Richmont raises reserves (February 19, 2008)

While Richmont Mines (RIC-T, RIC-X) increased production slightly in 2007, it raised gold reserves significantly, to 361,000 oz. gold from about 49,000 oz. the year before as a result of its exploration programs at the Beaufor and Island gold mines.

As for production, Richmont’s total for 2007 was 45,300 oz. gold, up from 44,900 in 2006.

About 26,000 oz. came from the Beaufor mine, a 50% joint venture with Louvem Mines (LOV-V), which is 70%-owned by Richmont, located northeast of Val-d’Or, Que.

The company produced 7,300 oz. at its Island gold mine northeast of Wawa, Ont. and more than 11,000 oz. from the East Amphi mine, west of Val-d’Or. East Amphi was shut down and sold to Osisko Exploration (OSK: TSX-V) in the second quarter.

Commercial production began on Oct. 1 at Island Gold, 55% owned by Richmont and 45% by Patricia Mining(PAT-V).

Island gold reserves now stand at 1.1 million tonnes grading 8.39 grams gold per tonne for nearly 286,000 oz. gold, up about 36,000 oz. from 2006.

Resources rose after the Richmont confirmed the extension of the Island zone to the east of known resources adding to measured and indicated resources by 53,000 oz. and inferred by 5,600 oz.

Total measured and indicated resources at Island now stand 192,000 oz. gold up about 42,000 contained oz. from 2006.

Inferred resources are a bit lower at 193,000 oz. gold compared with 196,000 oz. at the end of 2006.

Richmont has yet to receive assay results from five holes on the property. The company plans to do 20,000 metres of drilling at Island Gold in 2008.

As for the Beaufor property, proven and probable reserves are up more than 50% from 2006 to about 256,000 tonnes grading 9.2 grams gold per tonne for nearly 76,000 oz. gold.

Measured and indicated resources decreased to 141,000 oz. gold from 148,000 oz. gold while new mineralized zones added some inferred resources to property about 30,000 oz. gold.

Richmont plans to drill 42,000 metres at Beaufor in 2008.

The company will also do exploration work at its Golden Wonder project in Colorado, a 50% joint venture with LKA International (LKAI-O) signed in November. The high-grade epithermal deposit produced 134,000 oz. gold between 1998 and 2006.