March 31, 2000
(Mines and Energy)

Richmont to develop Hammerdown Gold Mine

Mines and Energy Minister Paul Dicks said he is tremendously pleased with today�s announcement that Richmont Mines Limited of Montreal has entered into an arrangement with Abiting Incorporated of Quebec to purchase and develop the Hammerdown Gold Mine.

Hammerdown is located near King�s Point in the central region of the province, an area with a rich mining history and experienced mining people. It will be the second operating gold mine for Newfoundland and Labrador. Richmont operates the province�s other gold mine at Nugget Pond on the Baie Verte Peninsula.

"Under the arrangements announced today, Richmont will own and operate the Hammerdown mine and truck the ore toNugget Pond for milling and refining," said Mr. Dicks. " The ore from both mines will be blended and this process will extend the life of both mines."

The development of the Hammerdown Project could begin as early as July of this year.

It is anticipated that the project will provide direct employment for 40 to 50 persons in addition to an equal number of spin off jobs.

Mr. Dicks said government contributed $98,000 to the Hammerdown project in 1999 and the money was used for the detailed drilling necessary to make a production decision.

"Some 47 holes were drilled totaling 4,426 metres to determine the continuity of the gold deposit. It is anticipated that the reserves will support a mining operation lasting for seven years.

"The project will need to be assessed under the Environmental Assessment Act prior to development, however, given Richmont�s excellent environmental record at Nugged Pond, I don�t anticipate any environmental problems with respect to the start or development at Hammerdown."

The minister said today�s announcement is exceptionally good news for our province, particularly for the people of the central area in terms of direct employment and spin off jobs.

"This mining development will make a new contribution to the provincial economy. As well, it demonstrates the very positive and exceptionally good results that can flow from the province�s aggressive Mineral Incentive Program," Mr. Dicks said.

Media contact: Gary Callahan (709) 729-4890.

2000 03 31                                             10:25 a.m.