Wesdome Gold Mines Ltd. · TSX:WDO
Wesdome Gold Mines — Investor Presentation (April 2018)
49 slides from Wesdome Gold Mines's investor presentation, April 2018
Slide 1: A Solid Foundation for a Promising Future
April 2018 A Solid Foundation for a Promising Future
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 $3.93/$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 $250M 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 $0.20/share (21% increase over 2016) 3 • 2017 Eagle River Complex production: 58,980 ozs from 2 high 2 g
Slide 7: Corporate Strategy
Corporate Strategy Near Term: Long Term: Objective: STRENGTHEN EXPLORE DEVELOP Eagle River • 7 and 300 zones remain open Become a • Near mine diversified exploration ongoing producer with Eagle River Kiena exciting organic • Development of • Kiena deep discovery production growth high grade zones Au
Slide 8: 2017 Gold Production Guidance Exceeded
2017 Gold Production Guidance Exceeded Q1 2017 Q2 2017 Q3 2017 Q4 2017 2017 Guidance Gold Produced 15,162 12,529 15,493 15,797 58,980 52,000 – (ounces) 58,000 Cash cost per ounce 1,134 1,264 1,013 1,019 1,097 1,030 – 1,130 sold (CAD$/ounce) AISC per ounce 1,613 1,718 1,446 1,284 1,489 1,450 – 1,550
Slide 9: 2017 Financial Results
2017 Financial Results Years ended December 31 (in $000, except per share 2017 2016 Increase/(decrease) amounts) Revenues 96,057 84,031 13% Mine profit 1 31,537 22,293 29% Net income 1,287 7,786 (505%) Net income adjusted1 6,798 6,789 0% Operating cash flow 27,225 22,424 18% Free cash flow 1 (9,344)
Slide 10: Eagle River Complex Production Profile
Eagle River Complex Production Profile Eagle River Complex Quarterly Production Profile 20,000 18,000 Gold ounces produced 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Eagle River Production Mishi Production TSX:WDO | 1
Slide 11: 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 12: 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 13: 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 | 13
Slide 14: 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 15: 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 16: 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 300 Zone East – North Lens (New) 670-125: 8
Slide 17: 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 18: 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 | 18
Slide 19: 2017 Drifting and Production Planning 300 Lens
2017 Drifting and Production Planning 300 Lens 173.7m of strike length / 2.85m average width / 22.62 g/t Au cut / 34.70 g/t Au uncut TSX:WDO | 19
Slide 20: 7 Zone Drifting Results Strike Increasing with Depth
7 Zone Drifting Results Strike 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 W 24.38
Slide 21: 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 22: 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 | 22
Slide 23: Kiena Complex Property Ramp
Kiena Complex Property Ramp TSX:WDO | 23
Slide 24: Kiena Complex – Regional Potential
Kiena Complex – Regional 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 | 24
Slide 25: Kiena Deep Discovery and Recent Drilling
Kiena Deep Discovery and Recent Drilling 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 | 25
Slide 26: 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 • 500 metres of ramping and additional 500 metres of exploration drifting • Drilling underway: 25 x 25 metre spacing Kiena • 50,000 metres Deep • Goal to
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: VC Zone North Extension
VC Zone North Extension TSX:WDO | 29
Slide 30: S50 South Zone Extension
S50 South Zone Extension TSX:WDO | 30
Slide 31: 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 32: 2018 Exploration Summary
2018 Exploration Summary 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 22,000 Drilling Eagle River
Slide 33: Summary
Summary Kiena: Eagle River: New gold discovery in Low risk expansion of Discovering new high- existing, permitted, de- existing mines in proven grade parallel zones close watered former producing mining camp to infrastructure mine Aggressive Exploration Pipeline of development Operations in safe Pro
Slide 34: Appendix
Appendix TSX:WDO WESDOME wesdome.co m
Slide 35: 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 36: 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 37: 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 38: 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 39: 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 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: 303 E Lens Extended Up-Plunge
303 E Lens Extended Up-Plunge TSX:WDO | 41
Slide 42: 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 43: 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 | 43
Slide 44: 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 45: 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 | 45
Slide 46: Kiena Deep Drilling Constrained
Kiena Deep Drilling Constrained TSX:WDO | 46
Slide 47: 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 48: 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 49: Kiena Complex Drill Core August 2016
Kiena Complex Drill Core August 2016 TSX:WDO | 49
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