Wesdome increases reserve base to support production through 2033

Wesdome Gold Mines (TSX: WDO) has extended the operating life of both of its mines to eight years after updating their reserve estimates, which it says provide the foundation for sustained production through at least 2033.

Toronto-based Wesdome said Thursday the combined reserve count across its two operations has risen by 17% to a record 1.4 million oz. At the Eagle River mine in Ontario, the reserve base grew by 39% to 676,000 oz., while the Kiena mine in Quebec had a marginal increase to 711,000 oz. after accounting for depletion.

The reserves are expected to bolster the company’s production profile over the next three years, rising from 180,000-205,000 oz. in 2026 to 185,000-220,000 oz. in 2027 and 185,000-230,000 oz. in 2028, Wesdome says. By then, Eagle River and Kiena are each expected to account for about half of annual output.

It would be the first time that both assets are underpinned by eight-year reserve plans, Wesdome says.

Wesdome rose 2.3% to $24.14 Thursday afternoon in Toronto, valuing the company at about $3.6 billion (US$2.5 billion), amid weakness in the precious metals mining sector. The stock has traded between $15.94 and $30.98 in the past year.

Foundation for growth

“Today marks a defining milestone in Wesdome’s evolution,” CEO Anthea Bath said. “We have increased mineral reserves, extended mine life across the portfolio and established mine plans that support a growing production profile, stronger operating performance and significant free cash flow generation. Importantly, we have strengthened the foundation from which we can continue to grow the business for many years to come.”

At Eagle River, Wesdome said its global model initiative has successfully converted near-mine tonnes at an economical gold price of $1,800 per oz., providing additional material to improve mill utilization and extend the mine life while preserving flexibility to re-sequence the mine plan as higher-grade zones are delineated.

At Kiena, the company will look toward improved execution at Kiena Deep as well as flexibility across multiple mining levels including the Presqu’île Zone, which is expected to achieve commercial production this fall.

Wesdome predicts its updated mine plans will provide over C$1 billion in free cash flow for the next three years, assuming a gold price of US$4,000 ($5,680) per oz. All-in sustaining costs over that period are expected to remain broadly in line with the company’s 2026 guidance of US$1,525-US$1,700 per ounce.

Exploration opportunities

Reserves could also increase further, Wesdome says. Opportunities not included in reserves include improved productivity, execution and optimization initiatives at both operations and conversion of resources to reserves.

Wesdome says it’s identified a series of exploration targets with potential gold mineralization of between 2.4 million to 6.3 million oz., comprising 27.1 to 40 million tonnes with weighted-average gold grades ranging from 2.7 to 4.9 grams per tonne across both properties.

These opportunities are expected to leverage existing infrastructure and provide multiple pathways to extend mine life and support potential future growth, Wesdome said.

“We continue to see significant exploration upside” for Wesdome, Desjardins Securities mining analyst Allison Carson said in a note. The company’s exploration targets “will generate even longer mine lives than these studies, which we view as a snapshot in time.”