Currently viewing Global edition

Wesdome guides for strong 2020 production and Kiena focus

Wesdome Gold Mines produced 91,688 ounces of gold in 2019, a 28% increase over the 71,625oz produced in 2018 and almost double its 2016 level, as its Eagle River Complex in Ontario, Canada, maintained its strong performance.
Wesdome guides for strong 2020 production and Kiena focus Wesdome guides for strong 2020 production and Kiena focus Wesdome guides for strong 2020 production and Kiena focus Wesdome guides for strong 2020 production and Kiena focus Wesdome guides for strong 2020 production and Kiena focus

Kiena in Quebec, Canada

"The Eagle River Complex continued to perform very well, with 2019 full year gold production … far exceeding our original guidance of 72,000-80,000oz," said president and CEO Duncan Middlemiss.

For 2020, the company has provided guidance of 90,000-100,000oz of production with 87,000-96,000oz from Eagle River at a head grade of 15-16.7 grams per tonne and 3,000-,4,000oz from Mishi at a 2-2.4g/t head grade. In terms of cost, the company has guided US$615-670/oz operating cost and $985-1,040/oz all-in sustaining cost.

Wesdome plans some 119,000m of underground definition and exploration drilling at Eagle River in 2020 and 33,500m of surface drilling, with a C$9.8 million budget. Definition drilling will be focused at the 300W, 300E zones and down dip on the 711 and 811 zones. Surface drilling will initially concentrate on better defining and expanding the Falcon zones and then on regional targets west of the mine diorite.

"Operating and all-in sustaining costs are expected to be flat as we continue to aggressively drill and develop underground workplaces in order to fill the Eagle River mill entirely from higher grade underground ore in the future," Middlemiss said.

At Kiena in Quebec, 2020 exploration includes 75,000m of underground drilling and 10,000m of surface drilling with a $10.1 million budget. The company also plans to invest $8.2 million on exploration drifts and ramp development to better explore and access the Kiena Deep A zone. A preliminary economic assessment on Kiena is expected to be completed in the first semester.

Total projected 2020 Kiena capital budget is C$44.8 million, which includes drilling, underground development, the completion of backfill operations initiated in 2019 and all mining and site administration activities in anticipation of a go forward scenario.

"At Kiena, drilling and development will be increased substantially over our 2019 programme," said Middlemiss.

Wesdome started 2020 with cash and cash equivalents of $35.7 million and available credit of $41.5 million.

Shares in Wesdome Gold Mines are trading at C$9.12, valuing the company at $1.3 billion, down from a $10.47 high last week.