Beiträge von GSP-Komet

JOHANNESBURG, Oct 05, 2007 (Dow Jones Commodities News via Comtex) -- South African President Thabo Mbeki has called for all mines in the country to be audited to determine whether they meet health and safety requirements, his office said in a statement Friday.
The call for Minister of Mineral and Energy Affairs Buyelwa Sonjica to launch an audit follows the successful rescue Thursday of about 3,200 workers who were trapped underground at Harmony Gold Mining Co.'s (HMY) Elandsrand mine near Carletonville, some for more than 24 hours.
The statement said Mbeki had expressed his "utmost satisfaction" with the rescue, which he described as "testimony of a true South African spirit."
The president wished the miners a speedy recovery and said he hoped the mine would reopen soon, after all necessary safety requirements had been satisfied.

By Robb M. Stewart in Johannesburg, South Africa, and Kris Maher in Pittsburgh
Word Count: 1,141 | Companies Featured in This Article: Harmony Gold Mining

A Wednesday accident that trapped 3,200 gold miners in South Africa for a day or more has put a spotlight on safety practices in the mining and minerals industries, which have rushed to meet a four-year surge in global demand for commodities.

It also raised questions about the turnaround at mine operator Harmony Gold Mining Co., one of the world's largest gold producers, which is trying to rebound from management turmoil and declining production.

The last of the workers was released yesterday from the Elandsrand mine near Carletonville, southwest of Johannesburg, with no reports of fatalities or serious injuries. Production ...

As for the commodity stocks, Harmony Gold Mining (HMY) climbed 2.9% on news that about 2,000 of roughly 3,200 trapped miners had been rescued after an accident at a deep underground mine in South Africa.
The miners became stranded after the mine lost power.

By Robb M. Stewart in Johannesburg and Chip Cummins in Dubai
Word Count: 805 | Companies Featured in This Article: Harmony Gold Mining, AngloGold Ashanti

A massive operation to bring about 3,200 miners to the surface in a gold mine in South Africa is shaping up to be a crucial test for owner Harmony Gold Mining Co., an international mining concern already struggling with a management shake-up and rising costs amid today's super-heated commodities cycle.

Harmony said Thursday that the last of the trapped miners emerged at around 9 p.m. local time and that no employees had been injured. Company officials say the main lift at its Elandsrand mine, near Johannesburg, was damaged when a section of pipe broke free and fell into the shaft. ...

NEW YORK (MarketWatch) -- The last of the 3,200 miners trapped in a South African gold mine have been rescued, some after spending 40 hours underground, according to media reports Thursday. There were no reports of fatalities or serious injuries.
The Elandsrand mine, which is owned by Harmony Gold Mining Ltd. (HMY:
harmony gold mng ltd sponsored adr) , is some 50 miles northeast of Johannesburg in an area rich in gold deposits and with some of the deepest mines in the world, according to reports. Harmony has halted production at the mine for up to six weeks to investigate how the accident happened, reports said.
The miners became trapped when a mishap in the 1.4-mile-deep shaft used to transport workers and equipment snapped a power cable to an elevator. The damage was only noticed late Wednesday, when miners on the day shift tried to reach the surface, according to reports. The miners were rescued through a smaller adjacent shaft.
"The incident highlights the ongoing difficulties faced by mining operations in South Africa," Jon Nadler, an analyst with Kitco Bullion Dealers in Montreal, wrote in an email.
"Most of the easy-to-get-to gold has been unearthed long ago. The remaining deposits are very deep underground. However, in the face of declining production, and motivated by very high gold prices, mining companies are doing their utmost to get every valuable gram of gold to the light of day."
Miners blamed poor maintenance for the accident. While Harmony dismissed allegations of negligence, the company chairman said more safety measures were needed, according to a Reuters report. End of Story
Simon Kennedy is the City correspondent for MarketWatch in London.
Michelle Donley is a MarketWatch news editor based in New York.

