TORONTO, July 18, 2013 /CNW/ - Wesdome Gold Mines Ltd (TSX: WDO) is
pleased to announce preliminary gold production and sales figures for
the second quarter ended June 30, 2013. Gold production estimates are
subject to final refining balances which will be reported with the
upcoming financial statements.
Donovan Pollitt, President, commented "We are halfway to our annual
production guidance. The combination of streamlined mining operations
and focused capital investment in our milling infrastructure put us in
good shape to weather lower gold prices and improve financial
performance in the second half of the year."
During the second quarter, the Company's mining operations produced
about 13,800 ounces of gold and 28,300 ounces for the first half of
2013. This is slightly ahead of last year's pace.
At the Eagle River Complex, we lost about a month of milling due to
severe regional and local flooding during the spring thaw. Eagle River
produced 8,200 ounces of gold from 23,068 tonnes milled at a recovered
grade of 11.1 gAu/tonne. Mishi produced 1,000 ounces of gold from
8,338 tonnes milled at a recovered grade of 3.7 gAu/tonne. Despite the
floods, recovered grades were more than double those treated last
year. Surface stockpiles at the mill exceeded 100,000 tonnes (85,000
tonnes Mishi ore at about 2.5 gAu/tonne and 15,000 tonnes Eagle River
ore at about 7.0 gAu/tonne) to start the second half of the year.
The Kiena Mine in Val d'Or produced 4,600 ounces of gold from 37,045
tonnes milled at a recovered grade of 3.9 gAu/tonne. Operations wound
down as the mine was placed on care and maintenance.
During the second quarter gold sales totalled 14,000 ounces at an
average price of $1,460 Cdn per ounce generating revenue of $20.4
million Cdn. This brings first half, 2013, sales to 27,000 ounces at
$1,549 Cdn per ounce or $41.8 million Cdn.
Our gold inventory at June 30, 2013, stood at about 10,300 ounces or
about $13.4 million Cdn (at $1,300 Cdn per ounce).
SECOND QUARTER FINANCIAL RESULTS
We expect to release second quarter and first half, 2013, financial
results the week of August 5, 2013.
We have streamlined our mining operations, built large stockpiles and
have strong grades in the pipeline. We are defensively positioned with
good upside. With milling rates expected to improve in the second half,
we are maintaining our 2013 production guidance of 55,000 ounces.
Furthermore, we forecast cost reductions and improving cash flows in
the second half, 2013, due to suspended mining at Kiena and deferral of
mining activities at Mishi for the remainder of the year.
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