Wesdome Gold Mines has announced plans to increase gold production at its Eagle River complex in Ontario from a 2016 range of 54,000 oz to 60,000 oz to a 2019 range of 72,000 oz to 80,000 oz. Located near the north shore of Lake Superior 50 km west of Wawa, Ontario, the Eagle River complex includes the underground Eagle River mine, the open-pit Mishi mine, and the Eagle River mill.
The increased gold production rate at Eagle River will be achieved by increasing the mill processing rate from 980 mt/d in 2016 to 1,380 mt/d in 2019. Operating costs are forecast to drop from a range of C$1,070 to C$1,190/oz in 2016 to a range of C$795 to C$880/oz in 2019.
Concurrently, Wesdome plans to construct a new tailings management facility with an operating life of at least 10 years to accommodate higher levels of mill throughput, as well as to provide a modern facility for tailings management.
Wesdome president and CEO Rolly Uloth said, “Wesdome’s core growth strategy is to expand margins with modest capital outlays. The mill expansion is within this strategy and is designed to increase output from low-cost Mishi ore. Additionally, once the high-grade Eagle River underground mine development is completed to access all three high-grade parallel zones, we expect to deliver strong free cash flow for years to come.”