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File: ER 2017-01-31 - Reserves and Resources.pdf
PRESS RELEASE
---> TSX NYSE: RIC
Richmont Reports 2016 Mineral Reserves & Resources
Island Gold Mine Increases Mineral Reserves by 34% at an
Increased Grade of 9.17 g/t Gold
TORONTO, Ontario, Canada, January 31, 2017 - Richmont Mines Inc. (TSX - NYSE: RIC) ("Richmont" or
the "Corporation"), announces updated Mineral Reserves and Resources as of December 31, 2016. Mineral
Reserves at the cornerstone Island Gold Mine in Ontario increased by 34% (net of depletion) to 752,200
ounces of gold, at an increased grade of 9.17 g/t gold. (Detailed Mineral Reserve and Resource tables can
be found at the end of this press release. All amounts are in Canadian dollars unless otherwise indicated.)
2016 Mineral Reserve and Resource Highlights:
As at December 31, 2016, Richmont is reporting Mineral Reserves and Resources for the Island Gold and
Beaufor Mines as summarized in the table below:
2016 Mineral Reserves and Resources(1)(2)
Island Gold Mine and Beaufor Mine
Gold Ounces
---> Grade (g/t)
Change
---> Change
December 31, 2016
2016 2015 (%) 2016
---> 2015 (%)
Island Gold Mine(3)
Proven & Probable Reserves 752,200 561,700 34% 9.17
---> 8.26 11%
Measured & Indicated Resources 91,450 71,700 28% 5.94
---> 6.40 (7%)
Inferred Resources 995,700 768,050 30% 10.18
---> 8.49 20%
Beaufor Mine
Proven & Probable Reserves 44,920 63,850 (30%) 6.86
---> 6.57 4%
Measured & Indicated Resources 83,700 171,900 (51%) 7.37
---> 6.34 16%
Inferred Resources 7,500 28,000 (73%) 6.44
---> 6.44 0%
(1)
Refer to the detailed mineral reserve and mineral resource tables that follow at the end of this press rele
--->ase.
(2)
No changes to Mineral Reserves and Resources were made at the Corporation's other properties.
(3)
An NI 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% increase over 2015, at an 11% higher
grade of 9.17 g/t.
Inferred resources of 995,700 gold ounces, a 30% increase over 2015, at a 20% 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.
RICHMONT MINES INC.
---> PRESS RELEASE | Page 1
"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% increase in reserve ounces and the
11% increase in average reserve grade. Our drilling program has also successfully contributed to a 30%
increase in inferred resources at a 20% higher grade, which is very positive, given the high rate of resource
conversion that was achieved in 2016," stated Renaud Adams, Chief Executive Officer. He continued, "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 Mine s is provided in
the table below:
Island Gold Mine Bea
--->ufor Mine
Gold Ounces Gol
--->d Ounces
Proven & Probable Reserves (Dec. 31/15) 561,700
--->63,850
2016 Mining Depletion 86,327
--->19,971
2016 Reserve Additions 276,827
---> 1,041
Proven & Probable Reserves (Dec. 31/16) 752,200
--->44,920
Island Gold Mine Mineral Reserves and Resources (December 31, 2016)
Mineral Reserves and Resources
December 31, 2016 December 31, 2
--->015
Gold
---> Gold
Island Gold Mine Tonnes Grade Ounces Tonnes Grade
---> Ounces
(MT) (g/t) (000's) (MT) (g/t)
---> (000's)
Proven & Probable Reserves 2.6 9.17 752.2 2.1 8.26
---> 561.7
Measured & 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
Notes to Mineral Reserves and Resources:
Mineral Resources presented are exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do n
--->ot have demonstrated
economic viability.
Island Gold Mine: Key Assumptions
For the December 31, 2016 Mineral Reserve and Resource estimates, a metal price of CAD$1,500 per
ounce of gold was used. The cut-off grade increased from 4.00 g/t gold in 2015 to a range of 4.00 g/t
gold for pre-developed 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 t/m3.
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 x 10 metres x 5 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% (19% in 2015) for long-hole
panels and decreased to an average of 22% (30% in 2015) for development in ore.
