Wesdome Gold Mines Ltd. - Third Quarter Production and Gold Sales
TORONTO, Nov. 1, 2011 /CNW/ - Wesdome Gold Mines Ltd
announces weaker than anticipated third quarter gold production and sales figures.Donovan Pollitt, P.Eng., comments, 'Strong gold prices are helping us in a transitional development year. Challenging ground conditions at Kiena and development productivity issues have delayed the turnaround we were expecting. A very tight labour market is making it difficult to proceed at the pace we are accustomed to. A return to life-of-mine type grades, with the additional contribution of new production from Mishi in the context of current gold prices, is something we look forward to.'
GOLD PRODUCTION
Gold production in the third quarter, ended September 30, 2011, was 10,337 ounces, bringing year-to-date production to 35,025 ounces.
The Eagle River mine produced 6,861 ounces of gold from 46,867 tonnes milled at an average recovered grade of 4.6 gAu/tonne. This brings year-to-date production to 20,127 ounces of gold from 133,810 tonnes processed at an average recovered grade of 4.7 gAu/tonne.
The Kiena mine produced 3,476 ounces of gold from 57,395 tonnes processed at an average recovered grade of 1.9 gAu/tonne. This brings year-to-date production to 14,898 ounces of gold from 198,897 tonnes milled at an average recovered grade of 2.3 gAu/tonne. Severe dilution and lost ore in transitional production areas hampered production here during the last two quarters. We believe the worst is behind us.
GOLD SALES
Bullion sales in the third quarter totalled $19.6 million from 12,000 ounces sold at an average price of $1,646 per ounce. Year-to-date sales total $62.4 million from 42,000 ounces sold at an average price of $1,484 per ounce.
At September 30, 2011, the bullion inventory stood at 5,931 ounces.
FINANCIAL RESULTS - OUTLOOK
We expect to release the third quarter, 2011 financial results the week of November 7, 2011. Challenging mining conditions experienced during the last two quarters, coupled with slower than anticipated development progress, prompt us to refine our 2011 production guidance to 45,000 to 50,000 ounces. Fortunately, annual revenue targets will likely attain budgeted levels due to increased gold prices. We remain confident steady improvement will be achieved as the Mishi mine comes on stream and new higher grade production areas are developed at both Eagle River and Kiena.
ABOUT WESDOME
Wesdome is an established Canadian gold producer with wholly-owned mining and milling complexes located in Wawa, Ontario and Val-d'Or, Québec. Wesdome has been producing gold continually for more than 20 years on an unhedged basis and to date has produced in excess of 1.2 million ounces. The Company has 101.9 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol 'WDO'.
This news release contains 'forward-looking information' which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as 'plans', 'expects', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates', or 'believes' or variations (including negative variations) of such words and phrases, or state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances, management's estimates or opinions should change, except as required by securities legislation. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Wesdome Gold Mines Ltd.
CONTACT:
Donovan Pollitt, P.Eng., or George Mannard, P.Geo.
CFA Vice President,
President & CEO Exploration
416-360-3743 ext 25 416-360-3743 ext 22
8 King St. East, Suite 1305
Toronto, ON, M5C 1B5
Toll Free: 1-866-4-WDO-TSX
Phone: 416-360-3743, Fax: 416-360-7620
Email: invest@wesdome.com, Website: www.wesdome.com