Wesdome Gold Mines Ltd. · TSX:WDO
Wesdome Gold Mines — Investor Presentation (March 2018)
50 slides from Wesdome Gold Mines's investor presentation, March 2018
Slide 1: A Solid Foundation for a Promising Future
March 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 $4.40/$1.64 (Average daily BMO Capital Markets volume 900,000 shares) Clarus Securities Shares Outstanding Desjardins Capital Markets 133.9 M Market Capitalization Echelon Wealth Partners $250M Options Eight Capital Partners ($2.00
Slide 5: Two Year Share Price Performance
Two Year Share Price Performance GDXJ methodology change WDO added to GDXJ (18 M shares) announced, rebalance results in 12 M shares liquidated from index Eagle River 303 E Lens Resolute Funds reduces discovery announced; Kiena position from 20% to Deep potential expands 9.97% Resolute 550 m lateral
Slide 6: Canadian Gold Company with Three 100% Owned Projects
Canadian Gold Company with Three 100% Owned Projects • 30 years of continuous gold production • 2017 9-month operating cash flow $15 M • 2017 Eagle River Complex production: 58,980 ozs from 2 high grade mines 3 • 2017 Eagle River head grades 10.6 g/t (2016: 7.8 1 2 g/t) • Reserve and resource update
Slide 7: Corporate Strategy
Corporate Strategy Near Term: Long Term: Objective: STRENGTHEN EXPLORE DEVELOP Eagle River • 7 and 300 zones remain open Become a • Near mine diversified exploration ongoing producer with Eagle River Kiena exciting organic • Development of • Kiena deep discovery production growth high grade zones Au
Slide 8: Mineral Reserves (2017 Year End)
Mineral Reserves (2017 Year End) 21% increase in Eagle River ounces; grade increased by 32% • Reserves and Resources as at December 31, 2017. • Mineral Resources exclusive of Mineral Reserves. • The contents of this slide have been verified and approved by Michael Michaud, P. Geo, VP Exploration for
Slide 9: 2017 Gold Production Guidance Exceeded
2017 Gold Production Guidance Exceeded Q1 2017 Q2 2017 Q3 2017 Q4 2017 Guidance 2017 Gold Produced 15,162 12,529 15,493 15,797 58,980 52,000 – (ounces) 58,000 Cash cost per 1,099 1,237 982 1,021* 1,078* 1,030 – ounce sold 1,130 (CAD$/ounce) AISC per ounce 1,446 1,718 1,446 1,322* 1,519* 1,450 – (CAD
Slide 10: Grade Control: Quality Tonnes vs Quantity
Grade Control: Quality Tonnes vs Quantity Gold Head Grades 12 Grams of gold per tonne 10 8 6 4 2 0 2015 2016 2017 2018 (est) Year TSX:WDO | 10
Slide 11: 2018 Guidance: AISC to Reduce by 10%
2018 Guidance: AISC 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 ounce 1 $950 - $1,025 US$750-US$8
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 300 Zone East – North Lens (New) 670-125: 8
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 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 | 18
Slide 19: 2017: 7 Zone Drifting Results Strike Increasing with Depth
2017: 7 Zone Drifting Results Strike Increasing with Depth Drill Highlights – 2017 • 7 Zone adjacent to existing mine infrastructure • Zone remains open to depth and to surface • On strike potential of over 100 metres • 975 m level: Combined 20.66 g/t Au uncut (19.23 g/t Au Cut) over an average widt
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 600 m West of Pit 1,700 m West of Pit 1.95 g/t over 29.8 m TW
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 Property Ramp
Kiena Complex Property Ramp TSX:WDO | 22
Slide 23: 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 | 23
Slide 24: 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 | 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 and completion Q1 2018 • 500 metres of ramping and additional 500 metres of exploration drifting • Drilling underway: 25 x 25 metre spacing Kiena • 40,000 metres Deep • Goal to es
Slide 26: 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 | 26
Slide 27: 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 28: VC Zone North Extension
VC Zone North Extension TSX:WDO | 28
Slide 29: S50 South Zone Extension
S50 South Zone Extension TSX:WDO | 29
Slide 30: Kiena Deep and S50 Extension
Kiena Deep and S50 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: Gold Production Improvements 2017 vs 2016
Gold Production Improvements 2017 vs 2016 Amounts are denominated in Canadian dollars Q1 Q2 Q3 Q4 Full Year 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Ore milled (tonnes) Eagle River 38,578 39,839 34,960 45,305 44,421 42,617 39,291 42,607 157,250 170,369 Mishi 36,641 36,287 39,117 34,006 38,6
Slide 36: 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 37: 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 38: 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 39: 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 40: 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 41: 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 42: 303 E Lens Extended Up-Plunge
303 E Lens Extended Up-Plunge TSX:WDO | 42
Slide 43: 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 44: 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 | 44
Slide 45: 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 46: 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 | 46
Slide 47: Kiena Deep Drilling Constrained
Kiena Deep Drilling Constrained TSX:WDO | 47
Slide 48: 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 49: 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 50: Kiena Complex Drill Core August 2016
Kiena Complex Drill Core August 2016 TSX:WDO | 50
Wesdome Gold Mines — Investor Presentation (March 2018) on 6ix