Richmont defining reserves

Underground drilling and development are under way at the Francoeur gold mine near Rouyn-Noranda, Que., Richmont Mines (TSE) reports.

The work is aimed at defining the extension of existing zones and increasing reserves. Current reserves stand at 2.4 million tons grading 0.21 oz. gold per ton.

During the first half of 1993, Richmont milled 82,000 tons of ore; its estimated production for the year is 160,000 tons. Gold output during the first six months totaled 15,128 oz., well ahead of the 6,953 oz. produced during the same period in 1992.

Richmont’s working capital at the end of the first half stood at $4.9 million, and cash and equivalents stood at $5.2 million.

The company reported first-half net earnings of $1.5 million (13 cents per share) compared with earnings of $628,540 (5 cents per share) for the same period in 1992.