Wesdome Gold Mines Ltd. · TSX:WDO
Wesdome Gold Mines — Investor Presentation (May 2018)
48 slides from Wesdome Gold Mines's investor presentation, May 2018
Slide 1: Building Canada's Next Mid-Tier Gold Producer
May 2018 Building Canada’s Next Mid- Tier Gold Producer
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Information This presentation contains statements or information concerning the business, operations and financial performance and condition of Wesdome Gold Mines Ltd. (“Wesdome” or the “Company”) which constitute forward-looking statements or information (colle
Slide 3: Wesdome Gold Mines Ltd.
Wesdome Gold Mines Ltd. Proven building blocks to New high-grade gold increase shareholder value discovery in permitted, de-watered former producing mine Low risk expansion of existing mines in proven mining camps Assets in top rated jurisdictions – Ontario and Quebec TSX:WDO | 3
Slide 4: Corporate Structure
Corporate Structure Symbol 52 Week High/Low Analyst Coverage TSX:WDO $3.65/$1.64 (Average daily BMO Capital Markets volume 650,000 shares) Clarus Securities Shares Outstanding Desjardins Capital Markets 133.9 M Market Capitalization Echelon Wealth Partners $252M Options and RSU’s Eight Capital Partn
Slide 5: Two Year Share Price Performance
Two Year Share Price Performance WDO added to GDXJ (18 M shares) GDXJ methodology change announced, rebalance results in 12 M shares liquidated from index Resolute Funds reduces Eagle River 303 E Lens discovery announced; position from 20% to Kiena Deep potential expands 550 m laterally 9.97% announ
Slide 6: Canadian Gold Company with Three 100% Owned Projects
Canadian Gold Company with Three 100% • Owned Projects Over 30 years of continuous gold production • 2017 earned mine profit $31.5 M (41% increase over 2016) • 2017 operating cash flow $27.2 M or $0.20/share (21% increase over 2016) 3 • 2017 Eagle River Complex production: 58,980 ozs from 2 high 2 g
Slide 7: Corporate Strategy: Build Canada's Next Intermediate Gold Producer
Corporate Strategy: Build Canada’s Next Intermediate Gold Producer Near Term: Long Term: Objective: STRENGTHEN EXPLORE BUILD 2 MINES Eagle River Eagle River • Development of high • 7 and 300 zones Diversify from single grade zones remain open asset producer to 2 • Operational • Near mine improvement
Slide 8: 2018 Guidance: Production to Increase by 10%, Costs to Reduce by 10%
2018 Guidance: Production to Increase by 10%, Costs to Reduce by 10% Amounts are denominated in Canadian Guidance dollars Gold production Eagle River 55,000 – 59,000 ounces Mishi 7,000 - 9,000 ounces 62,000 – 68,000 ounces Head grade (g/t) Eagle River 10.1 – 10.5 Mishi 2.4 – 2.8 Operating cost per o
Slide 9: Costs Continuing to Decrease with Productivity and Production Improvements
Costs Continuing to Decrease with Productivity and Production Improvements 20,000 1400 18,000 1200 16,000 Produced Ounces 14,000 1000 12,000 800 $CAD 10,000 600 8,000 6,000 400 4,000 200 2,000 0 0 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Produced Gold Ounces Operating Costs pe
Slide 10: Q1 2018 Financial Results
Q1 2018 Financial Results in $000s Three months ended March 31, Increase 2018 2017 /decrease Revenues $ 26,217 $ 20,100 30% Expenses Cost of sales 18,764 16,118 16% Corporate and general 1,077 1,431 (25%) Share-based payments 867 864 - Kiena care and maintenance 456 221 106% Write-off of mining equi
Slide 11: Mineral Reserves (2017 Year End)
