Wesdome Announces 2022 Second Quarter Production Results
July 14 2022 - 5:00PM
Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”)
today announces second quarter (“Q2”) 2022 production results. All
figures are in Canadian dollars unless otherwise stated.
Duncan Middlemiss, President and CEO commented,
“During Q2, there were a number of one-time operational issues that
impacted production at both sites. At Eagle River, production was
lower than budget due to a manufacturing defect on a new hoist
rope, resulting in two weeks of lower productivity as ore was
trucked to surface and a second new rope was sourced.
Additionally, one of the leach tanks at the mill, which was
previously scheduled to be replaced later this year, failed in
mid-June, impacting nearly one week of mill production. Once both
issues were resolved we were able to mine and process the
significantly higher-grade ore planned for June, however gold sales
were lower as processing and refinement of this ore slipped into
Q3.
At Kiena, the global supply chain
challenges which delayed delivery of the underground equipment in
Q1, have also delayed delivery of key electrical components for the
completion of the paste backfill plant. Consequently, the mining
rate has been slower to ramp up which now puts us approximately 3-4
months behind our original 2022 plan.
While we previously indicated production in 2022
was expected to be heavily weighted to the second half of the year,
the Company is currently re-evaluating its 2022 production guidance
and we will be in a position to release our expectations for the
remainder of the year with our Q2 Financials on August 10.”
Amounts are denominated in Canadian dollars |
Second Quarter |
Year-to-Date |
|
2022 |
2021 |
Variance |
|
% +/(-) |
|
2022 |
2021 |
Variance |
|
% +/(-) |
|
|
|
|
|
|
|
|
|
|
Ore milled (tonnes) |
|
|
|
|
|
|
|
|
Eagle River |
59,964 |
63,057 |
(3,093) |
|
(5%) |
|
113,181 |
116,596 |
(3,415) |
|
(3%) |
|
Mishi |
7,685 |
9,347 |
(1,662) |
|
(18%) |
|
19,558 |
26,567 |
(7,009) |
|
(26%) |
|
Kiena |
26,478 |
0 |
26,478 |
|
0% |
|
47,640 |
0 |
47,640 |
|
0% |
|
|
94,127 |
72,404 |
21,723 |
|
30% |
|
180,379 |
143,163 |
37,216 |
|
26% |
|
|
|
|
|
|
|
|
|
|
Head grade (grams per tonne, “g/t”) |
|
|
|
|
|
|
|
|
Eagle River |
9.6 |
15.1 |
(5.5) |
|
(36%) |
|
10.6 |
14.1 |
(3.5) |
|
(25%) |
|
Mishi |
2.8 |
2.4 |
0.4 |
|
17% |
|
3.3 |
2.4 |
0.9 |
|
38% |
|
Kiena |
10.6 |
0.0 |
10.6 |
|
0% |
|
9.3 |
0.0 |
9.3 |
|
0% |
|
|
|
|
|
|
|
|
|
|
Gold production (ounces) |
|
|
|
|
|
|
|
|
Eagle River |
17,756 |
29,836 |
(12,080) |
|
(40%) |
|
37,090 |
51,232 |
(14,142) |
|
(28%) |
|
Mishi |
570 |
539 |
31 |
|
6% |
|
1,735 |
1,707 |
28 |
|
2% |
|
Kiena |
8,914 |
0 |
8,914 |
|
0% |
|
14,026 |
0 |
14,026 |
|
0% |
|
Total Gold Production |
27,240 |
30,375 |
(3,135) |
|
(10%) |
|
52,851 |
52,939 |
(88) |
|
(0%) |
|
|
|
|
|
|
|
|
|
|
Production sold (ounces)3 |
26,000 |
28,500 |
(2,500) |
|
(9%) |
|
54,000 |
50,957 |
3,043 |
|
6% |
|
|
|
|
|
|
|
|
|
|
Revenue from gold sales ($ millions)4 |
$61.9 |
$63.8 |
($1.9) |
|
(3%) |
|
$128.5 |
$109.7 |
$18.8 |
|
17% |
|
|
|
|
|
|
|
|
|
|
Average realized price per ounce2 |
$2,380 |
$2,239 |
141 |
|
6% |
|
$2,379 |
$2,232 |
147 |
|
7% |
|
|
|
|
|
|
|
|
|
|
Notes:
- Numbers may not add due to rounding.
- Average realized price per ounce is a non-IFRS measure and is
calculated by dividing the reported revenue from gold sales by the
number of ounces sold for a given period. Please reference the
Company's interim management discussion and analysis for the period
ended June 30, 2022 filed on SEDAR for their calculations.
- YTD 2021 production sold includes 1,793 ounces of gold sold
from the Kiena bulk sample which was processed in Q4 2020 and sold
in Q1 2021.
- YTD 2021 revenue excludes $3.9 million of revenue from the
Kiena bulk sample, which was processed in Q4 2020 and sold in Q1
2021. The incidental revenue was credited against the cost of the
Kiena exploration asset.
Technical Disclosure
The technical content of this release has been
compiled, reviewed and approved by Frederic Langevin, Eng, Chief
Operating Officer, a "Qualified Person" as defined in National
Instrument 43-101 -Standards of Disclosure for Mineral
Projects.
COVID-19
The health and safety of our employees,
contractors, vendors, and consultants is the Company’s top
priority. In response to the COVID-19 outbreak, Wesdome has adopted
all public health guidelines regarding safety measures and
protocols at all of its mine operations and corporate office. These
protocols are still in place at all sites despite the loosening of
some provincial public health guidelines. In addition, our internal
COVID-19 Taskforce continues to monitor developments and implement
policies and programs intended to protect those who are engaged in
business with the Company.
Through care and planning, to date the Company
has successfully maintained operations, however there can be no
assurance that this will continue despite our best efforts with the
emergence of new, highly contagious variants such as Omicron. To
date, the company has been impacted by this most recent variant
outbreak, with employees at both operations and corporate office
becoming infected which may negatively impact our ability to
maintain projected timelines and objectives. Consequently, the
Company’s actual future production and production guidance is
subject to higher levels of risk than usual. We are continuing to
closely monitor the situation and will provide updates as they
become available.
ABOUT WESDOMEWesdome is
Canadian focused gold producer with two high grade underground
assets in Canada, the Eagle River mine in Ontario and the recently
re-started Kiena mine in Quebec. The Company also retains
meaningful exposure to the Moss Lake gold deposit in Ontario
through its equity position in Goldshore Resources Inc. The
Company’s primary goal is to responsibly leverage this operating
platform and high-quality brownfield and greenfield exploration
pipeline to build Canada’s next intermediate gold
producer. Wesdome trades on the Toronto Stock Exchange under
the symbol “WDO,” with a secondary listing on the OTCQX under the
symbol “WDOFF.”
For further information, please
contact:
Duncan
Middlemiss |
or |
Lindsay
Carpenter Dunlop |
President and CEO |
|
VP Investor Relations |
416-360-3743 ext. 2019 |
|
416-360-3743 ext. 2025 |
duncan.middlemiss@wesdome.com |
|
lindsay.dunlop@wesdome.com |
|
|
|
220 Bay St, Suite 1200 |
Toronto, ON, M5J
2W4 |
Toll Free: 1-866-4-WDO-TSX |
Phone: 416-360-3743, Fax: 416-360-7620 |
Website: www.wesdome.com |
PDF
available: http://ml.globenewswire.com/Resource/Download/cbbf7438-3924-4973-8e93-c8e954d6593c
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