LONDON (MarketWatch) -- Around 1,500 of the 3,200 gold miners trapped in South Africa have been rescued as the slow process of lifting them over a mile to the surface continues, according to media reports early Thursday. No injuries have been reported and paramedics have reached those still waiting to be rescued, news wire reports said. The miners were trapped after a pipe fell down a shaft, severing electrical cables controlling the lifts, according to a BBC report. Shares in Harmony Gold Mining (HMY: harmony gold mng ltd sponsored adr) , which owns the mine, fell 1.7% on the South African market.

Over 3,000 trapped in Harmony Gold mine: reports

SAN FRANCISCO (MarketWatch) -- More than 3,000 miners have been trapped in a South African gold mine owned by Harmony Gold Mining Ltd. (HMY:
HMY) , according to media reports Wednesday. The miners were trapped when a roughly 1.4 mile-long shaft became blocked near its bottom, according to a report on the BBC's Web site. Rescuers are trying to use an adjacent shaft to rescue the miners, the report said. The mine is located in an area rich in gold deposits and with some of the deepest mines in the world, according to the report.

COEUR D'ALENE, Idaho, Sep 28, 2007 (BUSINESS WIRE) -- Coeur d'Alene Mines Corporation (CDE: CDE) (CA:CDM) today announced updated exploration results at its Cerro Bayo Mine in Chile, where the accelerated drilling program on the company's large land holdings has continued to return consistently high-grade silver and gold intercepts close to the mine's processing facilities.
The recent results are a continuation of the full-year $4.7 million program in 2007, which through the first six months of the year increased mineral reserve levels at Cerro Bayo by 51% over 2006 year-end levels. Due to the high grade nature of the new vein intercepts and their proximity to the processing facilities, permitting for underground access and future mine development has started.
Exploration in the Cerro Bayo district has focused on five new major veins, discovered over the last four months of this year, located about one kilometer east of the Cerro Bayo ore processing facility. Nearly 10,000 meters of core drilling have been completed on Dagny, the parallel Fabiola vein, which lies about 250 meters to the east of Dagny, and the Dalila and Yasna veins in the same area. The Coyita vein, located about 300 meters to the east of Fabiola, is scheduled for initial drilling in October.
The drill-defined mineralized body at Dagny is now over 600 meters long and nearly 150 meters in vertical height. Mineralization is still open for expansion to the southeast. At the parallel Fabiola vein, the drill-defined body is currently about 350 meters in strike length and about 120 meters in height. Mineralization is open both to the southeast and northwest and at depth.
In addition, results from initial drilling on Yasna and Dalila discovered ore-grade mineralization in those veins with the most significant results to-date being 2.43 drill meters averaging 0.96 grams of gold per tonne (g/t) and 391 grams of silver per tonne in Yasna, and 0.43 drill meters averaging 59.12 grams of gold per tonne and 1,250 grams of silver per tonne in Dalila.

