Wesdome Gold Mines will be spending $5 million to do a 40,000-metre drill program on a greenstone belt which hosts a large tonnage-low grade deposit at the Moss Lake gold property at Shebandowan, 100 kilometres west of Thunder Bay.
In a Jan. 17 release, the company explained it is “conducting a full-year drilling program at Moss Lake in order to evaluate our new land position with the goal of generating additional resources.” With the right conditions, Moss Lake may become an open-pit operation that might quadruple the company’s gold production.
Duncan Middlemiss, President and CEO explained the investments planned for the Eagle River Complex just west of Wawa, “Of the estimated $3 M project capital spend, approximately $1.2 M will be spent on the road at Mishi, which will lower trucking costs, and $1.7 M will be spent on an underground ventilation raise which will allow us to open more working faces and provide additional production flexibility at Eagle River. Further cost saving initiatives include upgrading underground equipment, which will reduce maintenance costs and downtime, and assist with dilution control.”
“At Mishi, we will be conducting scoping studies to determine if an expansion scenario will enhance profitability and maximize shareholder value. Wesdome does not expect to spend any significant expansion capex at the mill this year. We expect to publish our reserve and resource updates on both Eagle and Mishi later in the first quarter and this will be the embarkation point to determine the appropriate open pit scenario.”
Last year, the Eagle River Complex (Eagle River Mine and Mishi Open Pit) produced a total of 47,737 ounces valued at an average sales price of CAD $1,676 per ounce for revenue of CAD $81.6 M.