Wesdome Gold Mines’ (WDO-T) gold production was 28% higher than expected in 2009 after grades at its Eagle River mine near Wawa, Ont., exceeded expectations.
The Toronto-based miner produced more than 96,000 oz. gold in 2009 after forecasting production of 75,000 oz.
The Eagle River mine produced 60,754 oz. gold from 132,000 tonnes grading 14.3 grams gold per tonne.
Kiena, Wesdome’s other gold mine located near Val d’Or, Que., produced 35,398 oz. gold from 302,000 tonnes grading 3.6 grams gold.
In early 2009, Wesdome forecast the two mines would produce about 75,000 oz. gold but as the year progressed the company increased its production forecast to 80,000 oz. gold and then later to 90,000 oz.
Wesdome was expecting the gold grades to be lower at Eagle River during the second half of the year. Ore averaged 16.3 grams per tonne in the first quarter, dipping down to 13.4 grams gold in the second quarter. During the third quarter, ore from Eagle River averaged 14.3 grams gold per tonne and dipped down to 13 grams per tonne in the fourth quarter.
Sales for 2009 totaled $103 million with 92,700 oz. gold sold at an average price of C$1,112.50 per oz., up from 2008’s average gold price of $931.25 per oz.
The company expects to produce 70,000 oz. gold in 2010 with 38,000 oz. coming from Eagle River and 32,000 oz. from the Kiena mine. Wesdome says the grades will be lower at Eagle River this year, but that refinement in the mining sequence and grade estimates in progress may lead to positive changes in the outlook.
The company will report its fourth quarter and year-end financial results during the week of March 22, 2010.
Wesdome also plans to update reserves and resources by mid-February. Management expects reserves at Eagle River to increase net of depletion while reserves at Kiena will decrease marginally.
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