Mr. Renaud Adams reports
RICHMONT REPORTS 2016 MINERAL RESERVES & RESOURCES
Richmont Mines Inc. has released its updated mineral reserves and resources as of Dec. 31, 2016. Mineral
reserves at the cornerstone Island gold mine in Ontario increased by 34 per cent (net of depletion) to 752,200
ounces of gold, at an increased grade of 9.17 grams per tonne gold.
2016 Mineral reserve and resource highlights
As at Dec. 31, 2016, Richmont is reporting mineral reserves and resources for the Island gold and
Beaufor mines as summarized in the table.
2016 MINERAL RESERVES AND RESOURCES -- ISLAND GOLD MINE AND BEAUFOR MINE(1)(2)
Gold ounces Grade (g/t)
Dec. 31, 2016
2016 2015 2016 2015
Island gold mine(3)
Proven and probable reserves 752,200 561,700 9.17 8.26
Measured and indicated resources 91,450 71,700 5.94 6.40
Inferred resources 995,700 768,050 10.18 8.49
Beaufor mine
Proven and probable reserves 44,920 63,850 6.86 6.57
Measured and indicated resources 83,700 171,900 7.37 6.34
Inferred resources 7,500 28,000 6.44 6.44
(1) Refer to the detailed mineral reserve and mineral resource table.
(2) No changes to mineral reserves and resources were made at the corporation's other
properties.
(3) A National Instrument 43-101 technical report for the Island gold mine will be filed
within 45 days.
The successful 2016 drilling campaign at the Island gold mine contributed to a significant increase in 2016
mineral reserves and resources:
- Mineral reserves of 752,200 gold ounces (net of depletion), a 34-per-cent increase over 2015, at an 11-per-cent-higher
grade of 9.17 g/t;
-
Inferred resources of 995,700 gold ounces, a 30-per-cent increase over 2015, at a 20-per-cent-higher grade of 10.18
g/t, at an average discovery cost of less than $35 per ounce.
At the Beaufor mine, 2016 mineral reserves and resources have decreased as 2016 delineation and
exploration drilling was unable to offset mining depletion and converted resources. Additionally, following a
reassessment of all resource blocks, certain low-grade, currently uneconomic resource blocks located in
the upper part of the mine were removed.
"We are pleased to report another year of high-quality reserve growth at the Island gold mine. The increase
in reserves and resources is consistent with our vision of developing the Island gold mine to be a long-life,
high-quality underground mine in Canada. Our systematic delineation drilling campaign at Island gold during
2016 has more than offset mining depletion, contributing to the 34-per-cent increase in reserve ounces and the
11-per-cent increase in average reserve grade. Our drilling program has also successfully contributed to a 30-per-cent
increase in inferred resources at a 20-per-cent-higher grade, which is very positive, given the high rate of resource
conversion that was achieved in 2016," stated Renaud Adams, chief executive officer. "Our
ongoing drilling programs and accelerated underground development strategy have significantly enhanced
our knowledge and understanding of the geological structure of the Island gold deposit, which provides us
with a greater appreciation of the significant potential yet to be realized."
Mineral reserve reconciliation
A reconciliation of the corporation's mineral reserves at the Island gold and Beaufor mines is provided in
the table.
MINERAL RESERVE RECONCILIATION
Island gold mine Beaufor mine
gold ounces gold ounces
Proven and probable reserves (Dec. 31, 2015) 561,700 63,850
2016 mining depletion 86,327 19,971
2016 reserve additions 276,827 1,041
Proven and probable reserves (Dec. 31, 2016) 752,200 44,920
ISLAND GOLD MINE MINERAL RESERVES AND RESOURCES
(as at Dec. 31, 2016)
Dec. 31, 2016 Dec. 31, 2015
Gold Gold
Tonnes Grade ounces Tonnes Grade ounces
(M) (g/t) (000) (M) (g/t) (000)
Proven and probable reserves 2.6 9.17 752.2 2.1 8.26 561.7
Measured and indicated resources 0.5 5.94 91.5 0.3 6.40 71.7
Inferred resources 3.0 10.18 995.7 2.8 8.49 768.1
Mineral resources presented are exclusive of mineral reserves. Mineral resources that are
not mineral reserves do not have demonstrated economic viability.
