Deep Drilling Intersects 18.63 g/t over 6.60
metres and 9.11 g/t over 4.12 metres;
Lateral Drilling Intersects 17.41 g/t gold over 2.27 metres and
21.0 g/t over 2.78 metres
TORONTO, July 7, 2016 /PRNewswire/ - Richmont Mines
Inc. (TSX: RIC) (NYSE MKT: RIC) ("Richmont" or the
"Corporation"), is pleased to announce that based on the positive
results reported from the Phase 1 exploration drilling program, a
strategic Phase 2 exploration drilling program has been launched at
the Island Gold Mine. The Corporation is also providing a final
update on the Phase 1 drilling program (Figure 1), which continues
to demonstrate the potential of the cornerstone Island Gold Mine.
(All amounts are in Canadian dollars unless otherwise
indicated).
The Phase 1 exploration drilling program commenced in
September 2015 and focused on three
key priorities: 1) testing the lateral continuity of the known
deposit to potentially extend mine life above the 1,000 metre
level; 2) following up on gold intersections that support the
potential for a down plunge extension of the deposit between the
1,000 and 1,500 metre levels; and 3) testing high-priority regional
gold targets elsewhere across the prospective Island Gold
property.
The results from the Phase 1 drilling program have met our
objectives, which has supported the launch of an aggressive Phase 2
exploration program of up to 142,000 metres that will be completed
over the next 18 to 24 months. The primary objective of the Phase 2
program is to expand the existing resource inventory laterally
along strike, mainly to the east of the main deposit, with a goal
of extending mine life above the 1,000 metre level that could
support the potential expansion scenarios currently under review,
as well as to identify the next million-plus ounces of high-grade
inferred resource at depth, between the 1,000 and 1,500 metre
levels.
"Drilling to date has identified the potential for high-grade
resource blocks in the eastern lateral extension that could add
incremental ounces to the near-term production plan, support
potential expansion opportunities and increase mine life. The
success of the deep directional drilling program increases our
confidence in the potential to add another million or more,
high-grade ounces at depth, which could support medium-to-longer
term production growth opportunities." stated Renaud Adams, CEO. He continued, "The Phase 2
program will continue to focus on expanding our global resource
inventory with a target of adding inferred ounces both laterally
and at depth by the end of the year, with an ultimate goal of
unlocking the multi-million ounce potential of the Island Gold
Mine."
PHASE 1 EXPLORATION DRILLING PROGRAM UPDATE
Recent highlights from the Phase 1 exploration drilling program
include:
Lateral Exploration (Figure 2)
Approximately 50,100 metres of the Phase 1 lateral exploration
program (east and west) have been completed, including 16,440
metres from surface, 23,850 metres from the 450 and 620 metre
levels, 2,612 metres from the 190 metre level and 7,170 metres from
the 340 metre level.
Recent highlights include (all results are reported with
estimated true width and high grade capped at 95 g/t gold):
- Hole 620-543-34: 17.41 g/t gold over 2.27 metres
- Hole 620-556-04: 21.00 g/t over 2.78 metres
- Hole GD-590-05: 10.55 g/t gold over 2.46 metres
The Phase 1 lateral exploration program has successfully
identified a potential resource block located approximately 300
metres east of the main deposit as well as a second contiguous
mineralized sector identified 800 metres east of the main deposit,
which demonstrates the potential to increase the resource inventory
to the east of the main deposit.
Phase 1 Deep Directional Drilling (Figure 3)
The Phase 1 deep directional drilling program was designed to
test the down plunge extension of the deposit between the 860 and
1,500 metre levels and to follow-up on a single deep hole from
surface that intersected 19.87 g/t over 3.93 metres at a depth of
1,200 metres. High grade gold values over wide zones continue to be
intersected, confirming the interpreted high grade zone at depth.
Approximately 21,700 metres of the Phase 1 directional drilling
program have been completed, including five pilot holes and 15
wedged holes. All of the holes drilled to date have intersected the
main mineralized structure.
Recent highlights include (all results are reported with
estimated true width and high grade capped at 95 g/t gold):
- Hole MH1-6: 18.63 g/t gold over 6.60 metres
- Hole MH1-7: 9.11 g/t gold over 4.12 metres
- Hole MH3-6: 12.49 g/t gold over 2.19 metres
- Hole MH4-1: 6.36 g/t gold over 5.84 metres (parallel zone to
the main C Zone)
Phase 1 drilling has also identified a potential new high-grade
resource block located in the eastern down plunge extension between
the 900 and 1,250 metre levels, which shows similar geological
characteristics as the main C Zone structure. The weighted average
grade of the 20 holes located within the potential inferred
resource area (16 from deep directional drilling and 4 from
previous drilling programs) is 10.85 g/t gold (capped at 95 g/t
gold) over an average true thickness of 4.35 metres. This compares
to the main million ounce discovery that has an average resource
grade of 10.73 g/t gold (capped at 95 g/t gold) over a 4.5 metre
true width.
