Richmont Mines Inc. (RIC) (RIC:CA) has released their third quarter operational and financial results. The results show that Richmont earned $3.3 million, which has been credited to the solid and consistent performance of the company’s Island Gold Operation.
"We are pleased to report another strong quarter from our cornerstone Island Gold Mine as the operation continues to deliver record production,” said Renaud Adams, CEO of Richmont Mines. “During the quarter, we remained focused on both operational and strategic initiatives that could unlock the significant potential we see at Island Gold. Supporting that view are the results from the recent PEA on Island Gold, which identifies an opportunity to accelerate production and lower costs. We also see significant exploration potential at Island Gold and have launched two strategic drilling programs designed to test the potential of the main orebody both laterally and at depth, as well as elsewhere on our highly prospective land package."
The third quarter, ending on Sept. 30, 2015, displays a number of highlights for Richmont, including:
● Gold production quarterly revenues of $26.1 million.
● Island Gold reported another consecutive quarter of production growth with production of 15,076 ounces (14,233 ounces sold) at cash costs of $680 per ounce and AISC of $968 per ounce.
● A Preliminary Economic Assessment (PEA) for Richmont’s Island Gold Mine highlights the potential to accelerate production and lower AISC.
● Richmont was added to the S&P/TSX SmallCap Index.
● Anne Day was appointed to the Richmont executive team as Vice-President, Investor Relations, to lead the strategic execution of the Corporation's global investor relations program.
On September 10, Richmont announced a 23,000 metre deep directional drilling program for the highly prospective Island Gold property to test the down plunge extension of the deposit. The company announced an update on the 20,000 metre surface exploration drilling campaign on the Island Gold Mine property on September 16.
Along with the Island Gold Mine, Richmont also operates two Quebec-based mines: the Beaufor Mine and the Monique Mine. The Beaufor Mine production for the quarter was 5,714 ounces (5,919 ounces sold) and 20,759 ounces (21,638 ounces sold). For the nine-month period AISC increased by 11% to $908 per ounce. Development of the Q Zone advanced during the quarter with a target of reaching the mineralized structure by early 2016. The Monique Mine saw AISC for the quarter increased by 29% to $745 per ounce over the prior year period. For the nine-month period AISC decreased by 30% to $605 per ounce.
Overall, Richmont’s Q3 2015 has yielded solid results. With a number of positive milestones achieved in a brief amount of time, Richmond continues to demonstrate their continued growth and further establish themselves as a premier gold mining company. "Richmont remains uniquely positioned with a quality asset base, growing production, decreasing costs, as well as significant exploration potential yet to be realized,” said Adams. “Our favorable Canadian dollar exchange rate exposure, growing cash flow streams and our solid balance sheet will continue to support our strategic growth plans going forward."
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