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Richmont Mines Inc. (TSX:RIC - News; NYSE Amex:RIC),
("Richmont" or the "Company") is pleased to release 2010
gold sales figures, to provide guidance for gold production levels in 2011,
and to update its reserve and resource calculations as of December 31, 2010.
Highlights:
-- 2010 gold sales of 68,123 ounces, up 14% year-over-year and 5% above
forecasted 65,000 ounces;
-- Q4/2010 gold sales of 18,591 ounces, a 43% increase over Q4/2009 gold
sales of 13,029 ounces;
-- 2011 gold production forecast of 80,000 - 85,000 ounces;
-- Total Proven and Probable reserves of 366,944 gold ounces at December
31, 2010 versus 445,471 gold ounces at December 31, 2009;
-- Updated Wasamac property resource calculation including pending results
from the 20,000 metre drilling campaign in 2010 expected to be available
by mid-February 2011.
2010 gold sales overview
On a consolidated basis, Richmont Mines
sold 68,123 ounces of gold in 2010, a notable 14% increase over 2009 sales
levels of 59,733 ounces of gold, and 5% above the Company's targeted level of
65,000 ounces of gold for the year. On a segmented basis, the Island Gold
Mine contributed 45,865 ounces of gold in 2010, 18% above 2009 levels, while
the Beaufor Mine sold 22,258 ounces of gold in 2010, up 7% over the prior
year's levels.
Table 1: Ounces of gold sold
3 months ended 12 months ended
December 31, December 31,
2010 2009 Change 2010 2009 Change
------------------------------------------------------------------------
Island Gold Mine 11,589 8,729 33% 45,865 38,879 18%
Beaufor Mine 7,002 4,300 63% 22,258 20,854 7%
------------------------------------------------------------------------
Total 18,591 13,029 43% 68,123 59,733 14%
------------------------------------------------------------------------
Richmont Mines plans to release its
fourth quarter and full year 2010 financial results during the week of
February 21, 2011.
Forecasted 2011 production
The Company is expecting annual gold
production of 80,000 - 85,000 ounces in 2011, reflecting forecasted
production of 45,000 - 50,000 ounces from the Island Gold Mine, 20,000 -
25,000 ounces from the Beaufor Mine, and 15,000 ounces from the Francoeur
Mine, of which 5,000 ounces will be produced prior to the start of commercial
production, expected in mid-2011. For 2012, with a full year of production
from the Francoeur Mine, the Company expects annual production to exceed
100,000 ounces of gold.
Updated Reserve and Resource Estimates
Island Gold Mine
As of December 31, 2010, total Proven
and Probable Reserves at the Island Gold Mine were 161,197 gold ounces.
Proven and Probable reserves declined from 264,085 gold ounces at the end of
December 2009 primarily as a result of three contributing factors:
1. 12 months of production at the mine;
2. Results from definition drilling in 2010 that lowered Probable reserve
estimates in the Lochalsh Zone;
3. Reconciliation between actual production and reserve estimates, due to
lower than anticipated amounts of gold being recovered from several
blocks as a result of more variable gold distribution in the alteration
zone.
Estimated Measured and Indicated
resources at the Island Gold Mine increased to 188,511 gold ounces at
December 31, 2010, versus 154,813 Au ounces last year, as drilling efforts
throughout the year enabled the Company to successfully convert Inferred
resources to Measured and Indicated resources. Estimated Inferred resources
at December 31, 2010 decreased to 138,732 gold ounces, versus 199,569 gold
ounces at the end of December 2009.
On a positive front, drilling in 2010
resulted in favourable results at depth, between -400 and -900 metres
elevation, specifically:
Table 2: Drill results at Island Gold
(1)
True
Hole From To Width Grade (g/t Au) Below
Number (metres) (metres) (metres) (Cut at 75 g/t Au) Zone
----------------------------------------------------------------------------
GD-10-02 532.92 538.00 2.9 10.4 Ext. 2
----------------------------------------------------------------------------
GD-10-04 691.02 696.95 3.2 8.21 Ext. 1
853.70 858.75 2.6 7.4 Ext. 1
----------------------------------------------------------------------------
GD-10-09 810.11 829.62 9.6 8.1 Lochalsh
----------------------------------------------------------------------------
Between Lochalsh
GD-10-10 761.34 764.60 1.7 8.6 and Island Main
----------------------------------------------------------------------------
(1) Please see the Regulation 43-101 at the end of this release for analysis
details.
