2006 OUTLOOK
During the last few months, the exploration work increased at Beaufor Mine, as new targets were identified with the objective of increasing mineral reserves and resources. During the next few months, approximately 1,500 metres will be drilled in the zone accessible through the ramp at more than 630 metres underground. Based on the data obtained from previous drillings, the grade of the ore located in that zone is higher than average and the zone is accessible for drilling at depth. A high potential exploration zone adjacent to the Beaufor fault will soon be drilled from the surface. Exploration work is also scheduled to take place on adjacent properties, including Courvan.
As for the East Amphi Mine, a detailed study of zones B North and A3, including a drilling exploration program, will begin in the second half of the year in order to assess the profitability of developing those zones.
With regards to the Island Gold project, the plant will be brought into production during the third quarter. At first, the ore from the development will be processed and the ore from the stopes on levels 140 and 190, first used for mining tests at the end of the second quarter, will be milled. The metallurgical results will form part of Technical Report 43-101 to be filed at the end of November 2006 which will also include the calculations for the reserves and resources, based on the drilling data available in [/]September 2006[/B]. The partners in the Island Gold project expect that the advanced exploration project, with resources at an average grade of 11.64 g/t, should be brought into production during the second half of the year. In view of the recent increases in the price of gold to more than US$600 per ounce, the team of geologists will carry out a five million dollar exploration program on various Richmont Mines properties possessing a high potential for discovery, in particular the Francoeur, Wasamac and Fourax properties in Quebec, and the Valentine Lake and Cripple Creek properties in Newfoundland.
With an experienced and dynamic team, $24,133,276 in working capital as of June 30, 2006, a positive cash flow from operations in the year, and favourable conditions for gold, the Company is well positioned to take advantage of these factors, to successfully complete its projects and to realize various strategic acquisitions.
Martin Rivard
President and Chief Executive Officer