61 61 Page 60 By Gregory Reynolds Getting at a signifcant estim ated one million ounce highgrade global re source at depth in its fagship Island Gold Mine is the chief objecti ve these days of Richmont Mines Inc This year has been a busy time for Richmont as it built upon a record production year in 2016 Richmont Mines is an established gold producer with a proven 25 year trackrecord of gold production mine development and successful mineral exploration in Canada The corporation operates the Beaufor Mine in Quebec and also produces gold from the Island Gold Mine in Ontario where it is simultaneously developing a signifcant resource The fourth quarter saw companywide production of 29505 ounces of gold 27759 ounces sold a 32 increase over Q4 2015 This feat contri buted to record annual production of 104050 ounces of gold 102660 ounces sold a 6 increase over 2015 achieving the high end of revised production guidance for the year The solid performance was driven by production from the cornerstone Island Gold Mine of 24086 ounces of gold 22422 ounces sold for the quarter a 70 increase over Q4 2015 and 83323 ounces of gold 82273 ounces sold for 2016 a 51 increase over 2015 exceeding revised produc tion guidance for the year Richmont reported fourth quarter rev enues of 442 million US331 mil lion a 39 increase over Q4 2015 and record annual revenues of 1687 million US1273 million a 17 in crease over 2015 W e have reported a number of key milestones for 2016 including re cord companywide production The strong performance was driven by an other consecuti ve year of solid results from the Island Gold Mine which exceeded all annual production and cost guidance metrics stated Renaud Adams CEO He continued 2016 was a pivotal year for Island Gold During the year we completed a strategic under ground mine and mill upgrade advanced the accelerated under ground development program and received the amended permits to increase mine and mill throughput rates to 1100 tonnes per day In 2017 we will continue to focus on positioning the Island Gold Mine for longterm success that drives share holder value creation which is sup ported by a solid balance sheet and a disciplined management team Companywide cash costs for the fourth quarter were 952 per ounce US714 per ounce a 7 decrease over Q4 2015 and 908 per ounce US685 per ounce for 2016 a 7 decrease over 2015 and inline with revised cash cost guidance for the year Richmont says its sound balance sheet capital structure and experi enced management team anchor the corporation for future growth The corporation is completing an extensive development program to access a highgrade million ounce deeper resource envelope established directly below its Island Gold Mine That will reposition the mine into a longlife higher production and low er cost operation capable of generat ing long term free cash fow and high quality growth Island Gold is located at Dubreuil ville 83 km northeast of W awa It comprises 770 km2 7696 hectares and is 100 per cent owned by the company On site in a 900 tonneday rated CIP mill The mine is an under ground op eration with access via a ramp Historical production is over 430000 au oz since October 2007 The mine s 2017 drilling campaigns call for 69000 metres of defnition delineation and 71500 metres of ex ploration drilling The property lies within the Michip icoten Greenstone Belt which is part of the W awa subprovince and Supe rior province of Archean age The Michipicoten Greenstone Belt is ap proximately 140 km long by 45 km wide The property is stratigraphically po sitioned in the upper portion of the W awa Assemblage capped by pyrite bearing iron formation outcropping in the Morrison and Pine zones The Beaufor Mine is located 25 km northeast of V al dOr Quebec and is 100 per cent owned by Richmont It is an under ground operation using longhole and room and pillar The ore is processed at Richmont s 100owned Camfo Mill 50 km away means Richmont s futur e bright A deep r esour ce at Island Gold Page 61