Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Wesdome Gold Mines announced the immediate restart of the Kiena Complex, in Val d’Or, Quebec, following the completion of a prefeasibility study (PFS) that yielded an internal rate of return (IRR) of 98%.
Kiena has been on care and maintenance since 2013 and includes a 930-metre shaft with a ramp system that extends down to 1,050 metres. Between 1981 and 2013, the site generated 12.5 million tonnes grading 4.5 g/t gold.
“We now expect to see initial production from Kiena as early as Q3 2021. To that end, we will maintain our previously released guidance of 15,000 – 25,000 ounces at Kiena until later in the year,” Wesdome Gold CEO Duncan Middlemiss said in the media release.
According to the company, the project would produce an average of 84,000 ounces per year, with peak production over 115,000 ounces in 2025 with over 100,000 ounces per year run-rate expected in 2024. It will require a capital investment of C$230 million.
