Published: February 15, 2016 |

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Richmont Mines Inc. has released 2016 estimates that include a potential increase in production of up to 22 percent from the cornerstone Island Gold mine that is expected to drive a decrease in all-in sustaining costs (AISC).

In 2016, company-wide production includes another year of production growth from the cornerstone Island Gold Mine and another solid year of consistent production from the Beaufor Mine. Consolidated annual production is expected to be consistent with 2015 as increased production from Island Gold is expected to fully offset the production decrease related to the 2015 closure of the Monique Mine. Company-wide cash costs and AISC are expected to be largely in-line with the prior year’s guidance estimates.

“The strategy in 2015 was to best position our asset base for success with a key focus on developing our cornerstone Island Gold Mine. With a 7-year mine life based on reserves, the accelerated mine development program completed in 2015 has pre-developed more than three years of production life. In addition, we have expanded our tailings facility to accommodate production until 2023, and increased the capacity of the mill facility to 900 tonnes per day. As a result of our 2015 project investments, we have the flexibility to manage project capital to ensure we always maintain access to adequate liquidity to fully fund our growth strategy. Supported by the results from the recent PEA completed in October, we will remain focused on unlocking the significant potential of the Island Gold Mine through initiatives that will position this core asset for production growth and significant free cash flow generation beginning in 2017. We begin 2016 with a strengthened management team that brings a renewed commitment to delivering results that positions Richmont for long-term success,” said Renaud Adams, president and chief executive officer of Richmont.

Richmont will remain focused on a disciplined and prudent capital allocation strategy to ensure expenditures are fully funded internally with sustaining capital investment requirements expected to reduce compared with the prior year. Project capital investment for the year is focused on the continued development of the Island Gold Mine. Total capital investment estimates for the year include a potential C$10 million in discretionary capital with allocation of these funds contingent upon the prevailing gold price sustainably exceeding C$1,500 per ounce in 2016.

To read more in the company’s press release, CLICK HERE

About Richmont Mines
Richmont Mines has produced over 1.6 million ounces of gold from its operations in Quebec, Ontario and Newfoundland since beginning production. The corporation 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.

To stop by Richmont Mines’ website, CLICK HERE

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