Wesdome Gold Mines Ltd. (TSX: WDO) announces fourth quarter and full year 2021 production results and 2022 guidance. All figures are in Canadian dollars unless otherwise stated.
Production from the Eagle River Complex in Q4 2021 totaled 62,374 tonnes at an average grade of 12.6 grams per tonne and a recovery rate of 98% to produce 24,630 ounces of gold, putting full year 2021 production at 265,267 tonnes at an average grade of 12.2 gpt to produce 101,403 ounces, near the high end of our 2021 production guidance of 92,000 – 105,000 ounces.
At Kiena, Q4 production was 38,000 tonnes at an average grade of 14.1 gpt and a recovery rate of 98% to produce 16,929 ounces. Total production for the year at Kiena was 68,470 tonnes at an average grade of 10.4 gpt at a recovery rate of 98% to produce 22,440 ounces, also near the high end of our guidance range of 15,000 – 25,000 ounces.
Duncan Middlemiss, President and CEO commented, “2021 was an excellent year for Wesdome. We achieved two significant operational milestones, record production at the Eagle River Complex of 101,403 ounces, and the commencement of pre-production and construction activities at the Kiena mine in preparation for commercial production in Q2 2022. These achievements have resulted in further de-risking of the Company with the addition of a second producing Canadian asset which ultimately increases scale and diversifies cash flow sources, both key steps towards becoming a mid-tier Canadian producer.
Looking ahead to 2022, we are guiding total production of 160,000 – 180,000 ounces, a 30% – 45% increase over 2021. We expect costs to be slightly lower than 2021, and are guiding consolidated cash costs per ounce sold to range between $875 – $970 per ounce (US $700 – $775), and all-in sustaining costs to range between $1,270 and $1,400 per ounce (US$ 1,015 – $1,125). Full operating and financial details for 2021 will be provided in the Company’s year end financial statements and management discussion and analysis on March 10, 2022.
I would like to thank all of our employees and stakeholders who have made this transformational year possible, despite the obvious challenges of the global pandemic and associated supply chain disruptions. Tough times make tough teams.”
|Amounts are denominated in Canadian dollars||Fourth Quarter||Year-to-Date|
|2021||2020||Variance||% +/(-)||2021||2020||Variance||% +/(-)|
|Ore milled (tonnes)|
|Head grade (grams per tonne, “g/t”)|
|Gold production (ounces)|
|Total Gold Production||41,559||20,006||21,553||108%||123,843||90,278||33,565||37%|
|Production sold (ounces) 3||37,544||19,890||17,654||89%||118,501||91,229||27,272||30%|
|Revenue from gold sales ($ millions) 4||$85.4||$48.3||$37.1||77%||$262.6||$215.3||$47.3||22%|
|Average realized price per ounce 2||$2,275||$2,430||($155)||(6%)||$2,250||$2,360||($110)||(5%)|
|Amounts are denominated in Canadian dollars, or otherwise indicated||Guidance|
|Eagle River||95,000 – 105,000 ounces|
|Mishi||1,000 – 2,000 ounces|
|Kiena||64,000 – 73,000 ounces|
|Consolidated||160,000 – 180,000 ounces|
|Head grade (g/t)|
|Eagle River||12.1 – 13.4|
|Mishi||2.0 – 2.5|
|Kiena||10.6 – 11.8|
|Cash cost per ounce sold 1||$875 – $970
|All-in sustaining cost per ounce sold 1||$1,270 – $1,400
US$1,015 – US$1,125
1 Operating cost per ounce sold and All-in sustaining cost per ounce are non-IFRS measures, please reference the Company’s interim management discussion and analysis for the period ended September 30, 2020 filed on SEDAR for their calculations.
2022 Budget Highlights
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. 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. Impacts of significant numbers of employees being absent have been limited so far however future conditions may warrant reduced or suspended production activities which could 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.
The technical content of this release has been compiled, reviewed and approved by Marc-Andre Pelletier, P. Eng, Chief Operating Officer, and Michael Michaud, P.Geo., Vice President, Exploration of the Company and both a “Qualified Person” as defined in National Instrument 43-101 –Standards of Disclosure for Mineral Projects.
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 92,000 – 105,000 ounces per year. The recently re-started Kiena Complex in Val d’or, Quebec is a fully permitted underground mine and milling operation. 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 140.9 million shares issued and outstanding and trades on the Toronto Stock Exchange.
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