TORONTO, January 31, 2017 /PRNewswire/ --
Island Gold Mine Increases Mineral
Reserves by 34% at an Increased Grade of 9.17 g/t Gold
Richmont Mines Inc. (TSX:
RIC) (NYSE: RIC) ("Richmont" or the "Corporation"),
announces updated Mineral Reserves and Resources as of
December 31, 2016. Mineral Reserves at the cornerstone Island
Gold Mine in Ontario increased by
34% (net of depletion) to 752,200 ounces of gold, at an increased
grade of 9.17 g/t gold. (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.)
2016 Mineral Reserve and Resource Highlights:
As at December 31, 2016, Richmont
is reporting Mineral Reserves and Resources for the Island Gold and
Beaufor Mines as summarized in the table below:
2016 Mineral Reserves and Resources(1)(2)
Island Gold Mine and Beaufor Mine
Gold Ounces Grade (g/t)
Change Change
December 31, 2016 2016 2015 (%) 2016 2015 (%)
Island Gold Mine(3)
Proven &
Probable
Reserves 752,200 561,700 34% 9.17 8.26 11%
Measured &
Indicated
Resources 91,450 71,700 28% 5.94 6.40 (7%)
Inferred
Resources 995,700 768,050 30% 10.18 8.49 20%
Beaufor Mine
Proven &
Probable
Reserves 44,920 63,850 (30%) 6.86 6.57 4%
Measured &
Indicated
Resources 83,700 171,900 (51%) 7.37 6.34 16%
Inferred
Resources 7,500 28,000 (73%) 6.44 6.44 0%
(1) Refer to the detailed mineral reserve and mineral resource tables that
follow at the end of this press release.
(2) No changes to Mineral Reserves and Resources were made at the Corporation's
other properties.
(3) An NI 43-101 Technical Report for the Island Gold Mine will be filed within
45 days.
The successful 2016 drilling campaign at the Island Gold Mine
contributed to a significant increase in 2016 Mineral Reserves and
Resources.
- Mineral reserves of 752,200 gold ounces (net of depletion), a
34% increase over 2015, at an 11% higher grade of 9.17 g/t.
- Inferred resources of 995,700 gold ounces, a 30% increase over
2015, at a 20% higher grade of 10.18 g/t, at an average discovery
cost of less than $35 per ounce.
At the Beaufor Mine, 2016 Mineral Reserves and Resources have
decreased as 2016 delineation and exploration drilling was unable
to offset mining depletion and converted resources. Additionally,
following a reassessment of all resource blocks, certain low-grade,
currently uneconomic resource blocks located in the upper part of
the mine were removed.
"We are pleased to report another year of high quality reserve
growth at the Island Gold Mine. The increase in reserves and
resources is consistent with our vision of developing the Island
Gold Mine to be a long life, high quality underground mine in
Canada. Our systematic delineation
drilling campaign at Island Gold during 2016 has more than offset
mining depletion, contributing to the 34% increase in reserve
ounces and the 11% increase in average reserve grade. Our drilling
program has also successfully contributed to a 30% increase in
inferred resources at a 20% higher grade, which is very positive,
given the high rate of resource conversion that was achieved in
2016," stated Renaud Adams, Chief
Executive Officer. He continued, "Our ongoing drilling programs and
accelerated underground development strategy have significantly
enhanced our knowledge and understanding of the geological
structure of the Island Gold deposit, which provides us with a
greater appreciation of the significant potential yet to be
realized."
Mineral Reserve Reconciliation
A reconciliation of the Corporation's Mineral Reserves at the
Island Gold and Beaufor Mines is provided in the table below:
Island Gold Mine Beaufor Mine
Gold Ounces Gold Ounces
Proven & Probable Reserves (Dec. 31/15) 561,700 63,850
2016 Mining Depletion 86,327 19,971
2016 Reserve Additions 276,827 1,041
Proven & Probable Reserves (Dec. 31/16) 752,200 44,920
Island Gold Mine Mineral Reserves and Resources (December 31, 2016)
Mineral Reserves and Resources
December 31, 2016 December 31, 2015
Gold Gold
Tonnes Grade Ounces Tonnes Grade Ounces
Island Gold Mine (MT) (g/t) (000's) (MT) (g/t) (000's)
Proven & Probable Reserves 2.6 9.17 752.2 2.1 8.26 561.7
Measured & Indicated
Resources 0.5 5.94 91.5 0.3 6.40 71.7
Inferred Resources 3.0 10.18 995.7 2.8 8.49 768.1
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.
