Wesdome Gold Mines Ltd. · TSX:WDO
Wesdome Gold Mines — Investor Presentation (January 2020)
40 slides from Wesdome Gold Mines's investor presentation, January 2020
Slide 1: Building Canada's Next Mid-Tier Gold Producer
January 2020 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: Building Canada's Next Mid-Tier Gold Producer
Building Canada’s Next Mid-Tier Gold Producer Proven building blocks to increase shareholder value New high-grade gold 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
Slide 4: Corporate Structure
Corporate Structure Symbol 52 Week High/Low Analyst Coverage TSX:WDO $10.48/$3.97 (Average daily BMO Capital Markets volume 800,000 shares) Canaccord Genuity Shares Outstanding Echelon Wealth Partners 137.2 M Market Capitalization Eight Capital Partners C$ 1.4 B Options and RSU’s Industrial Alliance
Slide 5: One Year Share Price Performance
One Year Share Price Performance WDO vs GDXJ WDO vs GDX WDO vs Global Gold Index WDO vs Gold Price TSX:WDO | 5
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 • 2019 Production: 91,688 Ounces (upwards revised guidance: 88,000 – 93,000 ounces) • 2020 Guidance: 90,000 – 100,000 3 • Drilling High grade discovery at Kiena Complex 1 2 • Eagle River Operations fun
Slide 7: Eagle River Overview
Eagle River Overview Reserves 303 Zone Rock Sample Category Tonnes Grade Contained Ounces (g/t Au) Proven 188,000 14.7 89,000 Probable 860,000 11.4 315,000 Proven 1,048,000 12.0 404,000 and Probable Resources Category Tonnes Grade Contained (g/t Au) Ounces Measured 11,000 10.4 3,700 Indicated 97,000
Slide 8: 2019 Upwards Revised Guidance Achieved and 2020 Guidance
2019 Upwards Revised Guidance Achieved and 2020 Guidance 2020 Guidance 2019 Upwards Revised 2019 Guidance Achievement Gold production Eagle River 87,000 – 96,000 ounces 85,000 – 89,000 ounces 88,617 ounces Mishi 3,000 – 4,000 ounces 3,000 – 4,000 ounces 3,072 ounces 90,000 – 100,000 ounces 88,000 –
Slide 9: Q3 2019 Financial Results
Q3 2019 Financial Results In 000s, except per units and per share amounts Q3 2019 Q2 2019 Q1 2019 YTD 2019 Q3 2018 YTD 2018 Financial results Revenues 45,940 42,276 32,535 120,751 28,920 86,580 Mine operating profit 1 26,770 22,055 16,259 65,084 13,898 39,629 Net income 12,449 8,327 8,092 28,868 3,6
Slide 10: Eagle River In-Mine Exploration
Eagle River In-Mine Exploration Capped Assay Highlights from Drilling: No. 7 East Zone • Hole 750-E-59: 13.9 g/t Au cut over 4.9 m true width • Hole 750-E-63: 18.0 g/t Au cut over 2.2 m true width • Hole 750-E-76: 30.8 g/t Au cut over 1.5 m true width • *Assays cut to 125 g/t Au No. 311 West Zone •
Slide 11: Extension of 303 Lens at Eagle River Mine
Extension of 303 Lens at Eagle River Mine • Hole 925-E-104: 92.8 g/t Au over 11.1 m core length (37.2 g/t Au cut, 6.4 m true width) • Hole 925-E-106: 70.0 g/t Au over 11.5 m core length (48.1 g/t Au cut, 7.4 m true width) • Hole 925-E-87: 72.2 g/t Au over 10.8 m core length (42.8 g/t Au cut, 5.4 m t
Slide 12: Eagle Exploration Targeting – Parallel Zones
Eagle Exploration Targeting – Parallel Zones Targeting areas where E-W structures intersection WNW structures, and areas where structures enter/exit Diorite 300 Zone 7 Zone N 8 Zone Plan View TSX:WDO | 12
