Wesdome Gold Q2 Production Update

Wesdome (WDO:TSX | WDOFF:OTC) just released production numbers for 2Q which totaled 25,142 vs 25,122 in Q1. The production result for the quarter was better than expected as the company previously guided slightly lower Q2 output due to the impact of Covid-19 and the potential for processing lower grade and stockpiles. Eagle head grade came in at 18gpt. The company is maintaining guidance of 90-100k ounces as Duncan stated in the press release that they are “confident” in achieving full year guidance. Revenue for the quarter came in at $54.7M vs $57.3M in Q1. The higher realized price of Gold in the quarter was offset by lower gold sales, when compared to Q1.

With first half production running slightly above 50% of annual top end of guidance range, Wesdome is well positioned to deliver on their annual guidance target but are also in a strong position to even actually slightly exceed it. The 303 lens continues to preform well.

Wesdome was planning a record year of exploration in 2020 with plans to drill 237k meters, but Covid delays set those plans back. More specific details as to what the new objective would look like may be discussed during the earnings update later next month. So far drilling to date has yielded very good results at the Falcon Zone, potentially augmenting Eagle production, mine life, and further unlocking value down the road.

With drills positioned to get back to pre-pandemic levels, and Kiena drilling at nearly 100% capacity, the second half catalysts should include more exploration updates than the first half leading up to an updated resource statement in Q4. All eyes remain on Kiena up-plunge extension potential. But let us not forget that Eagle continues to demonstrate ability to fully fund and unlock value at both properties.

All the best.

Source: https://ml.globenewswire.com/Resource/Download/c4f4a465-fd32-441d-84cd-2a6b5197d264

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