Richmont takes reins at Island Gold

Vancouver — A positive resource estimate has induced Richmont Mines (RIC-T) to acquire a majority interest in the Island Gold project in Ontario from Patricia Mining (PAT-V).

The acquisition is in keeping with a 2003 agreement, which gave Richmont the option of acquiring a 55% stake in return for spending $10 million on exploration and investing in Patricia Mining.

Patricia had been trying to establish, by means of underground drilling, at least half a million tonnes of resource material.

Indicated resources are pegged at 272,000 tonnes grading 12.3 grams gold, or 108,000 oz., with an inferred resource of 275,000 tonnes grading 13.1 grams, or 116,000 oz.

The companies are drilling a total of 4,500 metres to verify the extension of the Island deposit between the 330- and 430-metre levels over 200 metres.

Richmont is mobilizing its equipment and personnel to the property in preparation for taking over as operator on Jan. 1, 2005. The Quebec-based miner aims to advance the project to a production decision by expanding the resources and extending the access ramp.

The Island Gold project already has much of the required infrastructure, which includes an access ramp to the 160-metre level, drifts, and a modern, 650-tonne-per-day mothballed mill.