Slide 13: Eagle River Surface Exploration – Falcon Zones
Eagle River Surface Exploration – Falcon Zones Falcon Zones Highlights: • •Hole ERM-2019-10: 42.6 g/t over 1.5 m core length (12.6 g/t Au cut, 1.0 m true width) • •Hole ERM-2019-42: 13.3 g/t Au over 3.1 m core length (13.0 g/t Au cut, 2.5 m width) • •Hole ERM-2019-47: 53.8 g/t Au over 1.9 m core len
Slide 14: 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 1050 m • Underground fully accessible • Past production 1981 – 2013 12,500,000 mt @ 4.5 g/t = 1.75 M ounces produced TSX:WDO | 14
Slide 15: Kiena Complex Overview
Kiena Complex Overview Kiena Mineral Resources Proximal to Mine Development (A, B, Resources – Kiena Deep A Zone only South, VC and S 50 Zones – includes A Zone table) Category Tonnes Grade Contained Ounces Category Tonnes Grade Contained Ounces (g/t Au) (g/t Au) Measured - - - Measured - - - Indica
Slide 16: Kiena Complex – Location, Location, Location!
Kiena Complex – Location, Location, Location! Property Size: 65 Square Kilometres TSX:WDO | 16
Slide 17: Kiena Complex – Regional Geological Potential
Kiena Complex – Regional Geological Potential Siscoe Mine Wesdome Deposit 0.9 M oz prod Presqu’ile Deposit Kiena Deep Kiena Mine 1.8 M oz prod TSX:WDO | 17
Slide 18: Kiena Deep A Zone
Kiena Deep A Zone Kiena Deep A Zone •Hole 6456: 68.2 g/t Au over 19.0 m core length (28.1 g/t Au cut, 14.4 m true width) •Hole 6450: 126.3 g/t Au over 4.3 m core length (23.6 g/t Au cut, 3.8 m true width) A2 Zone •Hole 6449: 44.5 g/t Au over 9.0 m core length (17.0 g/t Au cut, 7.3 m true width) •Hol
Slide 19: Kiena Deep A Zone Recent Drilling
Kiena Deep A Zone Recent Drilling TSX:WDO | 19
Slide 20: Kiena Deep A Zone – Flattens at Depth with Multiple Zones
Kiena Deep A Zone – Flattens at Depth with Multiple Zones TSX:WDO | 20
Slide 21: A Zone and Exploration Potential
A Zone and Exploration Potential TSX:WDO | 21
Slide 22: Moss Lake – Optionality on Gold Price
Moss Lake – Optionality on Gold Price • Dominant land holdings, 36 km along Shebandowan Gold Belt containing four deposits open for expansion • 2017 drilling extends strike length mineralization from 2.5 kms to 8.0 kms • Geophysical expression (IP) extends over a strike length of 8 kms • Potential t
Slide 23: 2020 Exploration Summary – Sustained Investment
2020 Exploration Summary – Sustained Investment Eagle: Kiena: $19.8 M Exploration 5 Underground Drills 7 Underground Drills Drilling Budget 1 Surface Drill 2 Surface Drills 2020 2019 2018 2017 2016 2015 Property Metres Metres Metres Metres Metres Metres Eagle Underground 72,000 51,000 25,000 24,000
Slide 24: Summary
Summary LOW CAPEX: HIGHLY EXECUTABLE: LOW RISK: Kiena: New gold discovery Eagle River: new high- Expansion of existing in existing, permitted, de- grade parallel zones close mines in proven watered former producing to infrastructure mining camps mine Aggressive Exploration Operations in safe Pipelin
Slide 25: Contact Info
Contact Info Duncan Middlemiss Lindsay Dunlop President and CEO Vice President, Investor Relations 416.360.3743 ext. 2029 416.360.3743 ext. 2025 Duncan.middlemiss@wesdome.com Lindsay.dunlop@wesdome.com
Slide 26: Appendix
Appendix TSX:WDO WESDOME wesdome.com
Slide 27: Executive Management Team
