WESDOME GAAT SERIEUS OUTPERFORMEN VANDAAG
TORONTO, May 27, 2020 (GLOBE NEWSWIRE) -- Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) is pleased to announce positive results from the independent Preliminary Economic Assessment (“PEA”) prepared in accordance with National Instrument 43-101 at its 100% owned Kiena Complex in Val d’Or, Quebec. All figures are stated in Canadian dollars unless otherwise stated.
Highlights of the PEA:
After-tax IRR of 102%
After-tax NPV (discount rate 5%) $416 million
Preproduction capital cost of $35 million
Sustaining Life of Mine (“LOM”) Capital Cost of $121 million
After-tax payback period (after resumption of operations) 1.7 years
Average diluted grade of 10.65 grams per tonne (“gpt”) based on current Kiena Mine Resource Estimate of September 2019
Contained gold in Mined Resources: 709,000 ounces
PEA Life of Mine of 8 years
Total Unit Cash Operating Costs CDN$ 492 per ounce (US$374 per ounce)
All-in sustaining costs CDN$674 per ounce (US$512 per ounce)
Gold Price US$1,532 per ounce
Exchange Rate: C$1.00:US$0.76
Mr. Duncan Middlemiss, President and CEO, commented, “We are pleased with the results of the PEA that clearly illustrates the viability to restart production at the Kiena Mine in a very short-term horizon. The PEA demonstrates a low-cost and high margin operation, with low capital requirements and a short payback period, while minimizing risks and maximizing shareholders' return. The Company is well-financed to advance the project to the next level with a cash position as of the end of the first quarter of $49.4M. This PEA is based on the Mineral Resource Estimate ('MRE') dated September 2019 and includes only those resources proximal to the mine infrastructure, specifically the A Zone, B Zone, S50, VC Zones and the South Zone. Diamond drilling activities at Kiena restarted on May 11th, focusing on the continuation of converting inferred into indicated resources, exploring the A zone up-plunge potential and expanding the resources at depth in the Kiena Deep A Zone. The success of this drill program and drilling post September 2019, will further enhance the project economics outlined above. An updated resource estimate is planned early in Q4 2020 followed by a pre-feasibility study ('PFS') and a production restart decision in H1 2021. The COVID-19 pandemic has impacted our abilities to drill and develop at our full capacity, therefore this timeline includes contingencies until further information is available regarding the pandemic and necessary protocols going forward. Longer term, our focus will turn to the remaining resources on the Kiena property, which all together total 2.83M tonnes at 8.7 g/t for 788,000 ounces in the measured and indicated category, and 2.92M tonnes at 8.6 g/t for 798,000 ounces in the inferred category. There is certainly no lack of prospective targets.”