Richmont posts resource for Wasamac property

Since joining the ranks of gold producers in 1991, Richmont Mines (RIC-T, RIC-X) has produced more than 1.2 million ounces of gold from its operations in Quebec, Ontario and Newfoundland and by the middle of this year expects to add production from its Francoeur mine to bring gold production to about 100,000 ounces a year.

Now Richmont has even more good news for shareholders at its Wasamac property, less than 10 km east of the Francoeur mine. A new resource estimate demonstrates the property has measured and indicated resources of 5.09 million tonnes grading 2.51 grams gold per tonne for 411,073 ounces of gold. Inferred resources add 11.52 million tonnes grading 2.72 grams gold per tonne for 1 million ounces of gold.

Richmont launched a 10,000-metre drill campaign at Wasamac in May last year to re-assess resources using a lower cut-off grade to evaluate the potential for an underground bulk mining operation. The 2010 drilling program was later extended to 20,000 metres.

This year Richmont is planning a 35,000-metre drill program there and hopes to complete a scoping study by the end of 2011.

Drilling this year at Wasamac, 15 km west of Rouyn-Noranda in Quebec, will focus on a 2-km horizontal strike length and target maximum vertical depths of about 800 metres.

The main targets include the lower part of the Main zone between the bottom of the mine and the Horne fault; the lower part of Zone 1; the upper and the lower western parts of Zone 2; and Zone 3. Some exploration holes will also target the area between the Main zone and Zone 1, which is mostly unexplored.

Gold mineralization on the Wasamac property was originally discovered through surface trenching work in 1936. Between 1965 and 1971, production at the Wasamac mine  totalled 1.89 million tonnes grading 4.16 grams gold per tonne for a total of 252,923 ounces of gold, mostly from the Main zone.

Hosting the mineralization at Wasamac is the Wasa Shear, which runs through the center of the property and drilling programs from 2002 to 2004 intersected mineralization inside the Wasa Shear zone at depth. This drilling resulted in estimated inferred resources of 1.28 million tonnes grading 6.92 grams gold for 285,200 ounces of gold.

In Toronto Richmont is trading at $5.09 per share. Over the last year it has traded within a range of $3.89 per share (Feb. 25 2010) and $5.71 per share (Nov. 9 2010) and has 31.25 million shares outstanding.