Parties Provide Transaction Update

COEUR D'ALENE, Idaho & SYDNEY, Australia & LONGUEUIL, Quebec, Sep 24, 2007 (BUSINESS WIRE) -- Coeur d'Alene Mines Corporation (CDE:
CDE) (CA:CDM) , Bolnisi Gold NL (ASX: BSG) and Palmarejo Silver and Gold Corporation (CA:PJO) today announced that Coeur has filed its preliminary proxy statement with the Securities and Exchange Commission ("SEC") with respect to the issuance of Coeur shares pursuant to Coeur's proposed acquisition of Bolnisi and Palmarejo.
The date of the special meeting of Coeur shareholders and the record date for the meeting will be specified in a definitive proxy statement that will be mailed to shareholders following the SEC's review of the preliminary proxy statement or, alternatively, the SEC's election to not review the preliminary proxy statement. For shareholders' general information, the preliminary proxy statement is available on the SEC's website at http://www.sec.gov, the Canadian securities regulators' website at http://www.sedar.com or Coeur's website at http://www.coeur.com.
Transaction Update
On May 3, 2007, Coeur, Bolnisi Gold NL, and Palmarejo announced that they entered into agreements to merge, which were approved unanimously by their respective boards of directors. Pursuant to the agreements, Coeur will acquire all of the shares of Bolnisi, and all the shares of Palmarejo not owned by Bolnisi, in a transaction valued at approximately US$1.1 billion.
The companies have agreed to amend the Merger Implementation Agreements and the Bolnisi directors' option deeds to allow for adequate time for the required regulatory processes and receipt of the required shareholder and court approvals. The parties expect to close the transaction in the fourth quarter of 2007.
The companies also announced that Bolnisi, with the consent of Coeur, will enter into a $20 million credit facility with Macquarie Bank Limited to fund ongoing project development. The facility will enable Bolnisi and Palmarejo to continue to develop the Palmarejo Project under the direction of the Project Development Committee, which consists of professional staff from Bolnisi, Palmarejo and Coeur.
About Coeur
Coeur d'Alene Mines Corporation is one of the world's leading primary silver producers and a growing gold producer. The company has mining interests in Alaska, Argentina, Australia, Bolivia, Chile, Nevada, and Tanzania. In 2006, Coeur produced 12.8 million ounces of silver and 116,000 ounces of gold. Cash costs in 2006 were $3.33 per ounce of silver for 2006.
About Bolnisi Gold
Bolnisi Gold NL is an Australia-based company engaged in mining and exploration for gold and minerals. The Company's activities are all Mexican precious metals operations with an existing portfolio of projects, which include the Palmarejo Silver-Gold project (including Trogan), Chihuahua; the Yecora Gold-Silver project, Sonora, and the El Realito Gold-Silver project, Chihuahua.
About Palmarejo Silver & Gold
Palmarejo Silver And Gold Corporation is a silver/gold exploration company listed on the TSX Venture Exchange under the symbol "PJO". Palmarejo's principal activity is to explore and develop gold and silver properties located in the Temoris District of Chihuahua, Mexico within the Sierra Madre Occidental mountain range.

Gold is trading at its highest level in almost 28 years and the outlook appears favourable with analysts forecasting that prices next year could challenge the record $850 a troy ounce reached in 1980.

Dennis Wheeler, chief executive of Coeur d’Alene Mines, told the Denver Gold Forum on Monday that precious metals could be heading for a “perfect storm” that would boost prices.

...

Analyst Blog:
Harmony Gold's (HMY: harmony gold mng ltd sponsored adr) return to profitability in FY07 was attributable to higher gold prices and a weaker South African Rand relative to the U.S. Dollar. The weaker South African rand is increasing the company's realized gold price in local terms. Going forward, Harmony is focused on reducing its overall operating costs through its CONOPS agreement and the shut down of loss-making shafts. Even with an earnings rebound this fiscal year, we have applied a discounted multiple to HMY ADRs to reflect a significant production profile in South Africa. Our target price of $12.75 is based on around 1.00x P/NPV valuation metric. Currently, Harmony is trading at 0.92X P/NPV, based on a NPV of $13.20 per American Depositary Receipt.

...

