GOLD: Wesdome produces 25,122 oz. in Q1, maintains guidance

TORONTO – In the first quarter of this year, Wesdome Gold Mines’ Eagle River complex in Ontario produced a total of 25,122 […]
Underground at Wesdome Gold Mines’ Eagle River mine Credit: Wesome
[caption id="attachment_1003735394" align="aligncenter" width="600"]Underground at Wesdome Gold Mines' Eagle River mine Credit: Wesome Underground at Wesdome Gold Mines' Eagle River mine Credit: Wesome[/caption] TORONTO – In the first quarter of this year, Wesdome Gold Mines’ Eagle River complex in Ontario produced a total of 25,122 oz. of gold at all-in sustaining costs of US$1,058 per oz. These numbers include 24,457 oz. from the Eagle River underground mine and 665 oz. from the Mishi open pit. This compares with 21,332 oz. generated last quarter at AISCs of US$988 per oz. In the release, Wesdome indicated that its costs in the period were impacted by lower grades milled and accelerated processing of stockpiled material due to uncertainty around the impacts of the COVID-19 pandemic. The Eagle River complex is currently in a reduced operations state due to the coronavirus, management expects slightly lower production in the second quarter but is maintaining its prior guidance of 90,000 oz. to 100,000 oz. for the year at AISCs of US$985 to US$1,040 per oz. In addition, Wesdome has announced that it is unlikely to complete the 237,000 metres of drilling planned for this year – additional details and a revised capital spend forecast are expected in a future release. In the first quarter, the company generated $33.4 million from operations and reported a net income of $11.5 million for the period; Wesdome ended the quarter with $49.4 million in cash. In Quebec, drilling and development work at the past-producing Kiena mine have been suspended in line with a government directive ordering the closure of non-essential businesses. A preliminary economic assessment for this project is expected later this month. Drilling in the first quarter has continued to confirm continuity of high-grade mineralization within the Kiena Deep A zone and traced this mineralization outside of the resource boundaries. Additional drilling is underway at Eagle River underground, targeting the 300 East zones from underground and the Falcon zones both from surface as well as off of a drift within the mine. For more information, visit www.Wesdome.com.

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