Wesdome Gold Mines Ltd. · TSX:WDO
Wesdome Gold Mines — Investor Presentation (October 2016)
40 slides from Wesdome Gold Mines's investor presentation, October 2016
Slide 1: A Solid Foundation for a Promising Future
October 2016 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 $2.90/$0.95 (Average daily Clarus Securities volume 900,000 shares) Dundee Securities Shares Outstanding Echelon Wealth Partners 130 M Market Capitalization M Partners $352M Options Mackie Research ($2.73 September 23 2016) 4.9 M N
Slide 4: Canadian Gold Company with Three 100% Owned Projects
Canadian Gold Company with Three 100% Owned Projects • 28 years of continuous gold production • Eagle River primary asset produced 50,470 oz. in 2015 from 2 high grade mines 1 3 • Positive operating cash flow Q2 2016 2 $4.9 M • Executing a company wide exploration program on existing assets 1 2 3 Mo
Slide 5: Corporate Strategy
Corporate Strategy - 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 exploration three mines in two additional high grade at Kiena Complex (
Slide 6: Investment Highlights
Investment Highlights Experienced management Mill Production Increased Operational Turnaround team and new board with from 375 TPD to ~900 TPD, Executed Over Last combined decades of mining additional room for organic 24 Months and public company growth experience New Exploration Potential $26.8 M C
Slide 7: A Solid Foundation for a Promising Future
A Solid Foundation for a Promising Future 1999 – 2013 • Previous management assembled a quality asset package in Ontario and Quebec, for minimal share dilution and little debt • Wawa and Kiena assets underdeveloped and underexplored 2013 – Present • New management team and board developed timely str
Slide 8: Operating Two of Canada's High Grade Gold Mines
Operating Two of Canada’s High Grade Gold Mines Eagle River Underground Ranks 2nd Mishi Open Pit Ranks 3rd Reserve Grade (g/t) Reserve Grade (g/t) Source: National Bank Financial TSX:WDO | 8
Slide 9: Eagle River Complex Operations
Eagle River Complex Operations • 1,000,000+ ozs @9.1 g/t in the Hemlo/Wawa gold camp • Two high grade gold deposits feeding a central mill • Mill and mine expansion initiated in 2015 • Since Q1 2014, 60% increase in mill throughput Eagle River – Underground (Reserve grade 9.2 g/t Au) • Mill operatin
Slide 10: Operations Optimization
Operations Optimization • Fleet Renewal: 2 new 6-yard scoop trams delivered in Q2 are improving availability Development • Development into higher grade reserve blocks accelerated • Faulty blasting equipment replaced • Drifting on 7 Zone at the 890 metre level (42 M @ 11.26 g/t cut • Drifting on 7 Z
Slide 11: Increasing Production, Lowering Costs
Increasing Production, Lowering Costs 7 Zone Mining Begins Q4 Ounces Produced Cost CAD$ / OZ Au Production Cash Costs AISC $1.30 exchange rate CAD:USD TSX:WDO | 11
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 • 2015 Production: 41,013 oz. (173,189 t @ 7.4 g/t) 7 Zone Surface The cont
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: 2015 Eagle Drilling Expanding Reserve/Resource Potential
2015 Eagle Drilling Expanding Reserve/Resource Potential Longitudinal Section Looking North 300 Zone W 300 Zone E 7 Zone The contents of this slide have been verified and approved by the Company’s VP Exploration, George Mannard, P. Geo a “Qualified Person” for the purpose of National Instrument 43-1
Slide 15: 2016 Drill Results Extend 7 Zone Towards Surface
2016 Drill Results Extend 7 Zone Towards Surface, Production Commencing 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 hosts highest grade reserves (166,000 tonnes @ 11.4 g/t Au
Slide 16: 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 17: 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 18: 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 19: Mishi Open Pit Mine
Mishi Open Pit Mine • Mine recommences production in 2012 at rate of 200 t/d (2012 production 4,800 oz) • Since 2002 deposit has intermittently produced 35,000 oz to date at a grade of 2.8 g/t Au • 2015 Production 9,457 oz @ 2.2 g/t Au grade (450 tpd) • Deposit remains open to depth and along strike
Slide 20: Mishi Operations
