TORONTO, April 13, 2015 /CNW/ - Wesdome Gold Mines Ltd. (TSX: WDO) today announces production results for the first quarter of 2015.
During the quarter, at the Eagle River Underground Mine 39,815 tonnes were milled at a head grade of 7.37 grams per tonne ("gpt") and a recovery rate of 94.3% to produce 8,902 ounces. The mill also processed 19,288 tonnes of Mishi Open Pit ore at a head grade of 2.24 gpt with a recovery rate of 89.0% to produce 1,237 ounces, for a total of 10,139 ounces produced. The Company also mined an additional 4,495 tonnes (estimated 1,200 ounces) during the quarter that was not processed due to continuing mill upgrades and maintenance to bring daily throughput rates up to 1,000 tonnes per day and capacity utilization towards 90%. Gold sales were 9,633 ounces at an average realized sales price of CAD$1,499.26.
Mr. Rolly Uloth, President and CEO, commented, "Management anticipated a lower grade cycle at the Eagle River mine in 2015 as we focus on development of the 300, 7, and 811 high grade zones in the West part of the mine and the 817/818 zones in the East. We expect to complete development of our first 300 lens in the second quarter with production commencing in the second half of 2015. We look forward to developing the much higher grade 300 West lens in the second half of the year."
Please refer to attached figure detailing the 300 West lens, the completed drift and drifting results on the 750 metre level which is anticipated to be in stope production in the second half of 2015.
Wesdome Gold Mines Ltd. is in its 28th year of continuous gold mining operations in Canada that employ a profit growth approach. The Company is currently producing from its Eagle River and Mishi gold mines in Wawa, Ontario, which have earned consistent free cash flow during times of low gold prices. Wesdome's corporate goal is to build a profitable, long-life, sustainable gold mining Company with modest initial capital costs. This strategy has enabled the Company to acquire strategic property and infrastructure assets in two politically stable and historically proven mining camps. 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 111.0 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.
Image with caption: "FIGURE ONE (CNW Group/Wesdome Gold Mines Ltd.)". Image available at: http://photos.newswire.ca/images/download/20150413_C6200_PHOTO_EN_14160.jpg
For further information: Lindsay Carpenter Dunlop, Vice President, Investor Relations, 416-360-3743 ext. 25, [email protected]; Philip Ng, P.Eng., COO, 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