JOHANNESBURG, Sep 26, 2007 (Dow Jones Commodities News via Comtex) -- Gold Fields Ltd. (GFI), Africa's second-largest gold producer, has a further 600,000 troy ounces in output to add by the end of 2009 to meet its target of raising production at its international operations by 1.5 million ounces.
The Johannesburg-based company in its annual report released Wednesday said that in the short term it would focus on growth in regions where it already operates and critical mass, preferably located immediately adjacent to existing assets.
Cerro Corona mine is on track for commissioning in early financial year 2008, and Chief Executive Ian Cockerill said it would repay its initial capital investment of $340 million within three years.
The project is designed to deliver 400,000 ounces a year of gold equivalent production in the first two years at total cash costs of about $300 an ounce.
Gold Fields' Choco 10 mine in Venezuala, meanwhile, has been constrained by a water shortage and labor disputes. The company said the problems are being addressed and it's confident upgrading a plant and infrastructure and improved staff working conditions will yield benefits.
It has invested $10 million in drilling programs, including on the recently acquired Choco 6 concession, to define targets to achieve a 300,000 ounce production level at cash costs below $300 an ounce by financial year 2009.
"With successful growth secured through South Deep and Cerro Corona, in particular, the group has tightened its targeting criteria from the "rule of twos" to "rule of fives," Gold Fields said.
The former rule referred to targeting assets capable of supporting 200,000 ounces a year in production from two million ounces of reserves. The company said it would now look to assets closer to 500,000 ounces of annual production, such as the Cerro Corona project in Peru, in order to maintain a portfolio of a few large, high-quality, long-life assets.
During the financial year, Gold Fields acquired the South Deep mine in South Africa for roughly 25 billion rand ($3.6 billion). The mine, located adjacent to the company's Kloof mine, has reserves of some 30.6 million ounces in a resource of 66.8 million ounces.
Gold Fields' attributable production in the year to June was 4.02 million ounces of gold, down slightly from 4.07 million ounces in financial 2006.
Cockerill in a statement said the company expects to boost output to 4.25 million ounces in fiscal 2008, and limit the increase in cash costs to between 10% and 15%.
"After the intense activity of 2007, next year will be mainly a period of consolidation for the group. Bringing Cerro Corona to production and the further build up at South Deep will contribute largely to improving Gold Fields' attributable gold production to 4.25 million ounces," Cockerill said.
The company would in the current year bed down recent acquisitions, Cockerill said.
The CEO added the long-term fundamentals supporting the gold price remain positive, and exchange traded funds would continue to stimulate investment demand as new listings are introduced in the Middle Eastern and Asian regions.
Dehedging is expected to continue, and the dollar shows few signs of significant strengthening, he said, while emerging wealth in Middle Eastern and Asian regions should provide strong support to sustained demand for gold, given the cultural significance of the metal.
Company Web site: http://www.goldfields.co.za

COEUR D'ALENE, Idaho, Sep 17, 2007 (BUSINESS WIRE) -- Dennis E. Wheeler, Chairman, President and Chief Executive Officer of Coeur d'Alene Mines Corporation (CDE: Coeur d'Alene Mines Corporation) (CA:CDM) , will speak at the Denver Gold Forum in Denver, Colorado on September 24 at 10:05 a.m. Eastern time (8:05 a.m. Denver time). Mr. Wheeler will present an overview of the company's strategy and growth prospects.
The slides used by Mr. Wheeler will be available in the Investor Relations section of Coeur's web site, http://www.coeur.com.
Coeur d'Alene Mines Corporation is one of the world's leading primary silver producers and has a strong presence in gold. The company has mining interests in Alaska, Argentina, Australia, Bolivia, Chile, Nevada and Tanzania.

