PR Newswire
TORONTO, April 13, 2017
TSX – NYSE: RIC
TORONTO, April 13, 2017 /PRNewswire/ - Richmont Mines Inc. (TSX: RIC) (NYSE: RIC) ("Richmont" or the "Corporation"), reports first quarter company-wide production of 29,401 ounces of gold, at cash costs1 of $791 (US$598) per ounce. The strong operational performance was supported by another consecutive quarter of solid production from the Island Gold Mine of 23,772 ounces of gold, at cash costs of $668 (US$504) per ounce, a 19% decrease over the prior quarter. Overall, Richmont is well positioned to achieve annual production and cash cost guidance for the year. (All amounts are in Canadian dollars unless otherwise indicated.)
FIRST QUARTER ANNUAL HIGHLIGHTS:
"The Island Gold Mine has delivered another quarter of solid production as well as lower cash costs, confirming the potential of this operation as we continue to transform the mine into one of the lowest cost underground gold producers in the Americas. The Expansion Case PEA is nearing completion and we remain confident that we will issue a positive report that will support the 1,100 tonnes per day expansion scenario while achieving our overall low cost objective," commented Renaud Adams, President and CEO. "Along with the strong operational performance achieved during the quarter, we continue to unlock the potential of the Island Gold Mine through our strategic drilling program. Initial delineation drilling results demonstrate the potential for short-term reserve growth at higher grades within the main deposit. Recent exploration drilling has also shown the potential of the deposit to the east of the main deposit area where new high-grade mineralization was identified close to existing infrastructure that could also provide additional expansion opportunities."
____________________________
1 Refer to the Non-IFRS Performance Measures disclosure presented at the end of this press release.
First quarter operational highlights for the Island Gold and Beaufor Mines are provided in the tables below:
Production Highlights |
|||||||||
Q3 15 |
Q4 15 |
Q1 16 |
Q2 16 |
Q3 16 |
Q4 16 |
Q1 17 |
2017 Guidance | ||
Gold Produced (oz) |
|||||||||
Island Gold Mine |
15,076 |
14,203(1) |
26,589 |
18,617 |
14,031(3) |
24,086 |
23,772 |
87,000-93,000 | |
Beaufor Mine |
5,714 |
5,652 |
4,615 |
4,703 |
4,825 |
5,419 |
5,629 |
23,000-27,000 | |
Monique Mine |
2,688 |
2,525 |
1,165(2) |
- |
- |
- |
- |
- | |
Total Produced (oz) |
23,478 |
22,380 |
32,369 |
23,320 |
18,856 |
29,505 |
29,401 |
110,000-120,000 | |
(1) Q4 2015 production includes a 3 week underground mine shutdown. |
Cash Cost Highlights |
|||||||||
Q3 15 |
Q4 15 |
Q1 16 |
Q2 16 |
Q3 16 |
Q4 16 |
Q1 17 |
2017 Guidance | ||
Cash Costs ($)(1) |
|||||||||
Island Gold Mine |
$883 |
$1,019 |
$667 |
$757 |
$947 |
$826 |
$668 |
$715-$765 | |
Beaufor Mine |
$972 |
$1,081 |
$1,396 |
$1,484 |
$1,408 |
$1,480 |
$1,265 |
$1,265-$1,320 | |
Monique Mine |
$1,002 |
$974 |
$1,182 |
- |
- |
- |
- |
- | |
Total Cash Costs ($)(1) |
$921 |
$1,028 |
$800 |
$895 |
$1,054 |
$952 |
$791 |
$835-$885 | |
Cash Costs (US$)(1) |
|||||||||
Island Gold Mine |
$675 |
$763 |
$486 |
$588 |
$726 |
$619 |
$504 |
$550-$590(2) | |
Beaufor Mine |
$742 |
$810 |
$1,017 |
$1,152 |
$1,080 |
$1,110 |
$956 |
$975-$1,015(2) | |
Monique Mine |
$766 |
$729 |
$861 |
- |
- |
- |
- |
- | |
Total Cash Costs (US$)(1) |
$703 |
$770 |
$583 |
$695 |
$808 |
$714 |
$598 |
$640-$680(2) | |
(1) Refer to the Non-IFRS Performance Measures disclosure presented at the end of this press release. |
Operational Highlights |
|||||||
Q3 15 |
Q4 15 |
Q1 16 |
Q2 16 |
Q3 16 |
Q4 16 |
Q1 17 | |
Island Gold Mine | |||||||
Underground tpd |
669 |
657(1) |
853 |
911 |
735(2) |
977 |
1,019 |
Mill tpd |
722 |
656(1) |
834 |
878 |
640(2) |
903 |
926 |
Mill head grade (g/t) |
7.27 |
7.62 |
11.31 |
7.51 |
7.70 |
9.31 |
9.18 |
Beaufor Mine | |||||||
Underground tpd |
338 |
306 |
323 |
286 |
282 |
302 |
354 |
Mill head grade (g/t) |
5.93 |
6.30 |
4.96 |
5.27 |
5.62 |
6.16 |
6.0 |
(1) Q4 2015 underground productivity includes a 3 week mine shutdown and a 2 week mill shutdown. |
Island Gold Mine Highlights
Beaufor Mine Highlights
Upcoming News
Non-International Financial Reporting Standards ("IFRS") Performance Measures
In this press release, the term "cash costs per ounce" is used, which is a non-IFRS performance measure, and may not be comparable to similar measures presented by other companies. The Corporation believes that, in addition to conventional measures prepared in accordance with IFRS, the Corporation and certain investors use this information to evaluate the Corporation's performance. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. "Cash costs per ounce" is a common performance measure in the gold mining industry, but does not have any standardized definition. The Corporation reports cash cost per ounce based on ounces sold. Cash costs include mine site operating costs, administration, royalties and by-product credits but are exclusive of depreciation, accretion expense, interests on capital leases, capital expenditures and exploration and project evaluation costs. Refer to the Corporation's 2016 MD&A for a reconciliation of cash costs to cost of sales.
About Richmont Mines Inc.
Richmont Mines 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 35 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 release, the words "estimate", "project", "anticipate", "expect", "intend", "believe", "hope", "may", "objective" 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. 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-looking 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 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. 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 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 requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") adopted by the Canadian Securities Administrators 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 40-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.
National Instrument 43-101
The scientific or technical information in this news release has been reviewed 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.
SOURCE Richmont Mines