Golden Star Enters into Financing Facility

TORONTO, March 30, 2017 /PRNewswire/ - Golden Star Resources Ltd. (NYSE MKT: GSS; TSX: GSC; GSE: GSR) ("Golden Star" or the "Company") announces that its subsidiary, Golden Star (Wassa) Limited ("GSWL"), has signed a commitment letter for a $25 million secured loan facility (the "Facility") with Ecobank Ghana Limited ("Ecobank").

GSWL has twelve months from the date of the commitment letter to drawdown the Facility, if it wishes to do so, and the Facility will be repayable within 60 months of initial drawdown. There are no early prepayment penalties. Interest on amounts drawn under the Facility would be payable monthly at three month LIBOR plus a spread of 8.0% payable in arrears.

The Company anticipates that any drawdowns from the Facility would be used for general working capital purposes.

Sam Coetzer, President and Chief Executive Officer of Golden Star, commented:

"Arranging this financing facility is another building block in Golden Star's transition into a low risk, mid-tier gold producer. We are continuing to strengthen the Company on all fronts and ensuring we have access to low cost capital in advance of any such need is part of this process."

All monetary amounts refer to United States dollars unless otherwise indicated.

Company Profile

Golden Star is an established gold mining company that owns and operates the Wassa and Prestea mines situated on the prolific Ashanti Gold Belt in Ghana, West Africa. Listed on the NYSE MKT, the TSX, and the GSE, Golden Star is strategically focused on increasing operating margins and cash flow through the development of its two high grade, low cost underground mines both in conjunction with existing open pit operations. The Wassa Underground Gold Mine commenced commercial production in January 2017 and the Prestea Underground Gold Mine is expected to achieve commercial production in mid-2017. Gold production in 2017 is expected to be 255,000-280,000 ounces with cash operating costs of $780-860 per ounce.

Cautionary note regarding forward-looking information

Some statements contained in this news release are "forward looking information" within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases (including negative or grammatical variations) or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. . Forward looking statements and information include, but are not limited to, statements and information regarding: the use of drawdowns under the Facility; the timing of the commencement of commercial production at the Prestea Underground Gold Mine; 2017 production guidance; and the ability to transition into a high grade, low cost producer. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks, assumptions and uncertainties that could cause actual facts to differ materially. Factors that could cause actual results to differ materially include: risks related to international operations, including economic and political instability in foreign jurisdictions in which Golden Star operates; risks related to current global financial conditions; actual results of current exploration activities; environmental risks; future prices of gold; possible variations in mineral reserves, grade or recovery rates; mine development and operating risks; accidents, labor disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities and risks related to indebtedness and the service of such indebtedness. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of these and other factors in Management's Discussion and Analysis of financial conditions and results of operations for the year ended December 31, 2016. Additional and/or updated factors will be included in our annual information form for the year ended December 31, 2016 which will be filed on SEDAR at www.sedar.com. The forecasts contained in this press release constitute management's current estimates, as of the date of this press release, with respect to the matters covered thereby. We expect that these estimates will change as new information is received. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event.

SOURCE Golden Star Resources Ltd.

Global Advanced Biofuel Market to Grow at a CAGR of 43.77%, 2017-2021 with Algenol, Diamond Green Diesel, DuPont, Fiberight & GranBio Dominating – Research and Markets

DUBLIN–(BUSINESS WIRE)–Research and Markets has announced the addition of the „Global Advanced Biofuel Market 2017-2021” report to their offering.

The global advanced biofuel market to grow at a CAGR of 43.77% during the period 2017-2021.

The report, Global Advanced Biofuel Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

According to the report, one driver in the market is environment and energy security. Fossil fuels have limited reserves across the world, and the majority of energy production is based on them. This has led to many countries importing large quantities of crude oil, which impacts the growth of their economy. Advanced biofuels are one of the fastest growing alternatives across various parts of the world, as they help to broaden the energy mix and decrease the dependency on the global petroleum market. One of the reasons for the shift to biofuels is that they are made from locally available feedstocks. These feedstocks can be easily produced in any supportive environment.

Key vendors

  • Algenol
  • Diamond Green Diesel
  • DuPont
  • Fiberight
  • GranBio

Other prominent vendors

  • Emerald Biofuels
  • POET-DSM Advanced Biofuels
  • Renewable Energy Group

Key Topics Covered:

PART 01: Executive summary

PART 02: Scope of the report

PART 03: Research Methodology

PART 04: Introduction

PART 05: Market landscape

PART 06: Market segmentation by fuel type

PART 07: Geographical segmentation

PART 08: Decision framework

PART 09: Drivers and challenges

PART 10: Market trends

PART 11: Vendor landscape

PART 12: Key vendor analysis

PART 13: Appendix

For more information about this report visit http://www.researchandmarkets.com/research/plhbqc/global_advanced

Richmont Mines Provides Exploration and Delineation Drilling Update for the Island Gold Mine; New High Grade Mineralization Identified: 20.6 g/t of gold over 11.3 metres (core length) in the Eastern Lateral Extension

TORONTO, March 30, 2017 /PRNewswire/ – Richmont Mines Inc. (TSX: RIC) (NYSE: RIC) („Richmont” or the „Corporation”), is pleased to provide an update from its strategic exploration and delineation drilling program currently underway at the cornerstone Island Gold Mine. Recent exploration drilling has identified new high-grade mineralization located approximately 800 metres east of the main Island Gold deposit with hole GD-640-05 intersecting 20.6 g/t gold over 11.3 metres (core length). All results are reported with estimated true width, unless otherwise indicated, and high-grade assays are capped at 225 g/t gold for the Lower C zone and 70 g/t for the E1E zone, the main mineralized zone east of the second dyke.

„Results from the strategic drilling program at the Island Gold Mine continue to demonstrate the significant near-term potential of this high quality deposit. In the eastern lateral extension, drilling has identified a new mineralized zone in the down plunge extension of a high-grade trend that was identified in 2016. This new area is located only 500 metres east and below the new resource blocks, which indicates that the structure could continue at depth.” stated Renaud Adams, CEO. He continued, „The early results from our delineation drilling in the Expansion Case PEA area indicate the significant potential to further expand our reserves at higher than current average grades. In 2017 we will continue to advance our systematic drilling program with an overall focus on positively impacting our near-term mine life and identifying the next million ounces of resources outside the Expansion Case PEA area.”

2017 DRILLING PROGRAM – ISLAND GOLD MINE (Figure 1)

The 2016 delineation drilling program contributed to a 34% increase in reserves at an 11% higher grade, while the exploration program delivered more than 450,000 ounces of new inferred resources at a cost of less than $35 per ounce discovered. As of December 31, 2016, the Island Gold Mine increased its reserve base to 752,200 ounces of gold at a higher grade of 9.17 g/t, while inferred resources increased to 995,700 ounces of gold at a higher grade of 10.18 g/t.

The 2017 drilling program currently underway continues to build on positive results achieved in 2016 and is focused on three key priorities: 1) to expand near-mine resources outside the Expansion Case PEA area, both laterally and at depth; 2) to further expand the reserve base, primarily within the Expansion Case PEA area; and 3) continuing to test high priority regional gold targets across the prospective Island Gold Mine property.

Eastern Lateral Exploration and Infill Drilling Program (Figure 2)

The 2016 drilling program successfully added two new inferred resource blocks in the eastern lateral extension, approximately 300 metres east of the Expansion Case PEA area, between the 340 and the 750 metre levels. The largest inferred resource block contains approximately 290,000 tonnes at a grade of 10.35 g/t of gold (approximately 95,000 ounces of gold). These two new blocks are relatively shallow and easily accessible from the existing mine infrastructure. As a result, the 2017 exploration program is following up on the eastern lateral extension area, particularly on a high-grade intersection (Hole GD-630-01) of 25.27 g/t gold over 3.85 metres located approximately 500 metres east of the new resource blocks that was identified in 2016, and continues to target the extension and infill of the new resource blocks.

Recent drilling in the eastern lateral extension has been focused in the down plunge extension of Hole GD-630-01. Highlights include:

One directional drill rig has been redeployed to this area to follow-up on the exploration success in this area. The initial 2017 directional drill hole (GD-640-05-1) was completed between holes GD-640-04 and GD-640-05 noted above, and intersected two high-grade intervals at the same elevation, but located 40 to 50 metres north of GD-640-05. The first interval intersected 16.1 g/t gold (28.13 g/t uncut) over a core length of 8.33 metres and the second intersected 10.16 g/t gold (17.32 g/t uncut) over a core length of 5.74 metres. Additional drilling will be required to better understand the geometry and true width of this new area of high-grade mineralization. This new discovery represents significant upside to the potential extension of the eastern lateral corridor. A second directional drill rig will be added to accelerate drilling in this area.

Exploration and infill drilling has continued from the 340 metre level exploration drift that targets a potential extension and infill of the current resource blocks that were identified in 2016. One drill rig is working in the area and another drill rig will be added on the 620 metre level once the 300 metre extension of the exploration drift is completed in the second half of the year.

Recent highlights from Eastern Lateral exploration and infill drilling from the 340 metre level exploration drift (subsequent to the October 12, 2016 exploration press release), include (Table 2):

A total of 8,232 metres (33 holes) of exploration and infill drilling of the planned 37,000 metres have been completed to date in the eastern lateral area.

Deep Directional Exploration Drilling Program Highlights: (Figure 3)

The successful 2016 deep drilling program identified a new large inferred resource block of 760,000 tonnes at a grade of 9.53 g/t gold (approximately 230,000 ounces) in the eastern down plunge extension, located between the 1,050 and the 1,300 metre levels.

The deep directional exploration drilling program continues in 2017 and targets the expansion of the new resource block. A total of 16,000 metres of deep directional drilling and 20,000 metres of underground drilling are planned in 2017. The underground drilling will be primarily completed from the 860 metre level exploration drift (400 metre length) that is scheduled to be completed in 2017.

Results to date continue to be encouraging with Hole MH1-10 intersecting 24.5 g/t gold over 3.76 metres. In the eastern portion of this area, Hole MH8 intersected 4.6 g/t gold over 2.24 metres, demonstrating that the mineralization remains open to the east.

In the western area, mineralized zones were intersected and additional drilling is required to better understand the structural geology at depth, however these new zones increase the overall potential of the down plunge extension and provide new high quality targets for follow up drilling.

A total of 5,052 metres (10 holes) have been drilled to date and three surface directional drill rigs are presently working in this area.

Other highlights from the deep directional exploration and infill drilling include (Table 3):

EXPANSION CASE PEA DELINEATION DRILLING PROGRAM (Figure 4)

For 2017, a total of 30,000 metres of delineation drilling is planned within the Expansion Case PEA area, primarily in the fourth mining horizon located between the 860 and 1,000 metre levels. Currently, two drill rigs are working in the area and a total of 6,866 metres (40 holes) have been completed to date.

Drilling continues to demonstrate the potential for additional reserve growth, including ounces and grade, primarily through the conversion of the high-grade inferred resources located in the fourth horizon. Results to date also demonstrate the potential to identify additional resources as high-grade mineralization continues to be intersected between the inferred resource blocks.

Recent drilling highlights from delineation and infill drilling completed within the Expansion Case PEA area, which have not been included in the December 2016 Resource and Reserve update include (Table 1):

Phase 2 Regional Drilling Program

The Phase 2 regional drilling program is designed to continue to evaluate the potential extension of the mineralization below the Kremzar mine as well as other previously identified high-priority gold targets located elsewhere on the highly prospective 77 km2 Island Gold property. The Phase 2 regional drilling program is expected to begin later in 2017.

Qualified Persons

The scientific and technical content and interpretations contained in this news release have been reviewed, verified and approved by Daniel Adam P. Geo., Ph.D., Richmont’s Vice-President, Exploration, a Qualified Person as defined by NI 43-101.

Quality Control

Assays for the exploration drilling were done at LabExpert in Rouyn-Noranda. Mineralized zones samples will be resent for verification to an accredited laboratory. The Corporation inserts at regular intervals quality control (QC) samples (blanks and reference materials) to monitor laboratory performance.

About Richmont Mines Inc.

Richmont Mines currently produces gold from the Island Gold Mine in Ontario, and the Beaufor Mine in Quebec. The Corporation is also advancing development of the significant high-grade resource extension at depth of the Island Gold Mine in Ontario. With 35 years of experience in gold production, exploration and development, and prudent financial management, the Corporation is well-positioned to cost-effectively build its Canadian reserve base and to successfully enter its next phase of growth.

Forward-Looking Statements
This news release contains forward-looking statements that include risks and uncertainties. When used in this news release, the words „estimate”, „project”, „anticipate”, „expect”, „intend”, „believe”, „hope”, „may”, „objective” and similar expressions, as well as „will”, „shall” and other indications of future tense, are intended to identify forward-looking statements. The forward-looking statements are based on current expectations and apply only as of the date on which they were made. Except as may be required by law or regulation, the Corporation undertakes no obligation and disclaims any responsibility to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.

The factors that could cause actual results to differ materially from those indicated in such forward-looking statements include, without limitation, changes in the prevailing price of gold, the Canadian-United States exchange rate, grade of ore mined and unforeseen difficulties in mining operations that could affect revenue and production costs. Other factors such as uncertainties regarding government regulations and the failure of our exploration drilling programs to identify significant new resources or targets or expand existing resources could also affect the results. Other risks are set out in Richmont’s Annual Information Form, Annual Reports and periodic reports. The forward-looking information contained herein is made as of the date of this news release.

Cautionary note to US investors concerning resource estimates
Information in this press release is intended to comply with the requirements of the Toronto Stock Exchange and applicable Canadian securities legislation, which differ in certain respects with the rules and regulations promulgated under the United States Securities Exchange Act of 1934, as amended („Exchange Act”), as promulgated by the SEC. The requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects („NI 43-101) adopted by the Canadian Securities Administrators differ significantly from the requirements of the United States Securities and Exchange Commission (the „SEC”).

