East Amphi back in production (February 06, 2006)

The East Amphi mine in Malartic, Que., is back in production under the auspices of Richmont Mines (RIC-T, RIC-X), which it bought from financially troubled McWatters Mining in late 2003.

Richmont started mining this month, after taking out a 26,000-tonne bulk sample in December. Richmont’s Camflo mill near Malartic recovered 3,231 oz. gold, for a recovered grade of 3.97 grams per tonne; the head grade based on sampling was only 3.86 grams per tonne, indicating some nugget effect.

Richmont is expecting a commercial production rate of 16,500 tonnes per month by March.

East Amphi has a measured and indicated resource of 1.4 million tonnes at 5.4 grams gold per tonne, from which Richmont has defined a probable reserve of 641,000 tonnes averaging 4.88 grams per tonne. The resource and reserve are based on a cutoff grade of 3 grams per tonne and a gold price of US$450.

In 1999, McWatters took out a bulk sample of 125,000 tonnes, with a grade of 5.53 grams gold per tonne, recovering 22,000 oz. at the Sigma mill.