TORONTO, Aug. 4 /CNW/ - Wesdome Gold Mines Ltd is pleased to announce strong second quarter and first half gold production and bullion sales figures.
Rolly Uloth, President, commented "Healthy gold prices and strong operating results have prompted us to increase our production guidance to 80,000 ounces for 2009."
GOLD PRODUCTION
During the second quarter ended June 30, 2009, combined gold production from the Company's Eagle River and Kiena mines totalled 20,959 ounces. Production for the first half 2009 totalled 48,393 ounces, a 12% increase over 2008's first half performance.
During the second quarter, the Eagle River mine produced 14,183 ounces from 32,908 tonnes milled at a recovered grade of 13.4 gAu/tonne. First half production totalled 31,068 ounces from 65,195 tonnes milled at a grade of 14.8 gAu/tonne.
In the second quarter, the Kiena mine produced 6,776 ounces of gold from 67,216 tonnes milled at an average recovered grade of 3.1 gAu/tonne. Production year to date totals 17,325 ounces from 125,234 tonnes milled at a grade of 4.3 gAu/tonne.
We expect favourable economic conditions to translate into a strong second quarter financial performance.
GOLD SALES
Gold sales in the second quarter totalled $30.2 million with 28,000 ounces sold at an average realized price of $1,076Cdn per ounce. Year to date sales total $53.8 million with 48,700 ounces sold at an average of $1,102 per ounce, or $181 per ounce more than during the first half of 2008.
At June 30, 2009, bullion inventory stood at 10,272 ounces with a market value of $11.2 million.
SECOND QUARTER FINANCIAL RESULTS - OUTLOOK
We expect to release our second quarter financial results the week of August 10, 2009. Economic conditions continue to favour Canadian gold mines. Although we forecast lower grades in the mining sequence during the second half of the year, our strong first half performance prompts us to raise our annual production guidance to 80,000 ounces.
ABOUT WESDOME
Wesdome is an established Canadian gold producer with wholly-owned mining and milling complexes located in Wawa, Ontario and Val d'Or, Quebec. Wesdome has been producing gold continually for 20 years on an unhedged basis and to date has produced in excess of 1.0 million ounces. The Company has 99.8 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol "WDO".
This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances, management's estimates or opinions should change, except as required by securities legislation. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.