TSX:WDO
TORONTO, July 20, 2016 /CNW/ - Wesdome Gold Mines Ltd.
(TSX: WDO) today announces gold production results for the second
quarter of 2016 (Q2).
Q2 combined production at the Eagle River Complex was 12,147
ounces, a 51% increase over 8,036 ounces in the first quarter.
Eagle River Underground Mine tonnes milled during Q2 were 45,305
tonnes at a recovered grade of 7.01 grams per tonne ("gpt") to
produce 10,210 ounces. At the Mishi Open Pit Mine tonnes
milled were 33,546 at a recovered grade of 1.80 gpt to produce
1,937 ounces. The Eagle River mill averaged 866 tonnes per
day (TPD) for Q2, below our target of 980 TPD for 2016 due to mill
repairs (thickener) which impacted throughput in April. The
average processing rates were 715, 943 and 939 TPD for the months
of April, May and June, respectively.
Gold sales were 11,265 ounces at an average sales price of
CAD$1,637 per ounce.
Mr. Rolly Uloth, President and
CEO commented, "Second quarter production of 12,147 ounces slightly
exceeded our guidance of 12,000 ounces. An operations optimization
program took place during the previous quarter with immediate
results and significant improvements were clearly demonstrated this
quarter. They include the recommencement of mining of the 811 Zone,
increased mining rates in the 300 Zone, increasing the cut-off
grade for Mishi, and improving underground development rates for
mining at Eagle River. Over the course of 2016, we plan to
improve dilution with smaller stopes and continue our accelerated
development into higher grade areas. The filtration system at
the mill is now utilizing new durable velvet backing cloths on the
four drum filters, which helped recovery rates and reduced
maintenance time and costs. As a result, Eagle River gold recoveries increased from
88.1% in Q1 to 93.4% in Q2. Development of the high grade 7
Zone continues this year, ahead of schedule. The Company
anticipates further increases in production for Q3 and Q4 over
Q2."
ABOUT WESDOME
Wesdome Gold Mines Ltd. is in its 28th year of continuous gold
mining operations in Canada. The Company is currently
producing gold at the Eagle River Complex located near Wawa, Ontario from the Eagle River and Mishi
gold mines. Wesdome's goal is to expand current operations at both
mines over the next four years through mill expansion and
exploration. Wesdome has significant upside through ownership of
its two other properties, the Kiena Mine Complex in Val d'Or, Quebec and the Moss Lake gold
deposit located 100 kilometres west of Thunder Bay, Ontario. These assets are
being explored and evaluated to be developed in the appropriate
gold price environment. The Company has approximately 129
million shares issued and outstanding and trades on the Toronto
Stock Exchange under the symbol "WDO".
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
SOURCE Wesdome Gold Mines Ltd.