GOLD: Wesdome reports milling up, costs down for Q2

ONTARIO – Toronto's Wesdome Gold Mines has published its second quarter results along with the news that mill throughput is up and production costs are down.

During Q2 2015, Wesdome's two gold mines – Eagle River 50 km west of Wawa and Mishi 2 km away – had combined production of 12,476 oz of gold, a 23% increase over the previous quarter. The increase was due in large part to the mining of higher grade ore at the Eagle River mine where head grades averaged 7.0 g/t Au. Mill throughput at Eagle River is anticipated to be above 900 tpd for the remainder of the year.

At the Eagle River mine, two 300 zone lenses have been opened up on the 750 and 872 levels. Grades on the 872 level are as high as 57.22 g/t, and drifting on the 750 level cut 20.76 g/t Au.

Cash costs were down 16% in Q2 from the prior quarter at C$1,201 per oz, and all-in sustaining cots were C$1,648 per oz, a drop of 26%. During the quarter, Wesdome said it sold 11,740 oz of gold at an average price of C$1,465 (US$1,113.40) per oz. Stope production from the 300 zone began at the end of the quarter.

Wesdome reported Q2 revenue at C$17.2 million, up C$2.8 million over the first quarter. Net loss for the Q2 was C$700,000 or C$0.01 per share.

For further information go to Wesdome.com.