TORONTO, April 25, 2012 /CNW/ - Wesdome Gold Mines Ltd (WDO: TSX) is pleased to announce first quarter, 2012, gold production and sales figures. Production numbers are subject to final refining balances.
PRODUCTION AND SALES
|Mine||Tonnes Milled|| Recovered Grade
| Ounces Produced
|TOTAL BULLION SALES:||13,000 oz @ $1,692/oz = $22.0 million|
- Production on track to exceed forecast
- Mill down for 15 days in March for scheduled and unscheduled maintenance
- Grades improving
- Good results with better grades and recoveries than expected on first milling batch
- Second batch deferred due to mill downtime
- Good winter season productivity with 600,000 tonnes waste stripped and ore stockpile maintained at over 20,000 tonnes
- Successful development push with over 1,000 metres completed, exceeding forecast by 30%
- Heavy influence of development ore on grades
- 388 Zone now in production
- New mine plan to reduce costs 20%, improve grades and develop the Martin Zone to be implemented immediately
Donovan Pollitt, P.Eng., comments "Production from Wawa operations was strong considering two weeks of mill maintenance. In Val d'Or, our development catch-up quarter exceeded expectations and we now believe we have the flexibility to initiate a significant new plan to reduce costs and improve grades. This plan does not sacrifice development and will feature more selective mining and development of the Martin Zone. Stabilizing the cost structure and ensuring a longer term view at Kiena is a priority for us."
The Eagle River and Mishi operations are on track and offer significant flexibility in milling schedules. Kiena production, under the new plan, will be reduced to closer to 20,000 ounces. Our initial production forecast of 60,000 ounces in 2012 is most influenced by Eagle River grades which are demonstrating improvement. At this point we feel our operations have sufficient flexibility to meet, or exceed, forecasts.
The technical information in this release has been reviewed by George Mannard, P.Geo., Vice President Exploration and "Qualified Person" within the meaning of National Instrument 43-101.
Wesdome is celebrating its 25th year of continuous mining operations in Canada. It currently has three producing gold mines with wholly-owned mining and milling complexes located in Wawa, Ontario and Val d'Or, Québec. The Company has 101.9 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.
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