Island Gold Mine and Mill

Size 84.4 km² (8,444 hectares) Location 83 km northeast of Wawa, Ontario Ownership 100% Ore processed On site at the Kremzar Mill, an 850 tonne/day rated CIP mill Mine type underground, using long-hole, access via ramp Historical production Over 100,000 Au oz since October 2007 Drilling campaigns 57,000 metres in 2010 38,000 metres planned in 2011 Technical report Click here to view the 43-101 report Other report Click here to view the TRA public summary report

Plugin disabled Plugin colorbox cannot be executed. Photos from the Island Gold Mine infrastructure

Reserves and Resources (as of December 31, 2010)

	Tonnes (metric)	Au (g/t)	Au Ounces
Proven and Probable Reserves	818,066	6.13	161,197
Measured and Indicated Resources	796,475	7.36	188,511
Inferred Resources	604,729	7.14	138,732

Brief 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.

Geological characteristics:

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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