Island Gold, Ontario
Photo by: Richmont Mines
TORONTO (miningweekly.com) – Canadian junior gold producer Richmont Mines on Thursday reported robust growth in third-quarter gold output, underpinned by its flagship Island Gold mine, in Ontario, prompting its TSX-listed shares to rally by as much as C$0.13 apiece.
The Montreal-based company, with small-scale operations in Ontario and Quebec, reported gold output of 23 187 oz for the three months ended September 30, a mighty 58% year-on-year increase.
This brought Richmont's year-to-date production to 71 354 oz, 68% above the prior-year level.
Underpinned by the strong performance so far this year, the company lifted its full-year guidance to between 85 000 oz and 90 000 oz of gold, up from previous guidance of 75 000 oz to 85 000 oz.
“Our operations performed very well during the third quarter, with gold production and sales exceeding our plans.
“As previously reported, mine development at Island Gold has increased in the second half of the year, so we are pleased that our operations team has been able to exceed our expected production levels,” Richmont interim president and CEO Elaine Ellingham said.
Richmont’s Island Gold mine produced 10 907 oz in the period, 55% more when compared with the same quarter a year earlier. This was mainly owing to mining from higher-grade areas and development ore from the higher-grade resource extension at depth and to the east.
At its Beaufor mine, in Quebec, output was 5 757 oz in the period, down 24% year-on-year as a result of unstable grades.
Output from the Monique mine, also in Quebec, in the third quarter benefitted from greater tonnage being processed and improved grades. The Monique ore stockpile had more than 102 000 t, grading 1.41 g/t gold, at the end of the third quarter.
During the quarter, Richmont had added about $2-million to its cash and short-term deposits at $38-million.
“Our operational results have enabled us to keep our cash position strong, as we develop our one-million-ounce, high-grade inferred resource below Island Gold,” added the company.
Richmont last month said it had awarded a contract that would accelerate the ramp extension at depth and build more underground infrastructure, where the company expected to extract ounces before year-end.