Wesdome Gold Mines Ltd. · TSX:WDO
Wesdome Gold Mines — Investor Presentation (May 2017)
44 slides from Wesdome Gold Mines's investor presentation, May 2017
Slide 1: A Solid Foundation for a Promising Future
May 2017 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: Corporate Structure
Corporate Structure Symbol 52 Week High/Low Analyst Coverage TSX:WDO $4.40/$1.47 (Average daily Clarus Securities volume 500,000 shares) Echelon Wealth Partners Shares Outstanding Eight Capital Partners 132.5 M Market Capitalization Industrial Alliance $415M Options M Partners ($3.12 March 24, 2017)
Slide 4: Canadian Gold Company with Three 100% Owned Projects
Canadian Gold Company with Three 100% Owned Projects • 30 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 exploration program on all assets 1 3 2 • High grade
Slide 5: Corporate Strategy
Corporate Strategy STRENGTHEN EXPLORE DEVELOP - Stabilize and improve -Pipeline of - Potential for Longer Term Near Term Objective Wawa operations development projects: diversified production through mine - Early success at from three mines in development of brownfields two provinces, Ontario additi
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 6 5 Reserve Grade (g/t) Reserve Grade (g/t) 4 3 2.0 2 1 0 Meliadine Meadowbank Mishi Canadian Malartic Detour Lake Rainy River Young-Davidson Source: National Bank Financial TSX:WDO | 6
Slide 7: 2017 Production and Cost Guidance
2017 Production and Cost Guidance 2017 Guidance: Combined gold production Eagle River Underground Mine 45,000 – 49,000 ounces @ 8.8 – 9.2 g/t 52,000 and 58,000 ounces Mishi Open Pit Mine 7,000 – 9,000 ounces @ 1.8 - 2.2 g/t Q1 2017 Production on track: Q1 2017 Production Results: Eagle River Undergr
Slide 8: Q1 2017 Operating Results
Q1 2017 Operating Results Operational Results – 1st Quarter 2017 and 2016 Quarter ended March 31 2017 2016 Eagle tonnes milled 38,578 39,839 Mishi tonnes milled 36,641 36,287 Total tonnes milled 75,219 76,126 Eagle grade (g/t) 11.5 5.6 Mishi grade (g/t) 1.7 1.8 Eagle River Mine mill recovery (%) 95.
Slide 9: Production and 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 accelerated and • Road construction at Mishi to lower trucking costs • Filtration system at mill imp
Slide 10: 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 • 2016 Production: 40,252 oz. (170,369 t @ 7.9g/
Slide 11: 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 12: 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 13: 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 West Zone being developed in Q3/16 • 942 m drift 19.34 g/t (un
Slide 14: 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 15: 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 16: 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 17: Mishi Operations: Strike and Depth Potential
Mishi Operations: Strike and Depth Potential M6 Zone open West Extension open MISHI MINE Current Operations M2 Zone M2 Zone East Extension Plan View Section 3550 E Section 3750 E Section 3550 E (looking W) Section 3750 E (looking W) TSX:WDO | 17
Slide 18: 2017 Mishi Exploration: Drilling Extends Zone to West
2017 Mishi Exploration: Drilling Extends Zone to West Exploration Highlights • 2016 reconnaissance drilling program • 2017 Exploration: 15,000 m of drilling to follow 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 19: Kiena Complex, Val d'Or, Quebec
Kiena Complex, Val d’Or, Quebec TSX:WDO | 19
Slide 20: 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 Met
Slide 21: 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 / 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 interpreted
Slide 22: 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 OUNCES 132,466 TSX:WDO | 22
Slide 23: 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 | 23
Slide 24: Kiena Deep: 4 Drills, Wide Open
Kiena Deep: 4 Drills, Wide Open TSX:WDO | 24
Slide 25: Kiena Exploration Ramp
Kiena Exploration Ramp • 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 • Kiena Ramp Construction announ May 3, 2017 • Estimated cost $7.6 M and compl Q1 2018 Level 100 • 500 metre
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: 2017 Exploration Summary
2017 Exploration Summary $13.1 M Exploration Ontario: Quebec: Drilling Budget Kiena: 4 drills Eagle: 3 Drills $5M Moss Lake Mishi: 2 drills $4M Wawa $4M Kiena Moss Lake: 2 drills Property 2017 Metres 2016 Metres 2015 Metres Eagle Underground Exploration Drilling 25,000 40,000 17,000 Eagle Surface Ex
Slide 29: Summary
Summary Kiena: Eagle River: Eagle River: New gold discovery in Discovering new high-grade Low risk expansion of existing, permitted, de- parallel zones close to existing mines in proven watered former producing infrastructure mining camp mine Aggressive Exploration Pipeline of development Operations
Slide 30: Appendix
Appendix TSX:WDO WESDOME wesdome.co m
Slide 31: Executive Management Team
Executive Management Team - Professional engineer with over 25 years experience in operational management, mine rehabilitation, Duncan Middlemiss, P. Eng development and gold production Chief Executive Officer - Over 10 years of executive management experience - Most recently Chief Executive Officer
Slide 32: 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 development of Chairman the Upper Beaver deposit in the Kirkland Lake gold camp, until its acquisition by
Slide 33: 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 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: 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 36: Mineral Resources (2016 Year End) Operating Assets
Mineral Resources (2016 Year End) Operating Assets 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 8
Slide 37: 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 38: 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 39: 2016 Financial Highlights
2016 Financial Highlights Financial Results – 4th Quarter and Annual Quarter ended December 31 Year ended December 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 40: 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 41: 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 existing • Targeting zone up dip and along strike of existing reserve/ mining block reserve/mining block
Slide 42: 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 43: 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 44: Kiena Complex Drill Core August 2016
Kiena Complex Drill Core August 2016 TSX:WDO | 44
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