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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

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Comment by PulpCutteron Dec 08, 2018 1:58pm
104 Views
Post# 29087252

RE:RE:More GOOD News TODAY

RE:RE:More GOOD News TODAYReminds me of Newmarket/KL, 2016-2017; WDO is having tremendous good fortune*.  One good exploration result after another, at more than one mine.  Just crushing it, at both Kiena and Eagle, not to mention Moss Lake and even Mishi. 

That last Eagle Zone 7 sill drift - a drift that will be in production soon - averages 30.5 g/t, at 146m in strike and 2.61m true width.  Zone 7 is getting longer in strike, and richer, as it goes deeper.  And Zone 7 is not even the richest lens at Eagle; that would be Zone300/303, at 50.5 g/t, 20.1m strike, 8.6m true width; aka "the jewelry box".  This is all relatively-new, BTW; the 300 Zone only got started in mid 2017.

The sole negative I can come up with is Eagle hasn't yet found faces 4 & 5, to the east, to relieve their production bottleneck.  Note, however, that WDO just added more drills at Eagle: now 6 (Kiena has 4); 4 underground and 2 surface*.  If/when WDO can document that 7 & 300 continue, east of that diabase, Eagle will be on the path to 100k/oz year.

Middlemiss made an offhand comment, in Q3 conf call, that if VC was rich enough (and in particular was an up-plunge continuation of Deep A), that re-start drifting to it might take as little as 6 weeks.  Mining is always risky, but strong cash flow from Kiena sounding more likely and sooner.  Consider what a strong cash flow from Kiena, rather than a Kiena exploration expense, will do to bottom line earnings.  6x?  2000 tonne/day mill, working those Deep A ore numbers. 

Beyond that?  1) The rest of the Val d'Or land package.  7 old mines, 10 shafts, with again a 2000 tpd mill to get things started.  "This rare combination of modern, fully permitted infrastructure and extensive contiguous property ownership in a proven, world class gold mining camp resulted from a decades long consolidation effort." 2) John Tuzamos continually refers to Moss Lake.  WDO treats Moss Lake as a big optionality to higher gold prices, but keep in mind the 2013 PEA is > 200k oz/year, 10 year mine life with 2 year capex payback..and subsequent exploration significant improved both ounces and grade (see Sept 2017 press release).

*Luck is often, but not always, a function of how much work one puts it.  "It was amazing; the harder we worked, the luckier we got" - Vince Lombardi
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