Richmont Mines Reports Q2 Gold Production at Island Gold Mine

Richmont Mines (TSX:RIC,NYSEMKT:RIC) put out its second quarter production from the Island Gold mine, reporting record quarterly performance metrics. The Island Gold mine produced 14,997 ounces of gold with an average daily mill throughput of 787 tonnes per day. On a consolidated basis, Q2 gold production came in at 26,314 ounces and gold sales attained 27,566 ounces for $40.6 million for the quarter.
As quoted in the press release, highlights of results included:

• Q2 2015 gold production of 26,314 ounces and gold sales of 27,566 ounces, resulting in record quarterly revenues of $40.6 million; Q2 2014 gold production of 27,510 ounces and gold sales of 27,790 ounces;

• Six month gold production of 52,173 ounces and gold sales of 52,357 ounces, increases of 8% and 9%, respectively, over the comparable 2014 levels;

• Mill production at Island Gold exceeded expectations averaging 787 tpd in Q2 2015 with May and June both milling in excess of 800 tpd;

• Second quarter average realized gold price in CAN$ of $1,468 per ounce in 2015, up 5% over the same period in 2014;

• Island Gold development initiatives on plan and budget: main access ramp extended to 700 metre depth and the 620 level exploration/definition drift lengthened to 478 metres; exploration drilling initiated in early June to test the potential eastern-down plunge extension of the currently identified resource envelope, with first results expected in Q3 2015;

• Cash balance of approximately $78 million at June 30, 2015, compared to $70.7 million at March 31, 2015;

• Annual gold production guidance of 78,000 – 88,000 ounces maintained for 2015.

Renaud Adams, Richmont Mines president and CEO, said:

I am very pleased with the significant progress made at our Island Gold Mine during the quarter and with the important contribution that this asset made to a notable achievement in Richmont’s 23 year production history, namely a new record high quarterly revenue level. Average mine production at Island Gold met our immediate goal to consistently mine and truck an increasing amount of ore per day from underground, and is a key first step in the repositioning of the mine. Mill productivity has exceeded expectations reaching throughput in excess of 800 tpd in both May and June, an objective we had targeted to achieve by year end. We are now in the process of analyzing the additional work required to increase the mill run rate to 900 tonnes per day – its permitted average operating limit. Our Quebec platform continued to be a strong contributor to Richmont’s portfolio during the second quarter, and I am pleased with their overall execution during the period.

Click here to read the full Richmont Mines (TSX:RIC,NYSEMKT:RIC) press release.
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