Mishi Operations 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 | 20
Slide 21: Mishi Exploration
Mishi Exploration 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 11.9 m ME15-13: 1.1 g/t over 10.8 m •
Slide 22: Kiena Complex, Val d'Or, Quebec
Kiena Complex, Val d’Or, Quebec TSX:WDO | 22
Slide 23: Kiena Complex Plan View
Kiena Complex Plan View • Mine on care and maintenance since mid-2013 • 2,000 TPD permitted mill • 930 Metre shaft bottom • 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 The contents of this slide have been verified and a
Slide 24: 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 25: Kiena Complex: New Discovery 2016
Kiena Complex: New Discovery 2016 Two drills testing for repetition along a Z-fold interpretation 200 – 300 metres below existing infrastructure Highlights: • 94.35 grams per tonne (g/t) gold over 17.40 m uncut (18.03 g/t cut) in 192.95 g/t gold over 16.95 hole U-6124 m uncut (18.80 g/t cut) in • 22
Slide 26: 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 27: 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 28: 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 29: 2016 Exploration Summary
2016 Exploration Summary $6.3 M Drilling Budget Eagle: 3 UG Drills at Eagle River, $3 M Kiena: 2 drills moving to and 2 Surface Kiena, $3M Moss Lake 4 Mishi: 2 drills (est) Property 2016 Metres 2015 Metres Eagle Underground Exploration Drilling 40,000 17,000 Eagle Surface Exploration Drilling 25,000
Slide 30: Summary
Summary Kiena: Free cash flow growth Eagle River: New gold discovery in for modest capital Low risk expansion of existing, permitted, de- investment = Heathy existing mines in proven watered former producing rate of return mining camp mine Eagle River: Discovering new high- Pipeline of development O
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 Chairman of Queenston Mining, leading the discovery and development of the Upper Beaver deposit in the Kirkland Lake gold camp, until its acquisition by
Slide 34: Balance Sheet
Balance Sheet Financial Results – Three and Six Months 2016 and 2015 Three Months ended June 30 Six Months ended June 30 2016 2015 2016 2015 (in $000, except per share amounts) Revenue 18,447 17,202 31,731 31,644 Mine operating profit* 4,493 3,103 3,388 4,660 Net income (loss) 1,837 (746) (1,463) (1
Slide 35: Eagle River/Mishi Complex Central Ontario
Eagle River/Mishi Complex Central Ontario • Located in Hemlo/Wawa Gold Camp • Celebrating 20 years of production • 1,000,000+ oz @ 9.1 g/t Au • Current operations 900 – 1,000 tpd Mill located adjacent to Mishi open pit deposit (permitted to 1,200 tpd) • Eagle River underground mine located 15 kms to
Slide 36: Mineral Reserves (2015 Year End)
Mineral Reserves (2015 Year End) 13% increase at Eagle River net of depletion 8% increase at Mishi net of depletion Category Tonnes Grade (gAu/Tonne) Contained Ounces Eagle River Underground Reserves Proven 165,000 10.0 53,000 Probable 846,000 9.1 247,000 Eagle Proven + Probable 1,011,000 9.2 300,00
Slide 37: Mineral Resources (2015 Year End)
Mineral Resources (2015 Year End) 112% increase at Eagle River Category Tonnes Grade (gAu/Tonne) Contained Ounces Eagle River Underground Resources Inferred 555,000 9.5 170,000 Mishi Open Pit Resources Indicated 3,679,000 2.1 248,000 Inferred 764,000 2.4 59,000 Mishi Underground Resources Indicated
Slide 38: Eagle River Parallel Structure Reserve and Resource Breakdown
Eagle River Parallel Structure Reserve and Resource Breakdown Percentage of P + P Structure Tonnage Grade (gAu/tonne) Contained Ounces Reserve Ounces Proven and Probable Reserves No. 8 486,000 8.8 137,000 46% No. 300 296,000 9.0 86,000 29% No. 7 166,000 11.4 62,000 20% Other 63,000 7.6 15,000 5% Inf
Slide 39: Ounces Produced
2015 Production: 50,470 oz. Eagle River (ER) 41,013 oz @ 7.4 g/t Mishi (M) 9,457 oz @ 2.2 g/t ER: 7.4 g/t ER: 8.7g/t ER: 6.6 g/t M: 2.6 g/t M: 1.9 g/t M: 2.3 g/t ER: 7.0 g/t M: 2.0 g/t Ounces Produced Cost CAD$ / OZ 300 Zone Feed Au Production Cash Costs AISC $1.30 exchange rate CAD:USD $10.1 millio
Slide 40: Kiena Complex Drill Core August 2016
Kiena Complex Drill Core August 2016 TSX:WDO | 40
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