The Francoeur gold mine of Richmont Mines (TSE) and LAC Minerals (TSE) near Rouyn-Noranda, Que., entered commercial production recently and is expected to produce 5,200 oz. during the last quarter of this year.
The current production rate using the new J.G.R. shaft, which was sunk to 2,700 ft. in 1989, is 400 tons of ore per day. A planned development program is expected to increase that daily rate to 750 tons by the end of 1992. The old No. 6 shaft, which bottoms at 1,450 ft., is now used for ventilation. The companies plan to mine about 120,000 tons of ore grading 0.2 oz. gold per ton in 1992. (An incorrect tonnage figure was reported earlier, T.N.M., Nov. 4/91.)
Richmont, formerly Rouyn Mining Resources, is the project operator. Each company has a 50% interest.
Richmont President Jean-Guy Rivard said Francoeur reserves (proven and probable) currently stand at one million tons grading 0.2 oz. Reserves in the possible category are estimated to total more than one million tons. The Francoeur ore is being processed at the old Kerr mill now owned by Deak Resources at Virginiatown, Ont., about 20 miles from the mine site. Rivard says a new custom-milling contract for 1992 is being negotiated with Deak. Eventually, Richmont and LAC hope to build an on-site mill.
During the first nine months of 1991, Francoeur produced 13,759 oz. gold from development ore. Gold sales totalling about $2.8 million were recorded against deferred expenditures because the gold came from development ore. For the 9-month period, Richmont recorded a net loss of $620,850 (five cents per share) compared with a loss of $356,631 (three cents per share) for the same period in 1990.
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