RICHMONT MINES INC. PRESS RELEA
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Island Gold Mine: 2016 Mineral Reserve and Resource Highlights
As of December 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 ongoing Preliminary Economic Assessment
("PEA") area were converted to reserves, resulting in a 34% increase in reserve ounces over 2015.
A total of approximately 48,000 metres of successful delineation drilling was 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, have led to a new structural interpretation of
some sectors located between the 740 and the 785 meter levels, resulting in certain high grade reserve
blocks being removed.
The overall reserve grade of 9.17 g/t gold represents an 11% 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 was completed in 2016, which identified three new
inferred resource blocks that contributed to a 30% 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 down plunge 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 down plunge 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.
RICHMONT MINES INC. PRESS RELEASE | Page 3
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 (December 31, 2016)
Mineral Reserves and Resources
December 31, 2016 December 31, 2
--->015
Gold
---> Gold
Beaufor Mine Tonnes Grade Ounces Tonnes Grade
---> Ounces
(MT) (g/t) (000's) (MT) (g/t)
---> (000's)
Proven & Probable Reserves 0.20 6.86 45.0 0.30 6.57
---> 63.9
Measured & 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
Notes to Mineral Reserves and Resources:
Mineral Resources presented are exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do n
--->ot have demonstrated
economic viability.
Beaufor Mine: Key Assumptions
For the 2016 Mineral Reserve and Mineral Resource estimates, a metal price of CAD$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
t/m3 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% for long hole areas and 5% 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% decrease over 2015, at a 4% higher
grade of 6.86 g/t.
Inferred resources of 7,500 gold ounces at a consistent grade of 6.44 g/t.
Measured & 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.
RICHMONT MINES INC. PRESS RELEA
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Beaufor Mine: 2017 Delineation and Exploration Program Highlights
2017 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 Persons
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, 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 Standards of Disclosure for Mineral Projects ("NI 43-101").
About Richmont Mines Inc.
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. With 25 years of experience in gold production, exploration and
development, and prudent financial management, the Corporation is well-positioned to cost-effectively build
its Canadian reserve base and to successfully enter its next phase of growth.
Forward-Looking Statements
This news release contains forward-looking statements that include risks and uncertainties. When used in this news rel
--->ease, the words
"estimate", "project", "anticipate", "expect", "intend", "believe", "hope", "may", "objective" and similar expressions
--->, as we ll as "will",
"shall" and other indications of future tense, are intended to identify forward-looking statements. The forward-lookin
--->g statements are
based on current expectations and apply only as of the date on which they were made. Except as may be required by law
--->or regulation,
the Corporation undertakes no obligation and disclaims any responsibility to publicly update or revise any forward-loo
--->king statements
or information, whether as a result of new information, future events or otherwise.
The factors that could cause actual results to differ materially from those indicated in such forward-looking statemen
--->ts include, without
limitation, the impact of the 2016 Mineral Reserves and Resources estimates, the ability to increase production utiliz
--->ing the current
ramp system, the capital requirements to increase milling capacity, changes in the prevailing price of gold, the Canad
--->ian-United States
exchange rate, grade of ore mined and unforeseen difficulties in mining operations that could affect revenue and produ
--->ction costs.
Other factors such as uncertainties regarding government regulations and the failure of our exploration drilling progr
--->ams to identify
significant new resources or targets or expand existing resources could also affect the results. Other risks are set o
--->ut in R ichmont's
Annual Information Form, Annual Reports and periodic reports. The forward-looking information contained herein is made
---> as of the
date of this news release.
Cautionary note to US investors concerning resource estimates
Information in this press release is intended to comply with the requirements of the Toronto Stock Exchange and applic
--->able Canadian
securities legislation, which differ in certain respects with the rules and regulations promulgated under the United S
--->tates Securities
Exchange Act of 1934, as amended ("Exchange Act"), as promulgated by the SEC. The requirements of NI 43-101 adopted by
---> the
Canadian Securities Administrators differ significantly from the requirements of the United States Securities and Exch
--->ange Commission
(the "SEC").
U.S. Investors are urged to consider the disclosure in our annual report on Form 20-F, File No. 001-14598, as filed wi
--->th the SEC under
the Exchange Act, which may be obtained from us (without cost) or from the SEC's web site: http://sec.gov/edgar.shtml.
