caribou mine.

And on March 27 it announced an intersection of 7 metres grading 27.6 grams silver per tonne and 3% zinc and lead, including 3 metres grading 49.1 grams silver and 3.78% Zinc, and 1.19% lead.
Nearby, another hole returned 6.5 meters of copper mineralization grading 0.73% copper.

Drilling at Armstrong is being done to better define the discovery of a massive sulphide lenses made last November.
Past program highlights included an intersection of 8.3 metres grading 2.83% zinc, 1.01% lead, 0.32% copper and 27.1 grams silver.

Blue Note says the massive sulphide lenses are steeply dipping and at this point interprets them as folded repetitions of the sulphide lens or else different mineralized horizons.

The company says it is in the process of developing its exploration program for 2009 which will include trenching, geochemical surveys and a drill program.

Thus far Blue Note has drilled 2,435 metres using 22 drill holes at Armstrong.

Sulphide mineralization was found in over 65% of the holes including seven holes with massive to semi-massive mineralization. The drill program tested geophysical anomalies identified by the deep search survey that covered a strike length of over ten kilometers of the felsic volcanic rocks.

“Although deposits in the Armstrong area have been known since the 1950’s, historical exploration has only looked at quite shallow depths,” regional exploration manager, Art Hamilton explains in a statement. “We are applying deep search Titan 24 geophysical surveying technology that is producing positive results and demonstrates the exploration potential that remains in the Armstrong project area.”

Blue Note shares were trading for 1 in Toronto on March 27.