Mr. Louis Dionne reports
RICHMONT MINES: ACQUISITION OF MINING PROPERTIES IN NEWFOUNDLAND
Richmont Mines has signed two agreements providing the company with the option to acquire the Stog'er Tight and Valentine Lake properties in Newfoundland.
The first of these agreements is with Ming Minerals Inc. and gives Richmont Mines the option of acquiring a 100-per-cent interest in the Stog'er Tight property, which is located in the Baie Verte region approximately 40 kilometres from the Nugget Pond Mill. Exploration work has previously been carried out on this property, including a 30,0000-ton bulk sample in 1997. Its main ore-bearing structure extends for one kilometre, while the two main mineralized zones are open at depth and show thicknesses ranging from six to 16 feet grading 0.15 to 0.32 ounce of gold per ton. To acquire its 100-per-cent interest in this property, Richmont Mines will have to pay a total of $250,000 by Nov. 30, 2006, including $50,000 upon closing of the agreement, which is scheduled for Nov. 30, 2003. Richmont Mines plans to initiate an exploration campaign on the Stog'er Tight property in the first quarter of 2004.
The second agreement was signed with Mountain Lake Resources Inc. for the option to acquire a 70-per-cent interest in the Valentine Lake property. According to the terms of this agreement, Richmont Mines will have to pay $25,000 in cash and invest $2.5-million in exploration work by Oct. 31, 2007, to acquire its 70-per-cent interest. Richmont Mines has agreed to carry out $150,000 worth of exploration work during the due diligence period, which will end on March 31, 2004.
The target zone is made up of a system of quartz-tourmaline veins containing high grades of gold. Drilling has identified over 2,600 feet of this system, which remains open at depth from 600 feet below the surface. A drilling program will be initiated in January, 2004, to verify the plunge and dimensions of the vein system.
Richmont Mines is actively developing its mining assets while continuing to seek new projects. The company holds no long-term debt and has working capital of $34.8-million. It has no hedging contracts for gold.
WARNING: The company relies upon litigation protection for "forward-looking" statements.
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