Island Gold Mine: Key Assumptions
- For the December 31, 2016 Mineral
Reserve and Resource estimates, a metal price of CAD$1,500 per ounce of gold was used. The cut-off
grade increased from 4.00 g/t gold in 2015 to a range of 4.00 g/t
gold for pre-developed areas to 4.35 g/t gold for undeveloped
areas.
- Mineral Resources were estimated using a block modelling
approach with ordinary kriging interpolation. The density used to
calculate tonnage varies from 2.82 to 2.80 t/m3.
- Capping parameters have been updated following the completion
of a statistical study that incorporated new data that included
grade reconciliations from actual mining results compiled in 2016.
Capping of high grade gold values varies depending on the zone,
including 31 g/t gold for the D Zone and 225 g/t gold for the main
C Zone. A restricted ellipse of 15 metres x 10 metres x 5 metres
was applied to the C Zone composites that were greater than 125 g/t
gold.
- For Mineral Reserves, dilution estimates increased to an
average of 27% (19% in 2015) for long-hole panels and decreased to
an average of 22% (30% in 2015) for development in ore.
Island Gold Mine: 2016 Mineral Reserve and Resource
Highlights
- As of December 31, 2016,
following the completion of the successful 2016 drilling program,
the majority of the resource blocks in the main C Zone located
within the ongoing Preliminary Economic Assessment ("PEA") area
were converted to reserves, resulting in a 34% increase in reserve
ounces over 2015.
- A total of approximately 48,000 metres of successful
delineation drilling was completed in 2016. The drilling was
largely confirmatory and allowed for the conversion to reserves of
two main blocks in the western portion of the PEA, between the 470
and 675 metre levels. Another block was also converted in the lower
western portion, between the 760 and the 970 metre levels. Some
smaller blocks were also converted in the eastern portion, in the
extension 1 and 2 areas. The 2016 delineation drilling, combined
with the extensive development in ore completed in 2016, have led
to a new structural interpretation of some sectors located between
the 740 and the 785 meter levels, resulting in certain high grade
reserve blocks being removed.
- The overall reserve grade of 9.17 g/t gold represents an 11%
increase in grade over 2015. The reserve grade was positively
impacted by the increased capping grade and the delineation of high
grade resource blocks, partially offset by the restricted ellipse
applied to higher grade composites, the slightly overall higher
dilution estimates and the removal of the high grade blocks noted
above.
- Approximately 83,000 metres of exploration drilling was
completed in 2016, which identified three new inferred resource
blocks that contributed to a 30% increase in inferred resource
ounces over 2015, at an increased grade of 10.18 g/t gold.
- A new large inferred resource block of 760,000 tonnes at a
grade of 9.53 g/t gold (approximately 230,000 ounces), was defined
in the eastern down plunge extension of the main C Zone, located
between the 1,050 and the 1,300 metre levels.
- Two additional inferred resource blocks were identified in the
eastern lateral extension area, located approximately 300 metres
east of the PEA area, between the 340 and the 750 metre levels,
with the largest inferred resource block containing approximately
290,000 tonnes at a grade of 10.35 g/t of gold (approximately
95,000 ounces).
- Overall discovery costs in 2016 averaged less than $35 per ounce.
Island Gold Mine: 2017 Delineation Drilling Program
Highlights
In 2017, delineation drilling will focus on three main
objectives as highlighted below:
- Complete the delineation to upgrade the remaining resources
located within the PEA area, primarily in the fourth mining
horizon, between the 785 and the 1,000 metre levels.
- Further test the down plunge extension of the main C Zone at
depth, below the 1,000 metre level where a new resource block was
identified as part of the 2016 program. Drilling will be completed
from the main ramp and from a new exploration drift that will be
established on the 860 metre level.
- Further test the eastern lateral extension area located 300
metres east of the main deposit where two new inferred resources
blocks were identified. Drilling will be completed from the 340
metre level and from an extension of the 620 metre level
exploration drift that will be completed in 2017.
