Island Gold Mine – Delivering Strong Organic Growth

  • High-grade underground gold mine with an increasing production profile, decreasing cost structure and growing cash flow streams
  • PEA level mine and mill expansion plan in place
  • Excellent potential to grow estimated mineral resource inventory: deposit is open laterally and at depth
  • Significant exploration potential: near-mine and across property package

Key Facts and Highlights

Size 77.0 km2 (7,696 hectares)
Location Dubreuilville, 83 km northeast of Wawa, in Ontario
Ownership 100%
Ore processed On site in an 900 tonne/day rated CIP mill
Mine type Underground, using long-hole, access via ramp
Historical production Over 430,000 au oz since October 2007
2017 drilling campaigns 69,000 metres of definition/delineation        
71,500 metres of exploration drilling

Island Gold Mining and processing

Mineral Reserves and Resources

December 31, 2016
Island Gold Mine Tonnes
(metric)
Grade
(g/t)
Contained
Gold (oz)
Mineral Reserves      
Proven & Probable Reserves 2,551,000 9.17 752,200
Mineral Resources      
Measured & Indicated Resources 479,000 5.94 91,450
Inferred Resources 3,042,000 10.18 995,700
Notes to Mineral Reserves and Resources:
Mineral Resources presented are exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Estimates are calculated based on a gold price of CAD$1,500 per ounce.

Geology

The property lies within the Michipicoten greenstone belt, which is part of the Wawa subprovince and Superior province of Archean age. The Michipicoten greenstone belt is approximately 140 km long by 45 km wide. The property is stratigraphically positioned in the upper portion of the Wawa Assemblage capped by pyrite-bearing iron formation outcropping in the Morrison and Pine zones.

A 30 km long and 4.5 km wide northeasterly trending, structurally deformed zone, called the Goudreau Lake Deformation Zone (GLDZ), occurs between the two assemblages. Including its subsidiary splays, the GLDZ is believed to be the main control on gold mineralization for the area. East-northeast striking, steeply dipping, sub-parallel zones of gold mineralization are present within the quartz sericite-pyrite-carbonate alteration of the GLDZ. North trending diabase dikes crosscut all stratigraphy.

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History

In 1985, drilling approximately two kilometers south of the Kremzar Mine intersected a series of sub-parallel lenses containing gold mineralization within deformed rocks of the Goudreau Lake Deformation Zone (gldz). These lenses are known as the Lochalsh, Island Gold, Shore, and Goudreau Lake Zones. Over 1989 and 1990, underground infrastructures were built into the Island deposit beneath Goudreau Lake from an adit on the north shore. A bulk sample weighing 4,167 tonnes was extracted and processed at the on-site Kremzar Mill. Encouraging results were obtained from exploration work conducted from 1996 to 2002 and, in 2004, an exploration program was initiated in order to complete a resource estimate. On January 1, 2005, Richmont Mines became operator of the project. The project began commercial production on October 1, 2007. Richmont acquired Patricia Mining’s 45% interest in December 2008, becoming 100% owner of the property and operations.