SPOKANE, Wash., Sep 19, 2007 (BUSINESS WIRE) -- Gold Reserve Inc., (CA:GRZ) (GRZ: gold resv inc cl a) announced that it has retained New York based Rubenstein Investor Relations (RIR) to help raise awareness within the investment community of the Company's gold and copper projects located in southeastern Venezuela. The Company is developing the Brisas project in the "Kilometer 88" Mining District as well as the Choco 5 property located in the "El Callao" region, where the Company has recently commenced a drilling program.
Doug Belanger, President of Gold Reserve stated, "We look forward to working with Rubenstein Investor Relations. They have a proven track record of aligning companies with the appropriate financial audiences. Their guidance is important to the Company and its shareholders at this important stage in our growth."
"We are excited about our engagement with Gold Reserve," said Richard Rubenstein, President of Rubenstein Investor Relations. "The Company's experienced and dedicated employees have been diligently working to develop Brisas and Choco 5 in mineral-rich southeastern Venezuela. We are eager to communicate these efforts to the market place and expand Gold Reserve's profile within the financial community."
About Gold Reserve Inc.
Gold Reserve Inc. is a Canadian company developing the Brisas gold copper project in southeastern Venezuela. Brisas has NI-43-101 reserves of 485 million tonnes of ore grading 0.67 grams per tonne gold and 0.13% copper containing 10.4 million ounces of gold and 1.3 billion pounds of copper (using a revenue cutoff grade of US $3.04 per tonne and a gold price of US $400 and a copper price of US $1.15 per pound). The mine plan anticipates using conventional truck and shovel mining methods with the processing of ore at full production of 70,000 tonnes per day, yielding an average annual production of 456,000 ounces of gold and 60 million pounds of copper for a mine life of 18.5 years. Using copper as a byproduct, operating costs are expected to be US $126 per ounce (using US $1.80 copper). The Qualified Personnel for the NI-43-101 Report are Susan Poos of Marston and Marston, Inc. and Richard Addison and Richard Lambert of Pincock, Allen and Holt, all registered professional engineers.
About Rubenstein Investor Relations
Rubenstein Investor Relations is staffed by Wall Street professionals offering traditional Investor Relations programs specializing in positioning small and micro-cap companies into the proper financial community of investors. The company focuses on facilitating and developing strong and lasting investment banking relationships, building institutional support, and improving clients' overall investor relations strategies.

As Media Touts Nuclear Power, Time To Review Nuclear & Uranium Stocks (CCJ, USU, SGE, FLR, GE, URRE, USEG, URZ, CAU, MOS, CF, NLR)

It seems like the media is touting and flaunting more and more for a return of nuclear energy. This may or may not happen as the applications are again for "Next Year" and it is with no surprise that it's becoming the topic of much labor in Mexico pronounced "Man-ya-na" (sorry no N~ without changing languages). You can also see where spot Uranium prices have come down significantly from the pre-summer ramp and summer highs. TradeTech's Uranium site shows its price chart for Uranium and The Ux Consulting Company shows much of the same. But with $80.00 per barrel of oil and T. Boone Pickens calling for even higher oil prices you never know just how long the "call for nuclear power" will take to resurface from the investment community. Nuclear power is getting more media coverage again.
Let's assume for a moment that we forget about the discussions leading to delays that have been perpetual. Let's for get about the political side of nuclear power. Lets forget about killing land under mountains where we'll bury the stuff in Nevada. And let's forget about the potential environmental catastrophe that can result if something goes horribly wrong.
There are many stock plays in the U.S. alone that will be huge beneficiaries of this if even one nuclear power plant approval goes through. If there is one, why not the full dozen of them. Here is the lot of companies:
Shaw Group (NYSE:SGR) is perhaps the most vertical of the engineering and construction firms. Fluor (NYSE:FLR) is also in there. And we can't leave out the monster General Electric (NYSE:GE) for new reactors, nuclear fuel, reactor services and performance services.
Cameco (NYSE:CCJ) out of Canada is THE go-to behemoth in the stock market for Uranium miners and producers. The much smaller company in the US is USEC (NYSE:USU), although its shares were hit exceptionally hard Friday after testing started. Some more smaller and much more speculative stocks in the sector are Uranium Resources, Inc. (NASDAQ:URRE), U.S. Energy Corp. (NASDAQ:USEG), Uranerz Energy Corp (AMEX:URZ), and even Canyon Resources Corporation (AMEX:CAU). Mosaic (NYSE:MOS) and CF Industries (NYSE:CF) are stealth plays in the sector that can enrich uranium from phosphate, but you should know that prices have to be very high and have to be expected to remain very high for quite some time for those to be cost effective.
The Economist recent magazine cover also flaunted a comeback for nuclear power. It said America's nuclear industry is about to embark on its biggest expansion in more than a generation. This will influence energy policy in the rest of the world. CNET today discussed the wave of coming applications for more nuclear power plants that are coming. Personally, I'm a believer in this. No greenhouse gases, no pollution, no icky air around the place. But the dark side is not Three Mile Island. That was nothing. The dark side is Chernobyl and a vast area of land that won't be habitable for generations and generations. The other thing that might act as a possible lid on investors reviewing nuclear power stocks this time around is that local gas prices for your car are far lower than earlier this year when energy prices were rising but not as high as the $80.00 seen this week.
No wonder Merrill Lynch got credit for what seemed to be overly bullish analysis that ended up looking like they had a crystal ball for a few months. They gave a huge safety net for uranium prices. The Canadian National Post also gave some buyout picks in the sector based on Raymond James analysis.
Nuclear power plants are coming online more and more in China and India, and Japan and France are largely dependent upon the glowing green juice to power those nations. Russia is showing it is expanding nuclear power use again and South Korea is expanding its program. None of us in the Western hemisphere are going to be too excited about this, but the chances that we are going to have to deal with a nuclear-using Iran is getting larger instead of smaller.
Back in August an ETF was launched as the Market Vectors Nuclear Energy ETF that launched on the American Stock Exchange under the "NLR" ticker, but only a portion of these stocks in here are US-based and many names wont be familiar. Here is the full list of the company stocks in the ETF.

