Wesdome Gold Mines Announces Second Quarter 2021 Production of 30,375 ounces of Gold Produced at the Eagle River Complex
TORONTO, July 13, 2021 (GLOBE NEWSWIRE) – Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announced its gold production results for the second quarter of 2021 (“Q2”).
Mr. Duncan Middlemiss, President and CEO, said: “T2 production at the Eagle River underground mine of 29,836 ounces was 39% higher than that of Q1 (21,396 ounces) due to an increase of 18% of gold grades recovered and tonnes of gold crushed at Eagle River. Higher production rates from the 311 Zone jobsite allowed production throughput to exceed 693 tonnes per day (“tpd”) during the quarter. Total production for the first half of 2021 at the Eagle River complex is 52,939 ounces, which leaves us well positioned to meet our forecast of 92,000 to 105,000 ounces.
“At Kiena, development continues on track to produce our first commercial ounces of gold from this asset in the third quarter of 2021, where the forecast is 15,000 to 25,000 for the second half of 2021. That’s a time of transformation for Wesdome as we begin to realize our vision of becoming Canada’s next mid-level gold producer.
|Amounts are denominated in Canadian dollars||Second quarter||Year to date|
||% + / (-)||2021||2020||Variance
||% + / (-)|
|Ore crushed (tonnes)|
|Eagle River||63,057||42 349||20,708||49%||116,596||98 223||18 373||19%|
|Mishi||9 347||13 721||-4,374||(32%)||26,567||24 768||1,799||7%|
|72,404||56,070||16 334||29%||143,163||122,991||20 172||16%|
|Head content (grams per tonne, “g / t”)|
|Gold production (ounces)|
|Eagle River||29 836||24,117||5 719||24%||51 232||48,574||2,658||5%|
|Total gold production||30,375||25 142||5 233||21%||52 939||50 264||2,675||5%|
|Production sold (ounces) 3||28,500||23 140||5,360||23%||50 957||49,640||1317||3%|
|Gold sales revenue ($ millions) 4||$63.8||$ 54.7||$ 9.1||17%||$109.7||$ 112.0||($ 2.3)||(2%)|
|Average realized price per ounce 2||$2 239||$ 2,365||-126||(5%)||$2 232||$ 2,257||-25||(1%)|
- Operating figures may not add up due to rounding.
- The average realized price per ounce is a non-IFRS performance measure and is calculated by dividing the revenue from gold sales by the number of ounces sold for a given period.
- Fiscal 2021 sold production includes 1,793 ounces of gold sold from the Kiena bulk sample which was processed in Q4 2020 and sold in Q1 2021.
- Fiscal 2021 revenue excludes $ 3.9 million of revenue from Kiena’s bulk sample, which was processed in the fourth quarter of 2020 and sold in the first quarter of 2021. Ancillary revenue has been credited against the cost of the Kiena exploration asset.
The technical content of this press release has been compiled, reviewed and approved by Marc-André Pelletier, Eng., Chief Operating Officer, a “qualified person” as defined in National Instrument 43-101 –Disclosure standards for mining projects.
The health and safety of our employees, contractors, suppliers and consultants is the Company’s top priority. In response to the COVID-19 outbreak, Wesdome has adopted all public health guidelines regarding safety measures and protocols in all of its mining operations and offices. Additionally, our internal COVID-19 working group continues to monitor developments and implement policies and programs designed to protect those who are engaged in business with the Company.
Through care and planning, the Company has been successful in sustaining its operations to this day, but there can be no assurance that this will continue despite our best efforts. Future conditions may justify reduced or suspended production activities, which could have a negative impact on our ability to maintain planned schedules and targets. As a result, the Company’s actual future production and its production forecast are subject to higher levels of risk than usual. We continue to monitor the situation closely and will provide updates as they become available.
Wesdome has over 30 years of continuous gold mining operations in Canada. The Company is 100% Canadian and has a portfolio of projects at various stages of development. The Company’s strategy is to build Canada’s next intermediate gold producer, producing over 200,000 ounces from two mines in Ontario and Quebec. The Eagle River underground mine in Wawa, Ontario currently produces gold at a rate of 92,000 to 105,000 ounces per year. Wesdome is actively exploring its brownfield asset, Complexe Kiena in Val d’Or, Quebec. The Kiena complex is a fully licensed legacy mine with a 930 meter shaft and 2,000 tonne per day mill, and a restart of operations was announced on May 26, 2021. The Company has completed a PFS in support of the decision to restart production. . The Company also retains significant exposure to the Moss Lake gold deposit, located 100 kilometers west of Thunder Bay, Ontario, through its interest in Goldshore Resources Inc. The Company has approximately 139.7 million shares issued and outstanding and traded on the Toronto Stock Exchange under the symbol “WDO”.
This press release contains “forward-looking information” which may include, but is not limited to, statements regarding the future financial or operational performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is planned”, “budget”, “planned”, “estimates”, “forecasts”. “,” “Means”, “anticipates” or “believes” or variations (including negative variations) of these words and expressions, or declares that certain actions, events or results “may”, “could”, “would” , “Could” or “will” be taken, will occur or will be carried out. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to differ materially from future results, performance or achievements expressed or implied by the companies. forward-looking statements. The forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. . There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company assumes no obligation to update forward-looking statements if circumstances, estimates or management’s opinions change, except as required by securities laws. Therefore, the reader is cautioned not to place undue reliance on forward-looking statements. The Company has included in this press release certain non-IFRS performance measures including, but not limited to, mine operating income, mining and processing costs and cash costs. Cash costs per ounce reflect the actual mine operating costs incurred during the year divided by the number of ounces produced. These measures are not defined under IFRS and should therefore not be considered in isolation or as an alternative or more significant than net income (loss) or cash flows from operating activities as determined in accordance with to IFRS as an indicator of our financial performance or liquidity. The Company believes that in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to assess the Company’s performance and its ability to generate cash flows.