TORONTO (miningweekly.com) – Gold producer Richmont Mines has increased the compliant proven and probable reserves at its two largest operations by 187%, lifting the reserves at its flagship Island Gold mine near Wawa, Ontario, by 206% (net of depletion) and increasing reserve grade by 29%.

As of December 31, the TSX- and NYSE MKT-listed miner now boasted total reserves at the Island Gold mine of 561 700 oz of gold at a reserve grade of 8.26 g/t.

At the Beaufor mine, in Quebec, Richmont also reported a 95% increase in mineral reserves to 63 850 oz of gold (net of depletion) at a reserve grade of 6.57 g/t, which would extend mine life by more than two years.

"We are very pleased with the success of our delineation drilling programme at Island Gold where we converted nearly 80% of the resources from the Lower C zone that were included in the 2015 preliminary economic assessment (PEA) to reserves, significantly de-risking this core operation," stated CEO Renaud Adams, adding that the company now had more than seven years of mine life based on reserves, along with significant exploration potential both laterally and at depth.

Adams also noted that Richmont would this year be focused on converting the remaining PEA resources and completing its 2015 exploration programmes with a view to adding near-mine resources to the east and west of the PEA deposit area and confirming the high-grade extension at depth.

“With reserve growth reported from both the Island Gold and Beaufor mines, a solid balance sheet, and an experienced management team, Richmont is in its strongest position in its 25-year history as gold producer,” he advised.

Richmont’s successful drilling programme had increased its reserve inventory by almost 200% to more than 625 000 oz.

The company’s TSX-listed stock had gained nearly 51% in the past 12 months, underpinned by the company’s organic growth success. On Tuesday it added more than 4% bringing its stock to C$6.19 apiece.