TORONTO, May 4 /CNW/ - Wesdome Gold Mines Ltd. is pleased to announce
strong first quarter gold production and bullion sales.
Rolly Uloth, President, commented "Strong grades and increased gold
prices continue to favour our Canadian gold mining operations."
During the first quarter 2009, gold production from the Company's Eagle
River and Kiena gold mines totalled 27,434 ounces, a 34% increase over the
2008 total of 20,403 ounces. We are off to a strong start.
The Eagle River mine produced 16,885 ounces from 32,287 tonnes milled at
an average recovered grade of 16.3 gAu/tonne.
The Kiena mine produced 10,549 ounces from 58,018 tonnes milled at a
recovered grade of 5.7 gAu/tonne.
We expect the strong grades and favourable economic conditions to
translate into a strong first quarter financial performance.
Bullion revenue in the first quarter 2009 totalled $23.6 million with
20,700 ounces sold at an average price of $1,138 per ounce. This compares to
first quarter 2008 revenue of $16.1 million with 17,337 ounces sold at $931
per ounce. Revenue is up 47% with 20% more ounces sold at gold prices 22%
greater than last year.
Gold bullion inventory at March 31, 2009 stood at 17,313 ounces or 78%
higher than at the end of the first quarter 2008. The market value of the
bullion inventory at March 31, 2009, stood at $20.0 million.
First Quarter Financial Results
We expect to release our first quarter financial results the week of May
11, 2009. Strong operating results are expected to translate into improving
profits and cash flow.
Gold production figures are preliminary and subject to final refining and
metallurgical balances. Technical information has been compiled by George
Mannard, P.Geo., Vice-President, Exploration and "Qualified Person" within the
meaning of National Instrument 43-101.
Wesdome is an established Canadian gold producer with wholly-owned mining
and milling complexes located in Wawa, Ontario and Val d'Or, Québec. Wesdome
has been producing gold continually for 20 years on an unhedged basis and to
date has produced in excess of 1.0 million ounces. The Company has 99.7
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
For further information:
For further information: Rowland Uloth, President, or Donovan Pollitt,
P.Eng., VP Corporate Development, 8 King St. East, Suite 1305, Toronto, ON,
M5C 1B5, Toll Free: 1-866-4-WDO-TSX, Phone: (416) 360-3743, Fax: (416)
360-7620, Email: email@example.com, Website: www.wesdome.com