Island Gold: 2017 Exploration Drilling Program
Highlights
In 2017, the Phase 2 exploration program will continue drilling
in two key target areas, as highlighted below:
- The deep directional exploration drilling program will continue
in 2017, targeting the area between the 1,000 and 1,500 metre
levels, east and west of the new resource block.
- The eastern lateral exploration drilling program will continue
to target additional resources east of the main PEA area, where new
resource blocks were identified as part of the 2016 drilling
program.
- Richmont expects to provide an update of the Island Gold Phase
2 exploration drilling program in the latter part of February.
Beaufor Mine Mineral Reserves and Resources (December 31, 2016)
Mineral Reserves and Resources
December 31, 2016 December 31, 2015
Gold Gold
Tonnes Grade Ounces Tonnes Grade Ounces
Beaufor Mine (MT) (g/t) (000's) (MT) (g/t) (000's)
Proven & Probable Reserves 0.20 6.86 45.0 0.30 6.57 63.9
Measured & Indicated
Resources 0.35 7.37 83.7 0.84 6.34 171.9
Inferred Resources 0.04 6.44 7.5 0.14 6.44 28.0
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.
Beaufor Mine: Key Assumptions
- For the 2016 Mineral Reserve and Mineral Resource estimates, a
metal price of CAD$1,500 per ounce of
gold was used. The cut-off grades have decreased slightly over 2015
to a range of 4.14 to 5.63 g/t in 2016 (4.31 to 6.04 g/t gold in
2015).
- Mineral Reserves and Mineral Resources were estimated using a
polygonal method. A density of 2.75 t/m3 was used
to calculate tonnages.
- A capping value of 68 g/t was maintained for high grade gold
values.
- For Mineral Reserves, the dilution estimates were maintained at
10% for long hole areas and 5% for room and pillar areas.
Beaufor Mine: 2016 Mineral Reserve and Resource
Highlights
At the Beaufor Mine, 2016 Mineral Reserves and Resources
decreased as 2016 delineation and exploration drilling was unable
to offset mining depletion and converted resources. Additionally,
following a reassessment of all resource blocks, certain low-grade,
uneconomic resource blocks located in the upper part of the mine
were removed.
- Mineral reserves of 44,920 gold ounces (net of depletion), a
30% decrease over 2015, at a 4% higher grade of 6.86 g/t.
- Inferred resources of 7,500 gold ounces at a consistent grade
of 6.44 g/t.
- Measured & Indicated resources decreased to 83,700 ounces
at an increased grade of 7.37 g/t. The decrease in ounces was due
to the exclusion of low-grade and uneconomic resource blocks
located in the upper part of the mine.
Beaufor Mine: 2017 Delineation and Exploration Program
Highlights
- 2017 delineation drilling will focus on extending the reserve
blocks inside the Q Zone, both at depth and laterally.
- Exploration drilling will focus on identifying potential new
veins in the vicinity of the known reserves and resources. Drilling
will also focus on testing the expansion potential of the higher
grade Q Zone at depth.
Qualified Persons
The Corporation completed its 2016 year-end Mineral Reserve and
Mineral Resource estimates for the Island Gold and Beaufor Mines
internally with Roscoe Postle Associates Inc. (RPA) subsequently
completing a review and audit of the Island Gold Mineral Reserve
and Resource estimates.
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 - Standards of Disclosure for Mineral
Projects ("NI 43-101").
About Richmont Mines Inc.
Richmont 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", "objective" 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
or regulation, 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,
without limitation, the impact of the 2016 Mineral Reserves and
Resources estimates, the ability to increase production utilizing
the current ramp system, the capital requirements to increase
milling capacity, 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 and the failure of our exploration
drilling programs to identify significant new resources or targets
or expand existing resources could also affect the results. Other
risks are set out in Richmont's 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 requirements of NI 43-101 adopted by
the Canadian Securities Administrators 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.
Qualified Persons
The Mineral Reserve and Resource estimates as of December 31, 2016 and December 31, 2015 were performed by qualified
persons as defined by NI 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, 2016 was performed by
M. Raynald Vincent P.Eng. M.P.M.,
Chief Geologist, and M. Léon Grondin
Leblanc, P.Eng., Chief Engineer, both employees of Richmont
Mines Inc., and Qualified Persons as defined by NI 43-101. A
NI 43-101 technical report will be completed for the Island
Gold Mine as of December 31, 2016,
and will be filed on SEDAR within 45 days.
