Canadian mining company Wesdome Gold Mines had a challenging 2022, with production misses at its Eagle River Complex and Kiena mines resulting in the firm posting a C$14.7-million net loss for the year.

The miner’s gold production fell by 10% year-on-year to 110 850 oz.

Production from Eagle River decreased by 19% to 82 002 oz, primarily owing to lower realised head grade, as the newly developed Falcon Zone grade was not as high as expected. Gold production from Mishi was also lower than in 2021 as the stockpiled ore nears depletion. Head grade at the Eagle River complex in 2022 averaged 10.7 g/t.

“Previously disclosed grade reconciliation issues at the Falcon zone that impacted 2022 production have been addressed through additional ore development and drilling. Eagle operations are recovering well, with 2023 grade so far reconciling higher than guidance,” said interim CEO Warwick Morley-Jepson.

Kiena ore production increased by 29% to 28 848 oz of gold, primarily owing to higher throughput; partially offset by lower head grade as less ore was sourced from Kiena Deep. Head grade at Kiena in 2022 averaged 7.9 g/t.

“At Kiena, despite the challenging backdrop of the fractured supply chains we are very pleased to have put a second mine into production, financed almost entirely from internally generated cash flow. The delays encountered in 2022 are behind us, and all required equipment is on site. The next milestone is the continued development of the ramp giving access to mining operations in the A zone. Ramp advancement will position us to mine in the areas where the ounces per vertical metre significantly increase, and grade is expected to improve. Year to date, this project is tracking slightly ahead of schedule.

“As well, 2022 saw the hiring of key technical personnel including a Director, Engineering and Operations who will support daily mine operations,” he added.

Production guidance for 2023 is expected to range between 110 000 oz and 130 000 oz with production back end weighted through the year. Until the ramp reaches the 129 m level at Kiena, lower processed grades are expected to continue into 2023.  

“We consider this year to be a transition year as we get Kiena back on schedule, setting up 2024 to be a stronger year operationally, as well as financially. In this regard, an at-the-market equity program was established in December to accelerate balance sheet de-levering.”