Island gold mine: key assumptions
- For the Dec. 31, 2016, mineral reserve and resource estimates, a metal price of $1,500 per
ounce of gold was used. The cut-off grade increased from four g/t gold in 2015 to a range of four g/t
gold for predeveloped areas to 4.35 g/t gold for undeveloped areas.
- Mineral resources were estimated using a block modelling approach with ordinary kriging interpolation.
The density used to calculate tonnage varies from 2.82 to 2.80 tonne/cubic metre.
-
Capping parameters have been updated following the completion of a statistical study that incorporated
new data that included grade reconciliations from actual mining results compiled in 2016. Capping of
high-grade gold values varies depending on the zone, including 31 g/t gold for the D zone and 225 g/t
gold for the main C zone. A restricted ellipse of 15 metres by 10 metres by five metres was applied to the C
zone composites that were greater than 125 g/t gold.
- For mineral reserves, dilution estimates increased to an average of 27 per cent (19 per cent in 2015) for long-hole
panels and decreased to an average of 22 per cent (30 per cent in 2015) for development in ore.
Island gold mine: 2016 mineral reserve and resource highlights
- As of Dec. 31, 2016, following the completion of the successful 2016 drilling program, the majority
of the resource blocks in the main C zone located within the continuing preliminary economic assessment
area was converted to reserves, resulting in a 34-per-cent increase in reserve ounces over 2015.
-
A total of approximately 48,000 metres of successful delineation drilling were completed in 2016. The
drilling was largely confirmatory and allowed for the conversion to reserves of two main blocks in the
western portion of the PEA, between the 470- and 675-metre levels. Another block was also converted
in the lower western portion, between the 760- and the 970-metre levels. Some smaller blocks were also
converted in the eastern portion, in the extension 1 and 2 areas. The 2016 delineation drilling, combined
with the extensive development in ore completed in 2016, has led to a new structural interpretation of
some sectors located between the 740- and the 785-metre levels, resulting in certain high-grade reserve
blocks being removed.
-
The overall reserve grade of 9.17 g/t gold represents an 11-per-cent increase in grade over 2015. The reserve
grade was positively impacted by the increased capping grade and the delineation of high-grade
resource blocks, partially offset by the restricted ellipse applied to higher-grade composites, the slightly
overall higher dilution estimates and the removal of the high-grade blocks noted above.
-
Approximately 83,000 metres of exploration drilling were completed in 2016, which identified three new
inferred resource blocks that contributed to a 30-per-cent increase in inferred resource ounces over 2015, at
an increased grade of 10.18 g/t gold.
- A new large inferred resource block of 760,000 tonnes at a grade of 9.53 g/t gold (approximately
230,000 ounces) was defined in the eastern downplunge extension of the main C zone, located
between the 1,050- and the 1,300-metre levels.
-
Two additional inferred resource blocks were identified in the eastern lateral extension area, located
approximately 300 metres east of the PEA area, between the 340- and the 750-metre levels, with the
largest inferred resource block containing approximately 290,000 tonnes at a grade of 10.35 g/t of
gold (approximately 95,000 ounces).
-
Overall discovery costs in 2016 averaged less than $35 per ounce.
Island gold mine: 2017 delineation drilling program highlights
In 2017, delineation drilling will focus on three main objectives as highlighted below:
- Complete the delineation to upgrade the remaining resources located within the PEA area, primarily in
the fourth mining horizon, between the 785- and the 1,000-metre levels;
-
Further test the downplunge extension of the main C zone at depth, below the 1,000-metre level, where
a new resource block was identified as part of the 2016 program. Drilling will be completed from the
main ramp and from a new exploration drift that will be established on the 860-metre level;
-
Further test the eastern lateral extension area located 300 metres east of the main deposit where two
new inferred resources blocks were identified. Drilling will be completed from the 340-metre level and
from an extension of the 620-metre level exploration drift that will be completed in 2017.