Canyon Resources faces possible AMEX delisting - MarketWatch

RENO, NEVADA, Sep 13, 2007 (MARKET WIRE via COMTEX) -- Allied Nevada Gold Corp. ("Allied Nevada" or the "Company") (CA:ANV) (ANV: allied nevada gold corp com) is pleased to announce that the Allied Nevada Board of Directors has approved the reactivation of the Company's owned Hycroft Heap Leach Mine ("Hycroft") located near Winnemucca, Nevada.
The Hycroft reactivation project involves reopening the Brimstone oxide open pit mine which has been on care and maintenance since 1998. This oxide open pit mine was in production from 1994 until 1998 when the entire Hycroft Mine was closed and put in care and maintenance due to low gold prices.
While in production the Brimstone deposit contributed 175,000 ounces of gold production to the Hycroft total production of approximately 1 million ounces of gold. The Brimstone Mine is expected to produce 375,000 ounces of gold over the next five years. Reflecting the excellent condition of the facilities at Hycroft, the capital cost required to attain this production is expected to be $26 million, of which $21 million is spent on pre-stripping and leach pad construction. Virtually all of the capital funds would be spent in 2008, with a target of achieving production in the fourth quarter of 2008. The critical constraints to achieve the gold production schedule include the timing of reclamation bond approval, the availability of a mining contractor to complete the pre-strip, and the availability of a contractor to construct the leach pad. The Company has scheduled these activities to begin in May 2008, but it is possible that these activities can be completed sooner resulting in an earlier start of gold production. The Company plans to utilize outside funding sources to provide the necessary capital required to re-open the Hycroft Mine and has begun to review potential financing alternatives for the project. Current cash expenditures for the project are being provided from the Company's funds.
To complement this production objective, as previously announced, the Company has commenced a 90,000 foot exploration drill program designed to upgrade and expand the oxide gold measured and indicated resource which currently stands at 52.7 million tons grading 0.019 ounces per ton(1).
The second and potentially more exciting goal of this drilling program is the evaluation of the underlying sulfide mineralization that is known to exist below both the Brimstone and Crowfoot Lewis open pit mines. Two diamond drill holes drilled in 1996 and earlier intercepted gold mineralized sulfides averaging 0.023 ounces per ton gold and 0.5 ounces per ton silver over intervals exceeding 500 feet in thickness. The Company's deep drilling program is designed to validate the overall extent of the sulfide system, thereby allowing Allied Nevada to design a detailed drill program in order to define the size, continuity and economic value of the mineralization.
President and CEO, Scott A. Caldwell, said; "We believe that the Hycroft reactivation project has robust economics and low technical risk, and we anticipate that the project's cash flow will support the advancement of our other Nevada projects. Management expects that the drill program currently underway at Hycroft will increase oxide ore reserves and extend the life of the oxide project. I am particularly excited about completing more deep holes and further defining the potential of the sulfide resource."
About Allied Nevada Gold Corp.
Allied Nevada has a large exploration land position in Nevada, providing a strong platform from which to pursue growth opportunities. Allied has interests in nearly 220,000 acres of exploration and development properties in some of the most important gold mining trends in Nevada.
Allied Nevada is a newly-formed independent company engaged in the evaluation, acquisition, exploration and development of gold projects. Allied Nevada's approach to gold projects will be to seek projects across the spectrum of our current exploration property portfolio which have the potential to become an economic mine. In addition, Allied Nevada's management will look for opportunities to enhance the value of the Company's interests in gold projects which are controlled by Allied Nevada's business partners.

