Wesdome posts lower gold production in second quarter, re-evaluates its full-year guidance | Kitco News

2022-08-21 13:35:53 By : Ms. Betty Liu

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(Kitco News) - Wesdome Gold Mines (TSX: WDO) announced Thursday that in Q2 2022, the company produced 27,240 ounces of gold, which is 10% lower compared to Q2 2021 (30,375 ounces).

The company said that during Q2, there were a number of one-time operational issues that impacted production at its 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, the company noted.

"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 Q3," Wesdome said.

The company also pointed out that at Kiena, the global supply chain challenges which delayed delivery of the underground equipment in Q1, have also delayed delivery of key electrical components for the completion of the paste backfill plant.

Wesdome added that consequently, the mining rate has been slower to ramp up which now puts the company approximately 3-4 months behind its 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 and we will be in a position to release our expectations for the remainder of the year with our Q2 Financials on August 10," commented President and CEO Duncan Middlemiss.

Wesdome is Canadian focused gold producer with two high grade underground assets in Canada, the Eagle River mine in Ontario and the recently re-started Kiena mine in Quebec. The company's primary goal is to build Canada's next intermediate gold producer.

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