TORONTO,
Feb. 9, 2016 /CNW/ - Richmont
Mines Inc. (TSX - NYSE MKT: RIC) ("Richmont" or the
"Corporation"), announces updated Mineral Reserves and Resources as
of December 31, 2015, including a 206% increase in Mineral
Reserves at the cornerstone Island Gold Mine to 561,700 gold ounces
(net of depletion) at a Mineral Reserve grade of 8.26 g/t. The
Beaufor Mine reported a 95% increase in Mineral Reserves to 63,850
gold ounces (net of depletion) at a Mineral Reserve grade of 6.57
g/t, which will extend mine life by more than two years.
(Detailed Mineral Reserve and Resource tables can be found at
the end of this press release. All amounts are in Canadian dollars
unless otherwise indicated).
2015 Mineral Reserve Highlights:
As at December 31,
2015, Richmont is reporting Mineral Reserves for the Island
Gold and Beaufor Mines as summarized in the table below:
|
Proven and
Probable Mineral Reserves(1)(2)
Island Gold Mine
and Beaufor Mine
|
|
Gold
ounces
|
Grams per
tonne
|
December
31
|
2015
|
2014
|
Change
(%)
|
2015
|
2014
|
Change
(%)
|
Island Gold Proven
& Probable
|
|
above
~400m
|
76,700
|
90,000
|
(15%)
|
6.91
|
6.04
|
14%
|
|
below
~400m
|
485,000
|
93,750
|
417%
|
8.52
|
6.76
|
26%
|
Island Gold Proven
& Probable
|
561,700
|
183,750
|
206%
|
8.26
|
6.39
|
29%
|
Beaufor Proven
& Probable
|
63,850
|
32,750
|
95%
|
6.57
|
7.06
|
(7%)
|
Total Proven &
Probable
|
625,550
|
217,950
|
187%
|
8.05
|
6.43
|
25%
|
1 Refer to
the detailed mineral reserve and mineral resource tables follow at
the end of this press release.
2 No
changes to Mineral Reserves were made at the Corporation's other
properties.
|
"We are very pleased with the success of our
delineation drilling program at Island Gold where we converted
nearly 80% of the resources from the Lower C Zone that were
included in the 2015 Preliminary Economic Assessment ("PEA") to
Reserves, significantly de-risking this core operation. We now have
more than 7 years of mine life based on reserves ahead of us,
along with significant exploration potential both laterally and at
depth," stated Renaud Adams, Chief
Executive Officer. He continued, "In 2016 we will be focused on
converting the remaining PEA resources and completing our 2015
exploration programs with a view to adding near-mine resources to
the east and west of the PEA deposit area and confirming the high
grade extension at depth. With reserve growth reported from both
Island Gold and the Beaufor mines, a solid balance sheet, and an
experienced management team, Richmont is in its strongest position
in its 25 year history as gold producer."
"The success of our drilling program has
increased our reserve inventory by almost 200% to over 625,000
ounces with reserve growth being reported from both our
operations," stated Daniel Adam,
Vice-President, Exploration." He continued, "In 2016, I look
forward to ongoing success from our exploration programs,
especially the deep directional drilling program at Island Gold
where we expect that we will continue to confirm the high-grade
potential of this deposit below the 1,000 metre level. At the
Beaufor Mine we successfully converted ounces to reserves in the Q
Zone and are confident that this deposit has the potential for
additional reserve and resource growth as well as mine life
extension.''
Key Assumptions
In 2015, the Corporation assumed a gold price
of CAD$1,300 per ounce (CAD$1,300 per ounce in 2014) and a currency
exchange rate of CAD$1.2037 to
US$1.00 (CAD$1.0833 to US$1.00
in 2014) and a cut-off grade of 4.0 g/t at Island Gold (3.75 g/t in
2014) and 4.31 to 6.04 g/t at Beaufor (5.14 to 6.60 g/t in
2014).