Regional Surface Exploration (Figure 4)
A 7,500 metre regional exploration program was initiated in 2015
to test the east and west regional extensions of the Island Gold
deposit along strike as well as for new deposits within the
Goudreau shear zone. The Phase 1 program included drilling in the
former Kremzar Mine area, which tested the extension of the
previously mined mineralized zone at depth, with 3 holes completed
to date. Results to date confirm the extension of the mineralized
quartz veins at depth in 2 of the holes (main zone and subsidiary
zones). To date, a total of approximately 4,000 metres of drilling
have been completed with the remaining 3,500 metres to be
incorporated into the Phase 2 drilling program. Ongoing drilling
will also focus on the previously identified high-priority gold
targets located elsewhere on the highly prospective 77
km2 Island Gold property.
PHASE 2 EXPLORATION PROGRAM (Figure 5)
The Phase 2 exploration program will build on the success of the
Phase 1 program and will focus on three key priorities over the
next 18 to 24 months: 1) continuing to test the lateral continuity
of the known deposit to the east of the main deposit to potentially
add new resource blocks with the overall objective of extending
mine life above the 1,000 metre level; 2) to identify the next
million-plus ounce, high grade inferred resource in the vertical
extension of the deposit between the 1,000 and 1,500 metre levels;
and 3) continuing to test high priority regional gold targets
across the prospective Island Gold property.
Approximately 39,000 metres ($7
million) of the approximately 142,000 metre Phase 2 drilling
program is expected to be completed over the balance of the year.
(Refer to Table 2 for additional details of the Phase 2 drilling
program).
Eastern Lateral Drilling Program (Figure 5)
The Phase 2 eastern lateral drilling program will follow up on
the potential addition of new resource blocks located east of the
main deposit that were identified as part of the Phase 1 program,
as well as continue to test the main mineralized structure
laterally along strike above the 1,000 metre level.
Approximately 9,000 metres of an overall 42,000 metres of
drilling is expected to be completed over the balance of the year,
including approximately 3,000 metres of infill drilling (50 metre
drill spacing), to potentially define an inferred resource block
between the 500 and 750 metre levels located approximately 300
metres east of the main deposit.
One conventional surface drill and one underground drill from
the 340 metre level are currently drilling in the target area.
Should infill drilling confirm the potential for a new inferred
resource, the 620 metre exploration drift will be extended and
infill drilling would then be transitioned to underground drilling
from the 620 metre exploration drift.
Due to the favourable results from the Phase 1 drilling to the
east, including better access for drilling and proximity to the
existing mining infrastructure, drilling to test the potential
extension to the west of the known deposit will be deferred until
further analysis is complete.
Deep Drilling Program (Figure 5)
The objective of the Phase 2 deep directional program is to
continue to test the significant potential of the vertical
extension of the main deposit between the 1,000 and 1,500 metre
levels with the overall objective of adding the next million-plus
ounces of high-grade inferred resources.
Approximately 27,000 metres of an overall 80,000 metres of
drilling, including 5,000 metres of infill drilling (50 metre drill
spacing), is estimated to be completed over the balance of the
year. Four surface directional drills and two surface conventional
drills (infill drilling) are currently drilling in the target area.
The objective of the deep infill program is to define a potential
inferred resource block that was identified through the Phase 1
program, which is located in the eastern down plunge extension of
the C Zone between the 1,000 and 1,500 metre levels. The infill
drilling will transition to underground drilling once access to the
860 metre drift has been established.
The complete 18 to 24 month deep drilling program will consist
of exploring the western and eastern down plunge corridors between
the 1,000 and 1,500 metre programs, as well as infill drilling for
the potential conversion to inferred high-grade resources at depth
that could potentially support additional expansion opportunities
and extend mine life.
Regional Program
Approximately 3,000 metres of an overall 20,000 metre drilling
program are expected to be completed in 2016. The Phase 2 regional
drilling program will continue to evaluate the potential extension
of the mineralization below the Kremzar mine as well as the
previously identified high-priority gold targets located elsewhere
on the highly prospective 77 km2 Island Gold
property.
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.
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. Except as may be required by law, the
Corporation undertakes no obligation and disclaims any
responsibility to publicly update or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise.
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. The forward-looking information contained herein
is made as of the date of this news release.
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 geological data in this news
release has been reviewed 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.
