TORONTO, July 20, 2016 /CNW/ - Wesdome Gold Mines Ltd. (TSX: WDO) today announces gold production results for the second quarter of 2016 (Q2).
Q2 combined production at the Eagle River Complex was 12,147 ounces, a 51% increase over 8,036 ounces in the first quarter. Eagle River Underground Mine tonnes milled during Q2 were 45,305 tonnes at a recovered grade of 7.01 grams per tonne ("gpt") to produce 10,210 ounces. At the Mishi Open Pit Mine tonnes milled were 33,546 at a recovered grade of 1.80 gpt to produce 1,937 ounces. The Eagle River mill averaged 866 tonnes per day (TPD) for Q2, below our target of 980 TPD for 2016 due to mill repairs (thickener) which impacted throughput in April. The average processing rates were 715, 943 and 939 TPD for the months of April, May and June, respectively.
Gold sales were 11,265 ounces at an average sales price of CAD$1,637 per ounce.
Mr. Rolly Uloth, President and CEO commented, "Second quarter production of 12,147 ounces slightly exceeded our guidance of 12,000 ounces. An operations optimization program took place during the previous quarter with immediate results and significant improvements were clearly demonstrated this quarter. They include the recommencement of mining of the 811 Zone, increased mining rates in the 300 Zone, increasing the cut-off grade for Mishi, and improving underground development rates for mining at Eagle River. Over the course of 2016, we plan to improve dilution with smaller stopes and continue our accelerated development into higher grade areas. The filtration system at the mill is now utilizing new durable velvet backing cloths on the four drum filters, which helped recovery rates and reduced maintenance time and costs. As a result, Eagle River gold recoveries increased from 88.1% in Q1 to 93.4% in Q2. Development of the high grade 7 Zone continues this year, ahead of schedule. The Company anticipates further increases in production for Q3 and Q4 over Q2."
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 129 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, [email protected]; Philip Ng, Chief Operating Officer, 416-360-3743 ext. 23, [email protected]; 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