Wesdome Gold Mines announced the immediate restart of the Kiena Complex, in Val d’Or, Quebec, following the completion of a prefeasibility study (PFS) that yielded an internal rate of return (IRR) of 98%.
Kiena has been on care and maintenance since 2013 and includes a 930-metre shaft with a ramp system that extends down to 1,050 metres. Between 1981 and 2013, the site generated 12.5 million tonnes grading 4.5 g/t gold.
According to the company, the project would produce an average of 84,000 ounces per year, with peak production over 115,000 ounces in 2025; over 100,000 ounces per year run-rate expected in 2024. It will require a capital investment of C$230 million.
"We now expect to see initial production from Kiena as early as Q3 2021. To that end, we will maintain our previously released guidance of 15,000 – 25,000 ounces at Kiena until later in the year," said Wesdome Gold CEO Duncan Middlemiss.