Richmont Mines (TSX:RIC,NYSEMKT:RIC) announced plans to develop the deeper Q zone at its Beaufor mine in Quebec. The new development is expected to extend the life of mine at Beaufor by a minimum of two years.

The deeper Q Zone that will be developed is located approximately 34 vertical metres below the Beaufor Mine’s current infrastructure. Due to the zone’s close proximity to the mine’s existing underground workings, the required development to reach the upper part of the zone is expected to be completed within 6 months and will require only a limited investment of $2.5 million in 2015. This development related expenditure is below the $3.5 million already accounted for in the Corporation’s 2015 All-In-Sustaining-Cost (“AISC”) guidance.

Richmont Mines president and CEO, Renaud Adams, said:

Our Quebec platform remains an important one for Richmont, and I am very pleased that by accessing this new zone at Beaufor we will once again extend the life of this asset. This mine has played a significant and instrumental role in Richmont’s 20+ year history, and in a certain way has been the Corporation’s work horse. Beaufor has supplied over 500,000 ounces of gold production for Richmont since the mid-1990s, representing a remarkable one-third of our total gold production since we first began commercially producing gold. By accessing this new zone, we expect to not only extend the mine’s life by a minimum of two years for a relatively small investment, but to do so while also maintaining the mine’s free cash flow status for both 2016 and 2017.

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

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