Rich­mont Mines pro­duces 26,659 oz Au at Is­land in Q3

Stockwatch Daily - - FRONT PAGE - Mr. Re­naud Adams re­ports

RICH­MONT MINES Inc. has re­leased solid third quar­ter re­sults from the Is­land gold mine with record quar­terly pro­duc­tion of 26,659 ounces of gold, at low cash costs of $666 ($532 (U.S.)) per ounce. For the nine-month pe­riod, the Is­land gold mine pro­duced 76,541 ounces of gold at peer-lead­ing cash costs of $637 ($487 (U.S.)) per ounce, po­si­tion­ing this cor­ner­stone as­set to beat an­nual guid­ance.

Third quar­ter high­lights — Is­land gold mine

The Is­land gold mine re­ported record pro­duc­tion of 26,659 ounces of gold (22,666 ounces sold) for the quar­ter and 76,541 ounces of gold (74,849 ounces sold) for the nine-month pe­riod. Pro­duc­tion in the quar­ter was pos­i­tively im­pacted by higher-than-planned grade of 10.04 grams per tonne. The Is­land gold mine is now well po­si­tioned to ex­ceed the high-end of an­nual pro­duc­tion guid­ance of 87,000 to 93,000 ounces.

Cash costs for the quar­ter were $666 ($532 (U.S.)) per ounce and $637 ($487 (U.S.)) per ounce for the nine-month pe­riod. The Is­land gold mine re­mains on track to beat the low end of an­nual cash cost guid­ance of $715 to $765 ($550 (U.S.) to $590 (U.S.)) per ounce.

Cash bal­ance at the end of the quar­ter was $90.1-mil­lion ($72.2-mil­lion (U.S.) ), a slight de­crease of $5.8-mil­lion ($4.6-mil­lion (U.S.)) over the sec­ond quar­ter. As a re­sult of tim­ing, the fin­ished goods in­ven­tory at the end of the quar­ter con­sisted of ap­prox­i­mately 2,000 gold ounces. Th­ese ounces were sold in the fourth quar­ter.

On Sept. 11, 2017, Rich­mont an­nounced that it had en­tered into a de­fin­i­tive agree­ment with Alamos Gold whereby Alamos will ac­quire all of the is­sued and out­stand­ing shares of Rich­mont pur­suant to a plan of ar­range­ment. The trans­ac­tion is ex­pected to close on, or about, Nov. 23, 2017.

On Oct. 2, 2017, Rich­mont com­pleted the sale of Rich­mont’s Quebec-based as­sets to Monar­ques Gold Corp., which in­cludes the Beau­for mine, the Cam­flo mill and the Wasamac de­vel­op­ment project, as well as all other min­eral claims, min­ing leases and min­ing con­ces­sions lo­cated in the prov­ince of Quebec.

“The Is­land gold mine has de­liv­ered an­other record quar­ter of pro­duc­tion at peer-lead ing cash cost s, which po­si­tions the op­er­a­tion to beat an­nual guid­ance for the third con­sec­u­tive year. Dur­ing the nine-month pe­riod this high-qual­ity as­set con­tin­ued to out­per­form the re­cently re­leased pre­lim­i­nary eco­nomic as­sess­ment on all key met­rics in­clud­ing tonnes mined and milled, grades and unit op­er­at­ing costs, all of which will sup­port a sig­nif­i­cant free cash flow stream,” com­mented Re­naud Adams, pres­i­dent and chief ex­ec­u­tive of­fi­cer. He con­tin­ued: “Dur­ing the quar­ter, we an­nounced a piv­otal trans­ac­tion with Alamos that is con­sis­tent with our com­mit­ment to cre­ate sig­nif­i­cant share­holder value. Our share­hold­ers will main­tain exposure to the on­go­ing po­ten­tial of the Is­land gold mine and ben­e­fit from hav­ing mean­ing­ful own­er­ship in a di­ver­si­fied in­ter­me­di­ate pro­ducer with a proven and ex­pe­ri­enced man­age­ment team.”

Up­com­ing news

• Third quar­ter fi­nan­cial re­sults (Nov. 8);

• Rich­mont share­holder meet­ing (Nov. 16);

• Clos­ing of the Rich­mont/Alamos Trans­ac­tion (Nov. 23). About Rich­mont Mines Inc.

Rich­mont Mines cur­rently pro­duces gold from the Is­land gold mine in On­tario and the Beau­for mine in Quebec. The cor­po­ra­tion is also ad­vanc­ing de­vel­op­ment of the sig­nif­i­cant high-grade re­source ex­ten­sion at depth of the Is­land gold mine in On­tario. With more than 35 years of ex­pe­ri­ence in gold pro­duc­tion, ex­plo­ration and de­vel­op­ment and pru­dent fi­nan­cial man­age­ment, the cor­po­ra­tion is well po­si­tioned to cost-ef­fec­tively build its Cana­dian re­serve base and to en­ter its next phase of growth. Na­tional In­stru­ment 43-101 The sci­en­tific or tech­ni­cal in­for­ma­tion in this news re­lease has been re­viewed by Dr. Daniel Adam, Geo, PhD, vice-pres­i­dent, ex­plo­ration, an em ployee of Rich­mon t, and a qual­i­fied per­son as de­fined by NI 43-101.

We seek Safe Har­bor.

Re­naud Adams, Peter Derek Barnes, Elaine Elling­ham, Rene Luis Joseph Marion, Michael S Pes­ner

(RIC) Shares: 63,836,351

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