First Quarter Production Tops 27,000 Ounces

 

 

TORONTO, ON - Wesdome Gold Mines Ltd. is pleased to announce strong first quarter gold production and bullion sales. Rolly Uloth, President, commented "Strong grades and increased gold prices continue to favour our Canadian gold mining operations."

During the first quarter 2009, gold production from the Company's Eagle River and Kiena gold mines totalled 27,434 ounces, a 34% increase over the 2008 total of 20,403 ounces. We are off to a strong start.

The Eagle River mine produced 16,885 ounces from 32,287 tonnes milled at an average recovered grade of 16.3 gAu/tonne. The Kiena mine produced 10,549 ounces from 58,018 tonnes milled at a recovered grade of 5.7 gAu/tonne.

We expect the strong grades and favourable economic conditions to translate into a strong first quarter financial performance.

Bullion revenue in the first quarter 2009 totalled $23.6 million with 20,700 ounces sold at an average price of $1,138 per ounce. This compares to first quarter 2008 revenue of $16.1 million with 17,337 ounces sold at $931 per ounce. Revenue is up 47% with 20% more ounces sold at gold prices 22% greater than last year.

Gold bullion inventory at March 31, 2009 stood at 17,313 ounces or 78% higher than at the end of the first quarter 2008. The market value of the bullion inventory at March 31, 2009, stood at $20.0 million.

The company’s address is 8 King St. East, Suite 1305, Toronto, ON, M5C 1B5, (416) 360-3743, fax: (416) 360-7620, email: [email protected], www.wesdome.com.