TORONTO, July 7 /CNW/ - On June 26th, 2008 the Wesdome Group achieved a
major milestone: having poured 1 million ounces of gold. Company directors,
officers, investors and local dignitaries took part in the celebration with a
site visit and underground tour at the Eagle River Mine near Wawa, Ontario as
the Eagle River Mill poured the Group's 1 millionth ounce of gold.
The Wesdome Group has been producing gold since 1987. Since 1987 it has
put five gold mines into production and assembled strategic property and
mining infrastructure in Val d'Or, Quebec and Wawa, Ontario. A table below
shows a breakdown of the grades and tonnages mined to date.
WESDOME GROUP HISTORIC GOLD PRODUCTION
Tonnes (g/t) Ounces %
------ ----- ------ -
Joubi, Val d'Or (1987 - 1999) 327,561 6.13 62,284 6
Eagle River, Wawa (1995 - present) 2,425,427 9.12 711,139 73
Edwards, Wawa (1997 - 2002) 389,550 11.15 139,692 14
Mishi, Wawa (2002 - present) 133,456 3.60 15,426 2
Kiena, Val d'Or (2006 - present) 378,959 3.63 44,188 5
December 31, 2007 3,654,953 8.28 972,729 100
April 30, 2008
Eagle River 36,846 14.99 17,753
Kiena 85,559 4.12 11,335
Total 2008 122,405 29,088
Grand Total to
April 30, 2008 3,777,358 8.25 1,001,817
The 1,000,000th ounce precipitated at Eagle River on April 27, 2008, then
refined to doré bar and poured on June 26, 2008.
The Joubi Mine was located in Val d'Or immediately southeast of the
Goldex Mine. Joubi operated for ten years as a custom milling operation and
enabled the company to assemble an experienced operating team. At the best of
times, Joubi was a self-funding underground exploration project. The
mineralized zone which hosts Agnico-Eagle's neighbouring Goldex Mine of Agnico
Eagle is projected to cross onto the Joubi property at a depth of 1000 metres.
Proceeds from a gold bar from Joubi facilitated the purchase of the Eagle
Eagle River Mine
The Eagle River Mine has been in production since 1996 and to date has
produced more than 700,000 ounces of gold from 2.4 million tonnes of ore.
Recent discoveries of high grade mineralization in the western portion of the
mine are now going into production. Mine site exploration has a history of
replacing reserves through modest expenditures. Other known deposits in the
camp are being re-examined in light of current strong gold prices.
The Edwards property was purchased in 1996 and fully permitted and placed
into production from scratch within 12 months. It was a prolific, high grade
satellite operation providing incremental millfeed to the Eagle River
operation. Despite its awful timing regarding the gold price (1997-2002), the
mine was very profitable and strategically enabled the Company to protect the
integrity of the Eagle River Mine during the low gold price cycle.
The Mishi property was purchased in 1998. It is located two kilometres
west of the Eagle River mill. The shallow portions of the deposit have been
intermittently mined by open pit methods from 2002 through 2007 generating
approximately 135,000 tonnes of low cost incremental millfeed. The deposit
consists of a series of five en echelon lenses hosting indicated resources of
1.04 million tonnes at a diluted grade of 5.1 gAu/tonne. Studies are currently
underway to examine the economics of underground development of this asset as
a satellite operation in light of recent strength in the gold market.
The Kiena Mine was acquired in 2003. Its mining and milling
infrastructure complements the Company's surrounding exploration properties.
Historically, the Kiena Mine produced 1.5 million ounces of gold from
10 million tonnes of ore primarily from the S50 zone which remains open at
depth. Recent work has focused on developing several promising satellite
deposits as part of a long-term strategy to progressively explore, develop and
harvest the potential of this extraordinary land package located in the heart
of the prolific Val d'Or mining camp.
Wesdome's strategy is one of regional development around existing
wholly-owned infrastructure in politically stable, historically proven mining
regions. Its vision is to provide investors with exposure to a growing,
unhedged gold production profile in a rising gold market. Ample potential for
further organic growth through exploration and development of its extensive,
prospective land holdings bodes well for continued growth.
Wesdome Gold Mines Ltd. is an established Canadian gold producer with
mining operations and development projects in Wawa, Ontario and Val d'Or,
Quebec. The Company has 99.8 million shares issued and trades on the TSX
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.
For further information:
For further information: Rowland Uloth, President, Donovan Pollitt, 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:
firstname.lastname@example.org, Website: www.wesdome.com