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A deep resource at Island Gold means Richmont’s future bright

By Gregory Reynolds, Mining Life

Oct 27, 2017


Getting at a significant estimated one million ounce high-grade global resource at depth in its flagship Island Gold Mine is the chief objective these days of Richmont Mines Inc. This year has been a busy time for Richmont as it built upon a record production year in 2016. Richmont Mines is an established gold producer with a proven 25 year track-record of gold production, mine development and successful mineral exploration in Canada. The corporation operates the Beaufor Mine in Quebec, and also produces gold from the Island Gold Mine in Ontario, where it is simultaneously developing a significant resource. The fourth quarter saw company-wide production of 29,505 ounces of gold (27,759 ounces sold), a 32% increase over Q4 2015. This feat contributed to record annual production of 104,050 ounces of gold (102,660 ounces sold), a 6% increase over 2015, achieving the high end of revised production guidance for the year. The solid performance was driven by production from the cornerstone Island Gold Mine of 24,086 ounces of gold (22,422 ounces sold) for the quarter, a 70% increase over Q4 2015, and 83,323 ounces of gold (82,273 ounces sold) for 2016, a 51% increase over 2015, exceeding revised production guidance for the year.

Richmont reported fourth quarter revenues of $44.2 million (US$33.1 million), a 39% increase over Q4 2015 and record annual revenues of $168.7 million (US$127.3 million), a 17% increase over 2015.

“We have reported a number of key milestones for 2016, including record company-wide production. The strong performance was driven by another consecutive year of solid results from the Island Gold Mine, which exceeded all annual production and cost guidance metrics,” stated Renaud Adams, CEO.

He continued “2016 was a pivotal year for Island Gold. During the year we completed a strategic underground mine and mill upgrade, advanced the accelerated underground development program and received the amended permits to increase mine and mill throughput rates to 1,100 tonnes per day.

In 2017 we will continue to focus on positioning the Island Gold Mine for long-term success that drives shareholder value creation, which is supported by a solid balance sheet and a disciplined management team.”

Company-wide cash costs for the fourth quarter were $952 per ounce (US$714 per ounce), a 7% decrease over Q4 2015 and $908 per ounce (US$685 per ounce) for 2016, a 7% decrease over 2015 and in-line with revised cash cost guidance for the year.

Richmont says its sound balance sheet, capital structure and experienced management team anchor the corporation for future growth.

The corporation is completing an extensive development program to access a high-grade million ounce deeper resource envelope established directly below its Island Gold Mine.

That will reposition the mine into a long-life, higher-production and lower- cost operation capable of generating long term free cash flow and highquality growth.

Island Gold is located at Dubreuilville, 83 km northeast of Wawa. It comprises 77.0 km2 (7,696 hectares) and is 100 per cent owned by the company.

On site in a 900 tonne/day rated CIP mill. The mine is an underground operation with access via a ramp. Historical production is over 430,000 au oz. since October 2007. The mine’s 2017 drilling campaigns call for 69,000 metres of definition/ delineation and 71,500 metres of exploration drilling.

The property lies within the Michipicoten Greenstone Belt, which is part of the Wawa subprovince and Superior province of Archean age. The Michipicoten Greenstone Belt is approximately 140 km long by 45 km wide.

The property is stratigraphically positioned in the upper portion of the Wawa Assemblage capped by pyritebearing iron formation outcropping in the Morrison and Pine zones.

The Beaufor Mine is located 25 km northeast of Val d’Or, Quebec and is 100 per cent owned by Richmont. It is an underground operation, using long-hole and room and pillar.

The ore is processed at Richmont’s 100%-owned Camflo Mill, 50 km away.