U.S. Investors are urged to consider the disclosure in our annual report on Form 20-F, File No. 001-14598, as filed with the SEC under the Exchange Act, which may be obtained from us (without cost) or from the SEC’s web site: http://sec.gov/edgar.shtml.

Tables of Drill Results

SOURCE Richmont Mines

Richmont Mines Provides Exploration and Delineation Drilling Update for the Island Gold Mine; New High Grade Mineralization Identified: 20.6 g/t of gold over 11.3 metres (core length) in the Eastern Lateral Extension

TORONTO, March 30, 2017 /PRNewswire/ - Richmont Mines Inc. (TSX: RIC) (NYSE: RIC) ("Richmont" or the "Corporation"), is pleased to provide an update from its strategic exploration and delineation drilling program currently underway at the cornerstone Island Gold Mine. Recent exploration drilling has identified new high-grade mineralization located approximately 800 metres east of the main Island Gold deposit with hole GD-640-05 intersecting 20.6 g/t gold over 11.3 metres (core length). All results are reported with estimated true width, unless otherwise indicated, and high-grade assays are capped at 225 g/t gold for the Lower C zone and 70 g/t for the E1E zone, the main mineralized zone east of the second dyke.

"Results from the strategic drilling program at the Island Gold Mine continue to demonstrate the significant near-term potential of this high quality deposit. In the eastern lateral extension, drilling has identified a new mineralized zone in the down plunge extension of a high-grade trend that was identified in 2016. This new area is located only 500 metres east and below the new resource blocks, which indicates that the structure could continue at depth." stated Renaud Adams, CEO. He continued, "The early results from our delineation drilling in the Expansion Case PEA area indicate the significant potential to further expand our reserves at higher than current average grades. In 2017 we will continue to advance our systematic drilling program with an overall focus on positively impacting our near-term mine life and identifying the next million ounces of resources outside the Expansion Case PEA area."

2017 DRILLING PROGRAM – ISLAND GOLD MINE (Figure 1)

The 2016 delineation drilling program contributed to a 34% increase in reserves at an 11% higher grade, while the exploration program delivered more than 450,000 ounces of new inferred resources at a cost of less than $35 per ounce discovered. As of December 31, 2016, the Island Gold Mine increased its reserve base to 752,200 ounces of gold at a higher grade of 9.17 g/t, while inferred resources increased to 995,700 ounces of gold at a higher grade of 10.18 g/t.

The 2017 drilling program currently underway continues to build on positive results achieved in 2016 and is focused on three key priorities: 1) to expand near-mine resources outside the Expansion Case PEA area, both laterally and at depth; 2) to further expand the reserve base, primarily within the Expansion Case PEA area; and 3) continuing to test high priority regional gold targets across the prospective Island Gold Mine property.

Eastern Lateral Exploration and Infill Drilling Program (Figure 2)

The 2016 drilling program successfully added two new inferred resource blocks in the eastern lateral extension, approximately 300 metres east of the Expansion Case PEA area, between the 340 and the 750 metre levels. The largest inferred resource block contains approximately 290,000 tonnes at a grade of 10.35 g/t of gold (approximately 95,000 ounces of gold). These two new blocks are relatively shallow and easily accessible from the existing mine infrastructure. As a result, the 2017 exploration program is following up on the eastern lateral extension area, particularly on a high-grade intersection (Hole GD-630-01) of 25.27 g/t gold over 3.85 metres located approximately 500 metres east of the new resource blocks that was identified in 2016, and continues to target the extension and infill of the new resource blocks.

Recent drilling in the eastern lateral extension has been focused in the down plunge extension of Hole GD-630-01. Highlights include:

  • Hole GD-640-05 intersected 20.57 g/t (26.55 g/t uncut) of gold over a core length of 11.3 metres, at a vertical depth of approximately 1,000 metres;
  • Hole GD-640-04, located approximately 150 metres above hole GD-640-05, intersected 7.38 g/t gold over 3.27 metres.

One directional drill rig has been redeployed to this area to follow-up on the exploration success in this area. The initial 2017 directional drill hole (GD-640-05-1) was completed between holes GD-640-04 and GD-640-05 noted above, and intersected two high-grade intervals at the same elevation, but located 40 to 50 metres north of GD-640-05. The first interval intersected 16.1 g/t gold (28.13 g/t uncut) over a core length of 8.33 metres and the second intersected 10.16 g/t gold (17.32 g/t uncut) over a core length of 5.74 metres. Additional drilling will be required to better understand the geometry and true width of this new area of high-grade mineralization. This new discovery represents significant upside to the potential extension of the eastern lateral corridor. A second directional drill rig will be added to accelerate drilling in this area.

Exploration and infill drilling has continued from the 340 metre level exploration drift that targets a potential extension and infill of the current resource blocks that were identified in 2016. One drill rig is working in the area and another drill rig will be added on the 620 metre level once the 300 metre extension of the exploration drift is completed in the second half of the year.

Recent highlights from Eastern Lateral exploration and infill drilling from the 340 metre level exploration drift (subsequent to the October 12, 2016 exploration press release), include (Table 2):

  • Hole 340-576-02: 8.50 g/t gold over 2.00 metres;
  • Hole 340-588-08: 14.96 g/t gold over 2.00 metres;
  • Hole 340-588-11: 10.10 g/t gold over 3.00 metres;
  • Hole 340-588-12: 10.24 g/t gold over 3.00 metres;
  • Hole 340-588-13: 33.60 g/t gold over 2.00 metres;
  • Hole 340-588-14: 10.60 g/t gold over 2.00 metres;
  • Hole 340-588-15: 11.44 g/t gold over 4.36 metres.

A total of 8,232 metres (33 holes) of exploration and infill drilling of the planned 37,000 metres have been completed to date in the eastern lateral area.

Deep Directional Exploration Drilling Program Highlights: (Figure 3)

The successful 2016 deep drilling program identified a new large inferred resource block of 760,000 tonnes at a grade of 9.53 g/t gold (approximately 230,000 ounces) in the eastern down plunge extension, located between the 1,050 and the 1,300 metre levels.

The deep directional exploration drilling program continues in 2017 and targets the expansion of the new resource block. A total of 16,000 metres of deep directional drilling and 20,000 metres of underground drilling are planned in 2017. The underground drilling will be primarily completed from the 860 metre level exploration drift (400 metre length) that is scheduled to be completed in 2017.

Results to date continue to be encouraging with Hole MH1-10 intersecting 24.5 g/t gold over 3.76 metres. In the eastern portion of this area, Hole MH8 intersected 4.6 g/t gold over 2.24 metres, demonstrating that the mineralization remains open to the east.

In the western area, mineralized zones were intersected and additional drilling is required to better understand the structural geology at depth, however these new zones increase the overall potential of the down plunge extension and provide new high quality targets for follow up drilling.

A total of 5,052 metres (10 holes) have been drilled to date and three surface directional drill rigs are presently working in this area.

Other highlights from the deep directional exploration and infill drilling include (Table 3):

  • Hole MH2A-7: 11.36 g/t gold over a core length of 10.40 metres (Zone X);
  • Hole MH2A-8: 10.37 g/t gold over 9.17 metres;
  • Hole MH2A-10: 6.16 g/t gold over 11.58 metres;
  • Hole MH5-1A: 9.27 g/t gold over 5.93 metres.

EXPANSION CASE PEA DELINEATION DRILLING PROGRAM (Figure 4)

For 2017, a total of 30,000 metres of delineation drilling is planned within the Expansion Case PEA area, primarily in the fourth mining horizon located between the 860 and 1,000 metre levels. Currently, two drill rigs are working in the area and a total of 6,866 metres (40 holes) have been completed to date.

Drilling continues to demonstrate the potential for additional reserve growth, including ounces and grade, primarily through the conversion of the high-grade inferred resources located in the fourth horizon. Results to date also demonstrate the potential to identify additional resources as high-grade mineralization continues to be intersected between the inferred resource blocks.

Recent drilling highlights from delineation and infill drilling completed within the Expansion Case PEA area, which have not been included in the December 2016 Resource and Reserve update include (Table 1):

  • Hole 740-465-08: 43.05 g/t gold over 5.13 metres;
  • Hole 740-465-16: 96.47 g/t gold over 5.08 metres;
  • Hole 740-465-15: 23.29 g/t gold over 3.51 metres;
  • Hole 740-465-20: 24.56 g/t gold over 3.85 metres;
  • Hole 740-483-21: 34.13 g/t gold over 3.53 metres;
  • Hole 820-520-08: 53.64 g/t gold over 6.53 metres;
  • Hole 820-520-13: 30.20 g/t gold over 3.62 metres.

Phase 2 Regional Drilling Program

The Phase 2 regional drilling program is designed to continue to evaluate the potential extension of the mineralization below the Kremzar mine as well as other previously identified high-priority gold targets located elsewhere on the highly prospective 77 km2 Island Gold property. The Phase 2 regional drilling program is expected to begin later in 2017.

Qualified Persons

The scientific and technical content and interpretations contained in this news release have been reviewed, verified and approved by Daniel Adam P. Geo., Ph.D., Richmont's Vice-President, Exploration, a Qualified Person as defined by NI 43-101.

Quality Control

Assays for the exploration drilling were done at LabExpert in Rouyn-Noranda. Mineralized zones samples will be resent for verification to an accredited laboratory. The Corporation inserts at regular intervals quality control (QC) samples (blanks and reference materials) to monitor laboratory performance.

About Richmont Mines Inc.

Richmont Mines currently produces gold from the Island Gold Mine in Ontario, and the Beaufor Mine in Quebec. The Corporation is also advancing development of the significant high-grade resource extension at depth of the Island Gold Mine in Ontario. With 35 years of experience in gold production, exploration and development, and prudent financial management, the Corporation is well-positioned to cost-effectively build its Canadian reserve base and to successfully enter its next phase of growth.

Forward-Looking Statements
This news release contains forward-looking statements that include risks and uncertainties. When used in this news release, the words "estimate", "project", "anticipate", "expect", "intend", "believe", "hope", "may", "objective" and similar expressions, as well as "will", "shall" and other indications of future tense, are intended to identify forward-looking statements. The forward-looking statements are based on current expectations and apply only as of the date on which they were made. Except as may be required by law or regulation, the Corporation undertakes no obligation and disclaims any responsibility to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.

The factors that could cause actual results to differ materially from those indicated in such forward-looking statements include, without limitation, changes in the prevailing price of gold, the Canadian-United States exchange rate, grade of ore mined and unforeseen difficulties in mining operations that could affect revenue and production costs. Other factors such as uncertainties regarding government regulations and the failure of our exploration drilling programs to identify significant new resources or targets or expand existing resources could also affect the results. Other risks are set out in Richmont's Annual Information Form, Annual Reports and periodic reports. The forward-looking information contained herein is made as of the date of this news release.

Cautionary note to US investors concerning resource estimates
Information in this press release is intended to comply with the requirements of the Toronto Stock Exchange and applicable Canadian securities legislation, which differ in certain respects with the rules and regulations promulgated under the United States Securities Exchange Act of 1934, as amended ("Exchange Act"), as promulgated by the SEC. The requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101) adopted by the Canadian Securities Administrators differ significantly from the requirements of the United States Securities and Exchange Commission (the "SEC").

U.S. Investors are urged to consider the disclosure in our annual report on Form 20-F, File No. 001-14598, as filed with the SEC under the Exchange Act, which may be obtained from us (without cost) or from the SEC's web site: http://sec.gov/edgar.shtml.

 

Tables of Drill Results

 

TABLE 1

INFILL DELINEATION IN PEA AREA

Hole Number

Length
(metres)

From
(metres)

To
(metres)

True
Width
(metres)

Uncut
Grade
(g/t Au)

Cut

Grade
(g/t Au)

Zone

Vertical depth
of Intersection
(metres)

