Name: Island Gold mine and mill.

Location: The Island Gold mine is located in Dubreuilville, 83 km north-east of Wawa, in Ontario, Canada.

Controlling Company: Richmont Mines.

Brief History: In 1985, drilling conducted about 2 km south of the Kremzar mine intersected a series of subparallel lenses containing gold mineralisation within deformed rocks of the Goudreau Lake deformation zone (GLDZ). These lenses are known as the Lochalsh, Island Gold, Shore and Goudreau Lake zones. In 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 t 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 programme was initiated 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.

Brief Description: The Island Gold mine consists of 111 mining patents and leases totalling 1 736 ha, and 78 staked claims totalling 4 176 ha, as of December 31, 2012, located mainly within Finan and Jacobson townships. These claims are grouped within seven different properties: Kremzar, Lochalsh, Goudreau, Edwards, Salo, Ego and Island Staked Claims.

The current Island and Lochalsh zones are located on the Lochalsh property, while the Goudreau zone is on the Goudreau property. The C Zone resources of the Island Gold Deep project are located mainly on a claim found on the Goudreau property.

All the mining titles of the properties are held by Richmont Mines, except for four patented claims of the Goudreau property – 2490, 2491, 2666 and 2667 – in which Richmont Mines owns 69%.

Mining Method: Underground, using long-hole stoping, access by ramp.

Products: Gold.

Major Infrastructure and Equipment: A 4.5 m × 4 m ramp is used to access the deposits and haul ore to the surface. Several levels and sublevels are accessible from the ramp to reach the ore.

Two ventilation fans are located on surface to supply the underground operation with the required fresh air. Two propane burners of 6.5-million British thermal units each are also installed for air heating.

There are two compressors of 1 000 cubic feet a minute (cfm) each and another of 750 cfm. A 750 cfm diesel compressor is also available on site in case of emergency, for use on the surface or underground.

The Island mine infrastructure includes the primary tailings pond, the secondary settling pond, the carbon-in-pulp Kremzar mill with a capacity of 850 t/d, the Lochalsh ramp and portal, the mine access road and the hydro lines, all located on the property. An office, a core logging and storage facility and a mine dry are located on the Kremzar mine site.

Geology/Mineralisation: 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 about 140 km long and 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.

The GLDZ, a 30-km-long and 4.5-km-wide north-easterly-trending, structurally deformed zone, occurs between the two assemblages. Including its subsidiary splays, the GLDZ is believed to be the main control on gold mineralisation in the area. East-north-east-striking, steeply dipping, subparallel zones of gold mineralisation are present within the quartz sericite-pyrite-carbonate alteration of the GLDZ. North-trending diabase dikes crosscut all stratigraphy.

Reserves: Total proven reserves as at December 31, 2012, were 428 958 t, grading 5.42 g/t gold. Probable reserves were 356 263 t, grading 5.82 g/t gold.

Resources: Measured resources as at December 31, 2012, were 28 531 t, grading 5.58 g/t gold; indicated resources were 474 379 t at 6.94 g/t gold and inferred resources were 279 569 t at 6.2 g/t gold.

Prospects: Richmont is developing the Island Gold Deep project. The project contains estimated inferred mineral resources of 1.5-million tonnes grading 10.73 g/t Au for 508 000 oz as at January 25. Located at a depth of between 450 m and 1 000 m, Island Gold Deep is subvertical and open in all directions. It appears to be an extension of the areas currently being mined in the Island Gold mine above, but at higher grades and greater widths.

Contact Person: Investor relations, Jennifer Aitken.

Contact Details:
Richmont Mines, tel + 1 514 397 1410, fax +1 514 397 8620, email jaitken@richmont-mines.com, and website www.richmont-mines.com

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