TORONTO, Jan. 23, 2012 /CNW/ - Wesdome Gold Mines Ltd. (TSX: WDO) announces fourth quarter operating results and gold sales. Production figures are subject to final refining balances.
Fourth Quarter, 2011 Production and Sales
During the fourth quarter ended December 31, 2011, the Eagle River and Kiena mines produced a total of 12,700 ounces of gold or about 27% of our annual production. Gold sales of 10,000 ounces at an average price of $1,721 per ounce generated bullion revenue of $17.2 million. During the fourth quarter the Company's bullion inventory increased from 5,931 ounces to approximately 8,630 ounces at year end.
The Eagle River Mine produced 8,100 ounces of gold from 47,800 tonnes milled at a recovered grade of 5.27 gAu/tonne. At Eagle River both grade and throughput increased. The Kiena Mine produced 4,600 ounces of gold from 56,400 tonnes milled at an average recovered grade of 2.54 gAu/tonne. At Kiena work focused on the development of new stopes. In addition, the Mishi Mine stockpiled approximately 21,000 tonnes at 2.0 g/t which we expect to process in Q1, 2012.
In the fourth quarter we realized our highest gold prices of the year.
2011 Production and Sales
For the full year, production totalled over 47,800 ounces and 52,000 ounces were sold generating bullion revenue of $79.5 million at an average sales price of $1,529 per ounce.
The Eagle River Mine produced 28,200 ounces of gold from 181,600 tonnes milled at an average recovered grade of 4.83 gAu/tonne. The Kiena Mine produced 19,500 ounces of gold from 255,300 tonnes milled at an average recovered grade of 2.38 gAu/tonne.
At year end, 2011 the Company held approximately 8,630 ounces of gold in inventory. Final refining receipts for the last shipment are expected shortly.
In 2012 we expect higher output levels from each mine and a full year's contribution from the Mishi Mine. Overall production should exceed 60,000 ounces in 2012. We expect the Eagle River Mine to produce about 28,000 ounces from 160,000 tonnes at a recovered grade of 5.4 gAu/tonne, the Kiena Mine to produce about 23,000 ounces from 300,000 tonnes at a recovered grade of 2.4 gAu/tonne and the Mishi Mine to produce about 9,000 ounces from 150,000 tonnes at a recovered grade of 1.9 gAu/tonne. We believe these estimates are conservative with upside potential as progressive improvements in grade are realized.
2011 Year End Financial Results
Wesdome Gold Mines expects to release the Q4 and 2011 year-end financial results during the week of March 15, 2012.
2011 Year End Reserves and Resources
Wesdome Gold Mines expects to release updated Reserves and Resources for the Eagle River and Kiena mines for the year ended December 31, 2011 in mid February 2012.
2012 Annual General Meeting
Wesdome Gold Mines will host its 2012 Annual General Meeting at 4pm on Wednesday, May 16, 2012 at the TSX Gallery, 130 King Street West, Toronto, ON.
The technical information in this release has been reviewed by George Mannard, P.Geo., Vice President of Exploration and "Qualified Person" within the meaning of National Instrument 43-101.
Wesdome is an established Canadian gold producer with wholly-owned mining and milling complexes located in Wawa, Ontario and Val-d'Or, Québec. Wesdome has been producing gold continually for 25 years on an unhedged basis and to date has produced in excess of 1.2 million ounces. 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||or||George Mannard, P.Geo.|
|President & CEO||Vice President, Exploration|
|416-360-3743 ext 25||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 protected], Website: www.wesdome.com|