Wesdome Makes The Decision To Reopen The Kiena Gold Mine

Canada based gold mining company Wesdome Gold Mines announced that the company's board of directors has decided to restart the Kiena Complex, effective immediately, based on the positive results from an independent NI 43-101-compliant pre-feasibility study (PFS) which is based on a reserve mine life of approximately seven years. Annual gold production is expected to be around 84,000 ounces, with a peak of 115,000 ounces in 2025, according to the PFS; over the life of mine, a total of 592,113 ounces of gold will be produced. The decision to recommence was made after the close of trading on May 26, 2021.

Future production mining will be done using the long hole stope method, while development will be done with traditional drilling and blasting methods, said the company. The main aim is to increase throughput from the high-grade Kiena Deep A Zone while supplementing output from the other zones.

The operation is estimated to generate $85.5 million in annual free cash flow (2022-2027)  at USD 1,600 per ounce or USD 109.5 million at USD 1,900 an ounce. The total cost of the mine is anticipated to be $230 million, with $60 million spent in 2021. All-in sustaining costs for the mine are anticipated to be US$676 per ounce during its lifetime. At a grade of 11.89 g/t, the Kiena Mine Complex's probable mineral reserves total 601,780 ounces of gold.

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