GOLD: PEA outlines $40.5M capex for Richmont’s deep Island Gold development

ONTARIO – Richmont Mines of Toronto has completed the preliminary economic assessment to mine the deeper portions of its Island Gold gold mine 83 km northeast of Wawa. The report considers a phased approach with the first stage development to cost $40.5 million. Using the base case, the company says the cash cost per ounce will be approximately $522 from 2017 to 2022. Phase 1 will include mining the resources below the 450-metre level at a rate of 800 t/d. The potential exists to expand production to 1,150 t/d beginning in 2017 by driving a dedicated haulage ramp and accessing resources below the 1,000-metre level. Richmont has confirmed proven and probable reserves below the 400-metre level as 341,500 tonnes grading 6.76 g/t Au. Indicated resources are 438,000 tonnes averaging 10.95 g/t, and the inferred portion of 3.2 million tonnes grades 9.00 g/t. The company is currently developing a portion of the deeper resources, and the main ramp has reached 725 vertical metres below surface. Development is complete to the 675-metre level. Longhole mining from the first horizon above the 635-metre level will begin by the end of this year. More details are available at Richmont-Mines.com.