Wesdome Declares Commercial Production at the Kiena Mine
December 01 2022 - 7:00AM
Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”)
today announces that commercial production has been achieved at the
Company’s Kiena mine in Val d’Or, Quebec effective December 1st,
2022.
The commissioning of the paste fill plant has
progressed well in November, with an underground test pour
successfully completed on November 17th. Demonstrating the
viability of the paste fill plant was the final element for Kiena
to meet its commercial production criteria.
Paste fill has always been identified as a
critical component to the successful mining of Kiena Deep. Now that
it is available to the operation, it will help reduce stope
stand-up time, minimize the risk of instability, better control
dilution, and allow for a more rapid overall mining sequencing.
Additionally, it will allow for re-allocation of resources (both
equipment and people) that were engaged in the cemented rockfill
operations. Those resources will now be available to address the
meaningful development deficit accrued to date.
As expected, Wesdome has also received notice
from its syndicate of credit providers of a $70 million increase to
the Company's existing $80 million-dollar revolving credit
facility, for a total of $150 million.
Mr. Duncan Middlemiss, President and CEO
commented, “Kiena is our second operating mine in Canada,
significantly de-risking our status as a single mine operator and
adding another source of revenue for the Company. Although capital
spending at Kiena is expected to decline next year, due to
development delays we now expect to have the development in place
to access the bulk of the high-grade Kiena Deep A Zone in 2024,
which will allow us to achieve positive free cash flow and an
annual production run rate consistent with the 2021 Kiena Mine
Complex Pre-Feasibility study (see press release dated May 26,
2021). The Company will release its 2023 production and cost
guidance, which reflects this progressive ramp up of tonnes and
grade in January.
“We continue to be very pleased with the
exploration potential at Kiena, in particular the recent
discoveries in the Footwall, Hanging wall, and South Limb zones.
These zones have the potential to increase the number of ounces per
vertical metre and to provide additional working faces during
mining. Longer term, the Presqu’Ile discovery is shallower than the
Kiena Deep A Zone, potentially accessible by ramp as another source
of feed for the mill, which has a 2,000 tonnes per day capacity,
currently operated at 1,000 to 1,200 tonnes per day only four days
a week.”
Since 2017, the Company has invested
approximately $250 million into Kiena, including exploration,
development, studies, and infrastructure, primarily financed from
free cash flow generated from the Eagle River mine.
ABOUT WESDOME
Wesdome is a Canadian focused gold producer with
two high grade underground assets, the Eagle River mine in Ontario
and the recently commissioned 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.”
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.
FORWARD-LOOKING INFORMATION
This news release contains “forward-looking
information” which may include, but is not limited to, statements
with respect to the benefits of achieving commercial production at
Kiena, the Company’s expected capital expenditure in 2023, the
timing around reaching the Kiena Deep A Zone, the Company’s ability
to be cash flow positive and its annual production run rate. 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, please
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Duncan Middlemiss |
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Lindsay Carpenter Dunlop |
President and CEO |
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VP Investor Relations |
416-360-3743 ext. 2029 |
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416-360-3743 ext. 2025 |
duncan.middlemiss@wesdome.com |
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lindsay.dunlop@wesdome.com |
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220 Bay St, Suite 1200 |
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Toronto, ON, M5J 2W4 |
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Toll Free: 1-866-4-WDO-TSX |
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Phone: 416-360-3743, Fax: 416-360-7620 |
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Website: www.wesdome.com |
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PDF
available: http://ml.globenewswire.com/Resource/Download/85df5419-24e7-4c6f-8e61-6e24969103d3
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