Island gold: 2017 exploration drilling program highlights
In 2017, the phase 2 exploration program will continue drilling in two key target areas, as highlighted below:
- The deep directional exploration drilling program will continue in 2017, targeting the area between the
1,000- and 1,500-metre levels, east and west of the new resource block.
-
The eastern lateral exploration drilling program will continue to target additional resources east of the
main PEA area, where new resource blocks were identified as part of the 2016 drilling program.
-
Richmont expects to provide an update of the Island gold phase 2 exploration drilling program in the
latter part of February.
BEAUFOR MINE MINERAL RESERVES AND RESOURCES
(as at Dec. 31, 2016)
Dec. 31, 2016 Dec. 31, 2015
Gold Gold
Tonnes Grade ounces Tonnes Grade ounces
(M) (g/t) (000) (M) (g/t) (000)
Proven and probable reserves 0.20 6.86 45.0 0.30 6.57 63.9
Measured and indicated resources 0.35 7.37 83.7 0.84 6.34 171.9
Inferred resources 0.04 6.44 7.5 0.14 6.44 28.0
Mineral resources presented are exclusive of mineral reserves. Mineral resources that are not
mineral reserves do not have demonstrated economic viability.
Beaufor mine: key assumptions
- For the 2016 mineral reserve and mineral resource estimates, a metal price of $1,500 per ounce
of gold was used. The cut-off grades have decreased slightly over 2015 to a range of 4.14 to 5.63 g/t in
2016 (4.31 to 6.04 g/t gold in 2015).
-
Mineral reserves and mineral resources were estimated using a polygonal method. A density of 2.75
tonnes/cubic metre was used to calculate tonnages.
-
A capping value of 68 g/t was maintained for high-grade gold values.
-
For mineral reserves, the dilution estimates were maintained at 10 per cent for long-hole areas and 5 per cent for
room and pillar areas.
Beaufor mine: 2016 mineral reserve and resource highlights
At the Beaufor mine, 2016 mineral reserves and resources decreased as 2016 delineation and exploration
drilling was unable to offset mining depletion and converted resources. Additionally, following a
reassessment of all resource blocks, certain low-grade, uneconomic resource blocks located in the upper
part of the mine were removed.
- Mineral reserves of 44,920 gold ounces (net of depletion), a 30-per-cent decrease over 2015, at a 4-per-cent-higher
grade of 6.86 g/t;
-
Inferred resources of 7,500 gold ounces at a consistent grade of 6.44 g/t;
-
Measured and indicated resources decreased to 83,700 ounces at an increased grade of 7.37 g/t. The
decrease in ounces was due to the exclusion of low-grade and uneconomic resource blocks located in
the upper part of the mine.
Beaufor mine: 2017 delineation and exploration program highlights
- Two thousand seventeen delineation drilling will focus on extending the reserve blocks inside the Q zone, both at depth and
laterally.
-
Exploration drilling will focus on identifying potential new veins in the vicinity of the known reserves and
resources. Drilling will also focus on testing the expansion potential of the higher-grade Q zone at depth.
Qualified person
The corporation completed its 2016 year-end mineral reserve and mineral resource estimates for the
Island gold and Beaufor mines internally with Roscoe Postle Associates Inc. (RPA) subsequently
completing a review and audit of the Island gold mineral reserve and resource estimates.
Daniel Adam, vice-president of exploration for Richmont Mines, has reviewed the scientific and technical
information contained within this press release and serves as the qualified person as defined by National
Instrument 43-101.
The Island gold mine reserve and resource estimate as of Dec. 31, 2016, was performed by M. Raynald Vincent, PEng, MPM,
chief geologist, and M. Leon Grondin Leblanc, PEng, chief engineer, both employees of Richmont Mines and qualified persons
as defined by National Instrument 43-101. An NI 43-101 technical report will be completed for the Island gold mine as of Dec. 31, 2016, and will
be filed on SEDAR within 45 days.
The Beaufor mine reserve and resource estimate as of Dec. 31, 2016, was performed under the supervision of Bernard Salmon,
PEng, manager, resources and project evaluation, and M. Louis Nkoy, PEng, chief engineer, both employees of Richmont Mines
and qualified persons as defined by NI 43-101.
