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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
Comment by PulpCutteron Jan 17, 2019 8:40pm
105 Views
Post# 29249035

RE:RE:RE:RE:RE:Incredible valuation

RE:RE:RE:RE:RE:Incredible valuation

"..a couple million at Macassa?"  Try 2 million at 21 g/t P&P, another 2.1 million at 17 g/t M&I (which you assure us is same as P&P), and 1.9M at 22.2 g/t inferred.  When you have to selectively-pick your facts to make your argument, what does that tell you? 

Further, KL owns the remaining 4 mines of Kirkland Lake/Teck township.  Macassa wasn't even the richest; Lakeshore and Wright-Hargreaves were both running ~ 1/2 ounce/ton head grade, with exploration showing no end in sight, when they were closed in the 1960s, due to fixed $35/oz gold price and the difficultly in deep mining.  Foxpoint (KL's name in 2002) was planning on exploring Lakeshore first, and only restarted Macassa because it was the easiest re-start (had just been shut down).  BTW, guess which up & coming mining engineer led the Macassa restart for Foxpoint, 2002-2007, bringing to fully back, and helping discover the SMC?  That would be hometown boy Duncan Middlemiss.  Name sound familiar?

Which brings up another aspect of valuation, completely apart from R&R ounces: expertise, executional excellence, and technological edge.  Macassa leads the industry in lithium battery-powered mining fleets.  In fact the California manufacturer has established a center of excellence in KL township.  Macassa has a state-of-the art seismic monitoring system, and top-notch lighting and ventilation.  Technical edge leads to higher profits, just like it does for a chip maker or a gas turbine manfacturer.  E.g., Macassa's battery-powered fleet is estimated to increase production by 30%; and moreover virtually no fumes (kind of important in deep narrow vein mining), and about 1/10 the heat that a diesel gives off.
 

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