490-525-01

63

46.45

48.75

2.12

6.18

6.18

C

469

490-525-03

84

61.75

65.50

2.97

6.35

6.35

C

516

740-465-02

220

160.80

166.25

3.96

9.80

9.80

C

858

740-465-03

264

128.90

132.60

3.68

38.66

38.66

C

805

740-465-04

189

129.10

133.10

3.52

161.34

85.33

C

817

including


129.10

131.80

2.37

238.42

125.82



740-465-07

249

131.75

138.00

5.12

16.00

16.00

C

790

740-465-08

186

127.45

133.15

5.13

46.42

43.05

C

801

including


132.10

133.15

0.94

237.78

219.50



740-465-09

210

150.55

157.10

5.21

6.21

6.21

C

839

740-465-15

387

276.29

282.43

3.51

29.78

23.29

C

1,004

including


281.02

281.50

0.27

308.12

225.00



740-465-16

255

192.14

200.00

5.08

114.93

96.97

C

900

740-465-17

345

205.40

210.30

3.44

19.35

19.35

C

919

740-465-20

393

291.05

299.45

4.61

24.56

24.56

C

1,020

740-465-21

546

329.75

347.60

6.46

7.48

7.48

C

1,069

740-465-23

297

223.00

226.65

2.34

61.34

50.84

C

941

including


224.60

225.35

0.48

276.11

225.00



740-471-10

270

193.80

210.00

5.60

34.13

18.84

C

909

including


194.30

195.80

0.52

329.52

164.34



740-471-13

200

146.80

150.33

2.92

6.28

6.28

C

841

740-471-14

354

162.47

166.40

3.04

6.17

6.17

C

863

740-471-16

186

135.84

141.26

4.37

27.47

17.58

C

820

including


136.38

137.20

0.66

167.79

102.38



740-471-22

186

163.08

168.12

4.60

6.14

6.14

C

670

740-471-23

252

159.20

162.60

3.20

6.89

6.89

C

684

740-471-24

351

318.35

333.10

4.10

13.52

11.28

C

1,030

including


318.35

321.55

0.89

56.39

46.08



740-471-31

402

345.06

364.73

8.31

13.26

13.26

C

1,061

740-471-32

441

335.93

348.56

4.95

13.74

13.74

C

1,058

740-471-34

420

218.00

226.00

3.42

9.29

9.29

C

939

740-477-17

270

195.40

203.15

4.14

8.26

8.26

C

892

740-477-19

231

149.80

158.90

7.71

12.84

12.84

C

840

740-477-20

210

141.38

148.81

6.52

6.32

6.32

C

820

740-477-26

225

133.55

142.50

6.60

9.55

9.55

C

741

740-477-29

600

262.10

276.86

6.04

16.07

16.07

C

973

740-477-30

312

236.95

243.00

3.29

83.08

60.15

C

939

including


238.80

241.65

1.55

173.08

124.40



740-477-33

300

218.80

231.10

6.57

32.47

32.47

C

924

740-477-36A

192

156.65

161.52

4.53

8.50

8.50

C

720

740-477-37

405

385.70

399.20

4.95

11.76

11.76

C

1,085

740-477-40

450

382.49

388.07

2.24

38.62

38.62

C

1,083

740-477-42

430

351.45

370.50

8.00

9.92

9.92

C

1,059

740-477-43

383

161.70

169.30

6.20

16.94

16.94

C

847

740-483-19

245

144.65

147.75

2.85

12.81

12.81

C

769

740-483-21

402

295.04

303.08

3.53

34.13

34.13

C

989

740-483-22

381

236.52

242.50

3.46

26.37

26.37

C

930

800-496-01

162

119.00

123.00

2.53

18.21

18.21

C

903

800-511-01

189

67.90

74.80

4.72

23.36

23.36

C

858

800-511-02

87

58.71

68.00

8.60

6.16

6.16

C

823

800-512-01

138

109.00

115.30

4.28

6.90

6.90

C

833

800-512-02

186

145.70

156.00

6.39

21.45

16.17

C

897

800-512-04

170

89.80

105.40

8.79

60.16

60.16

C

859

800-512-05

189

98.00

109.20

5.92

18.37

18.37

C

875

820-520-01

153

138.20

141.50

3.28

59.86

52.67

C

816

including


138.20

139.50

1.29

147.79

129.54



820-520-08

210

194.11

202.35

6.53

61.01

53.64

C

924

including


194.52

197.60

2.44

122.76

103.04



820-520-13

237

213.80

218.80

3.62

34.52

30.20

C

952

including


217.30

217.85

0.40

264.27

225.00



 

TABLE 2

EASTERN LATERAL EXPLORATION AND INFILL DRILLING

Hole Number

Length
(metres)

From
(metres)

To
(metres)

True
Width
(metres)

Uncut
Grade
(g/t Au)

Cut
Grade
(g/t Au)

Zone

Vertical depth
of Intersection
(metres)

340-576-01

402

305.00

314.65

2.00

5.17

5.17

E1E

559

340-576-02

500

435.20

444.13

2.00

9.08

8.50

E1E

663

340-579-01

258

172.30

176.00

2.57

2.69

2.69

E1E

427

340-584-01

126

96.10

99.40

3.03

3.19

3.19

E1E

325

340-584-02

303

110.59

113.96

2.70

1.51

1.51

E1E

353

340-584-03

160

119.50

126.10

4.87

1.98

1.98

E1E

369

340-586-06

201

115.22

118.60

2.68

7.63

7.63

E1E

375

including


118.22

118.60

0.30

59.86

59.86



340-586-07

273

172.30

176.90

2.00

3.16

3.16

E1E

436

340-586-08

420

213.10

218.40

2.00

9.50

8.38

E1E

479

including


214.00

214.50

0.19

81.94

70.00



340-586-09

430

262.00

272.40

2.00

1.73

1.73

E1E

529

340-588-08

453

213.00

218.10

2.00

14.96

14.96

E1E

471

340-588-09

430

302.75

313.45

2.10

3.62

3.62

E1E

554

340-588-10

150

96.60

99.60

2.51

0.81

0.81

E1E

310

340-588-11

315

122.37

126.67

3.00

13.90

10.10

E1E

358

including


125.37

125.87

0.35

102.69

70.00



340-588-12

255

155.60

160.75

3.00

10.24

10.24

E1E

403

340-588-13

399

202.60

207.50

2.00

54.28

33.60

E1E

452

340-588-14

378

264.00

273.70

2.00

17.02

10.60

E1E

516

including


265.80

266.80

0.21

132.27

70.00



340-588-15

222

124.42

130.50

4.36

19.84

11.44

E1E

376

including


125.10

125.90

0.57

133.89

70.00



340-588-16

453

382.80

395.80

2.00

0.93

0.93

E1E

614

340-588-17

498

265.00

278.00

3.00

5.54

4.98

E1E

522

including


272.00

272.50

0.25

84.55

70.00



340-588-18

321

173.50

178.30

2.30

12.44

5.69

E1E

411

including


175.10

175.40

0.14

177.98

70.00



GD-640-01

975

731.60

738.60

4.24

0.08

0.08

E1E

686

GD-640-02

1,029

779.10

789.20

5.34

3.66

3.66

E1E

756

GD-640-04

1,050

888.50

894.50

3.27

8.81

7.38

E1E

852

including


890.20

890.80

0.33

84.31

70.00



GD-640-05

1,264

1,055.20

1,066.50

11.3 c.l.

26.55

20.57

E1E

1,020

including


1,056.00

1,057.50

1.50

115.11

70.00



GD-640-05-1

1,500

1,083.20

1,091.53

8.33 c.l.

28.13

16.10

X

1,029

including


1,086.75

1,090.10

3.35 c.l.

63.25

33.34





1,110.56

1,116.30

5.74 c.l.

17.32

10.16

X

1,042

including


1,110.86

1,111.56

0.7 c.l.

128.71

70.00



 

TABLE 3

DEEP DRILLING PROGRAM, EXPLORATION AND INFILL

Hole Number

Length
(metres)

From
(metres)

To
(metres)

True
Width
(metres)

Uncut
Grade
(g/t Au)

Cut
Grade
(g/t Au)

Zone

Vertical depth
of Intersection
(metres)

MH1-10

1,613

1,350.10

1,356.90

3.76

24.54

24.54

C

1,233

including


1,354.00

1,354.80

0.44

179.67

179.67



MH2A-7

1,607

1,194.20

1,198.70

4.5 c.l.

7.17

6.08

X

1,047

MH2A-7

1,607

1,241.00

1,251.40

10.4 c.l.

11.36

11.36

X

1,085

MH2A-7

1,607

1,312.90

1,319.47

4.80

4.72

4.72

E1E

1,139

MH2A-8

1,433

1,278.82

1,289.47

9.17

11.22

10.37

E1E

1,108

including


1,288.64

1,289.00

0.31

95.21

70.00



MH2A-9B

1,500

1,299.26

1,306.46

5.89

2.66

2.66

E1E

1,134

MH2A-10

1,472

1,300.10

1,316.00

11.58

13.25

6.16

E1E

1,169

including


1,300.50

1,300.80

0.22

383.01

70.00





1,315.70

1,316.00

0.22

133.06

70.00



MH4-4

1,373

1,326.90

1,331.45

3.09

4.10

4.10

C

1,138

MH4-4B

1,505

1,211.15

1,217.10

5.95 c.l.

103.86

5.09

X

1,046

including


1,216.45

1,216.75

0.3 c.l.

2028.91

70.00



MH4-5

1,628

1,346.96

1,351.10

2.51

4.63

4.63

C

1,177

MH5-1

1,523

1,082.60

1,084.55

1.95 c.l.

4.59

4.59

X

948

MH5-1A

1,523

1,321.88

1,329.15

5.93

9.27

9.27

C

1,128

including


1,326.73

1,327.20

0.38

102.07

102.07



MH5-2

1,529

1,323.58

1,329.43

4.40

5.08

5.08

C

1,132

MH5-3

1,517

1,383.40

1,388.55

3.81

0.95

0.95

C

1,215

MH-6

1,857

1,440.50

1,453.05

9.44

0.91

0.91

C

1,261

MH-8

1,576

1,378.50

1,382.10

2.24

4.60

4.60

E1E

1,195

High-grade capping values:
Lower Island C Zone (225 g/t)
Lower X2-E1E Zone, East Lateral E1E Zone and X Zone (70 g/t Au)

 

SOURCE Richmont Mines

Richmont Mines Provides Exploration and Delineation Drilling Update for the Island Gold Mine; New High Grade Mineralization Identified: 20.6 g/t of Gold Over 11.3 Metres (Core Length) in the Eastern Lateral Extension

TORONTO, March 30, 2017 /PRNewswire/ --

Richmont Mines Inc. (TSX: RIC) (NYSE: RIC) ("Richmont" or the "Corporation"), is pleased to provide an update from its strategic exploration and delineation drilling program currently underway at the cornerstone Island Gold Mine. Recent exploration drilling has identified new high-grade mineralization located approximately 800 metres east of the main Island Gold deposit with hole GD-640-05 intersecting 20.6 g/t gold over 11.3 metres (core length). All results are reported with estimated true width, unless otherwise indicated, and high-grade assays are capped at 225 g/t gold for the Lower C zone and 70 g/t for the E1E zone, the main mineralized zone east of the second dyke.

"Results from the strategic drilling program at the Island Gold Mine continue to demonstrate the significant near-term potential of this high quality deposit. In the eastern lateral extension, drilling has identified a new mineralized zone in the down plunge extension of a high-grade trend that was identified in 2016. This new area is located only 500 metres east and below the new resource blocks, which indicates that the structure could continue at depth." stated Renaud Adams, CEO. He continued, "The early results from our delineation drilling in the Expansion Case PEA area indicate the significant potential to further expand our reserves at higher than current average grades. In 2017 we will continue to advance our systematic drilling program with an overall focus on positively impacting our near-term mine life and identifying the next million ounces of resources outside the Expansion Case PEA area."

2017 DRILLING PROGRAM - ISLAND GOLD MINE (Figure 1)

The 2016 delineation drilling program contributed to a 34% increase in reserves at an 11% higher grade, while the exploration program delivered more than 450,000 ounces of new inferred resources at a cost of less than $35 per ounce discovered. As of December 31, 2016, the Island Gold Mine increased its reserve base to 752,200 ounces of gold at a higher grade of 9.17 g/t, while inferred resources increased to 995,700 ounces of gold at a higher grade of 10.18 g/t.

The 2017 drilling program currently underway continues to build on positive results achieved in 2016 and is focused on three key priorities: 1) to expand near-mine resources outside the Expansion Case PEA area, both laterally and at depth; 2) to further expand the reserve base, primarily within the Expansion Case PEA area; and 3) continuing to test high priority regional gold targets across the prospective Island Gold Mine property.

Eastern Lateral Exploration and Infill Drilling Program (Figure 2)

The 2016 drilling program successfully added two new inferred resource blocks in the eastern lateral extension, approximately 300 metres east of the Expansion Case PEA area, between the 340 and the 750 metre levels. The largest inferred resource block contains approximately 290,000 tonnes at a grade of 10.35 g/t of gold (approximately 95,000 ounces of gold). These two new blocks are relatively shallow and easily accessible from the existing mine infrastructure. As a result, the 2017 exploration program is following up on the eastern lateral extension area, particularly on a high-grade intersection (Hole GD-630-01) of 25.27 g/t gold over 3.85 metres located approximately 500 metres east of the new resource blocks that was identified in 2016, and continues to target the extension and infill of the new resource blocks.

Recent drilling in the eastern lateral extension has been focused in the down plunge extension of Hole GD-630-01. Highlights include:

  • Hole GD-640-05 intersected 20.57 g/t (26.55 g/t uncut) of gold over a core length of 11.3 metres, at a vertical depth of approximately 1,000 metres;
  • Hole GD-640-04, located approximately 150 metres above hole GD-640-05, intersected 7.38 g/t gold over 3.27 metres.

One directional drill rig has been redeployed to this area to follow-up on the exploration success in this area. The initial 2017 directional drill hole (GD-640-05-1) was completed between holes GD-640-04 and GD-640-05 noted above, and intersected two high-grade intervals at the same elevation, but located 40 to 50 metres north of GD-640-05. The first interval intersected 16.1 g/t gold (28.13 g/t uncut) over a core length of 8.33 metres and the second intersected 10.16 g/t gold (17.32 g/t uncut) over a core length of 5.74 metres. Additional drilling will be required to better understand the geometry and true width of this new area of high-grade mineralization. This new discovery represents significant upside to the potential extension of the eastern lateral corridor. A second directional drill rig will be added to accelerate drilling in this area.

Exploration and infill drilling has continued from the 340 metre level exploration drift that targets a potential extension and infill of the current resource blocks that were identified in 2016. One drill rig is working in the area and another drill rig will be added on the 620 metre level once the 300 metre extension of the exploration drift is completed in the second half of the year.

Recent highlights from Eastern Lateral exploration and infill drilling from the 340 metre level exploration drift (subsequent to the October 12, 2016 exploration press release), include (Table 2):

  • Hole 340-576-02: 8.50 g/t gold over 2.00 metres;
  • Hole 340-588-08: 14.96 g/t gold over 2.00 metres;
  • Hole 340-588-11: 10.10 g/t gold over 3.00 metres;
  • Hole 340-588-12: 10.24 g/t gold over 3.00 metres;
  • Hole 340-588-13: 33.60 g/t gold over 2.00 metres;
  • Hole 340-588-14: 10.60 g/t gold over 2.00 metres;
  • Hole 340-588-15: 11.44 g/t gold over 4.36 metres.

A total of 8,232 metres (33 holes) of exploration and infill drilling of the planned 37,000 metres have been completed to date in the eastern lateral area.

Deep Directional Exploration Drilling Program Highlights: (Figure 3)

The successful 2016 deep drilling program identified a new large inferred resource block of 760,000 tonnes at a grade of 9.53 g/t gold (approximately 230,000 ounces) in the eastern down plunge extension, located between the 1,050 and the 1,300 metre levels.

The deep directional exploration drilling program continues in 2017 and targets the expansion of the new resource block. A total of 16,000 metres of deep directional drilling and 20,000 metres of underground drilling are planned in 2017. The underground drilling will be primarily completed from the 860 metre level exploration drift (400 metre length) that is scheduled to be completed in 2017.

