Business
Wesdome to suspend mining at Kiena Mine
TORONTO, March 7, 2013 /CNW/ - Wesdome Gold Mines Ltd. ("the " Company ") (TSX: WDO) announ...
About this update from Wesdome Gold Mines Ltd.
[{"type":"text","content":"\n\n\n\n\n\nTORONTO, March 7, 2013 /CNW/ - Wesdome Gold Mines Ltd. (\"the \"Company\") (TSX: WDO) announces the planned suspension of mining activity at the\n Kiena Mine located in Val d'Or, Quebec, by June 30, 2013.  Facing\n decreasing recovered grades, persistent industry cost pressures and\n uncertainty in the Canadian dollar gold price, Wesdome management has\n determined that mining operations at the Kiena mine are not currently\n economically feasible and operations should be suspended.\n\n\nDonovan Pollitt, President and CEO, commented: \"It is never easy to take\n these decisions and Wesdome appreciates the hard work and dedication\n shown by management and all employees to date.  To have continued in\n the face of industry-wide challenges of tight availability of labour\n and difficult ground conditions has been a challenge for everyone at\n Kiena.  However, in light of these economic realities and without\n evidence of improvements in output foreseeable in the near-term we must\n make difficult decisions.\"\n\n\nMining Suspension Details\n\n\nGold production at the Kiena mine is planned to cease by June 30, 2013.\n Remaining mining activities will consist of the blasting and mucking of\n existing and currently drilled-off stopes.  Certain pieces of\n underground mining equipment may be transferred to our Eagle River mine\n after production ceases at the Kiena Mine.  The Company intends to keep\n Kiena on a Care and Maintenance basis with minimal staffing levels.\n Depending on free cash generation at our two Wawa mines, the Company\n may pursue further exploration and development work at the Kiena Mine. \n Wesdome management continues to believe that the Kiena Complex has\n excellent geological potential and believes it will deliver value to\n shareholders at a future date.\n\n\nThe suspension of mining activities is intended to preserve the\n Company's treasury and provide more flexibility in capital allocation\n decisions within the Company. Placing a priority on assets with the\n best cash flow generation will result in stronger financial results and\n greater earnings going forward.  The pause in mining at the Kiena mine\n will also allow management to comprehensively assess long-term\n exploration, development and mining alternatives around the mine site\n and on adjoining prope...