TORONTO, April 15, 2016 /CNW/ - Wesdome Gold Mines Ltd. (TSX: WDO) today announces gold production results for the first quarter of 2016 (Q1).
Q1 combined production at the Eagle River Complex was 8,036 ounces. Eagle River Underground Mine tonnes milled during Q1 were 39,839 tonnes at a recovered grade of 4.88 grams per tonne ("gpt") to produce 6,254 ounces. At the Mishi Open Pit Mine tonnes milled were 36,287 at a recovered grade of 1.53 gpt to produce 1,782 ounces. At quarter end, ounces in stockpile after applying mill recoveries were an estimated 550 ounces for the Eagle River Underground Mine and an estimated 1,460 ounces for the Mishi Open Pit Mine. The Eagle River mill averaged 846 tonnes per day (TPD) for Q1, comparable to the fourth quarter of 2015 but below our target of 980 TPD as we undertook plant repairs and upgrades in the leaching circuit as well as the filtration circuit to boost mill throughput, utilization and improve gold recoveries.
Gold sales were 8,100 ounces at an average sales price of CAD$1,640 per ounce.
Mr. Rolly Uloth, President and CEO commented, "As previously disclosed in our fourth quarter and full year 2015 Management's Discussion and Analysis, Q1 production was constrained to the extraction of lower grade remnant reserve blocks in the upper part of the mine as development of higher grade reserve blocks was slower than anticipated due to scooptram mechanical issues. Development into the higher grade reserve blocks commenced late in Q1 with the addition of a rental scooptram, and will accelerate with the delivery of additional equipment in Q2. As a result, Q2 production is forecast at approximately 12,000 ounces, and grade and ounces are expected to further increase in the second half of the year."
The contents of this press release has been compiled and reviewed by Philip Ng PEng., Chief Operating Officer of Wesdome and "Qualified Person" as defined by National Instrument 43-101 disclosure standards.
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 118 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.
For further information: Lindsay Carpenter Dunlop, Vice President, Investor Relations, 416-360-3743 ext. 25, firstname.lastname@example.org; Philip Ng, Chief Operating Officer, 416-360-3743 ext. 23, email@example.com; 8 King St. East, Suite 811, Toronto, ON, M5C 1B5, Toll Free: 1-866-4-WDO-TSX, Phone: 416-360-3743, Fax: 416-360-7620, Website: www.wesdome.com