The mineral resource estimate was prepared by Mr. Daniel Adam, Geo., Ph.D., Vice-President, Exploration, Qualified Person as defined by Regulation 43-101 and employee of Richmont Mines Inc.
2013 Planned Work
Richmont will invest an initial $35 million to advance the Island Gold Deep project in 2013. Capital will be focused on extending the existing ramp to gain access to the Island Gold Deep resource and to establish an exploration horizon for further definition and step-out drilling. Ultimately, it is expected that the ramp will reach a final depth of approximately 1,000 metres over a 3 year period. In addition, the Corporation's objective is to commence the excavation of a 1,000 metre deep vertical shaft to gain access to the Island Gold Deep project. With access at a depth of 450 metres expected shortly, Richmont will benefit from being able to employ a lower cost raise-boring method for the first 450 metre section of the shaft. The permitting approval process has begun in this regard. The Corporation's objective is to raise-bore the subsequent two vertical sections of the shaft as work on the project advances.
Parameters used for mineral resource estimation
The C Zone that is being defined at depth is typical of the Island Gold mine mineralization with decimeter-sized grey quartz veins, which often contain visible gold, inside plurimetric altered zones with disseminated pyrite. Some drill holes intersected other good mineralized zones that appear to be lateral to the C Zone, but drill spacing was insufficient for them to be included in the current mineral resource estimation.
The current mineral resource estimation of the C Zone was completed for an area which extends over 400 metres laterally, between 450 metres and 1,000 metres below the area of the Island Gold Mine currently being mined. A total of 117 surface and underground drill holes were used to model the C mineralized zone with a 3D wireframe using a minimum true thickness of 2 metres. While mineralized C Zone intersects exist laterally to the West, we consider that the hole spacing is presently too large for a mineral resource estimation. Drilling in this western area will be completed in 2013 from an underground exploration drift currently being extended to the 470 metre level below surface.
Mineral resources were estimated by 3D block modeling (multi-folder block model, with block dimension of 10 metres x 10 metres x 4 metres) with Gems software and using 2 metre composites. Grade estimation was done using an inverse squared distance weighted interpolation method. A minimum of 2 composites and a maximum of 30 composites within a spherical 75 metre search ellipse were used for the interpolation. A high grade assay capping value of 75 g/t Au was used, which is the capping presently used at the Island Gold Mine. A density of 2.80 t/m3 was used for the tonnage calculation, which is based on one URSTM laboratory measurement completed on a composite sample of 4 C Zone core intercepts (a density of 2.82 t/m3 is presently used at the Island Gold Mine).
Mineral resources were estimated using a minimum average grade of 3.0 g/t Au inside the modeled mineralized zone. This cut-off, based on a gold price of US$1,450 (CAN$1,450) per ounce, is presently used to estimate the mineral reserves at the Island Gold Mine. The mineral resource area was cut into the C Zone wireframe using an extrapolation of about 30 metres from drill hole intercepts. All the blocks inside the clipped wireframe are accounted for in the mineral resource. Inside the mineral resource area, the drill spacing average is 50 meters although there are areas with a larger spacing as well as areas with tighter spacing.
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