The Beaufor Mine Reserve and Resource estimate as of
December 31, 2016 was performed under
the supervision of Bernard Salmon, P
Eng., Manager, Resources and Project Evaluation and M. Louis Nkoy, P.Eng., Chief Engineer, both
employees of Richmont Mines Inc., and qualified persons as defined
by NI 43-101.
The Reserve and Resource estimates of Beaufor and Island Gold
mines were prepared using a gold price of CAD$1,500 per ounce for 2016. The resource
estimate 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 NI 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 supervised by Mr.
Daniel Adam, Geo., Ph.D.,
Vice-President, Exploration, an employee of Richmont Mines Inc.,
and a Qualified Person as defined by NI 43-101. The Monique
Resource estimate as of December 31,
2013 was prepared using a gold price of US$1,225 (CAD$1,300) per ounce and was supervised by
Mr. Daniel Adam, Geo., Ph.D., Vice-President, Exploration, an
employee of Richmont Mines Inc., and a Qualified Person as defined
by NI 43-101.
2016 Mineral Reserves and
Resources1
December 31, 2016 December 31, 2015
Tonnes Ounces Tonnes Grade Ounces
Grade
(metric) (g/t Au) of gold (metric) (g/t Au) of gold
ISLAND GOLD MINE
Proven Reserves2 573,000 8.68 159,800 363,500 7.53 87,900
Probable Reserves2 1,978,000 9.31 592,400 1,752,000 8.41 473,800
Total Proven &
Probable Reserves2 2,551,000 9.17 752,200 2,115,500 8.26 561,700
Measured Resources 33,500 4.94 5,350 7,500 5.80 1,350
Indicated Resources 445,500 6.01 86,100 341,000 6.42 70,350
Total Measured &
Indicated Resources 479,000 5.94 91,450 348,500 6.40 71,700
Total Inferred
Resources 3,042,000 10.18 995,700 2,815,000 8.49 768,050
BEAUFOR MINE
Proven Reserves2 32,000 6.77 7,010 35,600 7.31 8,350
Probable Reserves2 171,500 6.87 37,910 266,500 6.48 55,500
Total Proven &
Probable Reserves2 203,500 6.86 44,920 302,100 6.57 63,850
Measured Resources 53,000 6.27 10,700 109,000 5.32 18,600
Indicated Resources 300,000 7.57 73,000 734,000 6.50 153,300
Total Measured &
Indicated Resources 353,000 7.37 83,700 843,000 6.34 171,900
Total Inferred
Resources 36,000 6.44 7,500 135,000 6.44 28,000
MONIQUE PROPERTY4
Indicated Resources 107,500 4.88 16,850 107,500 4.88 16,850
WASAMAC GOLD
PROPERTY3
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
PROPERTY5
Measured Resources - - - 40,000 5.89 7,600
Indicated Resources - - - 280,000 6.55 59,000
Total Measured &
Indicated Resources - - - 320,000 6.47 66,600
Total Inferred
Resources - - - 18,000 7.17 4,150
TOTAL RESERVES AND
RESOURCES
Proven & Probable
Reserves 2,754,500 9.00 797,120 2,417,600 8.05 625,550
Measured & Indicated
Resources 16,191,000 3.06 1,594,250 16,870,500 3.19 1,729,300
Inferred Resources 21,837,000 3.72 2,608,600 21,727,000 3.44 2,405,600
1 Mineral Resources presented are exclusive of Mineral Reserves. Mineral
Resources that are not Mineral Reserves do not have demonstrated economic
viability.
2 In 2016, based on a gold price of CAN$1,500/oz; in 2015, based on a gold price
of US$1,080/oz and an exchange rate of CAN$1.2037 = US$1.00.
3 Underground Mineral Resources established as of December 31, 2012.
4 Monique Mineral Resources are located underground directly below the open-pit.
5 The Francoeur Mine closed in November 2012 and was sold in 2016.
Renaud Adams, President and CEO,
Phone: 416 368-0291 ext. 101; Anne Day, Vice-President,
Investor Relations, Phone: 416 368-0291 ext. 105