Vancouver – An independent resource estimate has outlined more than the targeted tonnage on Patricia Mining’s (PAT-V) and Richmont Mines’ (RIC-T) Island Gold project northeast of Wawa, Ontario. Quebec-based miner, Richmont is footing the bill for the exploration drill program in order to earn up to 55% interest in the project.
The 2004 drilling program outlined more than the 500,000 tonnes averaging 8 grams gold or 165,000 contained ounces of gold that was targeted within the Island deposit.
The National Instrument 43-101 compliant resource by Roscoe Postle Associates, outlined an indicated resource of 272,000 tonnes grading on average 13.8 grams gold per tonne (uncut) for the Island deposit. Using a 75 gram gold cut-off for high assays, the average grade is 12.3 grams gold for 108,000 oz. gold contained.
There are another 275,000 tonnes averaging 19.6 grams gold (uncut), or 13.1 grams for 116,000 contained oz. gold when cut at 75 grams gold, in the inferred category.
The estimates were based on the drill program completed in September 2004. For each zone a 6 gram gold cut-off was applied based on a US$400 gold price and a 94% gold recovery.
A resource report due to be released within the month, will provide the information on which Richmont can base its production decision. Richmont has 90 days to decide whether to bring the mine into production or spend $10 million to acquire a 55% interest in the property, after it gets the report.
The Island deposit is one of several mineralized zones within the boundaries of the Island Gold project. The Kremzar, Lochalsh and Goudreau zones have additional resources which have not been included in the latest estimate.
An interim underground drilling program is targeting areas below the resource and should be completed in January 2005.