Wesdome Announces 2021 Second Quarter Production of 30,375 Ounces of Gold Produced at the Eagle River Complex
July 13 2021 - 3:30PM
Wesdome Gold Mines Ltd. (TSX:WDO) (“Wesdome” or the “Company”)
today announces its gold production results for the second quarter
of 2021 (“Q2”).
Mr. Duncan Middlemiss, President and CEO commented, “Q2
production at the Eagle River underground mine of 29,836 ounces was
39% higher than Q1 (21,396 ounces) driven by an 18% increase in
both recovered gold grades and in Eagle River tonnes milled. Higher
production rates from the 311 Zone stope allowed production
throughput to reach over 693 tonnes per day ('tpd') during the
quarter. Total H1 2021 production at the Eagle River Complex is
52,939 ounces, leaving us very well positioned to deliver on our
guidance of 92,000 – 105,000 ounces.
“At Kiena, development is proceeding on track to produce our
first commercial ounces of gold from this asset in Q3 2021, where
guidance is 15,000 – 25,000 for H2 2021. This is a transformational
time for Wesdome as we begin to realize our vision of becoming
Canada’s next mid-tier gold producer.”
Amounts are denominated in Canadian dollars |
Second Quarter |
Year-to-Date |
|
|
2021 |
|
2020 |
Variance |
|
% +/(-) |
|
|
2021 |
|
2020 |
Variance |
|
% +/(-) |
|
|
|
|
|
|
|
|
|
|
Ore
milled (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
grade (grams per tonne, “g/t”) |
|
|
|
|
|
|
|
|
Eagle River |
|
15.1 |
|
18.1 |
|
(3.0) |
|
(17%) |
|
|
14.1 |
|
15.8 |
|
(1.7) |
|
(11%) |
|
Mishi |
|
2.4 |
|
2.9 |
|
(0.5) |
|
(17%) |
|
|
2.4 |
|
2.7 |
|
(0.3) |
|
(11%) |
|
|
|
|
|
|
|
|
|
|
Gold
production (ounces) |
|
|
|
|
|
|
|
|
Eagle River |
|
29,836 |
|
24,117 |
|
5,719 |
|
24% |
|
|
51,232 |
|
48,574 |
|
2,658 |
|
5% |
|
Mishi |
|
539 |
|
1,026 |
|
-487 |
|
(47%) |
|
|
1,707 |
|
1,690 |
|
17 |
|
1% |
|
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 |
|
1,317 |
|
3% |
|
|
|
|
|
|
|
|
|
|
Revenue
from gold sales ($ 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%) |
|
|
|
|
|
|
|
|
|
|
Notes:
- Operating numbers may not add due to
rounding.
- 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.
- YTD 2021 production sold includes
1,793 ounces of gold sold from the Kiena bulk sample which was
processed in Q4 2020 and sold in Q1 2021.
- YTD 2021 revenue excludes $3.9 million
of revenue from the Kiena bulk sample, which was processed in Q4
2020 and sold in Q1 2021. The incidental revenue was credited
against the cost of the Kiena exploration asset.
Technical Disclosure
The technical content of this release has been
compiled, reviewed and approved by Marc-Andre Pelletier, P. Eng,
Chief Operating Officer, a "Qualified Person" as defined in
National Instrument 43-101 -Standards of Disclosure for Mineral
Projects.
COVID-19
The health and safety of our employees,
contractors, vendors, 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 at all of its mine operations and corporate offices. In
addition, our internal COVID-19 Taskforce continues to monitor
developments and implement policies and programs intended to
protect those who are engaged in business with the Company.
Through care and planning, to date the Company has
successfully maintained operations, however there can be no
assurance that this will continue despite our best efforts. Future
conditions may warrant reduced or suspended production activities
which could negatively impact our ability to maintain projected
timelines and objectives. Consequently, the Company’s actual future
production and production guidance is subject to higher levels of
risk than usual. We are continuing to closely monitor the situation
and will provide updates as they become available.
ABOUT WESDOMEWesdome has had over
30 years of continuous gold mining operations in Canada. The
Company is 100% Canadian focused with a pipeline of projects in
various stages of development. The Company’s strategy is to
build Canada’s next intermediate gold producer, producing 200,000+
ounces from two mines in Ontario and Québec. The Eagle River
Underground Mine in Wawa, Ontario is currently producing gold at a
rate of 92,000 – 105,000 ounces per year. Wesdome is actively
exploring its brownfields asset, the Kiena Complex in Val d’Or,
Québec. The Kiena Complex is a fully permitted former mine
with a 930-metre 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 production restart decision. The
Company also retains meaningful exposure to the Moss Lake gold
deposit, located 100 kilometres west of Thunder Bay, Ontario
through its equity position in Goldshore Resources Inc. The Company
has approximately 139.7 million shares issued and outstanding and
trades on the Toronto Stock Exchange under the symbol “WDO”.
For
further information, please contact: |
|
|
|
|
|
Duncan Middlemiss |
or |
Lindsay Carpenter Dunlop |
President and CEO |
|
VP Investor Relations |
416-360-3743 ext. 2029 |
|
416-360-3743 ext. 2025 |
duncan.middlemiss@wesdome.com |
|
lindsay.dunlop@wesdome.com |
|
|
|
|
|
|
220 Bay St. Suite 1200 |
|
|
Toronto, ON, M5J 2W4 |
|
|
Toll Free: 1-866-4-WDO-TSX |
|
|
Phone: 416-360-3743, Fax: 416-360-7620 |
|
|
Website: www.wesdome.com |
This news release contains “forward-looking information” which
may include, but is not limited to, statements with respect to the
future financial or operating 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
expected”, “budget”, “scheduled”, “estimates”, “forecasts”,
“intends”, “anticipates”, or “believes” or variations (including
negative variations) of such words and phrases, or state that
certain actions, events or results “may”, “could”, “would”, “might”
or “will” be taken, occur or be achieved. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements. 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 undertakes no
obligation to update forward-looking statements if circumstances,
management’s estimates or opinions should change, except as
required by securities legislation. Accordingly, the reader is
cautioned not to place undue reliance on forward-looking
statements. The Company has included in this news release certain
non-IFRS performance measures, including, but not limited to, mine
operating profit, mining and processing costs and cash costs. Cash
costs per ounce reflect actual mine operating costs incurred during
the fiscal period divided by the number of ounces produced. These
measures are not defined under IFRS and therefore should not be
considered in isolation or as an alternative to or more meaningful
than, net income (loss) or cash flow from operating activities as
determined in accordance with 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 evaluate the Company's
performance and ability to generate cash flow.
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