Wesdome Announces 2022 First Quarter Production Results
Wesdome Announces 2022 First Quarter Production Results
TORONTO, April 14, 2022 -- Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces first
quarter (“Q1”) 2022 production results. All figures are in Canadian dollars unless otherwise stated.
Duncan Middlemiss, President and CEO, commented, “Wesdome’s first quarter combined production of 25,611 oz (up 14%
from Q1 2021) was essentially in line with expectations and represents the low quarterly production for the year, as we made
significant investments in the business during the quarter to set us up for a stronger second half at both assets. At Eagle, we
will have additional ore available from the Falcon Zone, which is expected to boost both volume and grade. At Kiena, the ramp
up has been impacted by unscheduled downtime related to the underground crusher. As well, some equipment delays and
staff absences in the beginning of the year due to the outbreak of the Omicron variant impacted development, hence the lower
grade in Q1. These challenges have largely been rectified, and commercial production is on track for mid year. This is a
transformational year for Wesdome as Eagle continues its 100,000 plus ounce per year run rate, and as we begin to hit our
stride with full commercial production at Kiena, getting that much closer to our stated objective of becoming Canada’s next
intermediate gold producer.”
Amounts are denominated in Canadian dollars First Quarter
2022 2021 Variance % +/(-)
Ore milled (tonnes)
Eagle River 53,217 53,540 -323 (1%)
Mishi 11,873 17,219 -5,346 (31%)
Kiena 21,162 0 21,162 0%
Total Ore Milled 86,252 70,759 15,493 22%
Head grade (grams per tonne, “g/t”)
Eagle River 11.6 12.8 (1.2) (9%)
Mishi 3.6 2.5 1.1 44%
Kiena 7.7 0 7.7 0%
Gold production (ounces)
Eagle River 19,334 21,396 -2,062 (10%)
Mishi 1,165 1,169 -4 (0%)
Kiena 5,112 0 5,112 0%
Total Gold Production 25,611 22,564 3,047 14%
Production sold (ounces)3 28,000 22,457 5,543 25%
Revenue from gold sales ($ millions)4 $66.6 $45.9 $20.7 45%
Average realized price per ounce2 $2,379 $2,223 $156 7%
Notes:
1. Numbers may not add due to rounding.
2. 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 March 31, 2022 filed on SEDAR for their calculations.
3. Q1 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.
4. Q1 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 Jacqueline Wheeler, P. Eng, Director,
Corporate Development and Technical Projects and Michael Michaud, P.Geo., Vice President, Exploration of the Company
and each 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 guide lines. 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 WESDOME
Wesdome is Canadian focused with two producing underground gold mines. The Company’s goal is to build Canada’s next
intermediate gold producer, producing over 200,000 ounces from two mines in Ontario and Québec. The Eagle River
Underground Mine in Wawa, Ontario is currently producing gold at a rate of 95,000 – 105,000 ounces per year. The Mishi Pit
is milling its’ final stockpile with 1,000 – 2,000 ounces expected. The recently re-started Kiena Complex in Val d’or, Quebec is
a fully permitted underground mine and milling operation. The Kiena Mine is expected to produce 64,000 – 73,000 ounces in
2022. On a combined basis 2022 guidance is 160,000 ounces – 180,000 ounces. Wesdome is actively exploring both
underground and on surface within the mine areas and more regionally at both the Eagle River and Kiena Complex. The
Company also retains meaningful exposure to the Moss Lake gold deposit, located 100 kilometres west of Thunder Bay,
Ontario through its equity position in Goldshore Resources Inc. The Company has approximately 142.5 million shares issued
and outstanding and 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
President and CEO
416-360-3743 ext. 2029
or Lindsay Carpenter Dunlop
VP Investor Relations
416-360-3743 ext. 2025
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
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. The Company has included in this news release certain non-IFRS performance
measures, including, but not limited to, mine operating profit, mining and processing costs and cash costs. Cash costs per
ounce reflect actual mine operating costs incurred during the fiscal period divided by the number of ounces produced. These
measures are not defined under IFRS and therefore should not be considered in isolation or as an alternative to or more
meaningful than, net income (loss) or cash flow from operating activities as determined in accordance with IFRS as an
indicator of our financial performance or liquidity. The Company believes that, in addition to conventional measures prepared in
accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate
cash flow.
PDF available: http://ml.globenewswire.com/Resource/Download/4df816cd-2d67-484d-b89e-0305b6021b2a