Wesdome Gold Mines Ltd. · TSX:WDO
Wesdome Gold Mines — Investor Presentation (March 2017)
41 slides from Wesdome Gold Mines's investor presentation, March 2017
Slide 1: A Solid Foundation for a Promising Future
March 2017 A Solid Foundation for a Promising Future
Slide 2: Cautionary Statements
Cautionary Statements Cautionary Language regarding Forward-Looking Information This presentation contains and refers to forward-looking information based on current expectations, intentions, and beliefs of the Company with respect to the future business activities and operating performance of the C
Slide 3: Corporate Structure
Corporate Structure Symbol 52 Week High/Low Analyst Coverage TSX:WDO $3.97/$1.47 (Average daily Clarus Securities volume 300,000 shares) Echelon Wealth Partners Shares Outstanding Eight Capital Partners 130 M Market Capitalization Industrial Alliance $500M Options M Partners ($3.90 February 21 2017)
Slide 4: Canadian Gold Company with Three 100% Owned Projects
Canadian Gold Company with Three 100% Owned Projects • 29 years of continuous gold production • 2016 Cash flow from operations $19.9 M • Eagle River Complex produced 47,737 ozs in 2016 from 2 high grade mines • Executing an aggressive company wide 1 3 exploration program on all assets 2 • High grade
Slide 5: Corporate Strategy
Corporate Strategy STRENGTHEN EXPLORE DEVELOP - Stabilize and -Pipeline of - Potential for Objective Near Term Longer Term improve Wawa development projects: diversified operations through - Early success at production from mine development of brownfields three mines in two additional high grade exp
Slide 6: Operating Two of Canada's High Grade Gold Mines
Operating Two of Canada’s High Grade Gold Mines Eagle River Underground Ranks 2nd Mishi Open Pit Ranks 3rd Reserve Grade (g/t) Reserve Grade (g/t) Source: National Bank Financial TSX:WDO | 6
Slide 7: Eagle River Complex: Operations
Eagle River Complex: Operations • 1,000,000+ ozs @9.1 g/t in the Hemlo/Wawa gold camp • Two high grade gold deposits feeding a central mill • Since Q1 2014, 60% increase in mill throughput • Mill operating at 850 tonnes/day Eagle River – Underground (Reserve grade 9.2 g/t Au) • Exploration drilling
Slide 8: 2016 Operating Results
2016 Operating Results Operational results – 4th Quarter and Annual Quarter ended December 31 Year ended December 31 2016 2015 2016 2015 Eagle tonnes milled 42,607 42,185 170,369 173,189 Mishi tonnes milled 30,714 33,100 138,688 132,038 Total tonnes milled 73,321 75,285 309,037 305,227 Eagle River h
Slide 9: 2016 Financial Highlights
2016 Financial Highlights Financial Results – 4th Quarter and Annual Quarter ended December Year ended December 31 31 2016 2015 2016 2015 (in $000, except per share amounts) Revenue ** 22,166 23,622 84,031 73,465 Mine operating profit * 7,133 7,767 26,036 17,680 Net income (loss) 2,352 1,110 7,786 (
Slide 10: 2017 Outlook Production and Cost Guidance
2017 Outlook Production and Cost Guidance Combined gold production from the •Eagle River Underground Mine 45,000 – 49,000 ounces @ 8.8 Eagle River Underground Mine and – 9.2 g/t the Mishi Open Pit Mine to range between 52,000 and 58,000 ounces •Mishi Open Pit Mine 7,000 – 9,000 ounces @ 1.8 – 2.2 g/
Slide 11: Operations Optimization 2017
Operations Optimization 2017 • Cost cutting program underway • Upgrading equipment Production • Completion of ventilation raise system (surface to 960m) • Development into higher grade reserve blocks and accelerated • Road construction at Mishi to lower trucking costs Development • Filtration system
Slide 12: 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 M oz of production at Eagle River from 8, 6 and 2 Zone structures (1995 to 2015) • Parallel 7 and 300 Zones to north offer new potential • 2016 Production: 40,252 oz. (170,369 t @ 7.9g/t) 7 Zone Surface The conte
Slide 13: 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 and 2015 leads to reserve growth with expanding potential within mine footprint
Slide 14: 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 C 300 Zone East – North Lens (New) 670-125: 8.
