Gold: Wesdome to suspend work at Kiena mine

QUEBEC – Despite higher in situ grades and promising new discoveries this year, Wesdome Gold Mines is suspending mining at the Kiena mine in Val d'Or by June 30, 2013. Decreasing recovered grades, persistent industry cost pressures, and uncertainty in the Canadian dollar gold price are to blame.

Remaining mining activities will include blasting and mucking of existing and currently drilled-off stopes. The Kiena property will be kept on care and maintenance with minimal staffing. Wesdome management says it believes the Kiena complex has excellent geological potential and could be reopened in the future.

Certain pieces of mining equipment may be transferred to Wesdome's Eagle River gold mine near Wawa, ON. The Eagle River mine is a ramp access underground operation and mill. Also near Wawa, Wesdome owns the Mishi seasonal open pit gold mine.

Wesdome is taking a $60-million non-cash asset impairment related to the suspension at Kiena in 2012 financial statements. Guidance for 2013 is also reduced to 55,000 oz of gold.

The Wesdome website is at Wesdome.com.