The sensitivity analysis reveals that the price of gold has the most significant influence on both the NPV and IRR compared to the other parameters, based on the range of values evaluated. After the price of gold, the NPV and IRR were most impacted by changes in the USD:CAD exchange rate and then, to a lesser extent, by variations in operating costs and capital costs. It should be noted that the economic viability of the Project will not be significantly impacted by variations in the capital or operating costs, within the margins of error associated with the PEA cost estimates.
Overall, the NPV and IRR of the Project are positive over the range of values used for the sensitivity analysis when analyzed individually.
QUALIFIED PERSONS AND TECHNICAL INFORMATION
The reader is advised that the PEA Technical Report referenced in this press release is preliminary in nature and is intended to provide only an initial, high-level review of the Project potential and design options. Readers are encouraged to read the PEA Technical Report in its entirety, including all qualifications and assumptions. The PEA Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context. The PEA mine plan and economic model include numerous assumptions and the use of Inferred Resources. Inferred Resources are considered to be too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and to be used in an economic analysis except as allowed for by NI 43-101 in PEA studies. There is no guarantee that the PEA mine plan and economic model will be realized, and that Inferred Resources can be converted to Indicated or Measured Resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability. As such, there is no guarantee the Project economics described herein will be achieved.
The Preliminary Economic Analysis production scenario is based on Indicated and Inferred resources from the Updated Mineral Resource Estimate (MRE) published on September 25th, 2019.
The block model mineral resource estimate, proximal to Kiena Mine Development, was prepared by Karine Brousseau P.Eng (OIQ #121871), Senior Engineer – Mineral Resources of the Company and a "Qualified Person" as defined in NI-43-101. The mineral resource estimate has been reviewed and audited by BBA Consulting, Toronto, Ontario. Pierre-Luc Richard P.Geo (OGQ #1119) of BBA Consulting, is a "Qualified Persons" for the resource estimate as defined in NI-43-101 and is considered to be “independent” of Wesdome for purposes of NI-43-101.
The full technical report, which is being prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI-43-101”) will be available on SEDAR (www.sedar.com) under the Company’s issuer profile within 45 days from this news release. The effective date of the current Preliminary Economic Analysis is March 31, 2020.
The Preliminary Economic Analysis has been prepared by BBA, Toronto, Ontario. The contributors to the report are Qualified Persons (“QP”) under National Instrument 43-101 and are considered to be independent of Wesdome for the purposes of the NI 43-101. The technical content of the PEA and this press release has been reviewed and approved by
Tom Corkal, P.Eng, Senior Mining Engineer
Colin Hardie, P.Eng, Senior Process Engineer
Luciano Piciacchia, P.Eng, Senior Geotechnical Engineer
Pierre-Luc Richard, P.Geo, Senior Geologist
Jorge Torrealba, P.Eng, Senior Process Engineer
About BBA
BBA has been providing a wide range of consulting engineering services for nearly 40 years. Engineering, environment and commissioning experts team up to quickly and accurately pinpoint the needs of industrial and institutional clients. Recognized for its innovative, sustainable and reliable solutions, the firm stands out for its expertise in the fields of energy, mining and metals, biofuels, and oil and gas. BBA has 12 offices across Canada to provide local support and offer clients increased onsite presence.
ABOUT WESDOME
Wesdome Gold Mines has had over 30 years of continuous gold mining operations in Canada. The Company is 100% Canadian focused with a pipeline of projects in various stages of development. The Company’s strategy is to build Canada’s next intermediate gold producer, producing 200,000+ ounces from two mines in Ontario and Quebec. The Eagle River Complex in Wawa, Ontario is currently producing gold from two mines, the Eagle River Underground Mine and the Mishi Open pit, from a central mill. Wesdome is actively exploring its brownfields asset, the Kiena Complex in Val d’Or, Quebec. The Kiena Complex is a fully permitted former mine with a 930-metre shaft and 2,000 tonne-per-day mill. The Company has further upside at its Moss Lake gold deposit, located 100 kilometres west of Thunder Bay, Ontario. The Company has approximately 138.2 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol “WDO”.
For further information, please contact:
Duncan Middlemiss, President and CEO (416-360-3743 ext. 2019), duncan.middlemiss@wesdome.com
or Lindsay Carpenter Dunlop, VP Investor Relations (416-360-3743 ext. 2025), lindsay.dunlop@wesdome.com
220 Bay St, Suite 1200
Toronto, ON, M5L 1E9
Toll Free: 1-866-4-WDO-TSX
Phone: 416-360-3743, Fax: 416-360-7620
Website: www.wesdome.com