Wesdome Gold Mines Ltd. · TSX:WDO
Wesdome Gold Mines — Investor Presentation (January 2019)
47 slides from Wesdome Gold Mines's investor presentation, January 2019
Slide 1: Building Canada's Next Mid-Tier Gold Producer
January 2019 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: Canadian Gold Company with Three 100% Owned Projects
Canadian Gold Company with Three 100% Owned Projects • Over 30 years of continuous gold production • 2018 Production of 71,625 ounces • 2019 Guidance: 72,000 – 80,000 ounces • Drilling High grade discovery at Kiena Complex 3 2 • Eagle River Operations funding $23 M 1 exploration and development at K
Slide 4: Corporate Structure
Corporate Structure Symbol 52 Week High/Low Analyst Coverage TSX:WDO $4.75/$1.75 (Average daily BMO Capital Markets volume 800,000 shares) Canaccord Genuity Shares Outstanding Clarus Securities 134.2 M Market Capitalization Desjardins Capital Markets $490 M Options and RSU’s Echelon Wealth Partners
Slide 5: Share Price Performance
Share Price Performance One Year Six Month Three Year Five Year TSX:WDO | 5
Slide 6: Building Canada's Next Mid-Tier Gold Producer
Building Canada’s Next Mid-Tier Gold Producer Proven building blocks to increase shareholder 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 | 6
Slide 7: Q4 and FY 2018 Production Results
Q4 and FY 2018 Production Results Fourth Quarter Fiscal Year Amounts are denominated in Canadian dollars 2018 2017 2018 2017 Ore milled (tonnes) Eagle River 50,536 39,291 185,171 157,250 Mishi 8,478 38,197 70,633 152,591 59,014 77,488 255,804 309,841 Head grade (grams per tonne, “g/t”) Eagle River 1
Slide 8: 2019 Production Guidance
2019 Production Guidance Amounts are denominated in Canadian dollars, or otherwise Guidance indicated Gold production Eagle River 69,000 – 76,000 ounces Mishi 3,000 - 4,000 ounces 72,000 – 80,000 ounces Head grade (g/t) Eagle River 15.5 – 16.5 Mishi 2.0 – 2.4 Operating cost per ounce 1 $830 - $900 U
Slide 9: Q3 2018 Financial Results, 4 Consecutive Quarters of Free Cash Flow Generation
Q3 2018 Financial Results, 4 Consecutive Quarters of Free Cash Flow Generation 1 Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the financial statements. 3 Revenues for Q2, 2018, Q1 2018 and Q4 2017 includes insignificant amount
Slide 10: 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 11: 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 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 intrusive (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
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 303 Lens 864m drift highlights Lens Strike Aver Uncut Cut Length age Grade Grade (m) Widt (g/t (g/t h Au) Au) (m) 300B 14.3 1.7 19.8 19.8 300C 22.8 1.5 24.6 13.3 Untested Potential in Parallel Zones 301N 301 30.1 51.
Slide 16: 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 | 16
Slide 17: Eagle Surface Exploration Drill Targets
Eagle Surface Exploration Drill Targets N N 3D View (looking northwest) 10,000 m of drilling commencing September 2018 TSX:WDO | 17
Slide 18: Mishi Deposit – Future Potential
Mishi Deposit – Future Potential 600 m West of Pit 1.95 g/t over 29.8 m TW 3.08 g/t over 15.5 m TW 2017 New Area 3.48 g/t over 17.7 m TW 2.14 g/t over 22.1 m TW 2.52 g/t over 18.8 m TW 2.38 g/t over 11.9 m TW Under Explored Mishi Pit 2017 New Area 3D View (looking northwards) TSX:WDO | 18
Slide 19: 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 | 19
Slide 20: Kiena Complex – Location, Location, Location!
Kiena Complex – Location, Location, Location! Property Size: 65 Square Kilometres TSX:WDO | 20
Slide 21: 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 | 21
Slide 22: Kiena Deep Discovery
Kiena Deep Discovery Why Kiena Deep: • Large Regional Structures • Multiple zones of ductile and brittle deformation for “openings” for Au • Ultramafic contact tends to “pool” liquids • ~50,000 metre underground drill program in 2019 TSX:WDO | 22
Slide 23: Kiena Deep A Zone Longitudinal Section
Kiena Deep A Zone Longitudinal Section S50 Zone VC Zone A Zone Up Plunge Extension B Zone A Zone Open TSX:WDO | 23
Slide 24: Kiena Deep A Zone - Up Plunge Potential
Kiena Deep A Zone - Up Plunge Potential 600 m plunge potential 600 m plunge defined TSX:WDO | 24
Slide 25: Kiena Deep A Zone – Flattens at Depth with Multiple Zones
Kiena Deep A Zone – Flattens at Depth with Multiple Zones TSX:WDO | 25
Slide 26: Updated Resources – Kiena Deep A, B, VC, and S-50 Zones
Updated Resources – Kiena Deep A, B, VC, and S- 50 Zones Category Tonnes Grade (gAu/Tonne) Contained Ounces Kiena Complex Resources – In Mine Measured 0 0 0 Indicated 1,028,900 6.38 211,100 Total M + I Resources 1,028,900 6.38 211,100 Total Inferred Resources 968,900 9.28 287,400 Category Tonnes Gra
Slide 27: Total Kiena Complex Resources
Total Kiena Complex Resources Category Tonnes Gold Grade (g/t Au) Gold Ounces Within Crown Pillar Measured 0 0 0 Indicated 162,800 5.32 27,900 Total M + I 162,800 5.32 27,900 Inferred 1,113,200 6.97 249,600 Below Crown Pillar Measured 63,700 4.06 8,300 Indicated 2,893,700 5.87 546,400 Total M + I 2,
Slide 28: New Drilling Post Resource Update
New Drilling Post Resource Update 48 out of 50 holes visible gold showings TSX:WDO | 28
Slide 29: 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 (A Zone?) •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 – Im
Slide 30: A Zone and Exploration Potential
A Zone and Exploration Potential Parallel “A Zone” Structures A Zone TSX:WDO | 30
Slide 31: 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 • Moss Lake Deposit remains open Pit and Mineral Resource constrained by property boundary • 2017 drilling extends strike length mineralization from 2kms to 4
Slide 32: 2019 Exploration Summary – Sustained Investment
2019 Exploration Summary – Sustained Investment Eagle: Kiena: $13.8 M Exploration 4 Underground Drills 5 Underground Drills Drilling Budget 1 Surface Drill 1 Surface Drill (Summer) Property 2019 Metres 2018 Metres 2017 Metres 2016 Metres 2015 Metres Eagle Underground 51,000 25,000 24,000 27,000 22,0
Slide 33: 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 Pipeline of development Op
Slide 34: Contact Info
Contact Info Duncan Middlemiss Lindsay Dunlop President and CEO Vice President, Investor Relations 416.360.3743 ext. 29 416.360.3743 ext. 25 dmiddlemiss@wesdome.com ldunlop@wesdome.com
Slide 35: Appendix
Appendix TSX:WDO WESDOME wesdome.com
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: 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 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: 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 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: 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 | 42
Slide 43: 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 OUNCES 132,466 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: 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 46: Kiena Deep A Zone
Kiena Deep A Zone TSX:WDO | 46
Slide 47: Kiena Complex Drill Core August 2016
Kiena Complex Drill Core August 2016 TSX:WDO | 47
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