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Resource Clips


Posts tagged ‘Richmont Mines Inc (RIC)’

Week in review

November 30th, 2012

A mining and exploration retrospect for November 24 to 30, 2012

by Greg Klein

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Amalgamation, acquisitions bring big news to Canada’s uranium play

Friday’s announcement from Clermont Capital Inc TSXV:XYZ.P and NexGen Energy Ltd shows companies joining forces to combine money, projects and expertise in uranium exploration. Clermont announced a letter of intent to acquire NexGen in a three-cornered amalgamation in which a Clermont subsidiary amalgamates with NexGen to create a new Clermont subsidiary. The capital pool company intends the acquisition as a qualifying transaction to become a TSXV Tier-2 issuer.

So there’s good money and a good technical team coming behind the deal. And it’s happening when the market’s clearly hungry for a discovery. It sure looks like Fission and Alpha have something to be excited about. We hope that we can be part of that ride as well.—Clermont Capital president/CEO/director Arlen Hansen on a planned amalgamation with NexGen Energy and properties acquisition

Currently NexGen’s key asset is the Radio uranium project in northern Saskatchewan’s Athabasca Basin. NexGen holds an option to acquire an initial 70%, then the remaining 30% subject to a 2% NSR. Exploration has identified drill targets that are interpreted to be on the same structural trend as Rio Tinto’s Roughrider deposits and Fission Energy’s TSXV:FIS J-Zone. Roughrider holds resources of 17.2 million pounds U3O8 indicated and 40.7 million pounds inferred, while the J-Zone holds 7.37 million pounds indicated and 1.51 million pounds inferred. NexGen plans drilling in Q1 2013.

NexGen’s wholly-owned Rook 1 property sits directly northeast of the near-surface Patterson Lake South uranium project, a JV of Fission and Alpha Minerals TSXV:AMW.

On November 15 NexGen announced a definitive agreement to purchase the majority of Mega Uranium’s TSX:MGA Canadian projects in the Athabasca Basin and Nunavut’s Thelon Basin. As a result, Mega is anticipated to acquire up to a 38% interest in NexGen.

Among the conditions for the Clermont-NexGen acquisition, NexGen would close a private placement of at least $6.6 million. Prior to closing the acquisition, Clermont would consolidate its shares on a 2.35-for-one basis. On closing, NexGen shareholders would receive one post-consolidation Clermont share for each NexGen share.

Speaking to ResourceClips Friday afternoon, Clermont president/CEO/director Arlen Hansen said, “It’s a very large land package and uranium exploration takes a lot of time and money, so we’re getting the NexGen operational team, which includes some ex-Rio Tinto guys and Leigh Curyer, who raised hundreds of millions of dollars for Southern Cross before it was taken out in the uranium sector as well.

“So there’s good money and a good technical team coming behind the deal. And it’s happening when the market’s clearly hungry for a discovery. It sure looks like Fission and Alpha have something to be excited about. We hope that we can be part of that ride as well.”

U3082014 apologizes. Now VMS goes after axeman#, tamerackerdown and nttg2005

A mining and exploration retrospect

VMS Ventures TSXV:VMS greeted Friday by announcing progress in its battle against anonymous posters on the Stockhouse bullboard. Following what the company alleges to have been “false and malicious posts” between November 2, 2010 and May 10, 2012, VMS has now received court orders requiring internet service providers to identify three more commentators. The company had already obtained court orders requiring Stockhouse to divulge their internet protocol addresses. VMS said it “intends to pursue all legal options available against these posters in order to protect its reputation.”

The company also announced a settlement with a poster identified as U3082014 regarding statements uploaded between April 15, 2011 and August 27, 2012. Details are confidential, apart from the apology U3082014 submitted to VMS’ lawyers in September and posted on Wednesday.

Richmont closes Francoeur Mine, suspends Wasamac exploration

Francoeur had been struggling but, just the same, the news seemed sudden. Richmont Mines TSX:RIC announced Thursday the immediate shutdown of its 20-year-old gold mine in Quebec’s Rouyn-Noranda region. President/CEO Paul Carmel blamed the decision on high costs due to “low realized grades, difficult mining conditions and a tight labour pool for the experienced miners required for the challenging mining conditions at Francoeur.” As recently as November 8, however, Carmel sounded fairly optimistic as he spoke of “ramping up the Francoeur Mine to full production levels.”