These results confirm the extension of
the Island Gold mineralized zones at depth over a lateral distance of more
than 1 km. Please see the Island Gold longitudinal section below.
Figure 1: Island Gold longitudinal: (http://media3.marketwire.com/docs/maps1.pdf)
A total of 38,000 metres of drilling are
planned for the Island Gold Mine property in 2011, of which 30,000 metres
will be underground exploration and definition drilling and the outstanding
8,000 metres will be surface exploration drilling. A primary focus in 2011
will be to better define the gold resources potential at depth.
Beaufor Mine
Proven and Probable reserves at the
Beaufor Mine increased to 68,998 gold ounces at December 31, 2010, from
44,637 gold ounces at December 31, 2009. This reflects the addition of 24,798
ounces of reserves identified through the drilling program on the
near-surface W and 367 zones, in conjunction with reserves established within
the mine's existing underground infrastructure as a result of definition
drilling in 2010, offset by 22,258 ounces of gold sales from the mine in
2010.
Drilling efforts in 2010 similarly
resulted in a minor increase in Measured and Indicated resources to 173,453
ounces at the end of 2010 versus 171,372 ounces at the end of 2009. Inferred
resources declined slightly to 182,185 ounces as of December 31, 2010 from
199,256 ounces at the end of the prior year. Existing resources are mostly
below the existing infrastructure of the mine, and currently do not
economically justify an extension of current operations.
The Company is planning 11,000 metres of
definition drilling and 17,000 metres of exploration drilling at the Beaufor
Mine in 2011, in an effort to continue to grow its reserve and resource base.
The primary focus will be to expand and advance the potential of the
near-surface W and 367 zones, located to the west of the mine's existing
infrastructure.
Francoeur Mine
As of December 31, 2010, the Francoeur
Mine had total estimated Probable reserves of 136,749 gold ounces, unchanged
from year-end 2009 and similarly unchanged from results detailed in the
43-101 compliant technical report, filed on SEDAR on August 5, 2009.
Indicated Resources of 18,541 gold ounces and Inferred Resources of 38,706
gold ounces for the Francoeur Mine also remained unchanged from previously
published levels. The mine is scheduled to begin production in mid-2011, with
an annual estimated production rate of 35,000 Au ounces for an initial mine
life of four years.
Wasamac Property
The Wasamac property had Inferred
resources of 285,200 gold ounces as of December 31, 2009. An updated Resource
estimate as of December 31, 2010, incorporating pending results from the
20,000 metres of drilling that was completed on this property in 2010, will
be released by mid-February 2011.
Table 3: Updated Reserve and Resource
Estimates as of December 31, 2010 RESERVES (1)
Island Gold Mine Beaufor Mine Francoeur Mine
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2010 2009 2010 2009 2010 2009
----------------------------------------------------------------------------
Proven Tonnes 354,698 387,182 81,742 47,033 - -
Reserves Grade
(g/t Au) 6.48 8.46 7.53 6.63 - -
Ounces 73,848 105,333 19,780 10,021 - -
----------------------------------------------------------------------------
Probable Tonnes 463,368 539,961 201,296 118,728 615,664 615,664
Reserves Grade
(g/t Au) 5.86 9.14 7.60 9.07 6.91 6.91
Ounces 87,349 158,752 49,218 34,616 136,749 136,749
----------------------------------------------------------------------------
Total Tonnes 818,066 927,143 283,038 165,761 615,664 615,664
Proven Grade
and (g/t Au) 6.13 8.86 7.58 8.38 6.91 6.91
Probable
Reserves Ounces 161,197 264,085 68,998 44,637 136,749 136,749
----------------------------------------------------------------------------
RESOURCES (2)
Island Gold Mine Beaufor Mine Francoeur Mine
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2010 2009 2010 2009 2010 2009
---------------------------------------------------------------------------
Measured Tonnes 6,621 - 85,781 96,396 - -
Resources Grade
(g/t Au) 4.52 - 5.47 5.78 - -
Ounces 963 - 15,086 17,903 - -
---------------------------------------------------------------------------
Indicated Tonnes 789,854 456,353 731,560 725,732 76,449 76,449
