A preliminary economic assessment (PEA) for Richmont Mines’ Island Gold operation 83 kilometres north of Wawa predicts average annual gold production of 115,000 ounces over the next eight years.
The PEA is based on updated reserves and resources, and a mill expansion to 1,100 tonnes per day.
Proven and probable reserves total 2.6 million tonnes grading 9.17 grams per tonne, for 752,000 ounces.
The PEA sees Richmont spending $28 million to achieve the planned increase in production, including $16 million in mill upgrades, $7 million for new mobile equipment and $5 million for ventilation.
The company has also committed to spending $16 million on a 100,000-metre drilling program at Island Gold this year.
Gold production for 2017 is forecast at between 110,000 and 120,000 ounces at all-in sustaining costs of between US$905 and US$950.
