June 12, 1996
(Mines and Energy)

The following statement was issued today by Judy Foote, Minister of Development and Rural Renewal, on behalf of Dr. Rex Gibbons, Minister of Mines and Energy. It was also read in the House of Assembly:

New gold mine and mill at Nugget Pond

I wish to inform the House of a significant announcement made today in Baie Verte by my colleague the Minister of Mines and Energy. This morning in Baie Verte, the minister, together with senior officials of Richmont Mines, announced the start of construction of a new gold mine and mill at Nugget Pond, near the community of Snooks Arm.

Construction will start immediately on the new mine/mill and related facilities and will employ apprproximately 100 people during the construction phase. The total capital investment for the project by Richmont Mines is $15 million.

The mine has a projected life of four years and will employ 90 people on a full time basis during the entire period.

Richmont and its business associates are conducting an aggressive exploration program in the region which has the potential to extend the life of the Nugget Pond project.

Richmont's Nugget Pond Project is one of three new mining projects for the Baie Verte Peninsula. The others, Ming Minerals and Raymo Processing, are already in production.

The mining industry is becoming a growing force in the renewal of our economy and is particularly important in rural regions of the province such as the Baie Verte Peninsula.

Richmont's Nugget Pond project was one of the first mining projects to be designated an EDGE project. The EDGE status was a major factor in enabling Richmont Mines to obtain financing for the Nugget Pond Project at this time.

I wish to congratulate Richmont Mines on this successful launching of the Nugget Pond Mining Project today.