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 "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.
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