Off The Wire
Wesdome: 1Q gold output rises; 2Q to be impacted by COVID-19
(Kitco News) - Wesdome Gold Mines Ltd. (TSX: WDO) Thursday listed first-quarter gold production that was higher than a year ago, although the company’s chief executive said he looks for output in the current quarter to fall from the last due to the COVID-19 pandemic.
Still, the company maintained its 2020 production guidance.
Consolidated output during the first three months of the year was listed at 25,122 ounces, a 32% increase from 19,010 in the same period of 2019. Sales rose 41% year-on-year to 26,500 ounces from 18,760.
“First-quarter production of 25,122 ounces was within budget; however, grade was slightly lower due to stope sequencing,” said Duncan Middlemiss, president and chief executive officer. “Mill feed increased by 34% to 735 tonnes per day compared to Q1 2019.
“With the COVID-19 pandemic occurring at the end of Q1 and subsequent health and safety actions taken, we expect slightly lower production in Q2 compared to Q1. As part of these health and safety protocols, we have shut down the Mishi open pit and have moved to a reduced workforce in other areas at the Eagle River Complex. Despite these reductions in activities, we are maintaining our full-year production guidance of 90,000 [to] 100,000 ounces due to flexibility in stope sequencing.”
The CEO added that drilling and development work at Kiena is expected to resume during the week of May 4, and the impact of a six-week shutdown has “significantly tightened our time frame of getting to a restart decision by the end of 2020.”