TSX:WDO
TORONTO, April 15, 2016 /CNW/ - Wesdome Gold
Mines Ltd. (TSX: WDO) today announces gold production results for
the first quarter of 2016 (Q1).
Q1 combined production at the Eagle River Complex was 8,036
ounces. Eagle River Underground Mine tonnes milled during Q1 were
39,839 tonnes at a recovered grade of 4.88 grams per tonne ("gpt")
to produce 6,254 ounces. At the Mishi Open Pit Mine tonnes
milled were 36,287 at a recovered grade of 1.53 gpt to produce
1,782 ounces. At quarter end, ounces in stockpile after applying
mill recoveries were an estimated 550 ounces for the Eagle River
Underground Mine and an estimated 1,460 ounces for the Mishi Open
Pit Mine. The Eagle
River mill averaged 846 tonnes per day (TPD) for Q1,
comparable to the fourth quarter of 2015 but below our target of
980 TPD as we undertook plant repairs and upgrades in the leaching
circuit as well as the filtration circuit to boost mill throughput,
utilization and improve gold recoveries.
Gold sales were 8,100 ounces at an average sales price of
CAD$1,640 per ounce.
Mr. Rolly Uloth, President and
CEO commented, "As previously disclosed in our fourth quarter and
full year 2015 Management's Discussion and Analysis, Q1 production
was constrained to the extraction of lower grade remnant reserve
blocks in the upper part of the mine as development of higher grade
reserve blocks was slower than anticipated due to scooptram
mechanical issues. Development into the higher grade reserve blocks
commenced late in Q1 with the addition of a rental scooptram, and
will accelerate with the delivery of additional equipment in Q2. As
a result, Q2 production is forecast at approximately 12,000 ounces,
and grade and ounces are expected to further increase in the second
half of the year."
The contents of this press release has been compiled and
reviewed by Philip Ng PEng., Chief
Operating Officer of Wesdome and "Qualified Person" as defined by
National Instrument 43-101 disclosure standards.
ABOUT WESDOME
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 118
million shares issued and outstanding and trades on the Toronto
Stock Exchange under the symbol "WDO".
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
SOURCE Wesdome Gold Mines Ltd.