Results to date continue to be encouraging with Hole MH1-10 intersecting 24.5 g/t gold over 3.76 metres. In the eastern portion of this area, Hole MH8 intersected 4.6 g/t gold over 2.24 metres, demonstrating that the mineralization remains open to the east.

In the western area, mineralized zones were intersected and additional drilling is required to better understand the structural geology at depth, however these new zones increase the overall potential of the down plunge extension and provide new high quality targets for follow up drilling.

A total of 5,052 metres (10 holes) have been drilled to date and three surface directional drill rigs are presently working in this area.

Other highlights from the deep directional exploration and infill drilling include (Table 3):

  • Hole MH2A-7: 11.36 g/t gold over a core length of 10.40 metres (Zone X);
  • Hole MH2A-8: 10.37 g/t gold over 9.17 metres;
  • Hole MH2A-10: 6.16 g/t gold over 11.58 metres;
  • Hole MH5-1A: 9.27 g/t gold over 5.93 metres.

EXPANSION CASE PEA DELINEATION DRILLING PROGRAM (Figure 4)

For 2017, a total of 30,000 metres of delineation drilling is planned within the Expansion Case PEA area, primarily in the fourth mining horizon located between the 860 and 1,000 metre levels. Currently, two drill rigs are working in the area and a total of 6,866 metres (40 holes) have been completed to date.

Drilling continues to demonstrate the potential for additional reserve growth, including ounces and grade, primarily through the conversion of the high-grade inferred resources located in the fourth horizon. Results to date also demonstrate the potential to identify additional resources as high-grade mineralization continues to be intersected between the inferred resource blocks.

Recent drilling highlights from delineation and infill drilling completed within the Expansion Case PEA area, which have not been included in the December 2016 Resource and Reserve update include (Table 1):

  • Hole 740-465-08: 43.05 g/t gold over 5.13 metres;
  • Hole 740-465-16: 96.47 g/t gold over 5.08 metres;
  • Hole 740-465-15: 23.29 g/t gold over 3.51 metres;
  • Hole 740-465-20: 24.56 g/t gold over 3.85 metres;
  • Hole 740-483-21: 34.13 g/t gold over 3.53 metres;
  • Hole 820-520-08: 53.64 g/t gold over 6.53 metres;
  • Hole 820-520-13: 30.20 g/t gold over 3.62 metres.

Phase 2 Regional Drilling Program 

The Phase 2 regional drilling program is designed to continue to evaluate the potential extension of the mineralization below the Kremzar mine as well as other previously identified high-priority gold targets located elsewhere on the highly prospective 77 km[2] Island Gold property. The Phase 2 regional drilling program is expected to begin later in 2017.

Qualified Persons 

The scientific and technical content and interpretations contained in this news release have been reviewed, verified and approved by Daniel Adam P. Geo., Ph.D., Richmont's Vice-President, Exploration, a Qualified Person as defined by NI 43-101.

Quality Control 

Assays for the exploration drilling were done at LabExpert in Rouyn-Noranda. Mineralized zones samples will be resent for verification to an accredited laboratory. The Corporation inserts at regular intervals quality control (QC) samples (blanks and reference materials) to monitor laboratory performance.

About Richmont Mines Inc. 

Richmont Mines currently produces gold from the Island Gold Mine in Ontario, and the Beaufor Mine in Quebec. The Corporation is also advancing development of the significant high-grade resource extension at depth of the Island Gold Mine in Ontario. With 35 years of experience in gold production, exploration and development, and prudent financial management, the Corporation is well-positioned to cost-effectively build its Canadian reserve base and to successfully enter its next phase of growth.

Forward-Looking Statements
This news release contains forward-looking statements that include risks and uncertainties. When used in this news release, the words "estimate", "project", "anticipate", "expect", "intend", "believe", "hope", "may", "objective" and similar expressions, as well as "will", "shall" and other indications of future tense, are intended to identify forward-looking statements. The forward-looking statements are based on current expectations and apply only as of the date on which they were made. Except as may be required by law or regulation, the Corporation undertakes no obligation and disclaims any responsibility to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.

The factors that could cause actual results to differ materially from those indicated in such forward-looking statements include, without limitation, changes in the prevailing price of gold, the Canadian-United States exchange rate, grade of ore mined and unforeseen difficulties in mining operations that could affect revenue and production costs. Other factors such as uncertainties regarding government regulations and the failure of our exploration drilling programs to identify significant new resources or targets or expand existing resources could also affect the results. Other risks are set out in Richmont's Annual Information Form, Annual Reports and periodic reports. The forward-looking information contained herein is made as of the date of this news release.

Cautionary note to US investors concerning resource estimates
Information in this press release is intended to comply with the requirements of the Toronto Stock Exchange and applicable Canadian securities legislation, which differ in certain respects with the rules and regulations promulgated under the United States Securities Exchange Act of 1934, as amended ("Exchange Act"), as promulgated by the SEC. The requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101) adopted by the Canadian Securities Administrators differ significantly from the requirements of the United States Securities and Exchange Commission (the "SEC").

U.S. Investors are urged to consider the disclosure in our annual report on Form 20-F, File No. 001-14598, as filed with the SEC under the Exchange Act, which may be obtained from us (without cost) or from the SEC's web site: http://sec.gov/edgar.shtml.

Tables of Drill Results 


   
                                           TABLE 1

                                INFILL DELINEATION IN PEA AREA
                                                               Cut

                                             True    Uncut                 Vertical depth
                 Length    From      To     Width    Grade    Grade        of Intersection
    Hole Number (metres) (metres) (metres) (metres) (g/t Au) (g/t Au) Zone    (metres)
    490-525-01     63      46.45   48.75     2.12      6.18     6.18    C         469
    490-525-03     84      61.75   65.50     2.97      6.35     6.35    C         516
    740-465-02    220     160.80   166.25    3.96      9.80     9.80    C         858
    740-465-03    264     128.90   132.60    3.68     38.66    38.66    C         805
    740-465-04    189     129.10   133.10    3.52    161.34    85.33    C         817
     including            129.10   131.80    2.37    238.42   125.82
    740-465-07    249     131.75   138.00    5.12     16.00    16.00    C         790
    740-465-08    186     127.45   133.15    5.13     46.42    43.05    C         801
     including            132.10   133.15    0.94    237.78   219.50
    740-465-09    210     150.55   157.10    5.21      6.21     6.21    C         839
    740-465-15    387     276.29   282.43    3.51     29.78    23.29    C       1,004
     including            281.02   281.50    0.27    308.12   225.00
    740-465-16    255     192.14   200.00    5.08    114.93    96.97    C         900
    740-465-17    345     205.40   210.30    3.44     19.35    19.35    C         919
    740-465-20    393     291.05   299.45    4.61     24.56    24.56    C       1,020
    740-465-21    546     329.75   347.60    6.46      7.48     7.48    C       1,069
    740-465-23    297     223.00   226.65    2.34     61.34    50.84    C         941
     including            224.60   225.35    0.48    276.11   225.00
    740-471-10    270     193.80   210.00    5.60     34.13    18.84    C         909
     including            194.30   195.80    0.52    329.52   164.34
    740-471-13    200     146.80   150.33    2.92      6.28     6.28    C         841
    740-471-14    354     162.47   166.40    3.04      6.17     6.17    C         863
    740-471-16    186     135.84   141.26    4.37     27.47    17.58    C         820
     including            136.38   137.20    0.66    167.79   102.38
    740-471-22    186     163.08   168.12    4.60      6.14     6.14    C         670
    740-471-23    252     159.20   162.60    3.20      6.89     6.89    C         684
    740-471-24    351     318.35   333.10    4.10     13.52    11.28    C       1,030
     including            318.35   321.55    0.89     56.39    46.08
    740-471-31    402     345.06   364.73    8.31     13.26    13.26    C       1,061
    740-471-32    441     335.93   348.56    4.95     13.74    13.74    C       1,058
    740-471-34    420     218.00   226.00    3.42      9.29     9.29    C         939
    740-477-17    270     195.40   203.15    4.14      8.26     8.26    C         892
    740-477-19    231     149.80   158.90    7.71     12.84    12.84    C         840
    740-477-20    210     141.38   148.81    6.52      6.32     6.32    C         820
    740-477-26    225     133.55   142.50    6.60      9.55     9.55    C         741
    740-477-29    600     262.10   276.86    6.04     16.07    16.07    C         973
    740-477-30    312     236.95   243.00    3.29     83.08    60.15    C         939
     including            238.80   241.65    1.55    173.08   124.40
    740-477-33    300     218.80   231.10    6.57     32.47    32.47    C         924
    740-477-36A   192     156.65   161.52    4.53      8.50     8.50    C         720
    740-477-37    405     385.70   399.20    4.95     11.76    11.76    C       1,085
    740-477-40    450     382.49   388.07    2.24     38.62    38.62    C       1,083
    740-477-42    430     351.45   370.50    8.00      9.92     9.92    C       1,059
    740-477-43    383     161.70   169.30    6.20     16.94    16.94    C         847
    740-483-19    245     144.65   147.75    2.85     12.81    12.81    C         769
    740-483-21    402     295.04   303.08    3.53     34.13    34.13    C         989
    740-483-22    381     236.52   242.50    3.46     26.37    26.37    C         930
    800-496-01    162     119.00   123.00    2.53     18.21    18.21    C         903
    800-511-01    189     67.90    74.80     4.72     23.36    23.36    C         858
    800-511-02     87     58.71    68.00     8.60      6.16     6.16    C         823
    800-512-01    138     109.00   115.30    4.28      6.90     6.90    C         833
    800-512-02    186     145.70   156.00    6.39     21.45    16.17    C         897
    800-512-04    170     89.80    105.40    8.79     60.16    60.16    C         859
    800-512-05    189     98.00    109.20    5.92     18.37    18.37    C         875
    820-520-01    153     138.20   141.50    3.28     59.86    52.67    C         816
     including            138.20   139.50    1.29    147.79   129.54
    820-520-08    210     194.11   202.35    6.53     61.01    53.64    C         924
     including            194.52   197.60    2.44    122.76   103.04
    820-520-13    237     213.80   218.80    3.62     34.52    30.20    C         952
     including            217.30   217.85    0.40    264.27   225.00


   
                                            TABLE 2

                        EASTERN LATERAL EXPLORATION AND INFILL DRILLING
                                             True     Uncut     Cut          Vertical depth
                 Length    From      To     Width     Grade    Grade        of Intersection
    Hole Number (metres) (metres) (metres) (metres)  (g/t Au) (g/t Au)  Zone   (metres)
    340-576-01    402     305.00   314.65    2.00      5.17     5.17    E1E         559
    340-576-02    500     435.20   444.13    2.00      9.08     8.50    E1E         663
    340-579-01    258     172.30   176.00    2.57      2.69     2.69    E1E         427
    340-584-01    126     96.10    99.40     3.03      3.19     3.19    E1E         325
    340-584-02    303     110.59   113.96    2.70      1.51     1.51    E1E         353
    340-584-03    160     119.50   126.10    4.87      1.98     1.98    E1E         369
    340-586-06    201     115.22   118.60    2.68      7.63     7.63    E1E         375
     including            118.22   118.60    0.30     59.86    59.86
    340-586-07    273     172.30   176.90    2.00      3.16     3.16    E1E         436
    340-586-08    420     213.10   218.40    2.00      9.50     8.38    E1E         479
     including            214.00   214.50    0.19     81.94    70.00
    340-586-09    430     262.00   272.40    2.00      1.73     1.73    E1E         529
    340-588-08    453     213.00   218.10    2.00     14.96    14.96    E1E         471
    340-588-09    430     302.75   313.45    2.10      3.62     3.62    E1E         554
    340-588-10    150     96.60    99.60     2.51      0.81     0.81    E1E         310
    340-588-11    315     122.37   126.67    3.00     13.90    10.10    E1E         358
     including            125.37   125.87    0.35    102.69    70.00
    340-588-12    255     155.60   160.75    3.00     10.24    10.24    E1E         403
    340-588-13    399     202.60   207.50    2.00     54.28    33.60    E1E         452
    340-588-14    378     264.00   273.70    2.00     17.02    10.60    E1E         516
     including            265.80   266.80    0.21    132.27    70.00
    340-588-15    222     124.42   130.50    4.36     19.84    11.44    E1E         376
     including            125.10   125.90    0.57    133.89    70.00
    340-588-16    453     382.80   395.80    2.00      0.93     0.93    E1E         614
    340-588-17    498     265.00   278.00    3.00      5.54     4.98    E1E         522
     including            272.00   272.50    0.25     84.55    70.00
    340-588-18    321     173.50   178.30    2.30     12.44     5.69    E1E         411
     including            175.10   175.40    0.14    177.98    70.00
     GD-640-01    975     731.60   738.60    4.24      0.08     0.08    E1E         686
     GD-640-02   1,029    779.10   789.20    5.34      3.66     3.66    E1E         756
     GD-640-04   1,050    888.50   894.50    3.27      8.81     7.38    E1E         852
     including            890.20   890.80    0.33     84.31    70.00
     GD-640-05   1,264   1,055.20 1,066.50   11.3c.l. 26.55    20.57    E1E       1,020
     including           1,056.00 1,057.50   1.50    115.11    70.00
    GD-640-05-1  1,500   1,083.20 1,091.53   8.33c.l. 28.13    16.10     X        1,029
     including           1,086.75 1,090.10   3.35c.l. 63.25    33.34
                         1,110.56 1,116.30   5.74c.l. 17.32    10.16     X        1,042
     including           1,110.86 1,111.56   0.7 c.l. 128.71   70.00


