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Wesdome Gold re-evaluating 2022 guidance

15th July 2022

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

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Canada-focused Wesdome Gold is re-evaluating its 2022 guidance, after several operational issues impacted on production at its Eagle River mine, in Ontario, and the recently-restarted Kiena mine, in Quebec.

Eagle River’s production fell from 29 836 oz in the second quarter of 2021, to 17 756 oz in the same quarter this year. Kiena’s output was 8 914 oz in the quarter under review.

“During the second quarter, there were a number of one-time operational issues that impacted production at both sites. At Eagle River, production was lower than budget due to a manufacturing defect on a new hoist rope, resulting in two weeks of lower productivity as ore was trucked to surface and a second new rope was sourced.

“Additionally, one of the leach tanks at the mill, which was previously scheduled to be replaced later this year, failed in mid-June, impacting nearly one week of mill production. Once both issues were resolved we were able to mine and process the significantly higher-grade ore planned for June; however, gold sales were lower as processing and refinement of this ore slipped into the third quarter,” president and CEO Duncan Middlemiss explained.

At Kiena, the global supply chain challenges which delayed delivery of the underground equipment in the first quarter, have also delayed delivery of key electrical components for the completion of the paste backfill plant.

Consequently, the mining rate has been slower to ramp up which now puts Kiena about three to four months behind the original 2022 plan.

“While we previously indicated production in 2022 was expected to be heavily weighted to the second half of the year, the company is currently re-evaluating its 2022 production guidance,” Middlemiss said.

Wesdome sold 26 000 oz in the quarter, compared with 28 500 oz a year earlier, realising $61.9-million in revenue.

The company will announce more details when it publishes its second-quarter financials on August 10.

Edited by Creamer Media Reporter

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