Gold Fields Delivers Positive Feasibility Study for Essakane

Annual production of 300,000 oz/yr at less than $300/oz and 15% IRR

OTTAWA, ONTARIO, Sep 11, 2007 (MARKET WIRE via COMTEX) -- Orezone Resources Inc. (CA:OZN) (OZN: orezone res inc com) and Gold Fields Ltd (GFI: gold fields ltd new sponsored adr) (JSE: GFI)(DIFX: GFI) are pleased to announce that a NI 43-101 compliant Definitive Feasibility Study ("D FS") for the Essakane Project in Burkina Faso, West Africa, has been delivered to Orezone as part of a Shareholders agreement which provides for Gold Fields earning a 60% interest in the Essakane Project upon issuance of this DFS. An executive summary of the study that was prepared by GRD Minproc of South Africa will be filed on SEDAR within the next 30 days. Orezone and Gold Fields have 90 days to review the study prior to a final a production decision being made. The permitting process is already underway in Burkina Faso and all permits including a mining convention are expected to be in place prior to making a production decision before the end of the year.

Richmont Mines Updates Beaufor Mine and Valentine Lake Progress

- Beaufor Mine headframe replaced; production resumed August 21st

MONTREAL, CANADA, Sep 13, 2007 (MARKET WIRE via COMTEX) -- Richmont Mines Inc. (CA:RIC) (RIC: RIC) announces that the replacement of the wooden headframe structure at the Beaufor Mine was completed on August 18, 2007. The mine shaft was put back into service and production resumed on August 21st while milling at the Camflo Mill resumed on September 6, 2007. The original headframe structure dated back to the early 1980s, and, as previously announced, efforts to replace the structure began in June 2007, with a complete mine shut down beginning on July 13, 2007.
As a result of the shut down, third quarter production and sales are expected to be lower than the second quarter, although full year production from Beaufor is expected to exceed 2006 production. Prior to the shut down, results for the first half of 2007 showed a significant improvement in the average grade and a resulting decrease in the cash cost of production per ounce. In the first half of 2007, 18,808 ounces of gold were sold with a cash cost of US$427 per ounce compared with 15,265 ounces of gold sold in the first half of 2006 with a cash cost of US$584 per ounce. The average recovered grade improved to 8.41 grams/tonne (g/t) in the first half of 2007 compared with 5.56 g/t in the same period the prior year.
The sectors currently being mined are located near the Beaufor fault and continue to demonstrate encouraging results. Additional exploration drilling is also underway to uncover new zones. The drill plan for 2007 has been increased to 25,000 meters, up from 20,000 meters of drilling originally planned.
Valentine Lake Drilling Update
Expenditures for the drilling program currently underway at Valentine Lake will complete the $1 million investment required for the Company to acquire a 70% interest in the property. However, due to severe weather conditions and limited helicopter availability due to mechanical failures, the number of meters drilled will fall short of the 2,700 meters originally planned. The objective of this exploration plan is to evaluate the overall potential of the remainder of the large Valentine Lake property, which has unexplored, strong gold soil anomalies over 22 kilometres.
Based on previous exploration work, the Valentine Lake property has total estimated mineral resources of 359,000 ounces of gold, as outlined in the National Instrument 43-101 compliant technical report dated January 2005. In the fall of 2006, InnovExplo Inc., an independent mining and exploration consulting firm, concluded that the main occurrences represent significant gold potential as well as illustrate targets for new discoveries.
Cash Investments
The Company confirms that it has no exposure to asset-backed commercial paper in its investment portfolio. The Company's cash and cash equivalents are primarily held in Canadian chartered bank accounts and bankers acceptance notes from major Canadian and international financial institutions. As of June 30, 2007, Richmont Mines had cash and cash equivalents of $24.2 M.
Martin Rivard, President and Chief Executive Officer.
About Richmont Mines Inc.
Richmont Mines produces gold from its operations in Canada and has extensive experience in gold exploration, development and mining. Since it began production in 1991, the Company has produced approximately one million ounces of gold from its holdings in Quebec, Ontario and Newfoundland. Richmont Mines' strategy is to cost effectively develop its mining assets, exploit mineralized reserves on properties owned and acquired, or develop partnerships to expand its reserve base.
More information on Richmont Mines can be found on its website at: http://www.richmont-mines.com.