Table 1: Drill Results
LATERAL
EXPLORATION
(East of Main
Zone)
|
Hole
Number
|
Length
(metres)
|
From
(metres)
|
To
(metres)
|
True Width
(metres)
|
Uncut
Grade
(g/t
Au)
|
Cut
Grade
(g/t
Au)
|
Zone
|
Vertical depth of
Intersection (metres)
|
620-543-32
|
141
|
123.27
|
126.00
|
2.66
|
0.86
|
0.86
|
E1E
|
575
|
620-543-34
|
231
|
201.79
|
204.56
|
2.27
|
17.41
|
17.41
|
E1E
|
715
|
620-543-35
|
285
|
236.39
|
239.83
|
2.44
|
2.51
|
2.51
|
E1E
|
767
|
620-543-36
|
250
|
221.58
|
228.00
|
4.86
|
4.01
|
4.01
|
E1E
|
731
|
620-543-39
|
180
|
156.36
|
158.86
|
2.32
|
3.04
|
3.04
|
E1E
|
622
|
620-556-02
|
234
|
214.34
|
219.88
|
4.68
|
0.48
|
0.48
|
E1E
|
697
|
620-556-03
|
180
|
141.53
|
151.66
|
9.78
|
0.32
|
0.32
|
E1E
|
607
|
620-556-04
|
285
|
267.97
|
271.82
|
2.78
|
21.00
|
21.00
|
E1E
|
753
|
GD-580-02
|
1,161
|
986.51
|
990.64
|
2.07
|
2.35
|
2.35
|
E1E
|
950
|
GD-590-04
|
1,050
|
829.38
|
835.21
|
3.34
|
0.12
|
0.12
|
E1E
|
781
|
GD-590-05
|
1,050
|
747.73
|
751.74
|
2.46
|
19.20
|
10.55
|
E1E
|
660
|
|
including
|
748.65
|
748.95
|
0.18
|
210.72
|
95.00
|
|
|
DEEP DRILLING
PROGRAM
|
Hole
Number
|
Length
(metres)
|
From
(metres)
|
To
(metres)
|
True Width
(metres)
|
Uncut
Grade
(g/t
Au)
|
Cut Grade (g/t
Au)
|
Zone
|
Vertical depth of
Intersection (metres)
|
MH1-4
|
1,540
|
1,252.50
|
1,256.00
|
3.16
|
0.45
|
0.45
|
E1E
|
1,045
|
MH1-6
|
1,490
|
1,299.95
|
1,308.37
|
6.60
|
20.31
|
18.63
|
E1E
|
1,130
|
|
including
|
1,300.75
|
1,301.30
|
0.43
|
120.82
|
95.00
|
|
|
MH1-7
|
1,500
|
1,391.07
|
1,398.00
|
4.12
|
11.87
|
9.11
|
E1E
|
1,280
|
|
including
|
1,393.43
|
1,394.00
|
0.34
|
45.77
|
45.77
|
|
|
|
including
|
1,395.76
|
1,396.06
|
0.18
|
158.68
|
95.00
|
|
|
MH2A
|
1,422
|
1,262.85
|
1,265.60
|
2.06
|
3.35
|
3.35
|
X
|
1,091
|
MH2A-3
|
1,442
|
1,199.50
|
1,202.60
|
2.27
|
2.42
|
2.42
|
X
|
1,031
|
MH2A-3
|
1,442
|
1,276.00
|
1,278.74
|
2.01
|
4.31
|
4.31
|
E1E
|
1,091
|
MH3-6
|
1,505
|
1,362.84
|
1,367.66
|
2.19
|
12.49
|
12.49
|
E1E
|
1,257
|
MH4
|
1,400
|
1,276.00
|
1,282.60
|
4.91
|
1.17
|
1.17
|
X
|
1,061
|
MH4
|
1,400
|
1,289.40
|
1,293.40
|
2.75
|
4.29
|
4.29
|
C
|
1,070
|
MH4-1
|
1,400
|
1,106.61
|
1,114.65
|
5.84
|
6.36
|
6.36
|
X
|
932
|
|
including
|
1,108.84
|
1,109.33
|
0.36
|
68.47
|
68.47
|
|
|
MH4-1
|
1,400
|
1,292.10
|
1,295.21
|
2.27
|
1.53
|
1.53
|
C
|
1,068
|
Table 2: Phase 2 Exploration Drilling
Phase 2
Exploration Program
|
Amount
(C$)
|
Lateral Drilling
Program
|
|
Surface Drilling
(15,000m)
|
$1,650,000
|
Underground Drilling
(27,000m)
|
$2,200,000
|
620m and 740m
exploration drifts extension
|
$3,750,000
|
Total Lateral
Drilling
|
$7,600,000
|
|
|
Deep Drilling
Program
|
|
Surface directional
drilling (40,000m)
|
$8,400,000
|
860m exploration
drift (500m)
|
$3,200,000
|
Infill underground
drilling (40,000m)
|
$3,200,000
|
Total Deep
Drilling
|
$14,800,000
|
|
|
Regional Drilling
Program
|
|
Surface drilling
(20,000m)
|
$2,200,000
|
|
|
Total Phase 2
Exploration
|
$24,600,000
|
SOURCE Richmont Mines