Wesdome Announces 2022 First Quarter Production Results
14 Avril 2022 - 01:00PM
Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”)
today announces first quarter (“Q1”) 2022 production results. All
figures are in Canadian dollars unless otherwise stated.
Duncan Middlemiss, President and CEO, commented, “Wesdome’s
first quarter combined production of 25,611 oz (up 14% from Q1
2021) was essentially in line with expectations and represents the
low quarterly production for the year, as we made significant
investments in the business during the quarter to set us up for a
stronger second half at both assets. At Eagle, we will have
additional ore available from the Falcon Zone, which is expected to
boost both volume and grade. At Kiena, the ramp up has been
impacted by unscheduled downtime related to the underground
crusher. As well, some equipment delays and staff absences in the
beginning of the year due to the outbreak of the Omicron variant
impacted development, hence the lower grade in Q1. These challenges
have largely been rectified, and commercial production is on track
for mid year. This is a transformational year for Wesdome as Eagle
continues its 100,000 plus ounce per year run rate, and as we begin
to hit our stride with full commercial production at Kiena, getting
that much closer to our stated objective of becoming Canada’s next
intermediate gold producer.”
Amounts are denominated in Canadian dollars |
First Quarter |
|
2022 |
2021 |
Variance |
% +/(-) |
|
|
|
|
|
Ore
milled (tonnes) |
|
|
|
|
Eagle River |
53,217 |
53,540 |
-323 |
(1%) |
Mishi |
11,873 |
17,219 |
-5,346 |
(31%) |
Kiena |
21,162 |
0 |
21,162 |
0% |
Total Ore
Milled |
86,252 |
70,759 |
15,493 |
22% |
|
|
|
|
|
Head
grade (grams per tonne, “g/t”) |
|
|
|
|
Eagle River |
11.6 |
12.8 |
(1.2) |
(9%) |
Mishi |
3.6 |
2.5 |
1.1 |
44% |
Kiena |
7.7 |
0 |
7.7 |
0% |
|
|
|
|
|
Gold
production (ounces) |
|
|
|
|
Eagle River |
19,334 |
21,396 |
-2,062 |
(10%) |
Mishi |
1,165 |
1,169 |
-4 |
(0%) |
Kiena |
5,112 |
0 |
5,112 |
0% |
Total
Gold Production |
25,611 |
22,564 |
3,047 |
14% |
|
|
|
|
|
Production sold (ounces)3 |
28,000 |
22,457 |
5,543 |
25% |
|
|
|
|
|
Revenue
from gold sales ($ millions)4 |
$66.6 |
$45.9 |
$20.7 |
45% |
|
|
|
|
|
Average
realized price per ounce2 |
$2,379 |
$2,223 |
$156 |
7% |
|
|
|
|
|
Notes:
- Numbers may not add due to rounding.
- Average realized price per ounce is a non-IFRS measure and is
calculated by dividing the reported revenue from gold sales by the
number of ounces sold for a given period. Please reference the
Company’s interim management discussion and analysis for the period
ended March 31, 2022 filed on SEDAR for their calculations.
- Q1 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.
- Q1 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 Jacqueline Wheeler, P. Eng,
Director, Corporate Development and Technical Projects and Michael
Michaud, P.Geo., Vice President, Exploration of the Company and
each 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 office These
protocols are still in place at all sites despite the loosening of
some provincial public health guide lines. 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 with the
emergence of new, highly contagious variants such as Omicron. To
date, the company has been impacted by this most recent variant
outbreak, with employees at both operations and corporate office
becoming infected which may 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 is Canadian
focused with two producing underground gold mines. The
Company’s goal is to build Canada’s next intermediate gold
producer, producing over 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 95,000 – 105,000 ounces
per year. The Mishi Pit is milling its’ final stockpile with 1,000
– 2,000 ounces expected. The recently re-started Kiena Complex in
Val d’or, Quebec is a fully permitted underground mine and milling
operation. The Kiena Mine is expected to produce 64,000 – 73,000
ounces in 2022. On a combined basis 2022 guidance is 160,000 ounces
– 180,000 ounces. Wesdome is actively exploring both underground
and on surface within the mine areas and more regionally at both
the Eagle River and Kiena Complex. 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 142.5
million shares issued and outstanding and trades on the Toronto
Stock Exchange under the symbol “WDO,” with a secondary listing on
the OTCQX under the symbol “WDOFF.”
For further information, please contact: |
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Duncan MiddlemissPresident and CEO416-360-3743 ext.
2029duncan.middlemiss@wesdome.com |
|
or |
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Lindsay Carpenter DunlopVP Investor
Relations416-360-3743 ext.
2025lindsay.dunlop@wesdome.com |
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220 Bay St, Suite 1200Toronto, ON, M5J 2W4Toll Free:
1-866-4-WDO-TSXPhone: 416-360-3743, Fax:
416-360-7620Website: 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.
PDF
available: http://ml.globenewswire.com/Resource/Download/4df816cd-2d67-484d-b89e-0305b6021b2a
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