Wesdome Gold Mines Ltd. · TSX:WDO
Wesdome Gold Mines — Investor Presentation (December 2017)
47 slides from Wesdome Gold Mines's investor presentation, December 2017
Slide 1: A Solid Foundation for a Promising Future
December 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/$1.77 (Average daily Clarus Securities volume 900,000 shares) Desjardins Capital Markets Shares Outstanding Echelon Wealth Partners 133.9 M Market Capitalization Eight Capital Partners $240M Options Industrial Alliance ($1.83
Slide 4: WDO Two-Year Share Price Performance
WDO Two-Year Share Price Performance GDXJ methodology change WDO added to GDXJ (18 announced, rebalance M shares) results in 12 M shares liquidated from index Eagle River 303 E Lens discovery announced; Kiena Resolute Funds reduces Deep potential expands position from 20% to 550 m laterally announce
Slide 5: 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 6: Canadian Gold Company with Three 100% Owned Projects
Canadian Gold Company with Three 100% Owned Projects • 30 years of continuous gold production • YTD 2017 operating cash flow $15 M • Eagle River Complex produced 43,184 ozs produced YTD 2017 from 2 high grade mines 1 • Eagle River YTD head grades 10.3 g/t (2016: 7.8 3 g/t) 2 • Executing an aggressiv
Slide 7: Corporate Strategy
Corporate Strategy STRENGTHEN EXPLORE DEVELOP - Stabilize and -Pipeline of - Potential for Objective Longer Term Near Term improve Wawa development projects: diversified operations through - Early success at production from mine development of brownfields three mines in two additional high grade exp
Slide 8: 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 | 8
Slide 9: 2017 Production and Cost Guidance
2017 Production and Cost Guidance 2017 Guidance: Combined gold production guidance: 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 Results: 2017 Production on track Eagle River U
Slide 10: Q3 2017 Operating Results
Q3 2017 Operating Results Operational Results – Three and Nine Months 2017 and 2016 Three Months ended September 30 Nine Months ended September 30 2017 2016 2017 2016 Eagle tonnes milled 44,421 42,617 117,959 127,761 Mishi tonnes milled 38,638 37,660 114,396 107,953 Total tonnes milled 83,058 80,277
Slide 11: 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 January - September: 37,500 ou
Slide 12: 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 13: 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 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: 2017 Drifting and Production Planning
2017 Drifting and Production Planning 173.7m of strike length / 2.85m average width / 22.62 g/t Au cut / 34.70 g/t Au uncut TSX:WDO | 15
Slide 16: 303 E Lens Extended Up-Plunge
303 E Lens Extended Up-Plunge TSX:WDO | 16
Slide 17: 2017 7 Zone Drifting Results
2017 7 Zone Drifting Results 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 width of 2.1 m over a total strike
Slide 18: 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 | 18
Slide 19: 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 20: 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 | 20
Slide 21: Kiena Complex Property Ramp
Kiena Complex Property Ramp TSX:WDO | 21
Slide 22: Kiena Deep Discovery and Geology
Kiena Deep Discovery and Geology Mineralized strike length of 550 metres TSX:WDO | 22
Slide 23: 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 | 23
Slide 24: 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 • First drill bay completed from the ramp Kiena • Kiena Deep drilling to Deep resu
Slide 25: Kiena Deep Planned Development Ramp
Kiena Deep Planned Development Ramp TSX:WDO | 25
Slide 26: VC Zone North Extension
VC Zone North Extension TSX:WDO | 26
Slide 27: S50 South Zone Extension
S50 South Zone Extension TSX:WDO | 27
Slide 28: Kiena Deep and S50 Extension
Kiena Deep and S50 Extension TSX:WDO | 28
Slide 29: 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 30: Moss Lake Project Optionality
Moss Lake Project Optionality • Moss Lake Deposit remains open Pit and Mineral Resource constrained by property boundary • 2017 drilling extends strike length mineralization from 2kms to 4.5 kms • Geophysical expression (IP) extends over a strike length of 8 kms • Potential to significantly add to r
Slide 31: 2017 Exploration Summary
2017 Exploration Summary $13.1 M Exploration Ontario: Quebec: Drilling Budget Kiena: 4 drills H1 2017, Eagle: 3 Drills $5M Moss Lake 2 drills H2 2017 Mishi: 1 drills $4M Wawa $4M Kiena Moss Lake: 2 drills Property 2017 Metres 2016 Metres 2015 Metres Eagle Underground Exploration Drilling 25,000 40,0
Slide 32: Summary
Summary Kiena: Eagle River: Eagle River: New gold discovery in Discovering new high- Low risk expansion of existing, permitted, de- grade parallel zones close existing mines in proven watered former producing to infrastructure mining camp mine Aggressive Exploration Pipeline of development Operation
Slide 33: Appendix
Appendix TSX:WDO WESDOME wesdome.co m
Slide 34: 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 35: 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 36: 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 37: 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 38: 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 | 38
Slide 39: Kiena Deep Drilling Constrained
Kiena Deep Drilling Constrained TSX:WDO | 39
Slide 40: 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 41: 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 42: 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 43: 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 44: 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 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: 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 47: Kiena Complex Drill Core August 2016
Kiena Complex Drill Core August 2016 TSX:WDO | 47
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