Wesdome Announces 2018 Third Quarter Financial Results

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TORONTO, Nov. 08, 2018 (GLOBE NEWSWIRE) -- Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces third quarter (“Q3 2018”) financial results. All figures are stated in Canadian dollars unless otherwise noted.

Mr. Duncan Middlemiss, President and CEO, commented, “Production in Q3 2018 was positively impacted as the result of mining the first 303 stope in September, where the muck sample head grades averaged 38.5 grams per tonne, gold (“g/t”). As a result, production of 19,437 ounces at a head grade of 13.3 g/t was above reserve grade of 12.2 g/t at the Eagle River Underground Mine. Accordingly, cash and all-in sustaining costs for the quarter were $815 per ounce (US$624) and $1,160 (US$888) per ounce, respectively, 20% lower than Q3 2017. With the year to date cash costs of $894 (US$695) and all-in sustaining costs of $1,243 (US$965), on a per ounce basis, we expect to end the year with these cost metrics to be below the lowest end of our guidance of $925 (US$720) per ounce on cash costs and $1,350 (US$1,050) per ounce on all-in sustaining costs.”

“We attained the fourth consecutive quarter of free cash flow generation of $2.1 million ($0.02 per share) for the quarter. Eagle River Complex operations continue to fund all exploration, development, administrative expenses, and a $23 million exploration and development program at the Kiena Complex in Val d’Or Quebec.”

“Looking ahead to the remainder of 2018, at Eagle River, we are very well positioned to achieve our increased guidance range of 70,000 – 75,000 ounces (54,371 year to date, Q3 2018), and beat the low end of our cost metrics guidance.”

“At Kiena, we have completed all additional drift development for exploration platforms, and added one more drill for a total of 4 drills underground. One drill is testing the potential up-plunge extension, and one drill will begin shortly testing the flattening of the A Zone at depth. Initial resource calculation on the Kiena Deep A Zone will be released in December as planned. We view this resource statement as a snapshot in time as further step out drilling subsequent to the data collection for the resource estimation has provide evidence of the expansion of the resource. Additionally, the capping factor will be reassessed as the current 34.28 g/t Au is likely inappropriate for the mineralization discovered to date within the A Zone.”

The technical content of this release has been compiled, reviewed and approved by Marc-André Pelletier, , Chief Operating Officer, and Michael Michaud, ., Vice President, Exploration of the Company and each a "Qualified Person" as defined in National Instrument 43-101 -.

The mineral reserve and resource estimates reported in this news release were prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“”) as required by Canadian securities regulatory authorities. The United States Securities and Exchange Commission (the “”) applies different standards in order to classify and report mineralization. This news release uses the terms “measured”, “indicated” and “inferred” mineral resources, as required by NI 43-101. Readers are advised that although such terms are recognized and required by Canadian securities regulations, the SEC does not recognize such terms. Canadian standards differ significantly from the requirements of the SEC. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories constitute or will ever be converted into mineral reserves. In addition, “inferred” mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource exists, is economically or legally mineable or will ever be upgraded to a higher category of mineral resource.

The Company’s 2018 Third Quarter Financial Results conference call will take place on November 9, 2018 at 10:00 am. ET. Conference details are found below.

North American Toll Free: International Dial-In Number: Conference ID: 8497324Webcast link:

A webcast of the earnings call can also be accessed under the News and Events section of the Company’s website () 

Notes

 

Wesdome Gold Mines has had over 30 years of continuous gold mining operations in Canada. The Company is 100% Canadian focused with a pipeline of projects in various stages of development. The Eagle River Complex in Wawa, Ontario is currently producing gold from two mines, the Eagle River Underground Mine and the Mishi Open pit, from a central mill. Wesdome is actively exploring its brownfields asset, the Kiena Complex in Val d’Or, Québec. The Kiena Complex is a fully permitted former mine with a 930-metre shaft and 2,000 tonne-per-day mill. The Company has further upside at its Moss Lake gold deposit, located 100 kilometres west of Thunder Bay, Ontario. The Company has approximately 134.9 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol “WDO”.

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Globe Newswire: 21:30 GMT Thursday 8th November 2018

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