Royalty Holder…………..Undisclosed
Revenue……………..…..………………..n.a.
Mine Life...……………..…………………n.a.
Commodity…………………………….Gold
Operator………………Richmont Mines

#7 Island

A 3 per cent revenue royalty is quietly sitting under a high-grade gold mine in Ontario.

Quebec-based Richmont Mines operates the Island mine, producing a record 15,000 ounces last quarter. The company is escalating output from Island as it moves deeper underground, sinking a ramp to 700m, with drilling underway at the 620m level.

Drill results are ongoing, but so far they indicate that the gold resource broadens as it moves deeper underground. Richmont has drilled out a 1.1m ounce resource below its existing, shallower deposit, with eye-catching grades of 9 to 12 grams per tonne.

By following the extensions, Richmont however was dragged onto four mining claims it did not fully control and in a consolidation effort last year, it gave up a 3 per cent royalty over the high-grade underground zone.

The “third party” royalty holder has not been named, but will be watching Richmont's drill results, including 41,000m of underground drilling budgeted for the current year, with increasing enthusiasm.

 

 

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