Mine expansion is in the cards for Richmont Mines’ Island Gold Mine in northeastern Ontario.
The mid-tier gold miner reported its year-end and fourth quarter operating and financial results for 2015 on Feb. 22.
Annual production was 98,031 gold ounces – with 96,895 ounces sold – at an average realized gold price of $1,480 per ounce (US$1,157), for annual revenues of $143.7 million (US$112.4 million).
Production for 2015 exceeded the high end of the company’s revised guidance levels. Much of that success is being attributed to its flagship Island Gold Mine, northeast of Wawa.
The miner ended its fourth quarter with a cash balance of $61 million to support its growth strategy.
In early February, the company announced a 187 per cent increase in reserves, including a 206 per cent increase at Island Gold and a 95 per cent increase in reserves at its Beaufor Mine, near Val-d’Or.
"We successfully achieved our 2015 objectives of advancing the transformation of our cornerstone Island Gold Mine to best position this core asset for significant growth and cash flow generation beginning in 2017,” said CEO Renaud Adams in a release.
This year’s focus is completing an “accelerated development program” in expanding the Island Gold Mine as outlined in a preliminary economic assessment (PEA).
"Our confidence in the potential of Island Gold continues to grow, strongly supported by the results of our recent PEA, our significant 206 per cent increase in reserves, together with the early results from our exploration program that indicate a potential to expand this deposit both laterally and at depth, below the 1,000 metre level,” said Adams.
The company is in the midst of a major 86,000-metre exploration drilling program, which will end in late April. Richmont said the drilling continues to show “significant potential” to grow both reserves and production, as well as extend Island Gold’s mine life both laterally and at depth.
