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Their portfolio of Canadian assets includes producing mineral properties, as well as early stage exploration and development projects and two 100% owned mills.
Twenty year track record of gold mine development and operationOver 1.3 million ounces of gold produced since 1991Strong financial position: low share count (39.5 million shares)Over $60 million cash (as of end of Q3 2012)Dual listed on TSX and NYSE Market, with a strong U.S. institutional following76,143 ounces of gold sold in fiscal 2011Two producing gold mines in Canada
The Island Gold Mine is located 50 km northeast of Wawa, Ontario, in the Sault Ste. Marie mining district. The closest community to the operation is the town of Dubreuilville, Ontario, which is located approximately 10 km to the northwest of the mine.
In the mid-80’s exploratory drilling two kilometers from the Kremzar Mine intersected a series of sub-parallel lenses containing gold mineralization within the highly altered rock unit. These gold bearing lenses are known as the Lochalsh, Island Gold, Shore, and Goudreau Lake Zones. Underground infrastructure was built into the Island deposit beneath Goudreau Lake from an adit on the north shore. A bulk sample was taken weighing approximately 4,167 tonnes and was processed at the on-site Kremzar Mill. Buoyed by positive results with of the bulk sample, exploration over the next five years began to fully realize the mineral potential for the project. This culminated in 2004, when a final exploration program was initiated in order to complete a NI-43-101 compliant resource estimate. Since beginning commercial production in October 2007, the Island Gold Mine has produced more than 225,000 ounces of gold.
The company completed a 35,000 metre exploration program over 2011-2012 below the existing infrastructure of the mine, which extends to approximately 400 metres below surface. Results include 26.09 g/t Au over 9.55 metres, 10.29 g/t Au over 5.19 metres, 10.40 g/t Au over 5.06 metres, 31.60 g/t Au over 6.59 metres, and 27.16 g/t Au over 10.62 metres. The company plans to release a preliminary resource for this deep area below the mine in the first quarter of 2013.
The Beaufor Mine property, located approximately 25 kilometres from Val-d’Or, Quebec, has seen intermittent exploration work and gold production conducted on it since the early 1930’s. Recent commercial production started in January 1996, and in the spring of 2001, Richmont Mines bought 50% of the mining rights of the Perron, Beaufor, Pascalis, Colombière and Courvan properties for $1.8 million (cdn).
In September 2001, Richmont Mines began construction work to update the mining infrastructure for increased production levels, which subsequently commenced in January 2002. The Beaufor Mine has produced gold on an annual basis since that date. On June 30, 2010, Richmont became the 100% owner of the Beaufor Mine property, buying out their minority partner. Since 1996, the Beaufor Mine has produced over 500,000 ounces of gold. As of December 31, 2011 the Beaufor Mine had a proven and probable reserve estimate of 69,191 ounces of gold, an additional 182,334 ounces of measured and indicated resources, with a further 182,185 gold ounces in the inferred resource category.
Over 30,000 metres of diamond drilling was completed in 2011 to further increase the reserve estimate and extend the mine life, with an additional 35,000 metres completed in 2012 to aid this purpose.
The Company continues to advance exploration work on the W Zone, a near-surface satellite deposit on the Beaufor Mine property, and as of the end of the third quarter of 2012 had completed over 800 metres of the exploration ramp being developed. Exploration work is expected to be completed in 2013, after which a bulk sample will be processed at the company’s Camflo Mill, located approximately 50 km away.
The 8,100 metre surface drilling program on the Monique property in 2011 included 47 holes that ranged between 80 and 215 metres in length. The goal of the program was to complete infill drilling on two previously identified gold zones on the property: the G Zone and J Zone, with the objective of evaluating the potential for a small open pit operation.
Past drilling on this property revealed the presence of economic gold mineralization, including 5.2 g/t Au over 14.2 metres, and 6.8 g/t Au over 21.3 metres at a depth of less than 100 metres in the G Zone.
In late December 2011, Richmont Mines announced indicated open pit estimated resources of 728,164 tonnes grading 2.35 g/t Au for 55,112 ounces of gold. Richmont submitted the required documentation for the permitting of an open pit operation in November 2011, and received its mining permits in January 2013. The company plans to process a 5,000 tonne bulk sample at its Camflo Mill, located approximately 50 km away from the property, in 2013.
If the results from the bulk sampling phase are favourable, open pit mining and milling would proceed over the following two year period, the approval for which is inclusive in the permit. The open pit phase could potentially be followed by an underground phase, for which a permit amendment would need to be obtained.
Richmont Mines is a Canadian exploration and mining company with two small to mid-scale producing gold mining operations, and two wholly-owned processing mills. Using the profits from the operating mines allows Richmont to develop additional exploration properties without the need to over dilute the stock: a self-financing junior mining company of this sort is a rarity.
Richmont is also in a strong financial position with a cash position of over 60 million dollars as of the end of Q3 2012, and a low share count at just 39.5 million. Its dual listing on the TSX and NYSE Market exchanges also provides a stable institutional investor base.
Paul Carmel, Eng. – President and CEO
Mr. Carmel holds a Bachelor of Engineering, Mining degree from McGill University in Montreal, Canada. In addition to having a comprehensive background in mining engineering, Mr. Carmel has extensive experience in mergers and acquisitions, corporate finance and other aspects of the capital markets.
Mr. Carmel is a past Director of numerous mining companies, is a member of the Association of Professional Engineers of Quebec, and was a recipient of the Canadian Mineral Industry Education Foundation Scholarship. He was named Director, President and CEO of Richmont in May 2012.
Christian Pichette, Eng., M.Sc. – Executive Vice-President and Chief Operating Officer
A mining engineer by training, Mr. Pichette holds a Master’s degree in Rock Mechanics. With over 30 years of experience in mining, Mr. Pichette has held managerial positions with many companies, including Placer Dome, TVX Gold, Barrick Gold and Cambior. His wide-ranging expertise in underground operations is a valuable asset for the Company.
Pierre Rougeau – Executive Vice-President and Chief Financial Officer ?
Mr. Rougeau was Executive Vice-President, Operations and Sales for AbitibiBowater Inc. from 2009 through 2011, Chief Financial Officer for Abitibi Consolidated Inc. from 2001 to 2007, Head of Forest Products Investment Banking at UBS Warburg – Canada from 1998 to 2001, and worked at McLeod Young Weir/Scotia Capital from 1986 to 1998, where he held various positions in Investment Banking, including Managing Director.
Mr. Rougeau holds a Bachelor of Science, in Business Administration (Accounting) from St-Louis University in Missouri, and a Master’s of Science in Finance, from the University of Sherbrooke in Quebec. He was named Executive Vice-President and CFO of Richmont in November 2012.
Daniel Adam, Geo. PhD – Exploration General Manager
Mr. Adam obtained a Ph.D in Geology from the University of Nancy in France. He has more than 20 years of experience in production and geological exploration, which include numerous positions of varying responsibility at Selbaie Mines. Mr. Adam joined Richmont Mines in March 2008 as a Senior Exploration Geologist, and now holds the position of Exploration General Manager.