Executive Management Team - Professional engineer with over 25 years experience in operational management, mine rehabilitation, development Duncan Middlemiss, P. Eng and gold production Chief Executive Officer - Over 10 years of executive management experience - Most recently Chief Executive Officer
Slide 28: Board of Directors
Board of Directors - Over 35 years experience in the mining industry within operations, project and business Warwick Morely-Jepson development Chairman - Formerly Chief Operating Officer and Executive VP of Kinross Gold Corp - Chartered Professional Accountant and member of the Chartered Professiona
Slide 29: Cautionary Statements
Cautionary Statements Estimates of Mineral Resources This presentation contains information regarding the mineral resource estimate at the Company’s Kiena Mine Complex, which has been classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum’s “CIM Definition Standards
Slide 30: Kiena Resource Update
Kiena Resource Update Mineral Resources Proximal to Kiena Mine A Zone Mineral Resource Estimate Development (A, B, South, VC, S50 Zones Gold Grade Gold Grade Gold Tonnes Gold Ounces g/t Au Tonnes g/t Au Ounces Indicated 679,200 18.55 405,100 Indicated 968,900 14.46 450,400 Total M+I 679,200 18.55 40
Slide 31: Mineral Reserves (2018 Year End)
Mineral Reserves (2018 Year End) MINERAL RESERVES – EAGLE December 31, 2018 December 31, 2017 RIVER (see notes) Tonnes Grade Contained Tonnes Grade Contained (‘000s) (g/t Au) ounces (000s) (g/t Au) ounces Eagle River Proven 188.0 14.7 89,000 212.0 12.2 83,000 Probable 860.0 11.4 315,000 847.0 12.2 3
Slide 32: Eagle River Parallel Structure Reserve Breakdown
Eagle River Parallel Structure Reserve Breakdown December 31, 2018 December 31, 2017 Structure Tonnes Grade Contained Tonnes Grade Contained (000s) (g/t Au) Ounces Percent (000s) (g/t Au) Ounces Percent No.8 135.0 11.1 48,000 12 205.0 10.5 69,000 17 No. 300 503.0 12.4 201,000 50 514.0 13.4 222,000 5
Slide 33: Mineral Resources (2018 Year End) Operating Assets
Mineral Resources (2018 Year End) Operating Assets MINERAL RESOURCES December 31, 2018 December 31, 2017 (Exclusive of Mineral Reserves) (see notes) Tonnes Grade Contained Tonnes Grade Contained (000s) (g/t Au) ounces (000s) (g/t Au) ounces EAGLE RIVER Measured 11.0 10.4 3,700 - - - Indicated 97.0 8
Slide 34: 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 35: Latest Drifting Results 300E Structure 864 m Level
Latest Drifting Results 300E Structure 864 m Level 155.4 m of strike length/2.8 m average width/19.6 g/t Au cut/28.3 g/t Au uncut TSX:WDO | 35
Slide 36: Kiena Deep A Zone Up Plunge Extension to VC Zone
Kiena Deep A Zone Up Plunge Extension to VC Zone TSX:WDO | 36
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: Moss Lake Resources
Moss Lake Resources Category Tonnes Grade (gAu/Tonne) Contained Ounces Moss Lake Resources Total M + I 39,795,000 1.1 1,377,000 Resources Total Inferred 50,364,000 1.1 1,751,000 Resources • Reserves and Resources as at December 31, 2016. • Mineral Resources exclusive of Mineral Reserves • The conten
Slide 39: Kiena Deep A Zone
Kiena Deep A Zone TSX:WDO | 39
Slide 40: Kiena Complex Drill Core August 2016
Kiena Complex Drill Core August 2016 TSX:WDO | 40
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