The reserve and resource estimates of Beaufor and Island gold mines were prepared using a gold price of $1,500 per ounce
for 2016. The resource estimate of the Francoeur mine was established at the end of 2012 using a gold price of $1,450 (U.S.) ($1,450)
per ounce, and was prepared by qualified persons as defined by NI 43-101 and was supervised by Daniel Adam, Geo, PhD,
vice-president, exploration, an employee of Richmont Mines. The resource estimate of the Wasamac property was established at
the end of 2012 using a gold price of $1,450 (U.S.) ($1,450) per ounce. It was supervised by Mr. Adam. The Monique resource
estimate as of Dec. 31, 2013, was prepared using a gold price of $1,225 (U.S.) ($1,300) per ounce and was supervised by
Mr. Adam.
DETAILED 2016 MINERAL RESERVES AND RESOURCES(1)
Dec. 31, 2016 Dec. 31, 2015
Tonnes Grade Ounces Tonnes Grade Ounces
(g/t Au) of gold (g/t Au) of gold
Island gold mine
Proven reserves(2) 573,000 8.68 159,800 363,500 7.53 87,900
Probable reserves 1,978,000 9.31 592,400 1,752,000 8.41 473,800
Total proven and probable reserves(2) 2,551,000 9.17 752,200 2,115,500 8.26 561,700
Measured resources 33,500 4.94 5,350 7,500 5.80 1,350
Indicated resources 445,500 6.01 86,100 341,000 6.42 70,350
Total measured and indicated resources 479,000 5.94 91,450 348,500 6.40 71,700
Total inferred resources 3,042,000 10.18 995,700 2,815,000 8.49 768,050
Beaufor mine
Proven reserves(2) 32,000 6.77 7,010 35,600 7.31 8,350
Probable reserves(2) 171,500 6.87 37,910 266,500 6.48 55,500
Total proven and probable reserves(2) 203,500 6.86 44,920 302,100 6.57 63,850
Measured resources 53,000 6.27 10,700 109,000 5.32 18,600
Indicated resources 300,000 7.57 73,000 734,000 6.50 153,300
Total measured and indicated resources 353,000 7.37 83,700 843,000 6.34 171,900
Total inferred resources 36,000 6.44 7,500 135,000 6.44 28,000
Monique property(4)
Indicated resources 107,500 4.88 16,850 107,500 4.88 16,850
Wasamac gold property(3)
Measured resources 3,124,500 2.75 276,550 3,124,500 2.75 276,550
Indicated resources 12,127,000 2.89 1,125,700 12,127,000 2.89 1,125,700
Total measured and indicated resources 15,251,500 2.86 1,402,250 15,251,500 2.86 1,402,250
Total inferred resources 18,759,000 2.66 1,605,400 18,759,000 2.66 1,605,400
Francoeur gold property(5)
Measured resources - - - 40,000 5.89 7,600
Indicated resources - - - 280,000 6.55 59,000
Total measured and indicated resources - - - 320,000 6.47 66,600
Total inferred resources - - - 18,000 7.17 4,150
Total reserves and resources
Proven and probable reserves 2,754,500 9.00 797,120 2,417,600 8.05 625,550
Measured and indicated resources 16,191,000 3.06 1,594,250 16,870,500 3.19 1,729,300
Inferred resources 21,837,000 3.72 2,608,600 21,727,000 3.44 2,405,600
(1) Mineral resources presented are exclusive of mineral reserves. Mineral resources that are not mineral
reserves do not have demonstrated economic viability.
(2) In 2016, based on a gold price of $1,500/ounce; in 2015, based on a gold price of $1,080 (U.S.)/ounce and
an exchange rate of $1.2037 equals $1.00 (U.S.).
(3) Underground mineral resources established as of Dec. 31, 2012.
(4) Monique mineral resources are located underground directly below the open pit.
(5) The Francoeur mine closed in November, 2012, and was sold in 2016.
About Richmont Mines
Richmont currently produces gold from the Island gold mine in Ontario and the Beaufor mine in Quebec.
The corporation is also advancing development of the significant high-grade resource extension at depth
of the Island gold mine in Ontario.
We seek Safe Harbor.
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