   
                                           TABLE 3

                        DEEP DRILLING PROGRAM, EXPLORATION AND INFILL
                                           True      Uncut     Cut           Vertical depth
      Hole     Length    From      To     Width      Grade    Grade         of Intersection
     Number   (metres) (metres) (metres) (metres)   (g/t Au) (g/t Au)  Zone     (metres)
     MH1-10    1,613   1,350.10 1,356.90   3.76       24.54    24.54     C         1,233
    including          1,354.00 1,354.80   0.44      179.67   179.67
     MH2A-7    1,607   1,194.20 1,198.70    4.5c.l     7.17     6.08     X         1,047
                                           10.4
     MH2A-7    1,607   1,241.00 1,251.40   c.l.       11.36    11.36     X         1,085
     MH2A-7    1,607   1,312.90 1,319.47   4.80        4.72     4.72    E1E        1,139
     MH2A-8    1,433   1,278.82 1,289.47   9.17       11.22    10.37    E1E        1,108
    including          1,288.64 1,289.00   0.31       95.21    70.00
     MH2A-9B   1,500   1,299.26 1,306.46   5.89        2.66     2.66    E1E        1,134
     MH2A-10   1,472   1,300.10 1,316.00  11.58       13.25     6.16    E1E        1,169
    including          1,300.50 1,300.80   0.22      383.01    70.00
                       1,315.70 1,316.00   0.22      133.06    70.00
      MH4-4    1,373   1,326.90 1,331.45   3.09        4.10     4.10     C         1,138
     MH4-4B    1,505   1,211.15 1,217.10   5.95c.l.  103.86     5.09     X         1,046
    including          1,216.45 1,216.75    0.3c.l. 2028.91    70.00
      MH4-5    1,628   1,346.96 1,351.10   2.51        4.63     4.63     C         1,177
      MH5-1    1,523   1,082.60 1,084.55   1.95c.l.    4.59     4.59     X          948
     MH5-1A    1,523   1,321.88 1,329.15   5.93        9.27     9.27     C         1,128
    including          1,326.73 1,327.20   0.38      102.07   102.07
      MH5-2    1,529   1,323.58 1,329.43   4.40        5.08     5.08     C         1,132
      MH5-3    1,517   1,383.40 1,388.55   3.81        0.95     0.95     C         1,215
      MH-6     1,857   1,440.50 1,453.05   9.44        0.91     0.91     C         1,261
      MH-8     1,576   1,378.50 1,382.10   2.24        4.60     4.60    E1E        1,195
    High-grade capping values:
    Lower Island C Zone (225 g/t)
    Lower X2-E1E Zone, East Lateral E1E Zone and X Zone (70 g/t Au)

Renaud Adams, President and CEO, Phone: +1-416-368-0291 ext. 101; Anne Day, Senior Vice-President, Investor Relations, Phone: +1-416-368-0291 ext. 105


Richmont Mines Provides Exploration and Delineation Drilling Update for the Island Gold Mine; New High Grade Mineralization Identified: 20.6 g/t of gold over 11.3 metres (core length) in the Eastern Lateral Extension

TORONTO, March 30, 2017 /PRNewswire/ - Richmont Mines Inc. (TSX: RIC) (NYSE: RIC) ("Richmont" or the "Corporation"), is pleased to provide an update from its strategic exploration and delineation drilling program currently underway at the cornerstone Island Gold Mine. Recent exploration drilling has identified new high-grade mineralization located approximately 800 metres east of the main Island Gold deposit with hole GD-640-05 intersecting 20.6 g/t gold over 11.3 metres (core length). All results are reported with estimated true width, unless otherwise indicated, and high-grade assays are capped at 225 g/t gold for the Lower C zone and 70 g/t for the E1E zone, the main mineralized zone east of the second dyke.

"Results from the strategic drilling program at the Island Gold Mine continue to demonstrate the significant near-term potential of this high quality deposit. In the eastern lateral extension, drilling has identified a new mineralized zone in the down plunge extension of a high-grade trend that was identified in 2016. This new area is located only 500 metres east and below the new resource blocks, which indicates that the structure could continue at depth." stated Renaud Adams, CEO. He continued, "The early results from our delineation drilling in the Expansion Case PEA area indicate the significant potential to further expand our reserves at higher than current average grades. In 2017 we will continue to advance our systematic drilling program with an overall focus on positively impacting our near-term mine life and identifying the next million ounces of resources outside the Expansion Case PEA area."

2017 DRILLING PROGRAM – ISLAND GOLD MINE (Figure 1)

The 2016 delineation drilling program contributed to a 34% increase in reserves at an 11% higher grade, while the exploration program delivered more than 450,000 ounces of new inferred resources at a cost of less than $35 per ounce discovered. As of December 31, 2016, the Island Gold Mine increased its reserve base to 752,200 ounces of gold at a higher grade of 9.17 g/t, while inferred resources increased to 995,700 ounces of gold at a higher grade of 10.18 g/t.

The 2017 drilling program currently underway continues to build on positive results achieved in 2016 and is focused on three key priorities: 1) to expand near-mine resources outside the Expansion Case PEA area, both laterally and at depth; 2) to further expand the reserve base, primarily within the Expansion Case PEA area; and 3) continuing to test high priority regional gold targets across the prospective Island Gold Mine property.

Eastern Lateral Exploration and Infill Drilling Program (Figure 2)

The 2016 drilling program successfully added two new inferred resource blocks in the eastern lateral extension, approximately 300 metres east of the Expansion Case PEA area, between the 340 and the 750 metre levels. The largest inferred resource block contains approximately 290,000 tonnes at a grade of 10.35 g/t of gold (approximately 95,000 ounces of gold). These two new blocks are relatively shallow and easily accessible from the existing mine infrastructure. As a result, the 2017 exploration program is following up on the eastern lateral extension area, particularly on a high-grade intersection (Hole GD-630-01) of 25.27 g/t gold over 3.85 metres located approximately 500 metres east of the new resource blocks that was identified in 2016, and continues to target the extension and infill of the new resource blocks.

Recent drilling in the eastern lateral extension has been focused in the down plunge extension of Hole GD-630-01. Highlights include:

  • Hole GD-640-05 intersected 20.57 g/t (26.55 g/t uncut) of gold over a core length of 11.3 metres, at a vertical depth of approximately 1,000 metres;
  • Hole GD-640-04, located approximately 150 metres above hole GD-640-05, intersected 7.38 g/t gold over 3.27 metres.

One directional drill rig has been redeployed to this area to follow-up on the exploration success in this area. The initial 2017 directional drill hole (GD-640-05-1) was completed between holes GD-640-04 and GD-640-05 noted above, and intersected two high-grade intervals at the same elevation, but located 40 to 50 metres north of GD-640-05. The first interval intersected 16.1 g/t gold (28.13 g/t uncut) over a core length of 8.33 metres and the second intersected 10.16 g/t gold (17.32 g/t uncut) over a core length of 5.74 metres. Additional drilling will be required to better understand the geometry and true width of this new area of high-grade mineralization. This new discovery represents significant upside to the potential extension of the eastern lateral corridor. A second directional drill rig will be added to accelerate drilling in this area.

Exploration and infill drilling has continued from the 340 metre level exploration drift that targets a potential extension and infill of the current resource blocks that were identified in 2016. One drill rig is working in the area and another drill rig will be added on the 620 metre level once the 300 metre extension of the exploration drift is completed in the second half of the year.

Recent highlights from Eastern Lateral exploration and infill drilling from the 340 metre level exploration drift (subsequent to the October 12, 2016 exploration press release), include (Table 2):

  • Hole 340-576-02: 8.50 g/t gold over 2.00 metres;
  • Hole 340-588-08: 14.96 g/t gold over 2.00 metres;
  • Hole 340-588-11: 10.10 g/t gold over 3.00 metres;
  • Hole 340-588-12: 10.24 g/t gold over 3.00 metres;
  • Hole 340-588-13: 33.60 g/t gold over 2.00 metres;
  • Hole 340-588-14: 10.60 g/t gold over 2.00 metres;
  • Hole 340-588-15: 11.44 g/t gold over 4.36 metres.

A total of 8,232 metres (33 holes) of exploration and infill drilling of the planned 37,000 metres have been completed to date in the eastern lateral area.

Deep Directional Exploration Drilling Program Highlights: (Figure 3)

The successful 2016 deep drilling program identified a new large inferred resource block of 760,000 tonnes at a grade of 9.53 g/t gold (approximately 230,000 ounces) in the eastern down plunge extension, located between the 1,050 and the 1,300 metre levels.

The deep directional exploration drilling program continues in 2017 and targets the expansion of the new resource block. A total of 16,000 metres of deep directional drilling and 20,000 metres of underground drilling are planned in 2017. The underground drilling will be primarily completed from the 860 metre level exploration drift (400 metre length) that is scheduled to be completed in 2017.

Results to date continue to be encouraging with Hole MH1-10 intersecting 24.5 g/t gold over 3.76 metres. In the eastern portion of this area, Hole MH8 intersected 4.6 g/t gold over 2.24 metres, demonstrating that the mineralization remains open to the east.

In the western area, mineralized zones were intersected and additional drilling is required to better understand the structural geology at depth, however these new zones increase the overall potential of the down plunge extension and provide new high quality targets for follow up drilling.

A total of 5,052 metres (10 holes) have been drilled to date and three surface directional drill rigs are presently working in this area.

Other highlights from the deep directional exploration and infill drilling include (Table 3):

  • Hole MH2A-7: 11.36 g/t gold over a core length of 10.40 metres (Zone X);
  • Hole MH2A-8: 10.37 g/t gold over 9.17 metres;
  • Hole MH2A-10: 6.16 g/t gold over 11.58 metres;
  • Hole MH5-1A: 9.27 g/t gold over 5.93 metres.

EXPANSION CASE PEA DELINEATION DRILLING PROGRAM (Figure 4)

For 2017, a total of 30,000 metres of delineation drilling is planned within the Expansion Case PEA area, primarily in the fourth mining horizon located between the 860 and 1,000 metre levels. Currently, two drill rigs are working in the area and a total of 6,866 metres (40 holes) have been completed to date.

Drilling continues to demonstrate the potential for additional reserve growth, including ounces and grade, primarily through the conversion of the high-grade inferred resources located in the fourth horizon. Results to date also demonstrate the potential to identify additional resources as high-grade mineralization continues to be intersected between the inferred resource blocks.

Recent drilling highlights from delineation and infill drilling completed within the Expansion Case PEA area, which have not been included in the December 2016 Resource and Reserve update include (Table 1):

  • Hole 740-465-08: 43.05 g/t gold over 5.13 metres;
  • Hole 740-465-16: 96.47 g/t gold over 5.08 metres;
  • Hole 740-465-15: 23.29 g/t gold over 3.51 metres;
  • Hole 740-465-20: 24.56 g/t gold over 3.85 metres;
  • Hole 740-483-21: 34.13 g/t gold over 3.53 metres;
  • Hole 820-520-08: 53.64 g/t gold over 6.53 metres;
  • Hole 820-520-13: 30.20 g/t gold over 3.62 metres.

Phase 2 Regional Drilling Program

The Phase 2 regional drilling program is designed to continue to evaluate the potential extension of the mineralization below the Kremzar mine as well as other previously identified high-priority gold targets located elsewhere on the highly prospective 77 km2 Island Gold property. The Phase 2 regional drilling program is expected to begin later in 2017.

Qualified Persons

The scientific and technical content and interpretations contained in this news release have been reviewed, verified and approved by Daniel Adam P. Geo., Ph.D., Richmont's Vice-President, Exploration, a Qualified Person as defined by NI 43-101.

Quality Control

Assays for the exploration drilling were done at LabExpert in Rouyn-Noranda. Mineralized zones samples will be resent for verification to an accredited laboratory. The Corporation inserts at regular intervals quality control (QC) samples (blanks and reference materials) to monitor laboratory performance.

About Richmont Mines Inc.

Richmont Mines currently produces gold from the Island Gold Mine in Ontario, and the Beaufor Mine in Quebec. The Corporation is also advancing development of the significant high-grade resource extension at depth of the Island Gold Mine in Ontario. With 35 years of experience in gold production, exploration and development, and prudent financial management, the Corporation is well-positioned to cost-effectively build its Canadian reserve base and to successfully enter its next phase of growth.

Forward-Looking Statements
This news release contains forward-looking statements that include risks and uncertainties. When used in this news release, the words "estimate", "project", "anticipate", "expect", "intend", "believe", "hope", "may", "objective" and similar expressions, as well as "will", "shall" and other indications of future tense, are intended to identify forward-looking statements. The forward-looking statements are based on current expectations and apply only as of the date on which they were made. Except as may be required by law or regulation, the Corporation undertakes no obligation and disclaims any responsibility to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise.

The factors that could cause actual results to differ materially from those indicated in such forward-looking statements include, without limitation, changes in the prevailing price of gold, the Canadian-United States exchange rate, grade of ore mined and unforeseen difficulties in mining operations that could affect revenue and production costs. Other factors such as uncertainties regarding government regulations and the failure of our exploration drilling programs to identify significant new resources or targets or expand existing resources could also affect the results. Other risks are set out in Richmont's Annual Information Form, Annual Reports and periodic reports. The forward-looking information contained herein is made as of the date of this news release.

Cautionary note to US investors concerning resource estimates
Information in this press release is intended to comply with the requirements of the Toronto Stock Exchange and applicable Canadian securities legislation, which differ in certain respects with the rules and regulations promulgated under the United States Securities Exchange Act of 1934, as amended ("Exchange Act"), as promulgated by the SEC. The requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101) adopted by the Canadian Securities Administrators differ significantly from the requirements of the United States Securities and Exchange Commission (the "SEC").

U.S. Investors are urged to consider the disclosure in our annual report on Form 20-F, File No. 001-14598, as filed with the SEC under the Exchange Act, which may be obtained from us (without cost) or from the SEC's web site: http://sec.gov/edgar.shtml.

