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Wesdome Gold Mines Ltd T.WDO

Alternate Symbol(s):  WDOFF

Wesdome Gold Mines Ltd. is a Canadian-focused gold producer with two high grade underground assets, the Eagle River mine in Ontario and the Kiena mine in Quebec. The Company has an exploration program both underground and on the surface within the mine area and more regionally at both the Eagle River and Kiena Complex. The Eagle River Underground Mine is located 50 kilometers west of Wawa, Ontario. The Eagle River underground mine near Wawa, Ontario is producing gold at a rate of 80,000 to 90,000 ounces per year. The Kiena Mine is located in the highly prospective Val d’Or, Quebec gold camp. The Kiena Mine is a fully permitted, integrated mining and milling infrastructure which includes a 930-meter production shaft and 2,000 tons-per-day capacity mill. The Kiena Mine Complex consists of the Kiena Mine concession, Kiena Mill, related infrastructure and equipment and land position in the Township of Dubuisson, Quebec.


TSX:WDO - Post by User

Bullboard Posts
Post by PulpCutteron Jun 29, 2018 2:05pm
202 Views
Post# 28252795

Notes from presentation...

Notes from presentation...

Yes, Michaud.  Good presentation.  However, as an engineer, have to admit I like Middlemiss's "Dragnet Just the Facts" deadpan delivery.  I am probably biased, but IMO WDO is underselling.

Notes:

1) WDO's numbers assume $1550 CAD for gold price; we're currently at $1670 and I'd argue that's during our usual mid-summer low.  Michaud says generating operating cash flow at about $40M/year rate, right now.

2) 4 drills underground at Kiena.  3 drills underground at Eagle River, with a 4th surface drill starting up, within a month.  $25M/year CAD exploration spend.  For reference, Kirkland with a $6B CAD market cap will spend $85M USD/year in 2018, and I believe that is considered a heavy spend. 

3) 303 zone adding 1100 ounces/meter vertical depth.  WDO has produced across it at one level, and is now coming back across it at another level; believe 20 meters deeper.   About 1/2 feed to mill currently coming from ~ 2 g/t Michi pit.

4) Obviously big push at Eagle, and big push in terms of cash flow in the short-term, is to add two more production faces, to the east so that their output ore does not get in the way of ore moving from the three faces currently being worked over to the west.   This output will replace the lower-grade Michi ore, and basically Eagle is at 100k oz/year, 12+ g/t, once those faces are open. 

5) Kiena mill & mine "put away well, in great shape".  With all the other prospective interesting deposits controlled, in Val D'Or, one of WDO Explorations challenges is staying focused on Kiena Deep.  But, these other historic mines, many of which have been explored at depth, represent "great opportunity, longer-term".  [This set of historic mines may not have the documented track record of 15-20 g/t production that the KL/Teck mines have, BUT they largely not been drilled at depth - which the KL/Teck mines have.]

6)   Michaud gives interesting discussion as follows.  Mineralizing fluids tend to collect and/or be trapped, at bends in the seams, particularly where ultramafic material exists.  But, these bends can be quite difficult to drill, due to the drill bit getting stuck in their shear zones.  If I am understanding him correctly, this is one of the reasons Kiena Deep was not observed before, and one of the reasons the new drilling platform, at depth, has been a good investment for WDO.  Futher, the drilling drift can give early access when/if WDO starts mining Kiena Deep.

7) No end to the A* zones, past the bend and into the flatter section (slide 27). 

8) Questions dealt with "why Moss Lake is delayed".

 

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