Richmont boosts output — High grades at Nugget Pond boost production

The start of commercial production at the Nugget Pond gold mine last spring has enabled Richmont Mines (RIC-T) to report a 140% increase in gold production for 1997.

The underground mine is in the Baie Verte region of Newfoundland and is the company’s first mine outside its home province of Quebec.

Last year, Richmont produced a total of 72,800 oz. gold, compared with 30,100 oz. in 1996. Of last year’s total, Nugget Pond contributed 34,800 oz.

at a cash cost of US$143 per oz. — an improvement over the feasibility study projection of 32,000 oz. at US$153 per oz.

“Higher grades and better-than-expected mill recovery explain this increase,” says Richmont President Jean-Guy Rivard. “For 1998, Nugget Pond’s gold output is projected to be 48,000 oz. at a cash cost of US$148 per oz.” Meanwhile, the Francouer mine, near Rouyn-Noranda, Que., turned out 29,000 oz. gold last year at a cash cost of US$273 per oz., roughly similar to 1996 production of 30,100 oz. at a cash cost of US$275 per oz.

Richmont is encouraged by the results of its 1997 exploration program at Francoeur, which resulted in the discovery of a new zone where 525,000 tons grading 0.2 oz. gold have been identified. This zone, which will be mined from the existing infrastructure at the No. 6 shaft, is expected to lower 1998 production costs. Francoeur is expected to produce 30,000 oz. gold this year at a cash cost of US$271 per oz.

Richmont owns half of the Beaufor mine, near Val d’Or, which turned out 29,800 oz. for the company (and partner Aurizon Mines). Cash costs were US$307 per oz., up from US$285 per oz. a year earlier. Beaufor is projected to produce 38,000 oz. gold this year at a cash cost of US$271 per oz., half of which will be for Richmont’s account.

This year, the company expects to produce 97,000 oz. gold from all its mines at an average cash cost of US$210 per oz.