Richmont reactivates old Camflo mill

After a brief hiatus following the closing of the Camflo mine, the Camflo mill is again producing gold from the ores of the Abitibi gold belt.

Richmont Mines (TSE) bought the mill, near this small northwestern Quebec community, from American Barrick earlier this year. The mill processes ore from Richmont’s Francoeur mine, near Rouyn-Noranda. A few weeks ago, Richmont poured its first gold dore processed from the Camflo mill.

The mill capacity of 500,000 tons per year is well beyond the capabilities of the Francoeur mine (in 1994, the mine will produce 200,000 tons), but underutilization is a situation Richmont President Jean-Guy Rivard plans to remedy soon.

“My target is to get the mill running full-tilt as soon as possible,” He told The Northern Miner on a recent visit. In fact, negotiations are under way for custom milling of neighboring deposits.

While Richmont’s financial performance kept pace with projections during the first six months of this year, it posted a loss in the third quarter. This came about because all custom milling of Francoeur ore at the Kerr operation ceased after Richmont acquired the Camflo mill. Consequently, third-quarter mine production will be milled in the fourth quarter.

Richmont reported a third-quarter loss of $138,493, compared with a profit of $775,038 in the corresponding period of 1992. Nevertheless, earnings for the first nine months of this year were $1.4 million, compared with $1.4 million in the same period a year ago. Revenues for the current 9-month period were $7.4 million, compared with $6.1 million a year earlier.

In spite of the third-quarter loss, Rivard said Richmont will hit the $3-million profit target set earlier this year.

“We’re right on track,” he said.