The company’s pre-tax write-off will range between $11 million and $13 million. Immediate layoffs hit 115 workers, while another 35 will stay on for four months of decommissioning. Richmont is holding to its 2012 guidance of 65,000 ounces but 2013 is estimated between 65,000 and 70,000 ounces, down from a previous projection of 85,000 to 95,000 ounces. The company also operates the Beaufor Mine near Val d’Or, Quebec and the Island Gold Mine in northern Ontario.

Exploration at Richmont’s Wasamac gold project near Rouyn-Noranda has been suspended until next year.

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Richmont reports Quebec Gold Assays up to 6.4 g/t over 52.8m

May 8th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningRichmont Mines Inc TSX:RIC announced results from its Wasamac Property in Quebec. Assays include

6.4 g/t gold over 52.8 metres
2.83 g/t over 71.8 metres
4.61 g/t over 34.9 metres
1.48 g/t over 7.8 metres
3.8 g/t over 7 metres
3.37 g/t over 9.5 metres
5.16 g/t over 11.1 metres
5.19 g/t over 7.8 metres
7.09 g/t over 5.2 metres

Executive Chairman Greg Chamandy remarked, “We are very pleased to report that drilling at Wasamac continues to yield very promising results, reinforcing our belief that the Wasamac property has great future potential for Richmont and its shareholders. We look forward to improving the economics of the project by means of five key focus areas, and maintain our belief that Wasamac has the potential to catapult Richmont into the intermediate producer category. We look forward to updating the market with new developments throughout 2012, and it is our goal to issue a revised preliminary economic assessment with improved and more robust economics as soon as the project is fully optimized.”

View Company Profile

Contact:
Jennifer Aitken
Investor Relations
514.397.1410

by Ted Niles

Richmont reports Quebec Gold Assays including 2.97 g/t over 69.5m

March 15th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningRichmont Mines Inc TSX:RIC announced assays from its Wasamac property in Quebec. Results include

2.97 g/t gold over 69.5 metres
3.7 g/t over 56.7 metres
2.77 g/t over 15.4 metres
2.1 g/t over 23.9 metres
3.7 g/t over 29.9 metres
3.43 g/t over 11.8 metres
2.6 g/t over 10.1 metres
2.58 g/t over 10.6 metres
3.18 g/t over 9.7 metres
7.12 g/t over 7.2 metres
3.56 g/t over 12.1 metres
1.64 g/t over 14.5 metres

President/CEO Martin Rivard said, “We are very pleased with the results obtained to date with our 2012 exploration program and we expect to complete the preliminary economic assessment of the property by the end of the first quarter of 2012.”

View Company Profile

Contact:
Jennifer Aitken
Investor Relations
514.397.1410

by Ted Niles

Richmont reports Ontario Gold Assays up to 44.3 g/t over 11.5m

February 10th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningRichmont Mines Inc TSX:RIC announced drill results from its Island Gold Mine property in Ontario. Highlights include

8.68 g/t gold over 2.3 metres
50.41 g/t over 2 metres
34.58 g/t over 2.2 metres
4.78 g/t over 2 metres
3.64 g/t over 5.3 metres
44.27 g/t over 4.8 metres
6 g/t over 3.8 metres
3.8 g/t over 5 metres
6.12 g/t over 2 metres
6.68 g/t over 2.1 metres
13.23 g/t over 3.7 metres
27.89 g/t over 6.6 metres
16.74 g/t over 3.8 metres
15.1 g/t over 7.2 metres
41.33 g/t over 5.9 metres
28.39 g/t over 2.6 metres
20.22 g/t over 2.1 metres
126.66 g/t over 4.1 metres

President/CEO Martin Rivard stated, “We have results from more than 23,000 metres of deep drilling completed at our Island Gold Mine, and are pleased that they have confirmed the potential at depth for this property. While the spacing of this drilling is currently too large to establish resources, the results confirm the extension of known zones at depth. We plan on completing approximately 35,000 metres of deep drilling at Island Gold during 2012, with the goal of establishing resources below current infrastructure. 20,000 metres of this drilling is planned from underground, and we have already begun a 1,100-metre exploration drift from the 400-metre level of the mine to provide more effective access for drilling. In addition, we are currently evaluating different options for the potential construction of an exploration shaft in order to accelerate the identification of deep resources at Island Gold.”