Mineral Reserves (2017 Year End) 21% increase in Eagle River ounces; grade increased by 32% • Reserves and Resources as at December 31, 2017. • Mineral Resources exclusive of Mineral Reserves. • The contents of this slide have been verified and approved by Michael Michaud, P. Geo, VP Exploration for
Slide 12: Exploration: Two Properties Attain Highest Grade Hits in 2017
Exploration: Two Properties Attain Highest Grade Hits in 2017 Source: Mining Intelligence/Mining.com TSX:WDO | 12
Slide 13: Eagle River Mine: 1.1 M oz of Production
Eagle River Mine: 1.1 M oz of Production • Quartz diorite stock (2 km x 0.5 km) hosts 1.1 M oz of past production at Eagle River from 8, 6 and 2 Zone structures (1995 to 2017) • Parallel 7 and 300 Zones to north offer new potential throughout the mine • 2017 Production: 50,996 ounces (152,591 t @ 10
Slide 14: Eagle River Parallel Gold Zones Remain Open
Eagle River Parallel Gold Zones Remain Open open open 4200 elev 4200 elev open Section 9400E (looking west) Section 9400E (looking west) 100 m open • Discovery of two new parallel gold zones in 2013 • Exploration in 2014 - 2017 leads to reserve growth with expanding potential within mine footprint •
Slide 15: Eagle Drilling to Diversify Production Locations
Eagle Drilling to Diversify Production Locations Longitudinal Section Looking North 300 Zone West Eu-778: 121.3 g/t over 2.0 m CL EU-779: 1115.7 g/t over 2.4 m CL EU-780L 79.1 g/t over 3.5 m CL EU-781: 65.2 g/t over 4.0 m CL EU-782: 230.2 g/t over 2.5 m CL Untested Potential in Parallel Zones 300 Zo
Slide 16: Eagle River Parallel Structure Reserve Breakdown
Eagle River Parallel Structure Reserve Breakdown Percentage of P + P Structure Tonnage Grade (gAu/tonne) Contained Ounces Reserve Ounces Proven and Probable Reserves No. 8 205,000 10.5 69,000 17% No. 300 514,000 13.4 222,000 53% No. 7 228,000 13.2 97,000 23% Other 112,000 7.8 28,000 7% Total 1,059,0
Slide 17: New Production Area: 303 E Lens
New Production Area: 303 E Lens • Discovered January 2017 • High-grade intercepts at significantly higher widths than previously mined • Structure currently traced from 750 metres depth to 1,000 metres depth • Remains open • Production commenced late Q4 2017 TSX:WDO | 17
Slide 18: 2017 Drifting Results on 300 Structure
2017 Drifting Results on 300 Structure 173.7m of strike length / 2.85m average width / 22.62 g/t Au cut / 34.70 g/t Au uncut TSX:WDO | 18
Slide 19: 7 Zone Drifting Results - Strike Length Increasing with Depth
7 Zone Drifting Results - Strike Length Increasing with Depth Drifting Highlights Level Grade Grade Width Strike Release Date Uncut (g/t Cut (g/t Au) (m) Lengt Au) h (m) 890 33.15 16.75 1.5 42.0 May 31, 2016 945 22.63 17.07 3.3 63.0 September 15, 2016 975 E 13.38 13.38 1.5 46.0 November 30, 2017 975
Slide 20: 2017 Mishi Exploration: Drilling Extends Zone to West
2017 Mishi Exploration: Drilling Extends Zone to West Exploration Highlights • 2016 reconnaissance drilling program • 2017 Exploration: 28,000 m of drilling following up on two targets, 600 m and 1700 m West of pit - resource delineation • 2018: Conducting Mishi study in Q2 600 m West of Pit 1,700 m
Slide 21: Kiena Complex, Val d'Or, Quebec
Kiena Complex, Val d’Or, Quebec • Mine on care and maintenance since mid- 2013 • 2,000 TPD permitted mill • 930 Metre shaft • Ramp system to 1000 m • Underground de-watered • Past production 1981 – 2013 12,500,00 mt @ 4.5 g/t = 1.75 M ounces produced TSX:WDO | 21
Slide 22: Kiena Complex – Location, Location, Location!
