Friday, April 15, 2016

Richmont Mines - Locality, Locality, Locality

"Give me a ham omelette"
Jean - Paul Sartre, Nausea

On April 12, 2016 Richmont Mines published its 1Q 2015 operating results. While the scale of production, delivered by Beaufor and Monique mines, was rather disappointing, the results reported by the flagship property, Island Gold, were excellent.

To remind my readers, Richmont is now in a transition period. Starting from 2017 the company will be mining the ore only from the Lower Zone of Island Gold (below 400 meters). This part of Island Gold comprises the ore of much better quality than the Upper Zone:

                                 source: Richmont Mines

As the table shows, there are 485 thousand ounces of gold in the Lower Zone, classified as reserves (and only 76.7 thousand ounces in the Upper Zone). What is more, the ore in the Lower Zone is of much better quality, grading 8.52 grams per ton (6.91 grams per tone in the Upper Zone).

With 1Q 2016 production of 26,589 ounces of gold at Island Gold (vs. 14,203 ounces in 4Q 2015) the company entered this year with a loud bang.

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