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Wesdome Gold Mines Ltd. is pleased to announce
strong fourth quarter operating results and gold sales. Production
figures are subject to final refining balances.
Fourth
Quarter, 2010 Production and Sales
During
the fourth quarter ended December 31, 2010,
the Eagle River and Kiena mines produced a total of
21,500 ounces of gold or about 31% of our annual production. Gold sales
of 19,000 ounces at an average price of $1,399
per ounce generated bullion revenue of $26.5
million.
The
Eagle River Mine produced 10,000 ounces of gold from 39,200 tonnes milled at a recovered grade of 8.2 gAu/tonne. The Kiena Mine produced 11,500 ounces of gold from 84,700 tonnes milled at an average recovered grade of 4.1 gAu/tonne.
In
the fourth quarter we realized our highest production and highest gold prices
of the year. This combination of events is expected to translate into a
strong financial performance.
2010
Production and Sales
For
the full year, production totalled over 69,000
ounces, in line with forecasts and 70,000 ounces were sold generating bullion
revenue of $89.3 million at an average sales
price of $1,275 per ounce.
The
Eagle River Mine produced 37,000 ounces of gold from 155,500 tonnes milled at an average recovered grade of 7.4 gAu/tonne. The Kiena Mine produced 32,000 ounces of gold from 285,500 tonnes milled at an average recovered grade of 3.5 gAu/tonne.
At
year end, 2010 the Company held approximately 13,000 ounces of gold in
inventory. Final refining receipts for the last shipment are expected
shortly.
Outlook
In
2011 we expect similar output levels from each mine and an initial
contribution from the Mishi Mine. Depending
on the preproduction scheduling and regulatory approval schedule, overall
production should exceed 70,000 ounces in 2011. In 2012, as Mishi reports a full year of production and Eagle River
hits some very strong grades, we expect production growth to
accelerate.
2010
Year End Financial Results
Wesdome
Gold Mines expects to release the Q4 and 2010 year-end financial results
during the week of March 21,
2011. We expect strong grades and gold prices to translate into solid
financial performance for the fourth quarter, 2010.
2010
Year End Reserves and Resources
Wesdome
Gold Mines expects to release updated Reserves and Resources for the Eagle
River and Kiena mines for the year ended December 31, 2010 in mid February
2011. Management expects reserves at Eagle River and Kiena to increase net of depletion.
2011
Annual General Meeting
Wesdome
Gold Mines will host its 2011 Annual General Meeting at 4PM on Monday,
May 9, 2011
at the TSX Gallery, 130 King Street West,
Toronto, ON.
Technical
Information
The
technical information in this release has been reviewed by George Mannard, P.Geo., Vice President of Exploration and "Qualified
Person" within the meaning of National Instrument 43-101.
ABOUT
WESDOME
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 1.2 million ounces. The Company has 101.2 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.
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