View Company Profile

Contact:
Jennifer Aitken
Investor Relations
514.397.1410

by Ted Niles

Rapid Resource Development

September 19th, 2011

Marathon Moves Quickly In Nfld and Idaho

By Ted Niles

In November 2010 Stillwater Mining Company TSX:SWC.U acquired Marathon PGM Corporation for its eponymous copper-palladium project in northwestern Ontario. The transaction earned Marathon PGM shareholders $118 million and saw the company’s remaining gold assets spun out into Marathon Gold Corporation TSX:MOZ. “Our background is rapid resource development,” says President and CEO Phillip Walford, “developing resources, then into reserves. We did that at Marathon PGM and, if anything, we’re doing it faster here.”

“Here” being the new company’s flagship Valentine Lake gold project, located 55 kilometres south of the town of Buchans, Newfoundland, which Marathon holds in 50/50 joint venture with Mountain Lake Resources Inc TSXV:MOA. Prior to Marathon, the property’s other joint venture partner was Richmont Mines Inc TSX:RIC. “Richmont looked at it from an underground mining point of view and basically walked on it,” Walford comments. “Then we came along and had a look. While Richmont was looking at Valentine from an underground-mining perspective, what I could see there was really, to start with anyway, an open pit. That was our concept, and it seems to be working.”

Marathon Moves Quickly In Nfld and Idaho

Since Marathon’s earn-in period began in December 2009 (which it completed January 2011), it has been the operator at Valentine Lake and in December 2010 produced from the property’s Leprechaun deposit its first NI 43-101 resource estimate of 277,000 ounces gold in the measured and indicated categories and 285,000 ounces inferred. Confirming Walford’s view that the project’s strength is in an open-pit scenario, 74% of the measured and indicated ounces occur within 150 metres of surface. He remarks, “We’ve got about 17 kilometres of strike length along the structure that has gold currents all the way along it. Our resource right now only represents about 800 metres of that. I’m not saying that it is all going to be ore or anything like it, but there’s lots of potential here. I firmly believe this is a multimillion ounce property.”

Marathon’s current 25,000-metre drill program consists of infill and exploration drilling at the Leprechaun deposit as well as exploration drilling at the project’s other main deposit, Valentine East. “We will be doing a new global resource, plus an open-pit resource,” Walford states, “to be completed in early November 2011. From there we have commissioned a preliminary economic assessment, and that will be completed sometime in 2Q 2012.”

September 8 assays of the Leprechaun deposit include

  • 32.24 grams per tonne gold over 3 metres (including 94.2 g/t over 1 metre)
  • 2.31 g/t over 17 metres
  • 10.16 g/t over 3 metres (including 29.9 g/t over 1 metre)
  • 1.93 g/t over 18 metres

August 30 assays included

  • 1.88 g/t gold over 34 metres (including 6.32 g/t over 5 metres)
  • 4.01 g/t over 13 metres (including 11 g/t over 3 metres)
  • 2.38 g/t over 17 metres
  • 7.19 g/t over 5 metres
  • 2.7 g/t over 15 metres (including 10.69 g/t over 3 metres)

Walford comments, “The deposit is starting to expand to the north and south, and that’s exactly what we want. We will see, I think, a very important increase in the total resource on the Leprechaun deposit. It will be very clear in the next two years how important this property is.”

Our background is rapid resource development; developing resources, then into reserves. We did that at Marathon PGM and, if anything, we’re doing it faster here —Phillip Walford

At an earlier stage of development, but no less important to Walford, is the company’s Golden Chest mine in the Coeur D’Alene mining district of Idaho. Golden Chest is a 50/50 joint venture with New Jersey Mining Company OTCQX:NJMC and has a non-NI 43-101 compliant “inferred geologic resource” of 231,000 ounces gold, which Newmont put together in the 1980s. “The thing that is very important with Golden Chest,” Walford relates, “is that we have about two square miles of property, but the core is patented claims. Those patented claims mean that we have the timber rights, the surface rights and the mineral rights. We do not have to permit to do work on the property, to do exploration, to make roads. If this was load claims it would be much more difficult to work in. The patented claims give us a huge advantage.”

