Wesdome Announces 2017 First Quarter Production Results

Download as PDF Published on: April 12, 2017

TORONTO, ON--(Marketwired - April 12, 2017) - Wesdome Gold Mines Ltd. (TSX: WDO) ("Wesdome" or the "Company") today announces first quarter 2017 ("Q1") gold production results of 15,162 ounces.

Mr. Duncan Middlemiss, President and CEO commented, "We are very pleased with the strong operational results of Q1, having surpassed our internal expectations. This is primarily attributable to the increased mining of the 7 Zone and 811 Zone stopes, as well as the development ore generated from the newly discovered 300 Zone East (301 and 303 Lens). We expect the head grades to continue to be at, or higher than reserve grades, as we continue mining in these zones, and bring additional stopes online from the 300 West and 300 East Zones. We also expect head grades at Mishi to improve during the year as we move beyond current mining in the northwest portion of the pit to higher grade areas. In comparison to the same period in the previous year (Q1 2016, 8,036 ounces), the Company has been able to demonstrate improved execution of the mine plan, which has been the operational focus. I would like to thank the team for delivering these excellent results safely and look forward to future successes."

Tonnes Head Grade Average Mill Gold Produced
Milled (t) (g/t Au) Recovery Rate (%) (ounces)
Eagle River Mine 38,578 11.5 95.3% 13,588
Mishi Open Pit 36,641 1.7 80.9% 1,574
Q1 2017 Production 75,219 6.7 93.6% 15,162

The Company's guidance remains unchanged at 52,000 - 58,000 ounces for 2017. Ounces sold were 12,320 ounces at an average sales price of CAD$1631 per ounce, (revenue of CAD$20.1 M) exceeding the Company's internal forecast of CAD$1550 per ounce.

The technical and scientific disclosure in this press release has been prepared and approved by Philip Ng, P. Eng, Chief Operating Officer of Wesdome and "Qualified Person" as defined by National Instrument 43-101 disclosure standards.

Wesdome Gold Mines is in its 29th year 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, Quebec. 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, which is being explored and evaluated to be developed in the appropriate gold price environment. The Company has approximately 132 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