First Gold Exploration Inc.

First Gold Exploration Inc.

April 07, 2010 13:00 ET

First Gold and Blue Note to Drill Deep Gold at Croinor

LAVAL, QUEBEC--(Marketwire - April 7, 2010) - First Gold Exploration Inc. (TSX VENTURE:EFG)(FRANKFURT:F12) and Blue Note Mining Inc. (TSX VENTURE:BNT) report that the joint venture is undertaking a program to expand the gold-bearing mineral resource and to advance the project at the jointly-owned Croinor gold property, located near Val-d'Or in the Abitibi region of the Province of Québec.

The two companies have outlined a $1,250,000 work program. $700,000 will be allocated to a drill program aimed at delineating potential ore grade mineralization at depth in the Croinor deposit, where gold mineralization has been identified in widely-spaced drill holes, as well as to step out and further test the mineralized diorite sill at greater depths.

Several short holes will also test the near-surface potential of gold mineralization that has been identified to the west of the West Pit at Croinor. The joint venture also will spend approximately $550,000 on engineering projects pertaining to rock mechanics, environmental management and site reclamation and project feasibility.

Historical drilling at Croinor delineated a gold resource in a quartz vein system running from surface to approximately the 250-meter level. To date, 38 veins have been identified measuring an average of three meters at a grade of 10 grams per tonne. The structure remains open at depth. Blue Note and First Gold will also examine the feasibility of developing already-outlined near-surface gold mineralization.

The gold-vein resource at Croinor currently measures 238,000 ounces at a cutoff of five grams per tonne (see First Gold news release dated August 11, 2009). The near-surface resource, which was not included in a Preliminary Economic Assessment, could provide production tonnage during the initial months of operation while the underground mine is being brought into production.

Current infrastructure at the Croinor site includes a small maintenance building, a 200-meter deep shaft, a 300-meter long ramp and 2000 meters of lateral development on four levels, as well as roadways and waste and ore storage pads associated with previous open-pit mining operation.

  Cut-off 5,00 g/t Au
Category Tonnes Gpt Ounces
Total Measured 31,192 8.59 8,165
Total indicated 783,036 9.13 229,799
Total 814,228 9.11 238,414

"This property has the potential to host significant gold mineralization at depth," said John Martin, Blue Note's Chief Operating Officer. "We are looking for further confirmation of the vein system mirroring itself at depth."

"We drilled two holes to a depth of 350 meters and hit intersections measuring an average of three meters with an average grade of 11 grams per tonne," said Eric Leboeuf, First Gold's President and Chief Executive Officer.

"This work program is another step towards the development of the Croinor gold project. We are pleased to advance this project with the full co-operation of our joint venture partner," added Mr. Martin.

An application for a Certificate of Authorization from the MEQ was submitted in January and is presently under review. The joint venture expects to obtain the operating permit in the second quarter of 2010.

John Martin, P. Eng., Chief Operating Officer of Blue Note Mining Inc., is a Qualified Person and has reviewed the technical information contained in this press release.

First Gold is presently organizing a private placement of a maximum of 10 million units at $0.20 per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles its holder to purchase one common share of First Gold at $0.30 for the next 24 months. The units are subject to a four-month hold period. The proceeds will be used for general working capital and exploration purposes.

Fist Gold is also announcing the termination of talks with Conway regarding a bridge loan and the possible sale of its interest in Croinor. The Company is continuing its efforts to substantially enhance the value of this asset for its shareholders.

Finally, First Gold is announcing the resignation of CFO Robert Boisjoli. The role of CFO will be filled on an interim basis by Nathalie Laurin, the corporate secretary. 

About Blue Note Mining

Blue Note Mining is a mineral exploration and mining company headquartered in Montreal with properties located in known gold regions in Canada, including the prolific Val-d'Or region of Quebec and northern New Brunswick. The company's shares trade on the TSX Venture Exchange under the symbol BNT.

About First Gold Exploration

The goal of the Company is to create shareholder value by acquiring promising projects that could be advanced to production stage in a short period of time. It has already done this with its Croinor project, and is working to do the same with its other properties while keeping an eye open for new acquisitions.

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.

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.

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