Kiena Complex – Location, Location, Location! TSX:WDO | 22
Slide 23: Kiena Complex – Regional Geological Potential
Kiena Complex – Regional Geological Potential Wesdome Deposit 0.4 M oz Resource Siscoe Mine 0.9 M oz prod Presqu’ile Deposit 0.1 M oz Resource Kiena Deep Kiena Mine 1.8 M oz TSX:WDO | 23
Slide 24: Kiena Deep Discovery
Kiena Deep Discovery Why Kiena Deep: • Large Regional Structures • Multiple zones of ductile and brittle deformation for “openings” for Au • Ultramafic contact tends to “pool” liquids TSX:WDO | 24
Slide 25: Kiena Exploration Ramp and Current Drill Targets
Kiena Exploration Ramp and Current Drill Targets • Kiena Ramp Construction announced May 3, 2017 • Estimated cost $7.6 M – completed under budget • Drilling underway: 25 x 25 metre spacing • 50,000 metres Kiena Deep A Zone underground drilling • Goal to establish Indicated Resources by Q4 TSX:WDO |
Slide 26: Kiena Deep A Zone Drilling from Exploration Ramp
Kiena Deep A Zone Drilling from Exploration Ramp TSX:WDO | 26
Slide 27: New Discovery Located Near Existing Infrastructure
New Discovery Located Near Existing Infrastructure Existing Indicated Resources Zone Cut Grade Tonnes Ounces (cut to 34.28 g/t) S50 Deep A 10.87 173,111 60,511 S50 Deep AH 8.53 68,722 18,885 S50 Deep B 3.21 514,100 53,100 TOTAL 132,466 OUNCES TSX:WDO | 27
Slide 28: VC Zone – Near-Term Production Potential
VC Zone – Near-Term Production Potential Highlights include: •262.13 g/t or (17.70 g/t cut to 34.28 g/t) over 5.6 m true width in hole 6205 •10.28 g/t or (8.56 g/t cut to 34.28 g/t) over 3.0 m true width in hole 6201 •9.26 g/t (9.26 g/t cut) over 3.0 m true width in hole 6208 VC Zones – Important As
Slide 29: One Drill Focused on Auxiliary Zone Drilling
One Drill Focused on Auxiliary Zone Drilling VC Zone North Extension S50 South Zone Extension TSX:WDO | 29
Slide 30: Moss Lake - Coldstream Acquisition April 2016
Moss Lake - Coldstream Acquisition April 2016 • Dominant land holdings, 36 km along Shebandowan Gold Belt containing four deposits open for expansion • Moss Lake Deposit remains open Pit and Mineral Resource constrained by property boundary • 2017 drilling extends strike length mineralization from 2
Slide 31: 2018 Exploration Summary – Sustained Investment
2018 Exploration Summary – Sustained Investment Eagle: Kiena: 3 - 4 Underground $10.8 M Exploration 3 Underground Drills 1 Surface Drill (Summer) Drilling Budget 1 Surface Drill (Summer) Property 2018 Metres 2017 Metres 2016 Metres 2015 Metres Eagle Underground Exploration 25,000 24,000 27,000 22,00
Slide 32: Summary
Summary LOW CAPEX: HIGHLY EXECUTABLE: LOW RISK: Kiena: New gold Eagle River: new high- Expansion of existing discovery in existing, grade parallel zones close mines in proven permitted, de-watered to infrastructure mining camps former producing mine Aggressive Exploration Pipeline of development Ope
Slide 33: Appendix
Appendix TSX:WDO WESDOME wesdome.co m
Slide 34: Executive Management Team
Executive Management Team - Professional engineer with over 25 years experience in operational management, mine rehabilitation, development and gold production Duncan Middlemiss, P. Eng - Over 10 years of executive management experience Chief Executive Officer - Most recently Chief Executive Officer
Slide 35: Board of Directors
Board of Directors - Over 40 years experience in the mineral exploration and mining industry Charles Page, P.Geo - Most recently President and CEO of Queenston Mining, leading the discovery and Chairman development of the Upper Beaver deposit in the Kirkland Lake gold camp, until its acquisition by
Slide 36: Notes to Technical Disclosure