 

Tables of Drill Results

 

TABLE 1

INFILL DELINEATION IN PEA AREA

Hole Number

Length
(metres)

From
(metres)

To
(metres)

True
Width
(metres)

Uncut
Grade
(g/t Au)

Cut

Grade
(g/t Au)

Zone

Vertical depth
of Intersection
(metres)

490-525-01

63

46.45

48.75

2.12

6.18

6.18

C

469

490-525-03

84

61.75

65.50

2.97

6.35

6.35

C

516

740-465-02

220

160.80

166.25

3.96

9.80

9.80

C

858

740-465-03

264

128.90

132.60

3.68

38.66

38.66

C

805

740-465-04

189

129.10

133.10

3.52

161.34

85.33

C

817

including


129.10

131.80

2.37

238.42

125.82



740-465-07

249

131.75

138.00

5.12

16.00

16.00

C

790

740-465-08

186

127.45

133.15

5.13

46.42

43.05

C

801

including


132.10

133.15

0.94

237.78

219.50



740-465-09

210

150.55

157.10

5.21

6.21

6.21

C

839

740-465-15

387

276.29

282.43

3.51

29.78

23.29

C

1,004

including


281.02

281.50

0.27

308.12

225.00



740-465-16

255

192.14

200.00

5.08

114.93

96.97

C

900

740-465-17

345

205.40

210.30

3.44

19.35

19.35

C

919

740-465-20

393

291.05

299.45

4.61

24.56

24.56

C

1,020

740-465-21

546

329.75

347.60

6.46

7.48

7.48

C

1,069

740-465-23

297

223.00

226.65

2.34

61.34

50.84

C

941

including


224.60

225.35

0.48

276.11

225.00



740-471-10

270

193.80

210.00

5.60

34.13

18.84

C

909

including


194.30

195.80

0.52

329.52

164.34



740-471-13

200

146.80

150.33

2.92

6.28

6.28

C

841

740-471-14

354

162.47

166.40

3.04

6.17

6.17

C

863

740-471-16

186

135.84

141.26

4.37

27.47

17.58

C

820

including


136.38

137.20

0.66

167.79

102.38



740-471-22

186

163.08

168.12

4.60

6.14

6.14

C

670

740-471-23

252

159.20

162.60

3.20

6.89

6.89

C

684

740-471-24

351

318.35

333.10

4.10

13.52

11.28

C

1,030

including


318.35

321.55

0.89

56.39

46.08



740-471-31

402

345.06

364.73

8.31

13.26

13.26

C

1,061

740-471-32

441

335.93

348.56

4.95

13.74

13.74

C

1,058

740-471-34

420

218.00

226.00

3.42

9.29

9.29

C

939

740-477-17

270

195.40

203.15

4.14

8.26

8.26

C

892

740-477-19

231

149.80

158.90

7.71

12.84

12.84

C

840

740-477-20

210

141.38

148.81

6.52

6.32

6.32

C

820

740-477-26

225

133.55

142.50

6.60

9.55

9.55

C

741

740-477-29

600

262.10

276.86

6.04

16.07

16.07

C

973

740-477-30

312

236.95

243.00

3.29

83.08

60.15

C

939

including


238.80

241.65

1.55

173.08

124.40



740-477-33

300

218.80

231.10

6.57

32.47

32.47

C

924

740-477-36A

192

156.65

161.52

4.53

8.50

8.50

C

720

740-477-37

405

385.70

399.20

4.95

11.76

11.76

C

1,085

740-477-40

450

382.49

388.07

2.24

38.62

38.62

C

1,083

740-477-42

430

351.45

370.50

8.00

9.92

9.92

C

1,059

740-477-43

383

161.70

169.30

6.20

16.94

16.94

C

847

740-483-19

245

144.65

147.75

2.85

12.81

12.81

C

769

740-483-21

402

295.04

303.08

3.53

34.13

34.13

C

989

740-483-22

381

236.52

242.50

3.46

26.37

26.37

C

930

800-496-01

162

119.00

123.00

2.53

18.21

18.21

C

903

800-511-01

189

67.90

74.80

4.72

23.36

23.36

C

858

800-511-02

87

58.71

68.00

8.60

6.16

6.16

C

823

800-512-01

138

109.00

115.30

4.28

6.90

6.90

C

833

800-512-02

186

145.70

156.00

6.39

21.45

16.17

C

897

800-512-04

170

89.80

105.40

8.79

60.16

60.16

C

859

800-512-05

189

98.00

109.20

5.92

18.37

18.37

C

875

820-520-01

153

138.20

141.50

3.28

59.86

52.67

C

816

including


138.20

139.50

1.29

147.79

129.54



820-520-08

210

194.11

202.35

6.53

61.01

53.64

C

924

including


194.52

197.60

2.44

122.76

103.04



820-520-13

237

213.80

218.80

3.62

34.52

30.20

C

952

including


217.30

217.85

0.40

264.27

225.00



 

TABLE 2

EASTERN LATERAL EXPLORATION AND INFILL DRILLING

Hole Number

Length
(metres)

From
(metres)

To
(metres)

True
Width
(metres)

Uncut
Grade
(g/t Au)

Cut
Grade
(g/t Au)

Zone

Vertical depth
of Intersection
(metres)

340-576-01

402

305.00

314.65

2.00

5.17

5.17

E1E

559

340-576-02

500

435.20

444.13

2.00

9.08

8.50

E1E

663

340-579-01

258

172.30

176.00

2.57

2.69

2.69

E1E

427

340-584-01

126

96.10

99.40

3.03

3.19

3.19

E1E

325

340-584-02

303

110.59

113.96

2.70

1.51

1.51

E1E

353

340-584-03

160

119.50

126.10

4.87

1.98

1.98

E1E

369

340-586-06

201

115.22

118.60

2.68

7.63

7.63

E1E

375

including


118.22

118.60

0.30

59.86

59.86



340-586-07

273

172.30

176.90

2.00

3.16

3.16

E1E

436

340-586-08

420

213.10

218.40

2.00

9.50

8.38

E1E

479

including


214.00

214.50

0.19

81.94

70.00



340-586-09

430

262.00

272.40

2.00

1.73

1.73

E1E

529

340-588-08

453

213.00

218.10

2.00

14.96

14.96

E1E

471

340-588-09

430

302.75

313.45

2.10

3.62

3.62

E1E

554

340-588-10

150

96.60

99.60

2.51

0.81

0.81

E1E

310

340-588-11

315

122.37

126.67

3.00

13.90

10.10

E1E

358

including


125.37

125.87

0.35

102.69

70.00



340-588-12

255

155.60

160.75

3.00

10.24

10.24

E1E

403

340-588-13

399

202.60

207.50

2.00

54.28

33.60

E1E

452

340-588-14

378

264.00

273.70

2.00

17.02

10.60

E1E

516

including


265.80

266.80

0.21

132.27

70.00



340-588-15

222

124.42

130.50

4.36

19.84

11.44

E1E

376

including


125.10

125.90

0.57

133.89

70.00



340-588-16

453

382.80

395.80

2.00

0.93

0.93

E1E

614

340-588-17

498

265.00

278.00

3.00

5.54

4.98

E1E

522

including


272.00

272.50

0.25

84.55

70.00



340-588-18

321

173.50

178.30

2.30

12.44

5.69

E1E

411

including


175.10

175.40

0.14

177.98

70.00



GD-640-01

975

731.60

738.60

4.24

0.08

0.08

E1E

686

GD-640-02

1,029

779.10

789.20

5.34

3.66

3.66

E1E

756

GD-640-04

1,050

888.50

894.50

3.27

8.81

7.38

E1E

852

including


890.20

890.80

0.33

84.31

70.00



GD-640-05

1,264

1,055.20

1,066.50

11.3 c.l.

26.55

20.57

E1E

1,020

including


1,056.00

1,057.50

1.50

115.11

70.00



GD-640-05-1

1,500

1,083.20

1,091.53

8.33 c.l.

28.13

16.10

X

1,029

including


1,086.75

1,090.10

3.35 c.l.

63.25

33.34





1,110.56

1,116.30

5.74 c.l.

17.32

10.16

X

1,042

including


1,110.86

1,111.56

0.7 c.l.

128.71

70.00



 

TABLE 3

DEEP DRILLING PROGRAM, EXPLORATION AND INFILL

Hole Number

Length
(metres)

From
(metres)

To
(metres)

True
Width
(metres)

Uncut
Grade
(g/t Au)

Cut
Grade
(g/t Au)

Zone

Vertical depth
of Intersection
(metres)

MH1-10

1,613

1,350.10

1,356.90

3.76

24.54

24.54

C

1,233

including


1,354.00

1,354.80

0.44

179.67

179.67



MH2A-7

1,607

1,194.20

1,198.70

4.5 c.l.

7.17

6.08

X

1,047

MH2A-7

1,607

1,241.00

1,251.40

10.4 c.l.

11.36

11.36

X

1,085

MH2A-7

1,607

1,312.90

1,319.47

4.80

4.72

4.72

E1E

1,139

MH2A-8

1,433

1,278.82

1,289.47

9.17

11.22

10.37

E1E

1,108

including


1,288.64

1,289.00

0.31

95.21

70.00



MH2A-9B

1,500

1,299.26

1,306.46

5.89

2.66

2.66

E1E

1,134

MH2A-10

1,472

1,300.10

1,316.00

11.58

13.25

6.16

E1E

1,169

including


1,300.50

1,300.80

0.22

383.01

70.00





1,315.70

1,316.00

0.22

133.06

70.00



MH4-4

1,373

1,326.90

1,331.45

3.09

4.10

4.10

C

1,138

MH4-4B

1,505

1,211.15

1,217.10

5.95 c.l.

103.86

5.09

X

1,046

including


1,216.45

1,216.75

0.3 c.l.

2028.91

70.00



MH4-5

1,628

1,346.96

1,351.10

2.51

4.63

4.63

C

1,177

MH5-1

1,523

1,082.60

1,084.55

1.95 c.l.

4.59

4.59

X

948

MH5-1A

1,523

1,321.88

1,329.15

5.93

9.27

9.27

C

1,128

including


1,326.73

1,327.20

0.38

102.07

102.07



MH5-2

1,529

1,323.58

1,329.43

4.40

5.08

5.08

C

1,132

MH5-3

1,517

1,383.40

1,388.55

3.81

0.95

0.95

C

1,215

MH-6

1,857

1,440.50

1,453.05

9.44

0.91

0.91

C

1,261

MH-8

1,576

1,378.50

1,382.10

2.24

4.60

4.60

E1E

1,195

High-grade capping values:
Lower Island C Zone (225 g/t)
Lower X2-E1E Zone, East Lateral E1E Zone and X Zone (70 g/t Au)

 

SOURCE Richmont Mines

NioCorp Developments Ltd. (NIOBF: OTCQX International) | NioCorp Files Permit Application with U.S. Army Corps of Engineers for its Elk Creek Project Waterline

Mar 30, 2017

OTC Disclosure & News Service

CENTENNIAL, Colo., March 30, 2017 (GLOBE NEWSWIRE) — NioCorp Developments Ltd. (“NioCorp” or the “Company”) (TSX:NB) (OTCQX:NIOBF) (FSE:BR3) announces that it has submitted a Pre-Construction Notification (PCN) permit application to the U.S. Army Corps of Engineers (“USACE”) for its proposed waterline from its Elk Creek Superalloy Materials Project (the “Project”) to the Missouri River.

The PCN filed by NioCorp with the USACE covers the outfall structure portion of the Project’s waterline in the Missouri River.  Under current federal law (40CFR330.1 (e)), NioCorp may presume that the PCN qualifies for the USACE’s Nationwide Permit 12 (Utility Line Activities) unless it is notified by the USACE within 45 calendar days.  If the USACE notifies NioCorp that the notification is incomplete, one additional 45-day period commences upon receipt of the revised notification.

The remainder of the proposed 33-mile waterline is able to move forward under non-notifying parameters of Nationwide Permit 12, given that it involves no permanent impacts to wetlands and stream channels and will have only temporary impacts during construction.  Additionally, NioCorp’s proposed underground mine, surface processing facilities, and tailings impoundment are estimated to result in zero permanent impacts to any federally jurisdictional waters, and thus will need no discretionary permit from the USACE.

The fact that most of the Elk Creek Project can be constructed under a non-notifying USACE Nationwide Permit is due to the Company’s success in recent months in reducing the Project’s projected impacts on federally regulated waters.  Those advances include:  (1) using less water to recover the facility’s primary commercial product (Niobium), which reduces the size of a number of major pieces of equipment in the facility; (2) recycling a portion of process remains that normally would go to tailings into useful materials needed for superalloy metal manufacturing; (3) elimination of a previously planned railroad spur line and associated infrastructure.  These and other advances were previously announced by the Company and are summarized here.

“Scott Honan and his team have worked very hard to continue reducing the environmental footprint of the Elk Creek Project, and that’s why we qualify for this more rapid and streamlined permitting process from the U.S. Army Corps of Engineers,” said Mark A. Smith, CEO and Executive Chairman of NioCorp.  “We want to do the right thing for the environment, and that is a key reason why we invested more time and resources into further optimizing our plans for the Elk Creek mine and processing facility and the waterline.  Those optimizations are resulting in a more efficient permitting process, and that is a win for the Project, for the environment, and for southeast Nebraska.”

The Elk Creek Project must still obtain a number of state and local permits prior to construction and operation.  These include water, air quality, and other permits from the Nebraska Department of Environmental Quality and other agencies.  Local permits also will be required.  A number of these state and local permitting processes are already underway.

On Behalf of the Board of Directors,

„Mark Smith”

Mark Smith
Executive Chairman, CEO, and Director

Qualified Persons: Brian Osborn, BSc., CHMM, of Olsson Associates, a Qualified Person as defined by National Instrument 43-101, is responsible for the environmental permitting of the Elk Creek project, and has read and approved the technical information contained in this news release.

@NioCorp $NB $NIOBF #Niobium #Scandium #ElkCreek

For More Information:

Contact Jim Sims, VP of External Affairs, NioCorp Developments Ltd., 720-639-4650, jim.sims@niocorp.com

About NioCorp

NioCorp is developing a superalloy materials project in Southeast Nebraska that will produce Niobium, Scandium, and Titanium. Niobium is used to produce superalloys as well as High Strength, Low Alloy („HSLA”) steel, which is a lighter, stronger steel used in automotive, structural, and pipeline applications.  Scandium is a superalloy material that can be combined with Aluminum to make alloys with increased strength and improved corrosion resistance.  Scandium also is a critical component of advanced solid oxide fuel cells.  Titanium is used in various superalloys and is a key component of pigments used in paper, paint and plastics and is also used for aerospace applications, armor and medical implants.