Resources Grade
(g/t Au) 7.39 10.55 6.73 6.58 7.54 7.54
Ounces 187,548 154,813 158,367 153,469 18,541 18,541
---------------------------------------------------------------------------
Total
Measured Tonnes 796,475 456,353 817,341 822,128 76,449 76,449
and Grade
Indicated (g/t Au) 7.36 10.55 6.60 6.48 7.54 7.54
Resources Ounces 188,511 154,813 173,453 171,372 18,541 18,541
---------------------------------------------------------------------------
Inferred Tonnes 604,729 640,614 864,709 919,214 202,250 202,250
Resources Grade
(g/t Au) 7.14 9.69 6.55 6.74 5.95 5.95
Ounces 138,732 199,569 182,185 199,256 38,706 38,706
---------------------------------------------------------------------------
(1) Reserve calculations were prepared using a gold price of US$1,000 per
ounce (CAN$1,000) for 2010 and US$850 per ounce (CAN$850) for 2009. For
the Francoeur Mine, reserves were prepared using a price of US$800 per
ounce (CAN$800) for both 2010 and 2009.
(2) Resources presented in the above table are exclusive of reserves and
do not have demonstrated economic viability at this time.
About Richmont Mines Inc.
Richmont Mines has produced over 1.2
million ounces of gold from its operations in Quebec, Ontario and
Newfoundland since beginning production in 1991. With extensive experience in
gold exploration, development and mining, the Company is well positioned to
cost-effectively build its North American reserve base through a combination
of organic growth, strategic acquisitions and partnerships. Richmont routinely
posts news and other important information on its website
(www.richmont-mines.com).
Forward-Looking Statements
This news release contains
forward-looking statements that include risks and uncertainties. When used in
this news release, the words "estimate", "project",
"anticipate", "expect", "intend",
"believe", "hope", "may" and similar
expressions, as well as "will", "shall" and other
indications of future tense, are intended to identify forward-looking
statements. The forward-looking statements are based on current expectations
and apply only as of the date on which they were made. The factors that could
cause actual results to differ materially from those indicated in such
forward-looking statements include changes in the prevailing price of gold,
the Canadian-United States exchange rate, grade of ore mined and unforeseen
difficulties in mining operations that could affect revenue and production
costs. Other factors such as uncertainties regarding government regulations
could also affect the results. Other risks may be set out in Richmont Mines'
Annual Information Form, Annual Reports and periodic reports.
Regulation 43-101
The reserve and resource calculations as
of December 31, 2010 and December 31, 2009 were performed by qualified
persons as defined by Regulation 43-101. Please refer to the SEDAR website (www.sedar.co)
for full reports and additional corporate documentation.
This press release was reviewed by Mr.
Daniel Adam, Geo., Ph.D., Exploration Manager, a qualified person as defined
by Regulation 43-101, and an employee of Richmont Mines Inc.
The exploration program was conducted by
qualified persons as defined by Regulation 43-101. Specifically, the program
was overseen by Mr. Michel Plasse, P.Geo., Chief geologist of the Island Gold
Mine, a qualified person as defined by Regulation 43-101, and an employee of
Richmont Mines Inc. The analyses were conducted at the Swastika laboratories
(2008) Ltd in Swastika, Ontario, by means of fire assay fusion with atomic
absorption (AA) and gravimetric finish.
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
applicable Canadian securities legislation, which differ in certain respects
with the rules and regulations promulgated under the United States Securities
Exchange Act of 1934, as amended ("Exchange Act"), as promulgated
by the SEC. The reserve and resource estimates in this press release were
prepared in accordance with Regulation 43-101 adopted by the Canadian
Securities Administrators. The requirements of Regulation 43-101 differ
significantly from the requirements of the United States Securities and Exchange
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
with 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.
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