Vancouver – Quebec-based Richmont Mines (RIC-T) has opted to acquire a majority interest in the Island Gold project, from Patricia Mining (PAT-V). The companies are anxious to see the past producing mine near Dubreuilville in Ontario, become the province’s next gold mine.
A deal struck back in September 2003 gave Richmont the option of acquiring 55% interest in the Island Gold project by funding exploration and investing in the company.
Patricia has been working on a major underground drilling program this year to establish at least half a million tonnes of material.
Richmont’s decision to opt into the project was made easier by results from the recent exploration drilling which led to an independent resource estimate. This estimate by Roscoe Postle for the Island deposit was based on a narrow vein interpretation model rather than bulk tonnage.
The indicated resources are pegged at 272,000 tonnes averaging 12.3 grams gold or 108,000 oz. contained gold, with an inferred resource of 275,000 tonnes of 13.1 grams representing 116,000 oz. gold.
The companies are currently drilling 4,500 metres to verify the extension of the Island deposit between the 330 and 430-metre levels over 200 metres.
Richmont Mines has decided it will take over operatorship from Patricia on January 1, 2005.
The Quebec-based miner aims to advance the project to a production decision by increasing the resources and extending the access ramp.
The Island gold project already has most of the required infrastructure which includes an access ramp to the 160-metre level, drifts, and a modern 650 tonne per day moth-balled mill with numerous surface buildings.
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