TORONTO, ONTARIO, Sep 06, 2007 (MARKET WIRE via COMTEX) -- IAMGOLD Corporation ("IAMGOLD" or "the Company") (CA:IMG) (IAG:
IAG) (BOTSWANA: IAMGOLD) is pleased to announce the results of the internal scoping study regarding the Westwood project. Results from this baseline economic assessment confirm the potential for Westwood to significantly contribute to the Company's long term production profile.
With inferred resources of more than 3 million ounces and based on an average life of mine diluted grade of 6.2g/t, which assumes a 3 metre mining width, a 20% dilution factor and a 95% mining recovery, Westwood would be expected to produce 200,000 ounces of gold per year for approximately 15 years with production beginning in 2012.
"We are very pleased with the Westwood project preliminary economics which are based on conservative assumptions. Our intention is to accelerate our exploration efforts during 2007 and 2008 as well begin planning for shaft development in 2009. We continue to be encouraged with exploration results and the deposits remain open at depth," commented Joseph Conway, President and CEO of IAMGOLD.
Operating parameters assume a 2,800 tonnes per day processing facility and total operating costs (excluding pre-production or sustaining capital expenditures) of US$70.00 per tonne or US$360 per ounce. Pre-production capital expenditure is expected to total US$316 million of which $146 million is allocated to surface and shaft construction. Approximately $80 million would be spent on deferred development to ensure sufficient working positions. Diamond drilling would total $25 million and $28 million would be required for underground mining equipment. The remaining $37 million is allocated for other costs including corporate G&A and insurance.
The purpose of this scoping study was to establish economic viability based on conservative parameters. In addition to the positive impact of further resource development, the rate of return is expected to improve based on operating cost improvements. These improvements will primarily be realized through reductions in the assumed mining width, optimization of the development plan and incorporating access to the higher grade ore in the first years of the mine life. Capital expenditures will also be reviewed to ensure the use of the best technology and practices.
The shaft sinking is anticipated to begin in 2009. The immediate next steps include lateral development to establish mineralization continuity as well as further definition and exploration drilling.
Qualified Person
This economic study was carried out by IAMGOLD employees, under the supervision of Mr. Elzear Belzile, Manager, Mine Geology and Daniel Vallieres Manager, Underground Projects. Mr. Belzile is a qualified person (as defined by National Instrument 43-101) with more than 20 years of experience in mine and exploration geology. Mr. Vallieres is a qualified person (as defined by National Instrument 43-101) with more than 15 years of experience in mine engineering and project evaluation. Mr. Belzile and Mr. Vallieres have reviewed and approved the contents of this press release.