TORONTO, June 17, 2013 /CNW/ - Wesdome Gold Mines Ltd (TSX: WDO)
announces that it is currently fast tracking a multi-pronged milling
facility upgrade, which includes:
Streamlining drystack tailings handling,
Increasing throughput and efficiency via filtration conversion to CIL
Permitting of a new longterm tailings management solution.
The mill upgrade is being done in consultation with global milling
experts Kappes, Cassiday & Associates of Reno, NV.
Donovan Pollitt, President and CEO, comments "The Mishi open pit has
been a great success from a mining standpoint with recovered grades at
or above resource grade for the past five quarters. However, we have
been constrained by our milling operations and have generated a
substantial stockpile of Mishi ore. We are currently upgrading our
milling facilities targeting a 66% increase over current rates to 1000
tonnes per day. This will optimize Eagle/Mishi feed rates and
ultimately permit substantially higher production"
Combined Eagle River and Mishi ore stockpiles at the mill currently sit
at approximately 100,000 tonnes. The Mishi stockpile has about 85,000
tonnes of ore at estimated grades of about 2.5 gAu/tonne and the Eagle
River has about 15,000 tonnes of ore at about 7.0 gAu/tonne.
Additional Mishi broken ore in-pit is currently about 15,000 tonnes.
To date, in 2013, Mishi has produced 2,100 ounces of gold from 20,000
tonnes milled at a recovered grade of 3.2 gAu/tonne. We are announcing
the temporary suspension of the Mishi open pit contract mining
activities in light of the considerable stockpile currently at the
mill. The postponing of contractor mining activities will reduce
operating costs by approximately $3.5 million until year-end and that
contract mining activities would recommence in the spring of 2014. The
suspension of mining activities does not impact our planned gold
production, and as milling rates increase we have the flexibility to
re-commence mining activities sooner.
We see considerable potential for expansion given Mishi's increasing
reserves as well as positive deep drilling results and better grades at
We are confident in our ability to optimize these assets over the
longterm through an affordable and phased incremental capital
investment program. We are maintaining our production guidance of
55,000 ounces for 2013.
Wesdome is in its 26th year of continuous mining operations in Canada. It currently has two
producing gold mines in Wawa, Ontario and owns the Kiena Complex in Val
d'Or, Québec. The Company has 101.8 million shares issued and
outstanding and trades on the Toronto Stock Exchange under the symbol
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
SOURCE: Wesdome Gold Mines Ltd.
For further information:
Donovan Pollitt, P.Eng., CFA
President & CEO
416-360-3743 ext 25
George Mannard, P.Geo.
Vice President, Exploration
416-360-3743 ext 22
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