Page 47 Go f ar . Be r e w ar ded. T ak e on the challenges and r e w ar ds of a car eer tha t will tak e y ou f ar . Explor e opportunities a t w w w . dumasmining. c om. Page 46 By Gregory Reynolds Richmont Mines Inc. is betting $35 million that a new zone at its Island Gold Mine in Ontario can be transfor - mational for the company . The company suf fered a 2012 net loss of $45.0 million, or $1.28 per share, mainly due to char ges related to the closure and operational loss of the Francoeur Mine in Quebec. This loss compared to record net earnings of $25.9 million, or $0.81 per share, in 201 1. Paul Carmel, president and CEO, said “the discovery of the Island Gold Deep Zone is beginning to show signs that it is the type of asset that could be transformational for the corporation. This year , Richmont will be taking its frst major step towards unlocking the potential value of this zone by com - mitting a $35 million budget aimed at improving access to it. The lion’ s share of this budget will be committed to extending the existing ramp at depth as well as beginning a shaft. W ith a milling facility and a skilled workforce already in place, the Island Gold Deep project is per - fect for Richm ont at this particular point in time.” Island Gold is located 83 km north - east of W awa. Since beginning commercial produc - tion in 1991, Richmont has become an established gold producer special - izing in the exploration and develop - ment of under ground gold deposits. Over the years, it has operated six mines: the Francoeur , Beaufor and East Amphi mines located in Quebec, the Nugget Pond and Hammerdown mines in Newfoundland, and the Is - land Gold Mine in Ontario. In total, these operations have yield ed over 1,000,000 ounces of gold. In 2012, it operated the Beaufor , Fran - coeur and Island Gold Mines. On Nov . 29, Richmont announced the immedi - ate closing of the Francoeur Mine as a result of ongoing high operating costs, and management’ s inability to foresee marked improvements in the future. Excluding the loss from the discon - tinued operatio n, the net loss for the full year was $3 million, or $0.08 per share. For the 12 months ended Dec. 31, Richmont reported 246,743 tonnes of ore were processed at an average grade of 5.45 g/t, and 41,686 ounces of gold were sold at an average price of US$1,666 per ounce. This com - pared to record 201 1 results, in which 261,731 tonnes of ore were processed at an average grade of 6.10 g/t, and 49,196 ounces of gold were sold at an average price of US$1,566 per ounce. Carmel said: “As we turn the page on a diffcult 2012, management is look - ing towards an exciting year in 2013 during which three new projects will begin to take shape. In Quebec, the W Zone and Monique projects will under go a bulk sampling program, which, if successful, will lead to two new sources of proft - able gold production and additional tonnage for the corporation’ s Cam - fo Mill, thus allowing this facility to reach its name plate capacity of 1,200 tonnes per day , and translating into lower unit costs. Richmont will continue to focus on expanding the Island Gold reserve and resource base, and remains op - timistic about the long-term pos - sibilities of this asset. T o this end, a total of 79,700 metres of exploration and defnition drilling are planned in 2013, with the goal of expanding and further delineating the resource base at depth as well as within the mine’ s current infrastructure.” As of Dec. 31, 2012, total Proven and Probable reserves at Island Gold were 141,456 gold ounces, compared to Proven and Probable reserves of 171,814 gold ounces at the end of December 201 1. This reserve level refects 16,425 metres of defnition drilling, which resulted in the partial replenishment of the mine’ s 2012 pro - duction of 41,686 ounces of gold. He added: “2012 was a challeng - ing year for Richmont, during which some diffcult, but necessary , deci - sions were made. Going forward, management will continue to strive to improve the performance of our current operati ons as well as the qual - ity of Richmont’ s overall asset base, and accordingly projects which show promise for lower costs and a longer mine life will likely get the lion’ s share of capital allocation. W e beli eve that one such project is our Island Gold Mine, where exploration drilling over the past several years has established an interesting mineralized zone below the existing infrastructure of this mine. T o this end, a signifcant budget was approved for 2013 to ac - celerate the access to and defnition of this exciting new discovery .” Ontario operation seen as solution to pr oblems of Richmont Mines Mineralized vein with visible gold