A reconciliation of the Corporation's Mineral
Gold Reserves at the Island Gold Mine and the Beaufor Mine is
provided in the table below:
|
Island
Gold
(oz)
|
Beaufor
(oz)
|
Proven and Probable
Reserves (Dec. 31/14)
|
183,750
|
32,750
|
Mining
Depletion
|
55,040
|
26,400
|
Reserve
Addition
|
432,990
|
57,500
|
Proven and
Probable Reserves (Dec. 31/15)
|
561,700
|
63,850
|
Mineral Reserves and Mineral Resources
As at December 31,
2015, Richmont is also reporting Mineral Resources, which
are exclusive of Mineral Reserves as summarized in the table
below:
Island Gold Mineral Reserves and Mineral
Resources (December 31, 2015)
|
|
|
|
Island Gold
Mine
|
Tonnes
(MT)
|
Gold
Grade
(g/t)
|
Contained
ounces
(000's)
|
Mineral
Reserves
|
|
|
|
|
above
~400m
|
345,000
|
6.91
|
76,700
|
|
below
~400m
|
1,770,500
|
8.52
|
485,000
|
Proven and
Probable
|
2,115,500
|
8.26
|
561,700
|
Mineral
Resources
|
|
|
|
Measured and
Indicated
|
348,500
|
6.40
|
71,700
|
Inferred
|
2,815,000
|
8.49
|
768,050
|
Notes to Mineral
Reserves and Resources:
Mineral Resources
presented are exclusive of Mineral Reserves. Mineral Resources that
are not Mineral Reserves do not have demonstrated economic
viability. Based on a gold price of CAD$1,300 per ounce and an
exchange rate of CAD$1.2037 to US$1.00.
|
- Island Gold added 378,000 ounces to reserves (net of depletion
of approximately 55,000 production ounces) an increase of 206% with
average reserve grades increasing by 29% to 8.26 g/t.
- Reserves below the 400 metre level increased by 391,250 ounces,
an increase of 417%, with average reserve grades increasing by 26%
to 8.52 g/t.
- Delineation drilling from the 620 metre level drift was
primarily focused on the conversion of Inferred Resources within
the Lower C Zone located in the PEA deposit area.
- Approximately 80% of the resources in the PEA deposit area have
now been converted to reserves and the delineation drilling program
in 2016, primarily from the proposed exploration and delineation
drift on the 740 metre level, will be focused on converting the
remaining resources to reserves. (see Figure 1: "Mineral Reserve
and Resource Estimates as of December 31,
2015")
- In 2016, the Corporation will complete the underground drilling
program launched in late 2015 with the objective of further adding
near-mine resources in 2016.
- The lateral extension and deep directional drilling programs
are ongoing with an objective of determining the potential of the
Island Gold deposit to the east and west as well as at depth below
the 1,000 metre level.
- Richmont expects to provide an update of the Island Gold
exploration drilling program in the latter part of February.
Beaufor Mine Mineral Reserves and Mineral Resources
(December 31, 2015)
Beaufor
Mine
|
Tonnes
(MT)
|
Gold Grade
(g/t)
|
Contained
ounces
(000's)
|
Mineral
Reserves
|
|
|
|
Proven and
Probable
|
302,100
|
6.57
|
63,850
|
Mineral
Resources
|
|
|
|
Measured and
Indicated
|
843,000
|
6.34
|
171,900
|
Inferred
|
135,000
|
6.44
|
28,000
|
Notes to Mineral
Reserves and Resources:
Mineral Resources
presented are exclusive of Mineral Reserves. Mineral Resources that
are not Mineral Reserves do not have demonstrated economic
viability. Based on a gold price of CAD$1,1,300 per ounce and an
exchange rate of CAD$1.2037 = US$1.00
|
- The Beaufor Mine added 31,000 ounces to reserves, net of
depletion of 26,000 production ounces, an increase of 95%.
- The increase in reserves for the Beaufor Mine was primarily
from the conversion of inferred resources located in the Q
Zone.
- The main focus in 2016 will be the ongoing development of the Q
Zone and drilling will focus on extending the Q Zone resource block
both laterally and at depth.
Mineral Reserves and Mineral Resources Parameters
The Corporation completed its 2015 year-end
Mineral Reserve and Mineral Resource estimates for Island Gold and
Beaufor internally, Roscoe Postle Associates Inc. (RPA) were
retained to review and audit the Island Gold Mineral Reserve and
Resource estimates.
