Wesdome Q1 gold output up, maintains 2020 guidance

Eagle River Complex, Mishi - Open Pit. Image courtesy of Wesdome River Gold Mines Ltd

Wesdome Gold Mines (TSX:WDO) announced on Thursday its gold production results for the first quarter of 2020, with consolidated output of 25,122 ounces, a 32% increase from 19,010 in the same period in 2019. Sales rose 41% year-on-year to 26,500 ounces from 18,760.

Sales rose 41% year-on-year to 26,500 ounces from 18,760

"First quarter production was within budget, however grade was slightly lower due to stope sequencing. Mill feed increased by 34% to 735 tonnes per day compared to Q1 2019," said Duncan Middlemiss, president and chief executive officer.

"With the covid-19 pandemic occurring at the end of Q1 and subsequent health and safety actions taken, we expect slightly lower production in Q2 compared to Q1," Middlemiss said.

As part of health and safety protocols, the company shut down the Mishi open pit and has moved to a reduced workforce in other areas at the Eagle River Complex 50 km west of Wawa in northern Ontario.

"Despite these reductions in activities, we are maintaining our full-year production guidance of 90,000 - 100,000 ounces due to flexibility in stope sequencing," the executive said.

The company expects to resume drilling and development work at Kiena mine, in Val-d'Or, during the week of May 4.

On care and maintenance since 2013, the Kiena complex contains a permitted, 2,000 t/d mill, a 930-metre shaft, and a ramp system that extends to 1,050 metres depth.