VANCOUVER (miningweekly.com) – Boutique gold producer Richmont Mines has reported strong performance from the flagship Island Gold mine, in Ontario, pushing total output in the period to 29 401 oz of gold, which despite being 9% lower year-on-year, took into account the ceased production at the small-scale Monique mine, and improved output at the Beaufor mine, both in Quebec.
Total cash costs came in at $598/oz, which were up from $583/oz in the comparable period a year earlier, but more than $100/oz lower than the prior quarter.
The Toronto-based company’s performance was underpinned by the Island Gold mine, which produced 23 772 oz of gold (22 649 oz sold) and is now well positioned to achieve the high-end of production guidance for 2017 of 87 000 oz to 93 000 oz, the company said Thursday.
The Island Gold mine reported a record underground mining and milling rate of 1 019 t/d and 926 t/d respectively. With mining tonnes exceeding milling tonnes the operation could stockpile lower-grade ore at surface, benefitting the mill head grade.
Beaufor mine produced 5 600 oz at $956/oz, with costs falling 15% over the prior period.
Richmont expects to produce between 110 000 oz and 120 000 oz of gold this year.
The company plans to release the results of an updated preliminary economic assessment for the Island Gold mine, in the current quarter, examining expansion potential at Island Gold to 1 100 t/d.