GOLD: Richmont resources up, W Zone written down

MONTREAL – Richmont Mines has announced larger mineral reserve and resource estimates despite having to write down the W Zone mine. Total ounces in proven and probable reserves increased 3% year-over-year, in measured and indicated resources rose 5%, and in inferred resources jumped 20%. The company has close to an estimated 4.4 million contained oz of gold in all of its properties..

Richmont operates the Island gold mine near Wawa, ON, and the Beaufor, W Zone and Monique gold mines near Val d'Or, QC, plus exploration projects.

The company is taking a non-cash $13.5 million write-down on W Zone, located on the Beaufor property, in Q4 2013 due to a reduced reserve base. The decision was made due to the mining of reserves and a re-interpretation of the geology.

Reserves and resources at Dec. 31, 2013, stood at the following levels:

Looking forward for 2014, Richmont forecast gold production of 70,000 to 80,000 oz of gold. This year's capital expenditures budget is $18.1 million, of which $16.3 million will be spent on the continued development of the Island gold mine and Island Gold Deep. The exploration budget is $3.8 million to be spent primarily at the Beaufor and Island mines.

Additional details are posted at Richmont-Mines.com.