Cautionary Note Regarding Forward-Looking Statements

Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this document.  Certain statements contained in this document may constitute forward-looking statements, including but not limited to NioCorp’s ability to secure permits necessary to enable the Project to be constructed and to operate, and the scope and timing of such permits. Such forward-looking statements are based upon NioCorp’s reasonable expectations and business plan at the date hereof, which are subject to change depending on economic, political and competitive circumstances and contingencies. Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates to be materially different from those estimated or anticipated future results, achievements or position expressed or implied by those forward-looking statements. Risks, uncertainties and other factors that could cause NioCorp’s plans or prospects to change include changes in demand for and price of commodities (such as fuel and electricity) and currencies; changes or disruptions in the securities markets; legislative, political or economic developments; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the possibility that actual results of work may differ from projections/expectations or may not realize the perceived potential of NioCorp’s projects; risks of accidents, equipment breakdowns and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in development programs; operating or technical difficulties in connection with exploration, mining or development activities; the speculative nature of mineral exploration and development, including the risks of diminishing quantities of grades of reserves and resources; and the risks involved in the exploration, development and mining business and the risks set forth under the heading “Risk Factors” in the Company’s S-1 registration statement and other filings with the SEC at www.sec.gov. NioCorp disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Primary Logo

Copyright © 2017 GlobeNewswire. All Rights Reserved

The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.

Millennial Makes Payment on Option of Pocitos West Project in the Pocitos Salar, Salta Province, Argentina

/EINPresswire.com/ — VANCOUVER, BRITISH COLUMBIA–(Marketwired – Mar 30, 2017) – Millennial Lithium Corp. (TSX VENTURE:ML)(FRANKFURT:A3N2)(OTCQB:MLNLF) („Millennial” or the „Company”) reports it has made the initial payments under its option (the „Option”) to acquire a 100% interest in the Pocitos West Project („Pocitos West”) consisting of 15,857 hectares (39,183 acres) of prospective lithium brine exploitation concessions on the Pocitos Salar in Salta Province, Argentina. Pocitos West is adjacent to ground recently acquired by Pure Energy Minerals Ltd. and is strategically located in close proximately to known lithium resources including the Rincon Project located 32 kilometres (km) to the north and the Sal De Vida Project 90km to the south. The Option was first announced on February 2, 2017.

Pocitos West is located 160km from Salta, and approximately 40 km due west of Millennial’s flagship Pastos Grandes Project where recent drilling has confirmed significant lithium brines from surface to depths of 400 metres. Pocitos West is directly accessible by Salta Provincial Highway 17 and close to other high quality regional and site infrastructure including local labour, rail and power generation.

Millennial and the Vendors of Pocitos West executed a definitive option agreement (the „Agreement”) that defines the material terms and conditions of the Option. A non-refundable deposit of $100,000 (the „Deposit”) has been paid to the Vendors as has the additional $150,000 (U.S.) (the „First Option Payment”) which was due upon receipt of Exchange approval of the Option.

The Option may be exercised within three years by making a total of $4,500,000 (U.S.) in payments (including the Deposit and the First Option Payment) (the „Option Exercise Price”): (i) $250,000 (U.S) six months from the date of the Agreement; (ii) $500,000 (U.S.) twelve months from the date of the Agreement; (iii) $500,000 (U.S.) eighteen months from the date of the Agreement; (iv) $500,000 (U.S.) twenty-four months from the date of the Agreement; (v) $500,000 (U.S.) thirty months from the date of the Agreement; and (vi) $2,000,000 (U.S.) thirty-six months from the date of the Agreement.

Upon payment of the full Option Exercise Price, Millennial will have earned a 100% interest in Pocitos West.

No securities of the Company are to be issued in conjunction with exercise of the Option.

The 60-kilometre-long Pocitos salar basin was previously drill tested by 12 shallow holes in 1979 by an Argentine government agency, the Direccion General de Fabricaciones Militares (DGFM). The most significant result from the historical work program includes a shallow drill hole, which averaged 417 parts per million (ppm) lithium and 15,300 ppm potassium. The results of these holes and the sampling conducted are historical in nature and cannot be confirmed by the Company under National Instrument 43-101 standards of exploration applicable today.

In 2010, Li3 Energy Inc. announced the results of 46 brine samples taken from just below the surface of the salar, with brine assays ranging from 300 ppm to 600 ppm lithium. These samples were taken immediately east of the Pocitos West property. Previous geophysical studies conducted by Li3 Energy Inc. also demonstrate the Pocitos basin, where sampled, is approximately 500 metres deep and that the prospective brine target is open and extends westward toward the Pocitos West property.

This news release has been reviewed by Iain Scarr, AIPG, CPG, who is COO of the Company and a qualified person as that term is defined in National Instrument 43-101.

MILLENNIAL LITHIUM CORP.,

Graham Harris, Chairman, Director

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This news release may contain certain „Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words „anticipate”, „believe”, „estimate”, „expect”, „target, „plan”, „forecast”, „may”, „schedule” and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, currency risks including the exchange rate of USD$ for Cdn$, fluctuations in the market for lithium, changes in exploration costs and government royalties or taxes in Argentina and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.

NioCorp Files Permit Application with U.S. Army Corps of Engineers for its Elk Creek Project Waterline

CENTENNIAL, Colo., March 30, 2017 (GLOBE NEWSWIRE) — NioCorp Developments Ltd. (“NioCorp” or the “Company”) (TSX:NB) (OTCQX:NIOBF) (FSE:BR3) announces that it has submitted a Pre-Construction Notification (PCN) permit application to the U.S. Army Corps of Engineers (“USACE”) for its proposed waterline from its Elk Creek Superalloy Materials Project (the “Project”) to the Missouri River.
The PCN filed by NioCorp with the USACE covers the outfall structure portion of the Project’s waterline in the Missouri River.  Under current federal law (40CFR330.1 (e)), NioCorp may presume that the PCN qualifies for the USACE’s Nationwide Permit 12 (Utility Line Activities) unless it is notified by the USACE within 45 calendar days.  If the USACE notifies NioCorp that the notification is incomplete, one additional 45-day period commences upon receipt of the revised notification.The remainder of the proposed 33-mile waterline is able to move forward under non-notifying parameters of Nationwide Permit 12, given that it involves no permanent impacts to wetlands and stream channels and will have only temporary impacts during construction.  Additionally, NioCorp’s proposed underground mine, surface processing facilities, and tailings impoundment are estimated to result in zero permanent impacts to any federally jurisdictional waters, and thus will need no discretionary permit from the USACE.The fact that most of the Elk Creek Project can be constructed under a non-notifying USACE Nationwide Permit is due to the Company’s success in recent months in reducing the Project’s projected impacts on federally regulated waters.  Those advances include:  (1) using less water to recover the facility’s primary commercial product (Niobium), which reduces the size of a number of major pieces of equipment in the facility; (2) recycling a portion of process remains that normally would go to tailings into useful materials needed for superalloy metal manufacturing; (3) elimination of a previously planned railroad spur line and associated infrastructure.  These and other advances were previously announced by the Company and are summarized here.“Scott Honan and his team have worked very hard to continue reducing the environmental footprint of the Elk Creek Project, and that’s why we qualify for this more rapid and streamlined permitting process from the U.S. Army Corps of Engineers,” said Mark A. Smith, CEO and Executive Chairman of NioCorp.  “We want to do the right thing for the environment, and that is a key reason why we invested more time and resources into further optimizing our plans for the Elk Creek mine and processing facility and the waterline.  Those optimizations are resulting in a more efficient permitting process, and that is a win for the Project, for the environment, and for southeast Nebraska.”The Elk Creek Project must still obtain a number of state and local permits prior to construction and operation.  These include water, air quality, and other permits from the Nebraska Department of Environmental Quality and other agencies.  Local permits also will be required.  A number of these state and local permitting processes are already underway.On Behalf of the Board of Directors,„Mark Smith”Mark Smith
Executive Chairman, CEO, and Director
Qualified Persons: Brian Osborn, BSc., CHMM, of Olsson Associates, a Qualified Person as defined by National Instrument 43-101, is responsible for the environmental permitting of the Elk Creek project, and has read and approved the technical information contained in this news release.@NioCorp $NB $NIOBF #Niobium #Scandium #ElkCreekFor More Information:Contact Jim Sims, VP of External Affairs, NioCorp Developments Ltd., 720-639-4650, jim.sims@niocorp.comAbout NioCorpNioCorp is developing a superalloy materials project in Southeast Nebraska that will produce Niobium, Scandium, and Titanium. Niobium is used to produce superalloys as well as High Strength, Low Alloy („HSLA”) steel, which is a lighter, stronger steel used in automotive, structural, and pipeline applications.  Scandium is a superalloy material that can be combined with Aluminum to make alloys with increased strength and improved corrosion resistance.  Scandium also is a critical component of advanced solid oxide fuel cells.  Titanium is used in various superalloys and is a key component of pigments used in paper, paint and plastics and is also used for aerospace applications, armor and medical implants.Cautionary Note Regarding Forward-Looking StatementsNeither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this document.  Certain statements contained in this document may constitute forward-looking statements, including but not limited to NioCorp’s ability to secure permits necessary to enable the Project to be constructed and to operate, and the scope and timing of such permits. Such forward-looking statements are based upon NioCorp’s reasonable expectations and business plan at the date hereof, which are subject to change depending on economic, political and competitive circumstances and contingencies. Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates to be materially different from those estimated or anticipated future results, achievements or position expressed or implied by those forward-looking statements. Risks, uncertainties and other factors that could cause NioCorp’s plans or prospects to change include changes in demand for and price of commodities (such as fuel and electricity) and currencies; changes or disruptions in the securities markets; legislative, political or economic developments; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the possibility that actual results of work may differ from projections/expectations or may not realize the perceived potential of NioCorp’s projects; risks of accidents, equipment breakdowns and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in development programs; operating or technical difficulties in connection with exploration, mining or development activities; the speculative nature of mineral exploration and development, including the risks of diminishing quantities of grades of reserves and resources; and the risks involved in the exploration, development and mining business and the risks set forth under the heading “Risk Factors” in the Company’s S-1 registration statement and other filings with the SEC at www.sec.gov. NioCorp disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

China Zenix Auto International Reports Fourth Quarter and Full Year 2016 Results

- Net cash flow from operations in 2016 reached RMB179.2 million (US$25.8 million), Expenditures and deposits related to property, plant and equipment in 2016 was RMB29.5 million (US$4.3 million) -

ZHANGZHOU, China, March 30, 2017 /PRNewswire/ -- China Zenix Auto International Limited (NYSE: ZX) ("Zenix Auto" or "the Company"), the largest commercial vehicle wheel manufacturer in China in both the aftermarket and OEM market by sales volume, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2016.

Financial Highlights

Fourth Quarter 2016:

  • Revenue was RMB591.9 million (US$85.3 million), up 0.7% year-over-year from RMB587.5 million in the fourth quarter of 2015;
  • Gross margin was 15.0%;
  • Net loss and total comprehensive loss was RMB11.6 million (US$1.7 million) with loss per American Depositary Share ("ADS") of RMB0.23 (US$ 0.03) compared with net profit and total comprehensive income of RMB8.6 million with earnings per ADS of RMB0.17 in the fourth quarter of 2015;
  • On December 31, 2016, total cash and cash equivalents and fixed bank deposits with maturity period over three months were RMB 1,186.8 million (US$ 170.9 million).

Full Year 2016:

  • Revenue was RMB2,249.5 million (US$324.0 million) compared with RMB2,445.8 million in 2015;
  • Gross margin of 17.2%, up from 14.9% in 2015;
  • Net loss and total comprehensive loss was RMB25.9 million (US$3.7 million) with loss per ADS of RMB0.50 (US$0.07) compared with net loss of RMB28.6 million with loss per ADS of RMB0.55 in 2015;
  • Net cash flow from operations was RMB179.2 million (US$25.8 million).

Mr. Junqiu Gao, Deputy CEO and Chief Sales and Marketing Officer of Zenix Auto, commented, "Our OEM sales growth continues to reflect the turnaround in the heavy- and medium-duty truck market in China during 2016.  We have increased our investment in research and development to develop new materials and wheel designs for the steel and aluminum wheel markets, and to maintain our market leadership."

Mr. Martin Cheung, CFO of Zenix Auto, commented, "We continue to focus on generating positive cash flow from operations to strengthen our cash position and balance sheet. We are managing our current assets and liabilities to contribute to our financial condition."

2016 Fourth Quarter Results

Revenue for the fourth quarter ended December 31, 2016 was RMB 591.9 million (US$85.3 million) from RMB587.5 million for the fourth quarter of 2015. The increase in revenue on a year-over-year basis was mainly driven by renewed growth in truck sales in China, especially for the heavy- and medium-duty trucks.

Aftermarket sales in China decreased by 13.5% year-over-year to RMB248.4 million (US$35.8 million) in the fourth quarter of 2016 from RMB287.2 million in the fourth quarter of 2015. Total unit sales in the aftermarket decreased by 14.2% year-over-year while pricing increased slightly. The aftermarket wheel segment remained weak as the logistic-based truck market remained sluggish and price competition stayed intense.

Sales to the Chinese OEM market increased by 20.4% year-over-year to RMB255.7 million (US$36.8 million) in the fourth quarter of 2016 compared to RMB212.3 million in the same quarter of 2015. Total unit sales in the OEM market increased by 13.2% year-over-year as a result of strong truck sales, especially heavy- and medium-duty trucks, during the fourth quarter of 2016.

International sales decreased slightly by 0.2% year-over-year to RMB 87.8 million (US$12.6 million) in the fourth quarter of 2016 compared to sales of RMB88.0 million in the fourth quarter of 2015. Total unit sales in the international sales increased by 3.1% year-over-year in the fourth quarter of 2016 but the weaker economic environment in our main market, Southeast Asia, negatively affected overall sales.

