Richmont Mines Inc. (TSX:RIC,NYSE:RIC) announced the first inferred mineral resource estimate for the C Zone at the Island Gold Mine in Ontario. The Company added a new high grade inferred mineral resource of 508,000 Au Ounces at 10.73 g/t.
As quoted in the press release:
- New C Zone inferred mineral resource estimate of 1.5 million tonnes grading 10.73 g/t Au for 508,000 ounces. The C Zone is sub-vertical, at depths of between 450 metres and 1,000 metres, and appears to be an extension of the areas currently being mined. The mineral resource has been drilled on an approximate 50 m x 50 m pattern, with 55 drill hole intercepts, about 60% of which contained visible gold;
- The average true width of the new C Zone at depth is estimated at 4.5 metres, compared to an average of 2.7 metres above the 400 metre level (current mining operations);
- Preliminary metallurgical testing on representative samples have shown high recovery rates (over 96% at a 24 hour retention time);
- The C Zone remains open in all directions; Several previously identified parallel zones (X, G, E1E, etc) require further drilling and, as such, their results have not been included in the current mineral resource estimation;
- $35 million investment planned on the Island Gold Deep project in 2013 to extend the existing ramp from its current depth of 450 metres below surface, and to commence work on the first segment of a vertical shaft which will be raise-bored from a depth of 450 metres to surface;
- 39,000 metres of exploration drilling at depth planned for 2013 with the objective of extending the C Zone resource base laterally, and expanding geological information of other previously identified sub-parallel zones.
Richmont Mines Inc. President and CEO, Paul Carmel said:
We are extremely pleased with this first resource estimate for the area below the existing operating Island Gold Mine. Good continuity of the zone is demonstrated and, even more encouraging, this new resource has higher average widths and grades than what we are currently mining closer to surface, and remains open in all directions. These results reaffirm our belief in the long-term potential of the Island Gold mine and, as such, we will be investing a total of $45 million on this asset ($35 million in Island Gold Deep and $10 million in the existing upper operation) in 2013 to improve both our access to and geological information of the area below our current infrastructure where these newly identified resources exist. More specifically, our plans include extending the ramp from its current depth of 450 metres in order to accelerate and extend the resource base at depth at Island Gold and, upon permitting approval, beginning to raise bore the first 450 metre section of a vertical shaft.