For 2015, Mineral Reserve and Mineral Resource
estimates, Richmont used a metal price of CAD$1,300 per ounce of gold and a foreign
exchange ratio of 1.2037 Canadian
dollars per 1.00 U.S. dollar.
The cut-off grade has increased from 3.75 g/t gold to 4.00 g/t gold
at the Island Gold Mine and decreased from 5.14-6.60 g/t gold to
4.31-6.04 g/t gold at the Beaufor Mine. Dilution estimates for
Island Gold increased from 18% to 19% and the minimum mining widths
at Beaufor decreased from 2.4 metres to 1.9 metres for the Room and
Pillar stopes and from 3.0 metres to 2.4 metres for the long hole
stopes.
Mineral Reserves and Mineral Resources for the
Island Gold Mine were estimated using a block modelling approach
with ordinary kriging interpolation. Kriging parameters are similar
to last year and the density used to calculate tonnage varies from
2.82 to 2.80.
Daniel Adam,
Vice-President, Exploration for Richmont Mines has reviewed the
scientific and technical information contained within this press
release and serves as the Qualified Person as defined by National
Instrument 43-101.
2015 Mineral Reserves and Resources
Richmont Mines
2015 Mineral Reserve and Resource Estimates
|
|
December 31,
2015
|
December 31,
2014
|
Tonnes
(metric)
|
Grade
(g/t
Au)
|
Ounces
|
Tonnes
(metric)
|
Grade
(g/t
Au)
|
Ounces
|
Island Gold
Mine
|
|
|
|
|
|
|
Proven
Reserves2 (above -400m)
|
97,000
|
7.00
|
21,800
|
173,000
|
6.25
|
34,700
|
Probable
Reserves2 (above -400m)
|
248,000
|
6.88
|
54,900
|
290,500
|
5.91
|
55,300
|
Total Proven &
Probable (above -400m)
|
345,000
|
6.91
|
76,700
|
463,500
|
6.04
|
90,000
|
Proven
Reserves2 (below -400m)
|
266,500
|
7.72
|
66,100
|
86,000
|
6.57
|
18,150
|
Probable
Reserves2 (below -400m)
|
1,504,000
|
8.66
|
418,900
|
345,500
|
6.81
|
75,600
|
Total Proven &
Probable (below -400m)
|
1,770,500
|
8.52
|
485,000
|
431,500
|
6.76
|
93,750
|
Total Proven &
Probable Reserves2
|
2,115,500
|
8.26
|
561,700
|
895,000
|
6.39
|
183,750
|
Measured Resources
(above -400m)
|
7,500
|
5.80
|
1,350
|
26,000
|
5.30
|
4,400
|
Indicated Resources
(above -400m)
|
235,500
|
6.96
|
52,700
|
269,500
|
6.98
|
60,450
|
Indicated
Resources3 (below -400m)
|
105,500
|
5.20
|
17,650
|
438,000
|
10.95
|
154,200
|
Total Measured
& Indicated Resources
|
348,500
|
6.40
|
71,700
|
733,500
|
9.29
|
219,050
|
Inferred Resources
(above -400m)
|
412,500
|
7.44
|
98,700
|
369,500
|
6.97
|
82,800
|
Inferred
Resources3 (below -400m)
|
2,402,500
|
8.67
|
669,350
|
3,178,000
|
9.00
|
919,950
|
Total Inferred
Resources
|
2,815,000
|
8.49
|
768,050
|
3,547,500
|
8.79
|
1,002,750
|
Beaufor
Mine4
|
|
|
|
|
|
|
Proven
Reserves2
|
35,600
|
7.31
|
8,350
|
53,000
|
7.13
|
12,100
|
Probable
Reserves2
|
266,500
|
6.48
|
55,500
|
91,500
|
7.02
|
20,650
|
Total Proven and
Probable Reserves
|
302,100
|
6.57
|
63,850
|
144,500
|
7.06
|
32,750
|
Measured
Resources
|
109,000
|
5.32
|
18,600
|
111,500
|
5.30
|
19,000
|
Indicated
Resources
|
734,000
|
6.50
|
153,300
|
805,500
|
6.60
|
170,850
|
Total Measured
& Indicated Resources
|
843,000
|
6.34
|
171,900
|
917,000
|
6.44
|
189,850
|
Total Inferred
Resources
|
135,000
|
6.44
|
28,000
|
743,000
|
6.51
|
155,600
|
Monique
Mine5
|
|
|
|
|
|
|
Proven
Reserves2
|
|
|
|
|
|
|
Probable
Reserves2
|
|
|
|
14,500
|
3.16
|
1,450
|