In the fourth quarter of 2016, domestic aftermarket sales, domestic OEM sales and international sales contributed 42.0%, 43.2% and 14.8% of revenue, respectively.

Sales of tubed steel wheels comprised 52.4% of 2016 fourth quarter revenue compared to 53.9% in the same quarter in 2015. Tubeless steel wheel sales represented 35.4% of fourth quarter revenue compared to 36.5% in the same quarter of 2015. Tubed and tubeless steel wheel sales remained the main sources of revenue for the Company. However, sales of aluminum wheels increased and accounted for 7.9% of fourth quarter revenue as compared to 4.7% in the same quarter a year ago.

Fourth quarter gross profit decreased by 21.3% to RMB 88.8 million (US$12.8 million), compared to RMB112.9 million in the same quarter in 2015. Gross margin was 15.0%, compared with 19.2% in the fourth quarter of 2015. The decrease in gross margin on a year-over-year basis was mainly driven by the price appreciation of raw materials, namely steel, which outpaced Zenix's wheel price increase.

Selling and distribution expenses increased by 0.7% to RMB45.4 million (US$6.5 million) from RMB45.1 million in the fourth quarter of 2015. As a percentage of revenue, selling and distribution costs were 7.7% in the fourth quarter of 2016, compared to 7.7% in the same quarter a year ago.

Research and development ("R&D") expenses increased by 65.1% to RMB23.5 million (US$3.4 million), compared to RMB14.3 million in the fourth quarter of 2015. R&D as a percentage of revenue was 4.0% in the fourth quarter of 2016, compared to 2.4% in same quarter of 2015.

Administrative expenses decreased by 9.6% to RMB 34.4 million (US$5.0 million) from RMB38.1 million in the fourth quarter of 2015, mainly due to effective cost control measures partially offset by the increase of office building depreciation in the aluminum wheel production facility. As a percentage of revenue, administrative expenses were 5.8% in the fourth quarter of 2016, compared to 6.5% of revenue in the fourth quarter of 2015.

Net loss and total comprehensive loss for the fourth quarter of 2016 was RMB11.6 million (US$1.7 million), compared to net profit and total comprehensive income of RMB8.6 million in the same quarter of 2015. 

Basic and diluted loss per ADS in the fourth quarter of 2016 were RMB 0.23 (US$0.03) compared to basic and diluted earnings per ADS of RMB0.17 in the same quarter of 2015.

In the fourth quarter of 2016, the Company recorded net cash outflows from operating activities of RMB41.4 million (US$6.0 million). Capital expenditures for the purchase of property, plant and equipment in the fourth quarter were RMB3.7 million (US$0.5 million). Deposits paid for acquisition of property, plant and equipment in the fourth quarter were RMB2.7 million (US$0.4 million).

During the fourth quarter of 2016 and 2015, the weighted average number of ordinary shares was 206.5 million and the weighted average number of ADSs was 51.6 million.

2016 Full Year Results

Revenue for the year ended December 31, 2016 was RMB2,249.5 million (US$324.0 million) compared with RMB2,445.8 million in 2015.

Aftermarket sales decreased by 14.5% to RMB1,021.3 million (US$147.1 million) in 2016, and represented 45.4% of total revenue. Sales to the Chinese OEM market increased by 5.2% to RMB856.7 million (US$123.4 million) and represented 38.1% of total revenue. International sales decreased by 15.0% to RMB371.5 million (US$ 53.5 million) compared to last year, and represented 16.5% of total revenue.

Tubed steel wheel sales in 2016 accounted for 54.6% of revenue compared with 56.1% in 2015. Tubeless steel wheel sales accounted for 36.4% of revenue compared with 37.5% in 2015. With the increase in market acceptance, aluminum wheel sales accounted for 4.6% of revenue in 2016 compared with 1.1% in 2015.

Gross profit for year 2016 was RMB 387.5 million (US$55.8 million), compared with RMB363.8 million in 2015. Gross margin increased to 17.2% in 2016 from 14.9% in 2015.

Loss before taxation for the year 2016 was RMB25.6 million (US$3.7 million), compared with loss before taxation of RMB30.1 million in 2015.

Net loss and total comprehensive loss for full year 2016 was RMB25.9 million (US$3.7 million), compared with net loss and total comprehensive loss of RMB28.6 million in 2015. Basic and diluted loss per ordinary share and per ADS for the full year ended December 31, 2016 were RMB0.13 (US$0.02) and RMB0.50 (US$0.07), respectively.

As of December 31, 2016, Zenix Auto had bank balances and cash of RMB896.8 million (US$129.2 million) and fixed bank deposits with a maturity period over three months of RMB290.0 million (US$41.8 million). Total equity attributable to owners of the Company was RMB2,537.6 million (US$365.5 million).

For the year ended December 31, 2016, the Company recorded cash inflows from operating activities of RMB179.2 million (US$25.8 million). Capital expenditures for the purchase of property, plant and equipment were RMB15.1 million (US$2.2 million). Deposits paid for acquisition of property, plant and equipment were RMB14.5 million (US$2.1 million).

Conference Call Information

The Company will host a conference call, to be simultaneously webcast, on Thursday, March 30, 2017 at 8:00 a.m. ET/ 8:00 p.m. Beijing Time. Interested parties may participate in the conference call by dialing +1-877-407-0782 (U.S. Toll Free) or +1-201-689-8567 (International). Please dial in five minutes before the call start time and ask to be connected to the "China Zenix Auto" conference call.

A replay will be available shortly after the conclusion of the conference call through April 30, 2017, at 11:59 p.m. ET. Interested parties may access the replay by dialing +1-877-481-4010 (U.S. Toll Free) or +1-919-882-2331 (International) and using Conference ID 10278 to access the replay.

Exchange Rate Information

The United States dollar (US$) amounts disclosed in this press release are presented solely for the convenience of the reader. All translations from RMB to U.S. dollars are made at a rate of RMB6.943 to US$1.00, the effective noon buying rate as of December 31, 2016, in The City of New York, for cable transfers of RMB as set forth in the H.10 weekly statistical release of the Federal Reserve Board. The percentages stated are calculated based on RMB amounts.

About China Zenix Auto International Limited

China Zenix Auto International Limited is the largest commercial vehicle wheel manufacturer in China in both the aftermarket and OEM market by sales volume. The Company offers more than 772 series of aluminum wheels, tubed steel wheels, tubeless steel wheels, and off-road steel wheels in the aftermarket and OEM markets in China and internationally. The Company's customers include large PRC commercial vehicle manufacturers, and it also exports products to over 80 distributors in more than 28 countries worldwide. With six large, strategically located manufacturing facilities in multiple regions across China, the Company has a designed annual production capacity of approximately 15.5 million units of steel and aluminum wheels as of December 31, 2016. For more information, please visit: www.zenixauto.com/en.

Safe Harbor

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. The Company may make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement. Further information regarding these risks is included in our filings with the SEC. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of the press release, and the Company undertakes no duty to update such information, except as required under applicable law. 

For more information, please contact

Kevin Theiss
Investor Relations
Awaken Advisors
Tel: +1-646-726-6511
Email: Kevin.Theiss@awakenlab.com

- tables follow -

China Zenix Auto International Limited

Unaudited Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Income

For the three months ended December 31, 2016 and 2015

(RMB and US$ amounts expressed in thousands, except number of shares and ADSs and per share data)






Three months ended December 31,




2015


2016


2016



RMB' 000


RMB' 000


 US$' 000

Revenue



587,502


591,888


85,250

Cost of sales



(474,620)


(503,068)


(72,457)

Gross profit



112,882


88,820


12,793

Other operating income 



3,086


4,978


717

Net exchange gain



701


1,602


231

Selling and distribution costs

(45,109)


(45,432)


(6,544)

Research and development expenses

(14,252)


(23,528)


(3,389)

Administrative expenses



(38,059)


(34,423)


(4,958)

Finance costs



(6,100)


(5,344)


(770)

Profit (loss) before taxation 



13,149


(13,327)


(1,920)

Income tax (expense) credit



(4,566)


1,700


245

Profit (loss) and total
comprehensive income
(loss) for the period



8,583


(11,627)


(1,675)

Earnings (loss) per share








Basic



0.04


(0.06)


(0.01)

Diluted



0.04


(0.06)


(0.01)

Earnings (loss) per ADS








Basic



0.17


(0.23)


(0.03)

Diluted



0.17


(0.23)


(0.03)

Shares



206,500,000


206,500,000


206,500,000

ADSs



51,625,000


51,625,000


51,625,000

 

 

China Zenix Auto International Limited

Unaudited Condensed Consolidated Statements of Profit or Loss and Other Comprehensive Income

For the years ended December 31, 2016 and 2015

(RMB and US$ amounts expressed in thousands, except number of shares and ADSs and per share data)






2015


2016


2016




RMB' 000


RMB' 000


US$' 000

Revenue




2,445,756


2,249,533


324,000

Cost of sales




(2,081,976)


(1,862,017)


(268,186)

Gross profit




363,780


387,516


55,814

Other operating income 




16,410


11,680


1,682

Net exchange gain




5,793


2,546


367

Selling and distribution costs


(212,273)


(181,911)


(26,201)

Research and development expenses


(51,253)


(84,639)


(12,191)

Administrative expenses




(136,681)


(139,377)


(20,074)

Finance costs




(15,913)


(21,387)


(3,080)

Loss before taxation 




(30,137)


(25,572)


(3,683)

Income tax credit (expense)




1,570


(352)


(51)

Loss and total
comprehensive loss for the
year




(28,567)


(25,924)


(3,734)

Loss per share









Basic




(0.14)


(0.13)


(0.02)

Diluted




(0.14)


(0.13)


(0.02)

Loss per ADS









Basic




(0.55)


(0.50)


(0.07)

Diluted




(0.55)


(0.50)


(0.07)

Shares




206,500,000


206,500,000


206,500,000

ADSs




51,625,000


51,625,000


51,625,000

 

 

China Zenix Auto International Limited

Unaudited Consolidated Statements of Financial Position

(RMB and US$ amounts expressed in thousands)




December 31,
 2015


December 31,
 2016


December 31,
 2016



RMB'000


RMB'000


US$'000

ASSETS







Current Assets







Inventories


181,905


138,740


19,983

Trade and other receivables and prepayments


613,418


695,856


100,224

Prepaid lease payments


9,425


9,425


1,357

Pledged bank deposits


28,200


32,100


4,623

Fixed bank deposits with maturity period over three months


260,000


290,000


41,769

Bank balances and cash


817,247


896,799


129,166

Total current assets


1,910,195


2,062,920


297,122

Non-Current Assets







Property, plant and equipment


1,506,318


1,379,287


198,659

Prepaid lease payments


385,874


376,449


54,220

Deferred tax assets


15,958


23,836


3,433

Intangible assets


17,000


17,000


2,449

Total non-current assets


1,925,150


1,796,572


258,761

Total assets


3,835,345


3,859,492


555,883








EQUITY AND LIABILITIES







Current Liabilities







Trade and other payables and accruals


606,922


668,633


96,302

Amount due to a shareholder


11,679


1,398


201

Taxation payable


674


109


16

Short- term bank borrowings


558,000


558,000


80,369

Total current liabilities


1,177,275


1,228,140


176,888

Non-current liabilities







Deferred tax liabilities


85,284


85,286


12,284

Deferred income


9,292


8,496


1,224








Total non-current liabilities


94,576


93,782


13,508

Total liabilities


1,271,851


1,321,922


190,396








EQUITY














Share capital


136


136


20

Paid in capital


392,076


392,076


56,471

Reserves


2,171,282


2,145,358


308,996

Total equity attributable to owners of the company


2,563,494


2,537,570


365,487

Total equity and liabilities


3,835,345


3,859,492


555,883

 

China Zenix Auto International Limited

Unaudited Consolidated Statement of Cash Flows

For the year ended December 31, 2016

(RMB and US$ amounts expressed in thousands)


OPERATING ACTIVITIES


Year Ended December 31, 2016





RMB' 000


US$' 000


Loss before taxation


(25,572)


(3,683)


Adjustments for:







Amortization of prepaid lease payments


9,425


1,357



Depreciation of property plant and equipment


154,783


22,293



Release of deferred income


(796)


(115)



Finance costs


21,387


3,080



Interest income


(11,126)


(1,602)



Loss on disposal of property, plant and equipment

105


15


Operating cash flows before movements in working capital

148,206


21,345


Decrease in inventories


43,165


6,217


Increase in trade and other receivables and prepayments

(82,407)


(11,870)


Increase in trade and other payables and accruals


67,363


9,702


Cash generated from operations


176,327


25,394


Interest received


11,123


1,602


PRC income tax refund


510


73


PRC income tax paid


(8,793)


(1,266)


NET CASH FROM OPERATING ACTIVITIES


179,167


25,803


 

INVESTING ACTIVITIES






Purchase of property, plant and equipment


(15,082)


(2,172)


Placement of pledged bank deposits


(20,290)


(2,922)


Withdrawal of pledged bank deposits


16,390


2,361


Deposits paid for acquisition of property, plant and equipment

(14,464)


(2,083)


Placement of fixed bank deposits with maturity periods over three months

(720,000)


(103,702)


Withdrawal of fixed bank deposits with maturity periods over three months

690,000


99,381


NET CASH USED IN INVESTING ACTIVITIES


(63,446)


(9,137)


 

FINANCING ACTIVITIES






New bank borrowings raised


558,000


80,369


Repayment of bank borrowings


(558,000)


(80,369)


Interest paid


(25,350)


(3,651)


Repayment to a shareholder


(14,736)


(2,123)


Advance from a shareholder


4,455


642


NET CASH FROM FINANCING ACTIVITIES


(35,631)


(5,132)


NET INCREASE IN CASH AND CASH EQUIVALENTS


80,090


11,534


Cash and cash equivalents at beginning of the year


817,247


117,708


Effect of foreign exchange rate changes


(538)


(76)


Cash and cash equivalents at end of the year


896,799


129,166


SOURCE China Zenix Auto International Limited