Cripple Creek

Brief history:

Richmont acquired the Cripple Creek property in 2002, and was active on the property until 2005, at which time resources were redirected to other development activities. Exploration work was resumed in the last quarter of 2009 in preparation for a drilling campaign that was completed in April 2010.

Exploration campaigns by previous owners revealed three gold-bearing zones on the Cripple Creek property:

• Mahoney Zone: Historically, this zone has seen the most work. Past gold intersections include 3.8 g/t Au over 5.2 meters, 3.8 g/t Au over 3.5 meters and 4.5 g/t Au over 7.6 meters. Only one drill hole tested the mineralized zone below 400 meters.

• Zone 16: Located 600 metres west of the Mahoney Zone, the notable intersections on this zone include 4.4 g/t Au over 4.5 meters and 18.5 g/t Au over 2.5 meters. Drilling in 2009-2010 indicates that the zone is open to the west and at depth.

• Zone 17: This zone is located in the northwestern part of the property, about 500 metres north of Zone 16. Significant intersections on this zone include 3.8 g/t Au over 4.7 metres, 5 g/t Au over 5.4 metres and 6.3 g/t Au over 2.2 metres.

Recent exploration drilling campaigns:

On February 2, 2010, Richmont launched a first phase drilling program that targeted depths below 400 metres in order to confirm continuation of favourable gold mineralization trends obtained at depth on properties in the vicinity. Drilling targeted the lateral extension of Zone 16 to the west and the depth extension of the Mahoney Zone. The program was completed in April 2010, and included a total of 4,532 metres over 11 holes. Preliminary assay results uncovered several interesting intercepts, notably 73.54 g/t Au over 7.0 metres in hole CC-10-45.

 

As the preliminary 2010 drilling results confirmed favourable gold mineralization on the property, the Company announced a second phase, 3,500 metre, exploration drilling program on the property in June 2010.

 

The second phase of drilling yielded several interesting intercepts, including 3.79 g/t Au over 16.35 metres in hole CC-10-57. Notably, this result confirmed that the alteration zone containing the intercept of 73.54 g/t Au over 7 metres in hole CC-10-45 broadens near surface. Other interesting intercepts include: 4.55 g/t Au over 7.1 metres in Hole CC-10-57, 3.57 g/t Au over 5.6 metres in Hole CC-10-60, 26.34 g/t Au over 0.55 metres in Hole CC-10-57, and 15.81 g/t Au over 0.4 metres in Hole CC-10-59.

 

While much exploration work remains to be done on this property, the Company obtained additional geological insight from the second phase of the 2010 drilling campaign. Most importantly, drilling reaffirmed the gold potential of the sector, and also enabled for better understanding of the mineralization.

 

The timing of the next drilling program will be evaluated during the course of 2011. The goal of the program will be to confirm the new interpretation of Zone 16 provided by results obtained to date, to better target mineralized zones, and to test the extension of the Mahoney Zone at depth.

 

Geological characteristics:

The property is situated 5 kilometres to the southwest of the Timmins West Deposit, and lies adjacent to the Rusk Gold Zone, the 144 Syenite Discovery Zone and the Golden River Trend. Geologically, the Cripple Creek property is similar to its neighbours, with mafic and ultramafic volcanics covering the main part of the property and sediments in the south. The property is bordered by the Destor-Porcupine fault to the south and the Bristol fault to the north. The North-East/South-West (“NE-SW”) structure, which extends through the middle of the property, encompasses the Timmins West Deposit, the Rusk/Porphyry Gold Zones and the 144 Syenite Discovery Zone.