Wesdome Gold Mines Ltd. · TSX:WDO
Wesdome Gold Mines — Investor Presentation (September 2018)
42 slides from Wesdome Gold Mines's investor presentation, September 2018
Slide 1: Building Canada's Next Mid-Tier Gold Producer
September 2018 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 Guidance: 70,000 – 75,000 ozs (H1 2018: 34,576 ozs) • Drilling High grade discovery at Kiena Complex 3 • Eagle River Operations funding $25 M 1 2 exploration and development at Kiena • H1 2018 f
Slide 4: Corporate Structure
Corporate Structure Symbol 52 Week High/Low Analyst Coverage TSX:WDO $3.85/$1.64 (Average daily BMO Capital Markets volume 800,000 shares) Clarus Securities Shares Outstanding Desjardins Capital Markets 134.2 M Market Capitalization Echelon Wealth Partners $473M Options and RSU’s Eight Capital Partn
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: 2018 Production Guidance Raised to 70,000 – 75,000 Ounces
2018 Production Guidance Raised to 70,000 – 75,000 Ounces TSX:WDO | 7
Slide 8: Q2 2018 Financial Results, Consecutive Quarters of Free Cash Flow Generation
Q2 2018 Financial Results, 3 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 9: H1 2018 Operating Results
H1 2018 Operating Results In $000s Three months ended June 30 Increase/ Six months ended June 30 Increase/ 2018 2017 decrease 2018 2017 decrease Ore milled (tonnes) Eagle River 43,378 34,960 24% 87,858 73,538 19% Mishi 25,233 39,117 (35)% 58,079 75,758 (23)% Throughput 68,610 74,077 (7)% 145,937 149
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 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 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 Untested Potential in Parallel Zones 300C 301N 22.8 30.1 1.5 2.2 24.6 22.5 13.
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! TSX:WDO | 20
Slide 21: Kiena Complex – Regional Geological Potential
Kiena Complex – Regional Geological Potential Wesdome Deposit 0.4 M oz Resource Siscoe Mine 0.9 M oz prod Presqu’ile Deposit Kiena Deep 0.1 M oz Resource Kiena Mine 1.8 M oz 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 • 40,000 metre underground drill program in 2018 • Drilling 25 x 25 metre spacing • Gold to establish indicated reso
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 - Open Up and Down Plunge and Dip
Kiena Deep A Zone - Open Up and Down Plunge and Dip A1 Zone 250 m A2 Zone Kiena Deep A Zone TSX:WDO | 24
Slide 25: Kiena Deep A Zone - Up Plunge Potential
Kiena Deep A Zone - Up Plunge Potential 600 m plunge potential 600 m plunge defined TSX:WDO | 25
Slide 26: Kiena Deep A Zone – Flattens at Depth with Multiple Zones
Kiena Deep A Zone – Flattens at Depth with Multiple Zones TSX:WDO | 26
Slide 27: Extended Ramp Development and Recent Results
Extended Ramp Development and Recent Results Average thickness 7 m TSX:WDO | 27 48 out of 50 holes visible gold showings
Slide 28: 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 29: 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 30: 2018 Exploration Summary – Sustained Investment
2018 Exploration Summary – Sustained Investment Eagle: 4 Underground Drills Kiena: $10.8 M Exploration 1 Surface Drill 4 Underground Drills Drilling Budget (September) Property 2018 Metres 2017 Metres 2016 Metres 2015 Metres Eagle Underground Exploration 25,000 24,000 27,000 22,000 Drilling Eagle Ri
Slide 31: 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 32: Appendix
Appendix TSX:WDO WESDOME wesdome.com
Slide 33: 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 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: 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 36: 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 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: 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 39: 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 | 39
Slide 40: 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 41: 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 42: Kiena Complex Drill Core August 2016
Kiena Complex Drill Core August 2016 TSX:WDO | 42
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