Wesdome Gold Mines Ltd. today announces gold production results for the second quarter of 2016 (Q2).
Q2 combined production at the Eagle River Complex was 12,147 ounces, a 51% increase over 8,036 ounces in the first quarter. Eagle River Underground Mine tonnes milled during Q2 were 45,305 tonnes at a recovered grade of 7.01 grams per tonne (“gpt”) to produce 10,210 ounces. At the Mishi Open Pit Mine tonnes milled were 33,546 at a recovered grade of 1.80 gpt to produce 1,937 ounces. The Eagle River mill averaged 866 tonnes per day (TPD) for Q2, below our target of 980 TPD for 2016 due to mill repairs (thickener) which impacted throughput in April. The average processing rates were 715, 943 and 939 TPD for the months of April, May and June, respectively.
Gold sales were 11,265 ounces at an average sales price of CAD$1,637 per ounce.
Mr. Rolly Uloth, President and CEO commented, “Second quarter production of 12,147 ounces slightly exceeded our guidance of 12,000 ounces. An operations optimization program took place during the previous quarter with immediate results and significant improvements were clearly demonstrated this quarter. They include the recommencement of mining of the 811 Zone, increased mining rates in the 300 Zone, increasing the cut-off grade for Mishi, and improving underground development rates for mining at Eagle River. Over the course of 2016, we plan to improve dilution with smaller stopes and continue our accelerated development into higher grade areas. The filtration system at the mill is now utilizing new durable velvet backing cloths on the four drum filters, which helped recovery rates and reduced maintenance time and costs. As a result, Eagle River gold recoveries increased from 88.1% in Q1 to 93.4% in Q2. Development of the high grade 7 Zone continues this year, ahead of schedule. The Company anticipates further increases in production for Q3 and Q4 over Q2.”
Wesdome Gold Mines Ltd. is in its 28th year of continuous gold mining operations in Canada. The Company is currently producing gold at the Eagle River Complex located near Wawa, Ontario from the Eagle River and Mishi gold mines. Wesdome’s goal is to expand current operations at both mines over the next four years through mill expansion and exploration. Wesdome has significant upside through ownership of its two other properties, the Kiena Mine Complex in Val d’Or, Quebec and the Moss Lake gold deposit located 100 kilometres west of Thunder Bay, Ontario. These assets are being explored and evaluated to be developed in the appropriate gold price environment. The Company has approximately 129 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol “WDO”.