Radisson Mining (TSX: RDS), Advances the O’Brien Gold Project in the World Renown Historic Mining Camp on the Cadillac Fault in Mining-Friendly Quebec

Mario Bouchard, President and CEO of Radisson Mining (TSX: RDS) took a few minutes to explain the progress that the company has made on their O’Brien gold project and what investors can expect during the next period of time.

Bouchard said, “The latest news is that we have gotten our pre-economic study and this is already posted. We worked on it over twelve months and got good recommendation to pursue our project toward next step. What is interesting is the timing with the price of gold. It is good because the price of gold is starting to go up and the Canadian dollars have gone down, so at this moment we have a price for an ounce of gold of over $1600 Canadian, boosting the IRR on the project. This is a good timing for our development. In the last four years, the price for gold has gone down and the price for services to develop a small project like ours has gone down also. We can benefit from experienced manpower with good skills. Companies bring services for us at a cheaper price. This is a good context for us.”

Bouchard and his team worked only with 48% of the resources to evaluate the pre-economic assessment, the goal was to evaluate the economics of the project for the first years of production and to limit the capex. It proves to be economic and this is better with the price of gold increasing. We could generate a good cash flow and a profit with the first ounces produced. He said, “The O’Brien deposit is well known. It is the richest deposit by grade in Quebec. The historical production is almost 600,000 ounces at 15 grams. In an imperial measure, this is a half-ounce per ton. This is a traditional underground operation with a series of 8 vertical veins dipping at 85 degrees. The small capex investment needed is low for a mining project, it give us a great opportunity”

The capex needed is strikingly low due to the location of the project. Bouchard said, “We are talking about an investment of $36 million Canadian to go into production. Our plan is to go to a depth of 550 meters or 1650 feet and to open the deposit and start a small production. What the pre-economic assessment gave us in terms of costs is $940 Canadian, almost $700 US dollars. The rate of production will be from 35,000 to 40,000 ounces per year. So, at the price of $1600 Canadian, the margin on the gold being produced per ounce is over $600 Canadian. Multiply that by the number of ounces that we have found and multiply that by the four years we can produce and that will give Radisson twenty to twenty-five million dollars in cash flow per year. This is really interesting.”

The company has significant plants for the coming year said Bouchard, “In 2016, we plan to follow with all the permitting and all studies needed, like environmental studies and hydrological studies. After that we will put in place all of the needed financing and as soon as we get the financing done, we want to start our surface and underground program.”

Bouchard believes that investors will be interested in their project, especially since the cost of services has dropped so significantly. He said, “Like I have said already, we have a good project and we have leverage with this project. We started in mid-December with a drilling program. This is the first drilling program that will help with this project. The property, until now, has not had enough drilling to increase the resources, and like I have said, the cost of drilling at this point in 2016 is less than it was in 2011, almost by half. The cost of those services will help to increase our resources at a cheaper price.”

Bouchard believes that this decrease in service price will create an opportunity for the company. He said, “This is the first leverage. We can add more resources to the project to add to the duration of life of our project. We are really confident that the price of gold will go up. We have seen that prices have increased by 100 to 200 dollars in Canadian in the last 6 months. This is a good leverage for this project. We did a conservative pre-economic study. This study stands the grade of our deposit at 6.4 grams. Historically, the grade was 15 grams. Our metallurgical study, representative of our deposit gave us 11 grams as head grade. By underground, we are confident to prove that the grade is higher than 6.4 grams. To prove that we have to go underground. If we can have 8.5 grams per ton, this is a good leverage and the payback will be faster on the project.”

The management team and Board of Radisson have created the strategy that is helping to move the company forward. Said Bouchard, “On the Board we have Denis Lachance, mining engineer who has over 30 years of experience in mining. He worked with the founder of Agnico, Mr. Paul Penna, and he also worked just beside our present property with IAMGOLD, the former Cambior. He also worked with Noranda and Xstrata Nickel. He has a lot of experience and is good at guiding our next steps for an excellent execution. We also have a businessman, who for the last 15 years has been involved in the mining industry and services, Mr. Jean Dion. Those guys are helpful to guide the company. The person, who supervises all of the exploration, has worked on this project for more than 15 years. She has a great knowledge of all of the property and knows how to increase the resources. There are other people who have a lot of knowledge and expertise who are available to help us building this project.”

One of the biggest benefits of the O’Brien project is the location. Bouchard said, “We are in the middle of a mining camp, where there are other gold producers near us. We are situated on the Cadillac fault. In our area there were over 45 million ounces produced or inventoried. It is a well-known area and we are in the middle of it. This helps us to keep our capex really low because we don’t need to build a mill.”

http://radissonmining.com
Mario Bouchard, President & CEO
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mbouchard@radissonmining.com
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