The Kiena mine, in Val d’Or, Quebec, achieved commercial production on December 1, reports Toronto-listed Wesdome Gold Mines.

The company says the commissioning of the paste fill plant progressed well in November, with an underground test pour successfully completed on November 17. Demonstrating the viability of the paste fill plant was the final element for Kiena to meet its commercial production criteria.

Wesdome has received notice from its syndicate of credit providers of a $70-million increase to the company's existing $80-million revolving credit facility, for a total of $150-million.

“Kiena is our second operating mine in Canada, significantly derisking our status as a single mine operator and adding another source of revenue for the company. Although capital spending at Kiena is expected to decline next year, due to development delays, we now expect to have the development in place to access the bulk of the high-grade Kiena Deep A Zone in 2024, which will allow us to achieve positive free cash flow and an annual production run rate consistent with the 2021 Kiena Mine Complex prefeasibility study,” said president and CEO Duncan Middlemiss.

Wesdome will release its 2023 production and cost guidance, which reflects this progressive ramp-up of tonnes and grade in January.

“We continue to be very pleased with the exploration potential at Kiena, in particular the recent discoveries in the Footwall, Hanging wall, and South Limb zones. These zones have the potential to increase the number of ounces per vertical metre and to provide additional working faces during mining. Longer term, the Presqu’Ile discovery is shallower than the Kiena Deep A zone, potentially accessible by ramp as another source of feed for the mill, which has a 2 000 t/d capacity, currently operated at 1 000 t/d to 1 200 t/d only four days a week.”

Since 2017, the company has invested about $250-million into Kiena, including exploration, development studies, and infrastructure, primarily financed from free cash flow generated from the Eagle River mine.