Notes to Technical Disclosure Technical Disclosure Mineral Resources This presentation contains information regarding mineral resources estimated at the Company’s projects. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Further, the quantity and grade of
Slide 37: Mineral Resources (2017 Year End) Operating Assets
Mineral Resources (2017 Year End) Operating Assets Category Tonnes Grade (gAu/Tonne) Contained Ounces Eagle River Underground Resources Indicated 50,700 7.3 12,000 Inferred 334,000 8.0 85,000 Mishi Open Pit Resources Indicated 3,679,000 2.1 248,000 Inferred 764,000 2.4 59,000 Mishi Underground Resou
Slide 38: Mineral Resources (2016 Year End) Development & Exploration Assets
Mineral Resources (2016 Year End) Development & Exploration Assets Category Tonnes Grade (gAu/Tonne) Contained Ounces Kiena Complex Resources Measured 63,700 4.06 8,300 Indicated 2,439,800 5.62 441,000 Total M + I Resources 2,500,600 5.59 449,300 Total Inferred Resources 1,563,300 7.97 400,400 Moss
Slide 39: Eagle River/Mishi Complex Central Ontario
Eagle River/Mishi Complex Central Ontario • Located in Hemlo/Wawa Gold Camp • Celebrating 20 years of production • 1,000,000+ oz @ 9.1 g/t Au • Current operations ~800 tpd Mill located adjacent to Mishi open pit deposit (permitted to 1,200 tpd) • Eagle River underground mine located 15 kms to south
Slide 40: 303 E Lens Extended Up-Plunge
303 E Lens Extended Up-Plunge TSX:WDO | 40
Slide 41: 2017 Drilling 303 E Lens Returns Wide, High Grade Intersections
2017 Drilling 303 E Lens Returns Wide, High Grade Intersections Highlights January 26, 2017 • Hole 844-E-26: 7.08 gAu/t uncut (5.86 gAu/t cut) over 8.88 m true width • Hole 844-E-27: 28.72 gAu/t uncut (19.03 gAu/t cut) over 20.67 m true width • Hole 844-E-28: 20.75 gAu/t uncut (13.36 gAu/t cut) over
Slide 42: Mishi Operations: Strike and Depth Potential
Mishi Operations: Strike and Depth Potential M6 Zone open West Extension MISHI MINE Current Operations M2 Zone open M2 Zone East Extension Plan View Section 3550 E Section 3750 E Section 3550 E (looking W) Section 3750 E (looking W) TSX:WDO | 42
Slide 43: S-50 Zone Isometric View North
S-50 Zone Isometric View North S-50 Zone - Conceptual Isometric 3D View • S-50 Zone depleted portion (red wireframe) •Majority of Kiena’s production (10M tons or 1.6 M oz Au) was mined from the S-50 zone where widths range from ~15 to 50 metres wide •Thicker gold mineralized breccia zones interprete
Slide 44: Drilling Expands Kiena Deep Potential to 550 m Laterally
Drilling Expands Kiena Deep Potential to 550 m Laterally Feb 8 step out hole: 6.63 g/t over 11 m uncut (6.63 m cut) Feb 8 step out hole: 7.67 g/t over 8.2 m uncut (5.53 m cut) TSX:WDO | 44
Slide 45: Kiena Deep Drilling Constrained
Kiena Deep Drilling Constrained TSX:WDO | 45
Slide 46: Moss Lake Project Optionality
Moss Lake Project Optionality Original Property Moss Lake Stock Boundary open Moss Lake Deposit Central Intermediate to Felsic 1.4 M oz (Indicated @ 1.1 g/t) Metavolcanic Belt 1.7 M oz (Inferred @ 1.1 g/t) Head Lake Stock Shebandowan Greenstone Belt • Moss Lake Deposit remains open • Pit and Mineral
Slide 47: 2013 Moss Lake – PEA (2.5 M oz. study)
2013 Moss Lake – PEA (2.5 M oz. study) open NE SW NE open 300 m 2.5 km SW General View of Mineralized Zones Longitudinal and Plan View of Moss Lake Pit Highlights • Open pit mine and CIL Processing at 40,000 tpd • Pre-production Capital: $543 M CDN • Life of mine strip ratio of 2.5 : 1 • Operating c
Slide 48: Kiena Complex Drill Core August 2016
Kiena Complex Drill Core August 2016 TSX:WDO | 48
Wesdome Gold Mines — Investor Presentation (May 2018) on 6ix