Total Proven &
Probable Reserves2
|
|
|
|
14,500
|
3.16
|
1,450
|
Total Indicated
Resources
|
107,500
|
4.88
|
16,850
|
107,500
|
4.88
|
16,850
|
Wasamac Gold
Property6
|
|
|
|
|
|
|
Measured
Resources
|
3,124,500
|
2.75
|
276,550
|
3,124,500
|
2.75
|
276,550
|
Indicated
Resources
|
12,127,000
|
2.89
|
1,125,700
|
12,127,000
|
2.89
|
1,125,700
|
Total Measured
& Indicated Resources
|
15,251,500
|
2.86
|
1,402,250
|
15,251,500
|
2.86
|
1,402,250
|
Total Inferred
Resources
|
18,759,000
|
2.66
|
1,605,400
|
18,759,000
|
2.66
|
1,605,400
|
Francoeur Gold
Property6, 7
|
|
|
|
|
|
|
Measured
Resources
|
40,000
|
5.89
|
7,600
|
40,000
|
5.89
|
7,600
|
Indicated
Resources
|
280,000
|
6.55
|
59,000
|
280,000
|
6.55
|
59,000
|
Total Measured
& Indicated Resources
|
320,000
|
6.47
|
66,600
|
320,000
|
6.47
|
66,600
|
Total Inferred
Resources
|
18,000
|
7.17
|
4,150
|
18,000
|
7.17
|
4,150
|
Total Reserves and
Resources
|
Proven & Probable
Reserves
|
2,417,600
|
8.05
|
625,550
|
1,054,000
|
6.43
|
217,950
|
Measured &
Indicated Resources
|
16,870,500
|
3.19
|
1,729,300
|
17,329,500
|
3.40
|
1,894,600
|
Inferred
Resources
|
21,727,000
|
3.44
|
2,405,600
|
23,067,500
|
3.73
|
2,767,900
|
1 Mineral
Resources presented are exclusive of Mineral Reserves. Mineral
Resources that are not Mineral Reserves do not have demonstrated
economic viability.
2 In 2015,
based on a gold price of CAD$1,300 per ounce and an exchange rate
of CAD$1.2037 = US$1.00. (In 2014: gold price of CAD$1,300 per
ounce and CAD$1.0833 = US$1.00).
3
Underground Resources established for the C Zone and six other
lateral zones below a vertical depth of -400 metres.
4 W Zone and
350 Zone Mineral Reserves and Mineral Resources are included with
the Beaufor Mine as at December 31, 2015 and 2014.
5 Monique
Mineral Reserves are open-pit, and Mineral Resources are located
underground directly below the open-pit.
6
Underground Mineral Resources established as of December 31,
2012.
7 Francoeur
Mine closed in November 2012.
|
About Richmont Mines Inc.
Richmont
Mines has produced over 1.6 million ounces of gold from its
operations in Quebec, Ontario and Newfoundland since beginning production. The
Corporation currently produces gold from the Island Gold Mine in
Ontario, and the Beaufor Mine in
Quebec. The Corporation is also
advancing development of the significant high-grade resource
extension at depth of the Island Gold Mine in Ontario. With 25 years of experience in gold
production, exploration and development, and prudent financial
management, the Corporation is well-positioned to cost-effectively
build its Canadian reserve base and to successfully enter its next
phase of growth. Richmont routinely posts news and other important
information on its website (www.richmont-mines.com).
Forward-Looking Statements
This news
release contains forward-looking statements that include risks and
uncertainties. When used in this news release, the words
"estimate", "project", "anticipate", "expect", "intend", "believe",
"hope", "may" and similar expressions, as well as "will", "shall"
and other indications of future tense, are intended to identify
forward-looking statements. The forward-looking statements are
based on current expectations and apply only as of the date on
which they were made.
