Richmont Connection...I am always challenging myself to "put the pieces of the puzzle" together..I enjoy it!
One possibility that I am presently exploring is the Richmont Mines Connection:
Jules Riopel
VP Exploration & Acquisitions, Company's "Qualified Person"
Mr. Riopel, a graduate in geology from Université de Montréal with a Masters in Business Administration from Université du Québec - Montréal, is a senior mining exploration professional with more than 20 years experience, mostly with major mining companies. Prior to joining Adventure Gold, he was the Director of Geology and Exploration with Richmont Mines, a Quebec-based mining company, where he acquired expertise in all aspects of mineral mining management. During his 6 years with Richmont, Mr. Riopel acquired a vast experience in mine site management & production as well as exploration of advanced and grass-roots projects including resources and reserves calculations, mining asset evaluation and project generation. His accomplishments include the discovery of new gold resources at Francoeur (West), Wasamac, Beaufor, Valentine Lake and Island Gold resulting in an increase of Richmont's reserves and resources by approximately 1.7 million ounces of gold. In addition, Mr. Riopel was instrumental in the development and the production of two new gold mines namely Island Gold and East-Amphi. Prior to Richmont, he was employed by Cambior and Noranda. Mr. Riopel also acts as the Company's ''Qualified Person'' as defined by NI 43-101.
Richmont Mines is on a growth strategy and is becoming more and more aggressive in this high gold price environment.
They presently have about 31 million shares outstanding with a stock price of about $8.00 per share.
We must look beyond Jules Riopel which includes the close proximity to the Camflo Mill and the growth strategy of Richmont Management.
Presently, Richmont has one Mining Operation in Quebec namely the Beaufor Mine which is located 50 km. from the Camflo Mill thus the ore must be shipped to the site. The problem is that the Camflo Mill is capable of processing 1,200 tonnes per day...I was only able to establish a feed of about 300 tonnes per day from the Beaufor Mine...well short of capacity!
Richmont is presently working on two separate operations to supply additional feed...Francoeur Mine which is located 110 km. away from the Camflo Mill and the Wasamac Mine which is located 100 km. away from the Camflo Mill. It is clear to me that their stratey is to have a Central Mill and provide the feed from multiply sources...very nice! The Francoeur Mine has been de-watered and is nearing production which will be scaled up over time....the Wasamac Mine has not been de-watered and it will be sometime before they will access ore from this site.
Now...how does this play into our favour? The Adventure Gold past producing L.C. Beliveau Mine is located about 50 km. from the Camflo Mill owned and operated by Richmont Mines...get the picture?
In my opinion it fits perfectly in the strategy of the Richmont Team!
The two Management teams have no doubt been across the table from each other discussing possible business combinations...it makes good business sense to do so. This activity will lead to a deal being made and a fast track to production of some kind in the near future. The existing underground infrastructure at the past producing L.C. Beliveau Mine will provide quick access to the new resources recently discovered...the workings are to a vertical depth of about 300 metres...de-water the infrastructure and drive a couple of drifts to the new zones which are located about 150 metres from the existing workings...the quick and easy access to high-grade ore is very attractive, especially in this high gold price environment! The Richmont Camflo Mill has the capacity to easily take up the feed from the L.C. Beliveau Mine.
The beauty about our close proximity to the Camflo Mill among others in the area is that due to the capacity available at this point in time Adventure could begin to mine the L.C. Beliveau Mine on its own and strike a "Toll Mill" agreement with Richmont to process the ore.
Richmont has 47 million in cash on hand and no debt which along with a share price of $8.00 per share gives them the push they need to make deals which their management team is on record that they will move soon on expansion.
Looks like a deal is in the making!
Digger144
P.S. It was great news that a 5,000 metre Phase II program was started at the Pascalis-Colombiere
Property...home to the past producing L.C. Beliveau MIne but we need a much more
aggressive plan. For example...Richmont plans to drill 35,000 metres at the Wasamac Mine.
We need their dollars to move this baby forward!