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Last year, Wesdome Gold Mines (TSE: WDO) increased production at its Eagle River complex in northern Ontario by 28% to 91,688 ounces of gold while decreasing cash costs by 9% to $621 per oz.
The company also increased reserves at Eagle River by 36% while boosting reserve grades 20%.
The latest reserve number for the operation is 1.2 million tonnes grading 14.4 g/t gold for 550,000 oz. gold.
“In 2019, we continued to decrease costs and build up free cash flow, largely driven by an almost doubling of production at Eagle River over the last three years,” said Duncan Middlemiss, Wesdome’s president and CEO.
“Cash costs of $621 per ounce and all-in sustaining costs of $975/oz per ounce were both below guidance, due to higher grades.”
The Eagle River complex, 50 km west of Wawa, consists of the Eagle River underground mine and the Mishi open pit
The Eagle River complex, 50 km west of Wawa, consists of the Eagle River underground mine and the Mishi open pit.
For the year, Wesdome reported revenue of C$164 million from 88,423 oz. gold sold. The company ended the year with C$35.7 million in cash.
Wesdome posted a net income of C$41 million for the year (C$12.1 million for the fourth quarter) compared to C$14.9 million a year earlier (C$2.6 million for the fourth quarter of 2018).
While it currently has only one producing asset, the company is looking at restarting the Kiena mine, in Val-d’Or, with a preliminary economic assessment (PEA) expected to be completed shortly.
After the PEA is released in the second quarter, the company will update resources at Kiena by incorporating 60,000 metres of drilling completed since the last resource statement.
Wesdome plans another 85,000 metres in drilling this year at Kiena.
Last year, the company increased indicated resources at the Kiena Deep A Zone to 405,100 oz. gold in 679,200 tonnes grading 18.55 g/t gold, up from 99,300 oz. at a grade of 9.95 g/t gold.
On care and maintenance since 2013, the Kiena complex contains a permitted, 2,000 t/d mill, a 930-metre shaft, and a ramp system that extends to 1,050 metres depth.
(This article first appeared in the Canadian Mining Journal)
