TORONTO, Feb. 14 /CNW/ - Wesdome Gold Mines Ltd. (TSX:WDO) is pleased to
announce its 2007 gold production and its production outlook for 2008.
2007 Gold Production
Gold production from Wesdome's 100%-owned Eagle River and Kiena mines for
the year ended December 31, 2007, totaled 72,085 ounces, exceeding our
forecast of 70,000 ounces by about 3%.
Combined production from the Eagle River mine and Mishi Pit totaled
36,681 ounces from the processing of 120,134 tonnes at an average grade of
9.91 grams of gold per tonne. Recoveries for Eagle River muck averaged 97.1%
in 2007, while the lower grade Mishi Pit material achieved recoveries of
Production at the Kiena mine totaled 35,404 ounces from the processing of
284,757 tonnes at an average grade of 3.96 grams of gold per tonne recovered.
Recoveries for the year at Kiena year averaged 97.7%, which was higher than
Fourth Quarter, 2007 Gold Production
At the Eagle River mine, ore processed in the fourth quarter amounted to
8,911 tonnes at an average grade of 7.74 grams of gold per tonne, which came
mainly from development headings. In the third quarter, 13,813 tonnes were
processed at a grade of 17.25 grams of gold per tonne. Mill recoveries of
95.5% were achieved in the fourth quarter, compared with 97.8% achieved in the
third quarter. As a result, gold production totaled 2,119 ounces for the
fourth quarter compared to 7,491 ounces in the third quarter of 2007.
At the Mishi Pit, ore processed in the fourth quarter amounted to 21,890
tonnes at an average grade of 3.19 grams of gold per tonne. In the third
quarter, 21,568 tonnes were processed at an average grade of 3.96 grams of
gold per tonne. Mill recoveries of 87.4% were achieved in the fourth quarter,
compared with 87.5% in the third quarter. As a result, gold production totaled
1,962 ounces for the fourth quarter compared to 2,402 ounces in the third
quarter of 2007.
At the Kiena Mine, ore processed in the fourth quarter amounted to 63,013
tonnes at an average grade of 4.44 grams of gold per tonne. In the previous
quarter, 63,281 tonnes were processed at an average grade of 3.61 grams of
gold per tonne. Mill recoveries of 98.0% were achieved in the fourth quarter,
compared with 97.4% in the third quarter due to the processing of higher grade
ore. As a result, gold production totaled 8,809 ounces for the fourth quarter
compared to 7,145 ounces in the third quarter of 2007.
2008 Production Outlook
It is estimated that Wesdome Gold Mines will produce approximately 80,000
ounces of gold in 2008 from both its mines, an increase of almost 15% from our
2007 estimated production. At the Eagle River Mine, production in 2008 is
estimated to be 125,000 tonnes at an average grade of 11.2 grams of gold per
tonne for a total of 45,000 ounces. At the Kiena mine, production is estimated
to be 245,000 tonnes at an average grade of 4.5 grams of gold per tonne for a
total of 35,000 ounces.
In 2008, ore grades are expected to be higher than the average grades
achieved in 2007 and costs are expected to increase only slightly as input
costs seem to be stabilizing.
Deferred capital expenditures at the Eagle River mine are estimated to be
$3.0 million, primarily for the development of the 811 and 808 zones at depth.
Deferred capital expenditures at the Kiena mine are estimated to be $3.0
million, primarily for the development of the VC Zone at depth.
2008 is shaping up to be a strong year for production at Wesdome. As
current gold sales for the company are averaging about $CAD 900 per ounce, it
is important for investors to note that with an estimated 80,000 ounces of
annualized gold production, every $CAD 10 increase in the price of gold will
result in an increase of $CAD 800,000 of annual revenue. As of February 14th,
the current gold price is about $CAD 150 per ounce more than the average sale
price in 2007 ($CAD 748). Wesdome continues to be entirely unhedged and has
never hedged its gold sales.
Wesdome intends to explore its properties aggressively this year. In
total, over 58,000 metres of drilling is planned at both mine sites with
43,000 metres planned at Kiena and 15,000 metres at Eagle River.
An aggressive, balanced exploration effort is planned at the Kiena
Complex. Underground drilling will focus on known orebodies at depth where
they remain open and the best chances to increase resources exist. The Shawkey
22 zone will be opened up on the 330 metre level. Drifting, bulk sampling and
drilling will assess the bulk grade of this extensive mineralized system.
Barge-mounted surface drilling will provide a systematic, property-wide
evaluation of targets prioritized by recent compilation work with the goal of
identifying significant new zones of mineralization.
Eagle River Exploration
Exploration drilling at the Eagle River mine will concentrate on
establishing the depth extensions of the 808 and 811 zones in the west portion
of the mine. Primary development headings in this part of the mine will
provide a drilling platform to test the main structure and a parallel
structure well below current reserve limits.
Likewise, access is being established in the eastern portion of the mine
to test well below existing drilling information.
Two regional targets are being evaluated for preliminary surface drill
In 2008, Wesdome Gold Mines will be clearly focused on achieving greater
production, reducing costs and increasing its corporate visibility. Increased
trade show attendance and marketing efforts will be top priorities for the
Company going forward.
The company continues to look for opportunities to replicate its strategy
of regional development around existing wholly-owned infrastructure in
politically stable, historically proven mining regions.
2007 Year End Financial Results
Wesdome Gold Mines expects to release the Q4 and 2007 year end financial
results during the week of March 24th, 2008.
2007 Year End Reserves and Resources
Wesdome Gold Mines expects to release updated Reserves and Resources for
the Eagle River and Kiena for the year ended December 31, 2007 in the week of
March 10th, 2008.
2008 Annual General Meeting
Wesdome Gold Mines will host its 2008 Annual General Meeting at 4 PM on
Thursday, May 1st, 2008, at the TSX Gallery, located in The Exchange Tower,
130 King St. West, Toronto, ON.
Technical information in this news release was prepared under the
supervision of Benoit Laplante, P.Eng., Vice President of Operations for
Wesdome Gold Mines Ltd. Mr. Laplante is a Qualified Person as per National
Wesdome Gold Mines Ltd. is an established Canadian gold producer with
mining operations and development projects in Wawa, Ontario and Val d'Or,
Quebec. It has 99.8 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; 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