Richmont raises reserves (March 03, 2008)

While Richmont Mines (RIC-T, RIC-X) increased production only slightly in 2007, it raised gold reserves significantly, to 361,000 oz. gold from about 49,000 oz. the year before as a result of its exploration programs at the Beaufor and Island gold mines.

Richmont produced about 45,300 oz. gold in 2007, compared with 44,900 oz. in 2006.

About 26,000 oz. came from the Beaufor mine, northeast of Vald’Or, Que.

The mine is a 50% joint venture with Louvem Mines (LOV-V), which is 70%-owned by Richmont.

The company produced 7,300 oz. at its Island gold mine northeast of Wawa, Ont., and more than 11,000 oz. at the East Amphi mine, west of Val-d’Or.

East Amphi was shut down and sold to Osisko Exploration (OSK-T, OSXLF-O) in the second quarter.

Commercial production began on Oct. 1 at Island Gold, 55% owned by Richmont and 45% by Patricia Mining (PAT-V, PTMHF-O).

Island Gold reserves now stand at 1.1 million tonnes grading 8.39 grams gold per tonne for nearly 286,000 oz. gold, up about 36,000 oz. from 2006.

Resources rose after Richmont confirmed the extension of the Island zone to the east of known resources, adding to measured and indicated resources by 53,000 oz., plus 5,600 oz. under the inferred category.

Total measured and indicated resources at Island now stand 192,000 oz. gold — up about 42,000 contained ounces from 2006.

Inferred resources are a bit lower at 193,000 oz. gold, compared with 196,000 oz. at the end of 2006.

Richmont has yet to receive assay results from five drill holes on the property. The company plans to complete 20,000 metres of drilling at Island Gold this year.

As for the Beaufor property, proven and probable reserves are up more than 50% from 2006 to about 256,000 tonnes grading 9.2 grams gold per tonne for nearly 76,000 oz. gold.

Measured and indicated resources decreased to 141,000 oz. gold from 148,000 oz. gold, while new mineralized zones added some inferred resources to the property — about 30,000 oz. gold.

Richmont plans to drill 42,000 metres at Beaufor in 2008.

The company will also conduct exploration work at its Golden Wonder project in Colorado, a 50% joint venture with LKA International (LKAI-O) signed in November. Golden Wonder, a high-grade epithermal deposit, produced 134,000 oz. gold between 1998 and 2006.