Canadian Mining Journal

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GOLD: Richmont resources up, W Zone written down

MONTREAL – Richmont Mines has announced larger mineral reserve and resource estimates despite having to write down the W Zone mine. Total ounces in proven and probable reserves increased 3% year-over-year, in measured and indicated...



MONTREAL – Richmont Mines has announced larger mineral reserve and resource estimates despite having to write down the W Zone mine. Total ounces in proven and probable reserves increased 3% year-over-year, in measured and indicated resources rose 5%, and in inferred resources jumped 20%. The company has close to an estimated 4.4 million contained oz of gold in all of its properties..

Richmont operates the Island gold mine near Wawa, ON, and the Beaufor, W Zone and Monique gold mines near Val d’Or, QC, plus exploration projects.

The company is taking a non-cash $13.5 million write-down on W Zone, located on the Beaufor property, in Q4 2013 due to a reduced reserve base. The decision was made due to the mining of reserves and a re-interpretation of the geology.

Reserves and resources at Dec. 31, 2013, stood at the following levels:

 

Tonnes

(metric)

Grade

(g/t   Au)

Ounces

(contained)

Proven & probable reserves

1,361,713

4.98

218,172

Measured & indicated resources

17,329,901

3.42

1,907,528

Inferred resources

23,242,142

3.80

2,836,060

 

 

 

 

Looking forward for 2014, Richmont forecast gold production of 70,000 to 80,000 oz of gold. This year’s capital expenditures budget is $18.1 million, of which $16.3 million will be spent on the continued development of the Island gold mine and Island Gold Deep. The exploration budget is $3.8 million to be spent primarily at the Beaufor and Island mines.

Additional details are posted at Richmont-Mines.com.