Wesdome Gold Mines Ltd WDOFF

Corporate Shake Up

[snowshoedb]

Not surprising to see this change. Unfortunate for Duncan to be shown the door. This is a good example of why its important to consistently actively manage a business. Duncan had a great run for thew first 6 years... but ultimately paid the price for a series of misteps over the past year as they attempted to put Kiena into production.

In management... "You are only as good as you last bad deed".

Wesdome has dug itself a big hole. I'm sure they will find someone who can actively attempt a turnarround on the company. But let's remember the company's performace will be impaired for at least for the next year. And if they can't overcome the obsticals that now exist within the financial limitation framework (constraints) that exist at the company; we could have a bad outcome.

There are some serious issues with respect to ground stability that has slowed Wesdomes ability to ramp down to the Zone A Deposit. Progress will be slow and costly.

One should ask... Why are we 9-12 months behind on the ramp when they started well over a year ago? This implies that they made less than 2 months progress in ramping down in over more than a year.... the entire ramp was expected to take 1 year.

If they can't overcome this problem in BOTH a timely and cost effective manner ... the company could be mired in losses and the cash burn might not be able to be sustained by the free cash flow of Eagle. Kiena will burn cash at 4 gm/t... no if ands or buts.

We are likely diluted 6%-10% by the ATM and a further erosion of cash of 12-14 million/yr of interest to service 150 Million in debt that was not expected. Lets wake up to the reality that we are 1/4 of a billion dollars behind plan. This for a mine that was expected to be put back into operation for 40-80 million!

My fear is that this may be like Hope Bay where management misteps could not be overcome by subsequent management and the restricted financial capacity of the company made the job impossible.

This is a real shame for such a previously promissing property.

[pfm1998]

Do you know how far they have drilled down and where they have started from?

[snowshoedb]

I will try to answer both Questions: 1) I believe drill holes have been drilled at least 1,750 m below surface. They have not released any results beneath 2,000 m below surface (see slide 28). 2) The ramp mining ramps was at actually at sub level121 on Jan 1/23. The ramp was planned to be somewhere between sub level 136-139 on Jan 1/23 according to the PFS Plan The PFS plan was completed in May

[garmin1]

The rock bolting machinery was supposed to arrive last March. In October Middlemiss expressed that temporary rented equipment was going to be sourced. I wonder if any of this machinery has in fact arrived. Seems to me all rock stabilizing efforts in the schist and komatiite would have been sorely challenged without adequate machinery to do this safely. I'm thinking it's not particularly an

[PulpCutter]

Might be the most on-target post I've read, on the Wesdome shake-up (pun not intended).

[PulpCutter]

100% agree critical path was procurement of equip to handle Kiena Deep''s challenging ground conditions.   IMO, what the market wanted/wants, after the operations slips, is more information and more openness from management, not Middlemiss's resignation. There's nothing wrong with monthly updates on progress in developing Kiena Deep, cash position, how much of the