The factors that could cause actual results to
differ materially from those indicated in such forward-looking
statements include changes in the prevailing price of gold, the
Canadian-United States exchange rate, grade of ore mined and
unforeseen difficulties in mining operations that could affect
revenue and production costs. Other factors such as uncertainties
regarding government regulations could also affect the results.
Other risks may be set out in Richmont Mines' Annual Information
Form, Annual Reports and periodic reports.
Cautionary note to US investors concerning
resource estimates
Information in this press release is
intended to comply with the requirements of the Toronto Stock
Exchange and applicable Canadian securities legislation, which
differ in certain respects with the rules and regulations
promulgated under the United States Securities Exchange Act of
1934, as amended ("Exchange Act"), as promulgated by the SEC. The
Reserve and Resource estimates in this press release were prepared
in accordance with Regulation 43-101 adopted by the Canadian
Securities Administrators. The requirements of Regulation 43-101
differ significantly from the requirements of the United States
Securities and Exchange Commission (the "SEC").
U.S. Investors are urged to consider the
disclosure in our annual report on Form 20-F, File No. 001-14598,
as filed with the SEC under the Exchange Act, which may be obtained
from us (without cost) or from the SEC's web site:
http://sec.gov/edgar.shtml.
Regulation 43-101
The Mineral Reserve
and Resource estimations as of December 31,
2015 and December 31, 2014
were performed by qualified persons as defined by Regulation 43-101
and were supervised by Mr. Daniel
Adam, Geo., Ph.D., Vice-President, Exploration, an employee
of Richmont Mines Inc. Please refer to the SEDAR website
(www.sedar.com) for full reports and additional corporate
documentation.
The Island Gold Mine Reserve and Resource
estimate as of December 31, 2015 was
performed by M. Raynald Vincent
P.Eng. M.P.M., Chief Geologist, and M. Michael Pahkala, P.Eng., Technical Services
Superintendent, both employees of Richmont Mines Inc., and
qualified persons as defined by Regulation 43-101. A 43-101
technical report will be completed for the Island Gold Mine as of
December 31, 2015, and will be filed
on SEDAR within 45 days.
The Beaufor Mine Reserve and Resource estimate as
of December 31, 2015 was performed by
M. Jessy Thelland, Geo, B.A.Sc,
Chief Geologist, and M. Louis Nkoy,
P.Eng., Chief engineer, both employees of Richmont Mines Inc., and
qualified persons as defined by Regulation 43-101. A 43-101
technical report will be completed for the Beaufor Mine as of
December 31, 2015, and will be filed
on SEDAR within 45 days.
The Reserve and Resource estimations of Beaufor
and Island Gold mines were prepared using a gold price of
US$1,080 (CAD$1,300) per ounce for 2015 and US$1,200 (CAD$1,300) per ounce for 2014. The resource
estimation of the Francoeur Mine was established at the end of 2012
using a gold price of US$1,450
(CAD$1,450) per ounce, and was
prepared by qualified persons as defined by Regulation 43-101 and
was supervised by Mr. Daniel Adam,
Geo., Ph.D., Vice-President, Exploration, an employee of Richmont
Mines Inc. The resource estimate of the Wasamac property was
established at the end of 2012 using a gold price of US$1,450 (CAD$1,450) per ounce. It was performed by Mr.
Daniel Adam, Geo., Ph.D.,
Vice-President, Exploration, an employee of Richmont Mines Inc.,
and a qualified person as defined by Regulation 43-101. The Monique
Mine Reserve and Resource estimate as of December 31, 2013 was established using a gold
price of US$1,225 (CAD$1,300) per ounce and was performed by Mr.
Daniel Adam, Geo., Ph.D.,
Vice-President, Exploration, an employee of Richmont Mines Inc.,
and a qualified person as defined by Regulation 43-101. A 43-101
technical report was completed for the first Reserve estimation of
this property on July 1st, 2013, and
was filed on SEDAR on September 13,
2013.
Richmont Mines Inc.
Ticker symbol: RIC
Listings: TSX – NYSE MKT
Web Site: www.richmont-mines.com
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