Richmont Mines Adds New High Grade Inferred Mineral Resources of 508,000 Au
Ounces at 10.73 g/t at Island Gold Deep
MONTREAL, QUEBEC -- (Marketwire) -- 02/25/13 -- Richmont Mines Inc.
(TSX:RIC)(NYSE MKT:RIC), ("Richmont" or the "Corporation") announces
a first inferred mineral resource estimate for the C Zone at depth at
its operating Island Gold Mine near Wawa, Ontario. A 43-101 compliant
technical report will be filed within 45 days of this release.
-- New C Zone inferred mineral resource estimate of 1.5 million tonnes
grading 10.73 g/t Au for 508,000 ounces. The C Zone is sub-vertical, at
depths of between 450 metres and 1,000 metres, and appears to be an
extension of the areas currently being mined. The mineral resource has
been drilled on an approximate 50 m x 50 m pattern, with 55 drill hole
intercepts, about 60% of which contained visible gold;
-- The average true width of the new C Zone at depth is estimated at 4.5
metres, compared to an average of 2.7 metres above the 400 metre level
(current mining operations);
-- Preliminary metallurgical testing on representative samples have shown
high recovery rates (over 96% at a 24 hour retention time);
-- The C Zone remains open in all directions; Several previously identified
parallel zones (X, G, E1E, etc) require further drilling and, as such,
their results have not been included in the current mineral resource
-- $35 million investment planned on the Island Gold Deep project in 2013
to extend the existing ramp from its current depth of 450 metres below
surface, and to commence work on the first segment of a vertical shaft
which will be raise-bored from a depth of 450 metres to surface;
-- 39,000 metres of exploration drilling at depth planned for 2013 with the
objective of extending the C Zone resource base laterally, and expanding
geological information of other previously identified sub-parallel
Paul Carmel, President and CEO, commented: "We are extremely pleased
with this first resource estimate for the area below the existing
operating Island Gold Mine. Good continuity of the zone is
demonstrated and, even more encouraging, this new resource has higher
average widths and grades than what we are currently mining closer to
surface, and remains open in all directions. These results reaffirm
our belief in the long-term potential of the Island Gold mine and, as
such, we will be investing a total of $45 million on this asset ($35
million in Island Gold Deep and $10 million in the existing upper
operation) in 2013 to improve both our access to and geological
information of the area below our current infrastructure where these
newly identified resources exist. More specifically, our plans
include extending the ramp from its current depth of 450 metres in
order to accelerate and extend the resource base at depth at Island
Gold and, upon permitting approval, beginning to raise bore the first
450 metre section of a vertical shaft."
ISLAND GOLD DEEP: FIRST INFERRED MINERAL RESOURCE(1)
ESTIMATE - C ZONE(2)(3)
Tonnes Gold Grade (g/t) Ounces of gold
1,500,000 10.73 508,000
(1) Please see the Regulation 43-101 section at the end of this release for
(2) Established on January 25, 2013, based on a gold price of $1,450/oz and
an exchange rate of 1.00. Established using a minimum true width of 2.0
metres, bulk density of 2.80 t/m3, cut-off grade of 3 g/t Au, and a
capping of 75 g/t Au. A 43-101 technical report will be filed on SEDAR
within 45 days of this release.
(3) Tonnage and ounces have been rounded.
The mineral resource estimate was prepared by Mr. Daniel Adam, Geo.,
Ph.D., Vice-President, Exploration, Qualified Person as defined by
Regulation 43-101 and employee of Richmont Mines Inc.
2013 Planned Work
Richmont will invest an initial $35 million to advance the Island
Gold Deep project in 2013. Capital will be focused on extending the
existing ramp to gain access to the Island Gold Deep resource and to
establish an exploration horizon for further definition and step-out
drilling. Ultimately, it is expected that the ramp will reach a final
depth of approximately 1,000 metres over a 3 year period. In
addition, the Corporation's objective is to commence the excavation
of a 1,000 metre deep vertical shaft to gain access to the Island
Gold Deep project. With access at a depth of 450 metres expected
shortly, Richmont will benefit from being able to employ a lower cost
raise-boring method for the first 450 metre section of the shaft. The
permitting approval process has begun in this regard. The
Corporation's objective is to raise-bore the subsequent two vertical
sections of the shaft as work on the project advances.
Parameters used for mineral resource estimation
The C Zone that is being defined at depth is typical of the Island
Gold mine mineralization with decimeter-sized grey quartz veins,
which often contain visible gold, inside plurimetric altered zones
with disseminated pyrite. Some drill holes intersected other good
mineralized zones that appear to be lateral to the C Zone, but drill
spacing was insufficient for them to be included in the current
mineral resource estimation.
The current mineral resource estimation of the C Zone was completed
for an area which extends over 400 metres laterally, between 450
metres and 1,000 metres below the area of the Island Gold Mine
currently being mined. A total of 117 surface and underground drill
holes were used to model the C mineralized zone with a 3D wireframe
using a minimum true thickness of 2 metres. While mineralized C Zone
intersects exist laterally to the West, we consider that the hole
spacing is presently too large for a mineral resource estimation.
Drilling in this western area will be completed in 2013 from an
underground exploration drift currently being extended to the 470
metre level below surface.
