TORONTO, May 10, 2023 (GLOBE NEWSWIRE) -- Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces first quarter (“Q1 2023”) financial results. All figures are stated in Canadian dollars unless otherwise noted.

Warwick Morley-Jepson, Board Chair and Interim CEO commented, “The year is off to a solid start with combined production results of 28,368 ounces coming in ahead of budget. We continued to make excellent progress on the Kiena production ramp, currently at the 123 level. Once the ramp reaches the 129 level late this year and we can develop 129L station, we will be able to take advantage of the significant ounces per vertical metre increase which is expected to result in materially better unit economics in 2024. At Eagle River, production exceeded our internal targets. Grade reconciliation in the Falcon Zone has significantly improved now that additional drilling and ore development is in place. Our balance sheet is also continuing to benefit from higher production and gold prices, as well as disciplined use of our ATM financing. During the quarter, we paid down $8 million of debt, $12 million in Accounts Payables and expect to continue aggressively paying down our credit facility throughout the rest of the year.”

First quarter 2023 highlights:

• At Eagle, production exceeded our internal targets. Grade reconciliation in the Falcon Zone has significantly improved now that additional drilling and ore development is in place. Q1 2023 cash costs of $1,192 (US$881) per ounce and AISC of $1,709 (US$1,264) per ounce of gold were below combined guidance and are expected to be maintained.
• At Kiena, we continued to make excellent strides towards the successful ramp-up of mining activities in 2023 and beyond. Development of the ramp to the 129L giving access to the A Zone of Kiena Deep continued to track ahead of schedule which positions the mine well for increased production levels in 2024. Longer term, excavation of an exploration ramp from surface to access the near-surface Presqu’ile Zone is expected to proceed in H2 2023 after the required permits are secured. With an existing large resource base, efforts in 2023 will focus on converting a portion of these resources to reserves. The Kiena mill has excess capacity with a permitted rate of 2,000 tonnes per day, therefore bringing a potential new source of ore into the mine plan could be accomplished quickly and for low costs.
• Kiena Cash costs of $2,267 per ounce, ($US1,676) and AISC costs of $3,048 per ounce ($US2,254) were higher than guidance due to increased staffing in preparation for the production ramp up and associated construction costs. Costs are expected to decrease throughout the second half of the year and further in 2024 as the mine reaches higher production levels taking advantage of the higher grades and larger ore volumes at depth.
• Total Cash margin was $34.4 million, a 13% increase over Q1 2022, however net income and free cash flows were negative as the Company completes the final projects on the production ramp up at Kiena, namely the ramp to the 129 metre level. Assuming that all else remains the same, the Company expects, at current gold prices, to be free cash flow neutral this year, positioning itself well to be free cash flow positive in 2024.
• The Company is well positioned to deliver on its production guidance of 110,000 – 130,000 ounces and cash cost guidance of $1,500 - $1,670 per ounce (US$1,150 - $1,290), as well as AISC of $2,100 - $2,340 per ounce, (US$1,620 - $1,800).
• Wesdome raised $20.1 million of net proceeds from issuing 2,987,500 common shares under the ATM program. The Company ended the quarter with $25.1 million in cash, and a $47 million balance on the revolving credit facility (December 31, 2022 $55 million) in accordance with our strategy to accelerate the paydown of the outstanding balance on our credit facility, thereby de-risking our balance sheet.

^{1. Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the Financial Statements.}

^{1. Refer to the section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the Financial Statements.}

Technical Disclosure

The technical content of this release has been compiled, reviewed and approved by Frédéric Langevin, Eng, Chief Operating Officer of the Company and Michael Michaud, P.Geo., Vice President, Exploration of the Company and each a "Qualified Person" as defined in National Instrument 43-101 -Standards of Disclosure for Mineral Projects.

Cautionary Note to United States Investors Concerning Estimates of Reserves and Resources

The mineral reserve and resource estimates reported in this news release were prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) as required by Canadian securities regulatory authorities. The United States Securities and Exchange Commission (the “SEC”) applies different standards in order to classify and report mineralization. This news release uses the terms “measured”, “indicated” and “inferred” mineral resources, as required by NI 43-101. Readers are advised that although such terms are recognized and required by Canadian securities regulations, the SEC does not recognize such terms. Canadian standards differ significantly from the requirements of the SEC. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories constitute or will ever be converted into mineral reserves. In addition, “inferred” mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource exists, is economically or legally mineable or will ever be upgraded to a higher category of mineral resource.

First Quarter 2023 Conference Call and Webcast

The Company will release its first quarter 2023 financial results after market close on Wednesday, May 10, 2023. At that time, the financial statements and management discussion and analysis will be available on the company’s website at www.wesdome.com and on SEDAR www.sedar.com A conference call and webcast to discuss these results will be held on Thursday May 11 at 10:00 am ET.  

• Participants may register for the call at the link below to obtain dial in details. Preregistration is required for this event. It is recommended you join 10 minutes prior to the start of the event.

• Participant Registration Link:

https://register.vevent.com/register/BI10a0c8d0e83a4371b94467e2f3eb1722

• Webcast Link:

https://edge.media-server.com/mmc/p/zcqburxt

• The webcast can also be accessed under the news and events section of the company’s website

The webcast can also be accessed under the News and Events section of the Company’s website (www.wesdome.com)

ABOUT WESDOME
Wesdome is a Canadian focused gold producer with two high grade underground assets, the Eagle River mine in Ontario and the recently commissioned Kiena mine in Quebec. The Company also retains meaningful exposure to the Moss Lake gold deposit in Ontario through its equity position in Goldshore Resources Inc. The Company’s primary goal is to responsibly leverage this operating platform and high-quality brownfield and greenfield exploration pipeline to build Canada’s next intermediate gold producer. Wesdome trades on the Toronto Stock Exchange under the symbol “WDO,” with a secondary listing on the OTCQX under the symbol “WDOFF.”

For further information, please contact:

FORWARD-LOOKING INFORMATION

This news release contains “forward-looking information” which may include, but is not limited to, statements with respect to the benefits of achieving commercial production at Kiena, the Company’s expected capital expenditure in 2023, the timing around reaching the Kiena Deep A Zone, the Company’s ability to be cash flow positive and its annual production run rate. 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.

<sup>1. Refer to the Company’s 2021 Annual Management Discussion and Analysis section entitled “Non-IFRS Performance Measures” for the reconciliation of these non-IFRS measurements to the consolidated financial statements.
2. Totals for tonnage and gold ounces may not add due to rounding.</sup>

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