Wesdome - Record first quarter production tops 27,000 ounces
Mon May 4, 8:00 AM
ca.news.finance.yahoo.com
TORONTO, May 4 /CNW/ - Wesdome Gold Mines Ltd. is pleased to announce strong first quarter gold production and bullion sales.
Rolly Uloth, President, commented "Strong grades and increased gold prices continue to favour our Canadian gold mining operations."
Gold Production
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During the first quarter 2009, gold production from the Company's Eagle River and Kiena gold mines totalled 27,434 ounces, a 34% increase over the 2008 total of 20,403 ounces. We are off to a strong start.
The Eagle River mine produced 16,885 ounces from 32,287 tonnes milled at an average recovered grade of 16.3 gAu/tonne.
The Kiena mine produced 10,549 ounces from 58,018 tonnes milled at a recovered grade of 5.7 gAu/tonne.
We expect the strong grades and favourable economic conditions to translate into a strong first quarter financial performance.
Gold Sales
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Bullion revenue in the first quarter 2009 totalled $23.6 million with 20,700 ounces sold at an average price of $1,138 per ounce. This compares to first quarter 2008 revenue of $16.1 million with 17,337 ounces sold at $931 per ounce. Revenue is up 47% with 20% more ounces sold at gold prices 22% greater than last year.
Gold bullion inventory at March 31, 2009 stood at 17,313 ounces or 78% higher than at the end of the first quarter 2008. The market value of the bullion inventory at March 31, 2009, stood at $20.0 million.
First Quarter Financial Results
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We expect to release our first quarter financial results the week of May
11, 2009. Strong operating results are expected to translate into improving
profits and cash flow.
Technical Information
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Gold production figures are preliminary and subject to final refining and
metallurgical balances. Technical information has been compiled by George
Mannard, P.Geo., Vice-President, Exploration and "Qualified Person" within the
meaning of National Instrument 43-101.
About Wesdome
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Wesdome is an established Canadian gold producer with wholly-owned mining and milling complexes located in Wawa, Ontario and Val d'Or, Québec. Wesdome has been producing gold continually for 20 years on an unhedged basis and to date has produced in excess of 1.0 million ounces. The Company has 99.7 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol "WDO".
This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances, management's estimates or opinions should change, except as required by securities legislation. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Contacts
Rowland Uloth
President
or Donovan Pollitt
P.Eng.
VP Corporate Development
8 King St. East
Suite 1305
Toronto
ON
M5C 1B5
Toll Free: 1-866-4-WDO-TSX
Phone: (416) 360-3743
Fax: (416) 360-7620
Email: invest@wesdome.com
Website: www.wesdome.com |