Mineral resources were estimated by 3D block modeling (multi-folder
block model, with block dimension of 10 metres x 10 metres x 4
metres) with Gems software and using 2 metre composites. Grade
estimation was done using an inverse squared distance weighted
interpolation method. A minimum of 2 composites and a maximum of 30
composites within a spherical 75 metre search ellipse were used for
the interpolation. A high grade assay capping value of 75 g/t Au was
used, which is the capping presently used at the Island Gold Mine. A
density of 2.80 t/m3 was used for the tonnage calculation, which is
based on one URSTM laboratory measurement completed on a composite
sample of 4 C Zone core intercep
ts (a density of 2.82 t/m3 is
presently used at the Island Gold Mine).
Mineral resources were estimated using a minimum average grade of 3.0
g/t Au inside the modeled mineralized zone. This cut-off, based on a
gold price of US$1,450 (CAN$1,450) per ounce, is presently used to
estimate the mineral reserves at the Island Gold Mine. The mineral
resource area was cut into the C Zone wireframe using an
extrapolation of about 30 metres from drill hole intercepts. All the
blocks inside the clipped wireframe are accounted for in the mineral
resource. Inside the mineral resource area, the drill spacing average
is 50 meters although there are areas with a larger spacing as well
as areas with tighter spacing.
Chart 1: Longitudinal Section - Island Gold Mine Deep: C Zone Deep
Estimated Inferred Mineral Resource
At the request of Richmont, RPA has carried out a desktop review of
the inferred mineral resources of the Deep C Zone of the Island Gold
mine. It is RPA's opinion that this first inferred mineral resource
is reasonable, adequately estimated using standard industry practices
and that it complies with the NI 43-101 regulation.
Richmont is pleased to announce the following management
Mr. Rosaire Emond, Eng., has been appointed as Project Manager for
the Island Gold Deep project. Mr. Emond holds a Mining Engineer
degree from the University of Laval in Quebec, and has over 28 years
of project management and mine-building experience with various
companies including Placer Dome Canada and Agnico-Eagle Mines
Mr. Daniel Adam, Geo., Ph.D., has been appointed to the position of
Vice-President, Exploration for Richmont Mines. Mr. Adam obtained a
Ph.D in Geology from the University of Nancy in France. He has more
than 20 years of experience in production and geological exploration,
which include numerous positions of varying responsibility at Selbaie
Ms. Jennifer Aitken, MBA, has been appointed to the position of
Manager, Investor Relations. Ms. Aitken holds a Bachelor's degree in
Industrial Relations from McGill University, and an MBA from
Concordia University's John Molson School of Business. Ms. Aitken has
more than five years of communication, sales and marketing experience
in addition to six years as a sell-side associate research analyst
with a leading Canadian Investment Bank.
Additional details about the Island Gold Mine Property
The 84.4 km2 (8,444 hectare) Island Gold Mine property is located 83
km northeast of Wawa, Ontario. Ore from the Island Gold Mine is
processed at Richmont's on-site mill, an 850 tonne per day rated CIP
facility. Since beginning commercial production in October 2007,
Richmont's 100%-owned Island Gold Mine has produced more than 225,000
ounces of gold. Underground operations are accessed via a ramp, and
the mine's infrastructure currently reaches a vertical depth of
approximately 400 metres.
About Richmont Mines Inc.
Richmont Mines has produced over 1,300,000 ounces of gold from its
operations in Quebec, Ontario and Newfoundland since beginning
production in 1991. The Corporation currently produces gold from the
Island Gold Mine in Ontario and the Beaufor Mine in Quebec. With
extensive experience in gold exploration, development and mining, the
Corporation is well positioned to cost-effectively build its Canadian
reserve base through a combination of organic growth, strategic
acquisitions and partnerships. Richmont routinely posts news and
other important information on its website (www.richmont-mines.com).
RPA is a group of engineers and geologists who have provided advice
to the mining industry for nearly 30 years. RPA provides services to
the mining industry at all stages of project development from
exploration and resource evaluation through scoping, prefeasibility
and feasibility studies, financing, permitting, construction,
operation, closure and rehabilitation. RPA's portfolio of customers
includes clients in banking (both debt and equity), institutional
investors, government, major mining companies, exploration and
development firms, law firms, individual investors, and private
equity ventures. RPA offices are located in Canada, the United
States, and the United Kingdom (www.rpacan.com).
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
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.
The exploration program was conducted by qualified persons as defined
by Regulation 43-101. Specifically, the program was overseen by Mr.
Daniel Adam, Geo., Ph.D., Vice-President, Exploration, who is a
Qualified Person as defined by Regulation 43-101, and an employee of
Richmont Mines Inc. Mr. Adam verified and approved the information in
this press release. The analyses were conducted at Activation
Laboratories Ltd. in Geraldton, Ontario, Swastika Laboratories Ltd.
in Swastika, Ontario and at the Lab Expert laboratory in
Rouyn-Noranda, Quebec, by means of fire assay fusion with atomic
absorption (AA) and gravimetric finish. Samples from 5 holes were
assayed at the Wesdome Laboratory in Wawa in order to expedite
results; these samples will be re-assayed in a commercial laboratory.
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