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.
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