This year’s program at Golden Chest consists of underground and surface drilling of 10,000 metres with New Jersey Mining as the operator. September 7 assays include

  • 5.15 g/t gold over 40 metres (including 137 g/t over 1.2 metres)
  • 1.48 g/t over 45.7 metres
  • 2.96 g/t over 16.7 metres
  • 1.51 g/t over 29 metres
  • 1.58 g/t over 28.6 metres.

Walford comments, “We think the potential to make a fairly decent-sized pit is there, and there’s underground potential as well. The underground vein system goes down over 200 metres beyond the bottom level, and it still seems to be going. We’re probably going to put a lot of effort into it next year in drilling and in underground development.” Walford expects a resource for Golden Chest no later than January 2012.

Walford, whose background is in mining geology, has no trouble with the idea of Marathon going into production itself. However, given the experience with Marathon PGM—that it was bought out by Stillwater following the feasibility stage—and that capital costs for Valentine Lake “would probably be lower,” he is prepared for either eventuality.

“Both properties are moving ahead at the pace we want them to,” Walford concludes. “So we’re pretty excited. These properties look like winners, and we’re starting to get attention on the street.”

Marathon Gold Corporation TSX:MOZ has 22.9 million shares trading at $1.34 for a $30.7 million market cap.

Old School

April 13th, 2011

Upper Canyon Isn’t Waiting For a 43-101 Estimate to Mine Gold in Quebec

By Ted Niles

Full credit to Tom Thomsen for saying one of the more shocking things we’ve heard lately. When asked if he intends to produce an NI 43-101 resource estimate for the Brosnor Gold Project, the President/CEO of Upper Canyon Minerals Corp replies, “Not even interested.” Be he madman or genius, Thomsen’s reasons for flying in the face of orthodoxy and mining Brosnor, as he puts it, “old school,” are compelling.

Thomsen believes he has 100,000 ounces gold at his 923-hectare flagship property, located 30 kilometres east of Val d’Or, Quebec. Following a 5,700-metre confirmation drilling program (which will be 43-101 compliant), his plan is to bulk sample Brosnor, custom mill the ore locally and, hopefully, reap the rewards. No resource estimate, no preliminary economic assessment, no prefeasibility study. Says Thomsen, “I have exactly enough cash on hand to finish our current program plus permitting: $700,000. We have outstanding warrants at a dime, and my job right now is to get those warrants exercised. That will put enough money in my till to do what I need to do. Even if I only have 50,000 ounces, given today’s market and how low my costs are, there’s $30 million to $40 million of profit there.”

Upper Canyon Isn't Waiting For a 43-101 Estimate to Mine Gold in Quebec

Thomsen is not opposed to NI 43-101 per se. He explains, “I understand why it was put in place. But companies are spending way too much money having to prove up ounces to be able to raise money. You’re causing an environment where these small deposits—under 200,000 ounces, not big enough for the majors—are dead because the shares of the companies that own them are too low because they raised a crap-load of money trying to prove up those ounces in the first place.”

Brosnor may not have a compliant resource estimate, but it’s not as if Thomsen has no idea of what’s there. In 1982, then-owner Noranda came up with a reserve for the Adelemont and Norcourt zones: 251,747 tonnes grading 4.08 grams per tonne and 31,164 tonnes at 4.5 g/t, for a total of 40,000 ounces gold. Also, Brosnor is within easy distance of Val d’Or, a major mining town, and a quarter-mile by road off a major highway. The infrastructure, Thomsen enthuses, “is something you dream about. If I need a geologist to go out and look at the property, I make a phone call and he’s there. Mining crews can sleep in their own beds and drive to the property. There are mills that are very close; there’s power right there. There’s everything you need without a huge amount of expense.”

And there’s a decline, as well, dating from 1986. “It is about 700 metres long and goes down to the 100-metre level,” Thomsen reports. “Brosnor would not have been attractive to me, if the decline wasn’t there. It would cost me $8 million to put in now and just wouldn’t be profitable.”