RICHMONT MINES INC. PRESS RELEAS
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Qualified Persons
The Mineral Reserve and Resource estimates as of December 31, 2016 and December 31, 2015 were performed by qualified p
--->ersons
as defined by NI 43-101 and were supervised by Mr. Daniel Adam, Geo., Ph.D., Vice-President, Exploration, an employee
--->of Richmont
Mines Inc. Please refer to the SEDAR website (www.sedar.com) for full reports and additional corporate documentation.
The Island Gold Mine Reserve and Resource estimate as of December 31, 2016 was performed by M. Raynald Vincent P.Eng.
--->M.P.M.,
Chief Geologist, and M. Leon Grondin Leblanc, P.Eng., Chief Engineer, both employees of Richmont Mines Inc., and Quali
--->fied Persons
as defined by NI 43-101. A NI 43-101 technical report will be completed for the Island Gold Mine as of December 31, 20
--->16, and will
be filed on SEDAR within 45 days.
The Beaufor Mine Reserve and Resource estimate as of December 31, 2016 was performed under the supervision of Bernard
--->Salmon,
P Eng., Manager, Resources and Project Evaluation and M. Louis Nkoy, P.Eng., Chief Engineer, both employees of Richmon
--->t Mines
Inc., 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 CAD$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 US$1,45
--->0 (CAD$1,450)
per ounce, and was prepared by qualified persons as defined by NI 43-101 and was supervised by Mr. Daniel Adam, Geo.,
--->Ph.D.,
Vice-President, Exploration, an employee of Richmont Mines Inc. The resource estimate of the Wasamac property was esta
--->blished at
the end of 2012 using a gold price of US$1,450 (CAD$1,450) per ounce. It was supervised by Mr. Daniel Adam, Geo., Ph.D
--->., Vice-
President, Exploration, an employee of Richmont Mines Inc., and a Qualified Person as defined by NI 43-101. The Moniqu
--->e Resource
estimate as of December 31, 2013 was prepared using a gold price of US$1,225 (CAD$1,300) per ounce and was supervised
--->by
Mr. Daniel Adam, Geo., Ph.D., Vice-President, Exploration, an employee of Richmont Mines Inc., and a Qualified Person
--->as defined
by NI 43-101.
- 30 -
For more information, please contact:
Renaud Adams Anne Day
President and CEO Vice-President, Investor Relations
Phone: 416 368-0291 ext. 101 Phone: 416 368-0291 ext. 105
RICHMONT MINES INC. PRESS RELEASE | Pa
--->ge 6
2016 Mineral Reserves and Resources1
December 31, 2016 Decembe
--->r 31, 2015
Tonnes Grade Ounces Tonnes
---> Grade Ounces
(metric) (g/t Au) of gold (metric)
---> (g/t Au) of gold
ISLAND GOLD MINE
Proven Reserves2 573,000 8.68 159,800 363,500
---> 7.53 87,900
2
Probable Reserves 1,978,000 9.31 592,400 1,752,000
---> 8.41 473,800
Total Proven & Probable Reserves2 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 & 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 Reserves2 32,000 6.77 7,010 35,600
---> 7.31 8,350
Probable Reserves2 171,500 6.87 37,910 266,500
---> 6.48 55,500
Total Proven & Probable Reserves2 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 & 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 PROPERTY4
Indicated Resources 107,500 4.88 16,850 107,500
---> 4.88 16,850
WASAMAC GOLD PROPERTY3
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 & 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 PROPERTY5
Measured Resources - - - 40,000
---> 5.89 7,600
Indicated Resources - - - 280,000
---> 6.55 59,000
Total Measured & Indicated Resources - - - 320,000
---> 6.47 66,600
Total Inferred Resources - - - 18,000
---> 7.17 4,150
TOTAL RESERVES AND RESOURCES
Proven & Probable Reserves 2,754,500 9.00 797,120 2,417,600
---> 8.05 625,550
Measured & 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 CAN$1,500/oz; in 2015, based on a gold price of US$1,080/oz and an exchange rate
---> of CAN$1.2037 = US$1.00.
3
Underground Mineral Resources established as of December 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.
RICHMONT MINES INC. PRESS R
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