Slide 15: 300 Zone Drift Results, September 2016
300 Zone Drift Results, September 2016 • Drilling expands 300 East Lens 150 m to east and down plunge • New 300 North Lens discovered intersecting wide widths up to 32.4 m • 300 Zone thickening down plunge where it remains open • New 300 Zone being developed in Q3/16 • 942 m drift 19.34 g/t (uncut)
Slide 16: 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 17: 2016 Drill Results Extend 7 Zone Towards Surface
2016 Drill Results Extend 7 Zone Towards Surface, Production Commenced Q4 2016 Drill Highlights – 2016 • Underground drilling extends 7 Zone 200 metres towards surface • 15 holes in Zone average: 17.3 g/t Au over 3.2 m (true width) •7 Zone adjacent to existing mine infrastructure • Zone remains open
Slide 18: Mishi Open Pit Mine
Mishi Open Pit Mine • Since 2002 deposit has intermittently produced 35,000 oz to date at a grade of 2.8 g/t Au • 2016 Production 7,485 oz @ 2.0 g/t Au grade (380 tpd) • Mishi Pit production limited by mill capacity – scoping studies for expansion underway • Deposit remains open to depth and along s
Slide 19: 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) The contents of this slide have been verified and approved by the C
Slide 20: Mishi Exploration – Encouragement Along Strike
Mishi Exploration – Encouragement Along Strike Strike 2015 Exploration Highlights West of Pit East of Pit MW15-65A: 10.4 g/t over 18.4 m ME15-02: 1.3 g/t over 8.4 m MW15-74: 6.4 g/t over 7.4 m ME15-11: 1.3 g/t over 8.5 m MW15-63: 2.3 g/t over 7.1 m ME15-07: 1.4 g/t over 7.0 m MW15-76: 1.7 g/t over 1
Slide 21: Kiena Complex, Val d'Or, Quebec
Kiena Complex, Val d’Or, Quebec TSX:WDO | 21
Slide 22: Kiena Deep Discovery: Plan View
Kiena Deep Discovery: Plan View • Mine on care and maintenance since mid-2013 • Mine/Mill infrastructure in good shape • 4 drill rigs operating from U/G platforms testing for repetition along a Z-fold interpretation up to 500 metres below existing infrastructure • 2,000 TPD permitted mill • 930 Metr
Slide 23: 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 24: New Discovery Located Close to Existing Infrastructure
New Discovery Located Close to 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 | 24
Slide 25: Kiena Deep: 4 Drills, Wide Open
Kiena Deep: 4 Drills, Wide Open TSX:WDO | 25
Slide 26: 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 | 26
Slide 27: Moss Lake - Coldstream Acquisition April 2016
Moss Lake - Coldstream Acquisition April 2016 • Coldstream and Hamlin Properties are adjacent to Moss Lake deposit • Purchased for $400,000 cash; and 454,545 common shares • Acquisition eliminates historic property boundary along strike of Moss Lake deposit • Dominant land holdings, 36 km along Sheb
Slide 28: 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 29: 2017 Exploration Summary
2017 Exploration Summary Ontario: Quebec: Kiena: 4 drills $13.1 M Exploration Eagle: 3 Drills Drilling Budget Mishi: 2 drills Moss Lake: 2 drills Property 2017 Metres 2016 Metres Eagle Underground Exploration Drilling 25,000 40,000 Eagle Surface Exploration Drilling 15,000 25,000 Mishi Exploration D
Slide 30: Summary
Summary Kiena: Eagle River: Eagle River: New gold discovery in Discovering new high- Low risk expansion of existing, permitted, de- grade parallel zones close existing mines in proven watered former producing to infrastructure mining camp mine Aggressive Exploration Pipeline of development Operation
Slide 31: Appendix
Appendix TSX:WDO WESDOME wesdome.co m
Slide 32: 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 33: 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 34: Mineral Reserves (2016 Year End)
Mineral Reserves (2016 Year End) 15% increase at Eagle River net of depletion Category Tonnes Grade (gAu/Tonne) Contained Ounces Eagle River Underground Reserves Proven 208,000 10.2 68,000 Probable 949,000 9.0 276,000 Eagle Proven + Probable 1,157,000 9.2 344,000 Mishi Open Pit Reserves Proven 259,0
Slide 35: Mineral Resources (2016 Year End)
Mineral Resources (2016 Year End) Category Tonnes Grade (gAu/Tonne) Contained Ounces Eagle River Underground Resources Inferred 327,000 8.1 85,000 Mishi Open Pit Resources Indicated 3,679,000 2.1 248,000 Inferred 764,000 2.4 59,000 Mishi Underground Resources Indicated 567,000 4.5 82,000 Inferred 43
Slide 36: 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. 8 255,000 10.6 87,000 25% No. 300 456,000 9.0 132,000 38% No. 7 310,000 9.2 91,000 27% Other 136,000 7.8 34,000 10% Total 1,157,00
Slide 37: 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 38: 2016 Surface Drilling Exploration Program
2016 Surface Drilling Exploration Program Longitudinal Section Looking North Longitudinal Section Looking North 7 Zone Exploration Zone 300 Exploration • Targeting zone up dip and along strike of • Targeting zone up dip and along strike of existing reserve/ mining block existing reserve/mining block
Slide 39: 2016 Eagle River Exploration Program
2016 Eagle River Exploration Program 220 m Level Plan • Expanded underground drilling program • First expanded surface exploration program since 1995 • 55 wide-spaced surface drill holes targeting untested package of mafic volcanic rocks north of Mine Diorite and up-dip projection of 300 Zone and 7
Slide 40: 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 41: Kiena Complex Drill Core August 2016
Kiena Complex Drill Core August 2016 TSX:WDO | 41
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