In 2008, Upper Canyon reported Brosnor assays as high as 3.15 g/t gold over 5.7 metres, 4.35 g/t over 3.3 metres, 4.33 g/t over 2.6 metres and 30.93 g/t over 1.6 metres. But more important to Thomsen is the border it shares with Richmont Mines’ Monique property. Richmont announced assays this month including 3.02 g/t gold over 15.2 metres, 4.25 g/t over 17.1 metres, 8.07 g/t over 10 metres and 6.76 g/t over 12.9 metres. “It’s pretty insane to believe that those numbers would stop right at the boundary,” Thomsen argues.

Go in, custom mill it, and take your profit! With gold at this level, the profit margin is way too attractive – President/CEO Tom Thomsen

To Thomsen, Richmont proves his point about resource estimates. He explains, “They put their [Beaufor] mine into operation in 1996, right before 43-101 came in. If they tried to do it a year later, it never would have got off the ground! I think you may as well go after the ounces you’ve got, and once you’re underground, mine it when it’s there. Just like Richmont did. That’s the way it used to be done.”

He continues, “The beauty of Brosnor is that it’s not labour intensive, and it’s not costly, because I’m basically hiring everybody. I have no desire to go through permitting on my own. Go in, custom mill it, and take your profit! With gold at this level, the profit margin is way too attractive.”

Thomsen estimates it will take six months to complete the permitting process and another three to open up and dewater the decline. Then Upper Canyon starts pulling ore.

Does Thomsen worry that investors might be leery of so unconventional a plan from a company that, at press time, has a share price of $0.09? He responds, “I’m not telling people to buy stock today. As I told my kids, I believe that if you buy it to 20 cents, within a year it will be worth three times that. The reason why is, after everything is said and done, if I have every single warrant exercised, I’m going to have $60 million in the bank and less than a 100 million shares outstanding.”

Richmont reports Quebec Gold Assays up to 6.76 g/t over 12.9m

April 11th, 2011

Richmont Mines Inc TSX:RIC announced results from its Monique Project in the Val d’Or area of Quebec. Assays include 3.02 g/t gold over 15.2 metres, 4.25 g/t over 17.1 metres, 3.1 g/t over 14.8 metres, 8.07 g/t over 10 metres, 3.34 g/t over 15.8 metres, 6.76 g/t over 12.9 metres, 2.85 g/t over 12.9 metres, 4.04 g/t over 11.2 metres, 6.2 g/t over 11.1 metres, 4.11 g/t over 8.7 metres and 1.06 g/t over 14 metres.

President/CEO Martin Rivard remarked, “[We] started in early 2011 with the objective of evaluating the potential for a small open pit operation. We have now completed the definition drilling campaign on Monique. Results obtained to date have reaffirmed the company’s commitment to this project. Complete results from the drill campaign will be used to prepare a regulation 43-101 compliant technical report that the company expects to finalize during the fourth quarter of 2011.”

View Company Profile

Contact:
Jennifer Aitken
Investor Relations
514.397.1410

by Ted Niles

Richmont reports Quebec Gold Assays including 3.88 g/t over 12.3m

February 8th, 2011

Richmont Mines Inc TSX:RIC announced results from its Wasamac Property in Quebec. Assays include 2.37 g/t gold over 7.5 metres, 3.88 g/t over 12.3 metres, 1.31 g/t over 21.3 metres, 1.37 g/t over 4.7 metres, 4.26 g/t over 10.9 metres, 1.62 g/t over 8.2 metres, 1.67 g/t over 9.9 metres, 2.89 g/t over 17.5 metres, 2.67 g/t over 6.8 metres and 5.56 g/t over 11.4 metres.

President/CEO Martin Rivard said, “We are very pleased with the results obtained from our 2010 drilling program as they confirm the existence of a strong mineralized system between the -200 and -800 metre elevations that remains open at depth in several areas over a lateral extension of two kilometres. Now that the final results have been received, our geology team is actively working on the re-evaluation of the resources of the Wasamac property. At the same time, drilling continues with three drills currently active on the property.”

View Company Profile

Contact:
Jennifer Aitken
Investor Relations
514.397.1410

by Ted Niles