Wesdome Gold increases sales in 2008

2009-02-03 08:30 ET - News Release

Mr. Rowland Uloth reports

WESDOME 2008 PRODUCTION TOPS 90,000 OUNCES, SALES EXCEED $80 MILLION

Wesdome Gold Mines Ltd. is providing its 2008 gold production and sales figures.

Production and sales for 2008

Gold production from Wesdome's 100-per-cent-owned Eagle River and Kiena mines for the year ended Dec. 31, 2008, totalled 90,004 ounces, exceeding the company's 80,000-ounce forecast by 12.5 per cent. Sales for the year totalled $80.1-million, with 86,100 ounces sold at an average price of $931.25 per ounce. In 2007, 73,200 ounces were sold at an average price of $747 per ounce. Unsold gold bullion inventory at year-end 2008 stood at 10,580 ounces.

Operations benefited from above-average-grade production at both mines. The Eagle River mine, in Wawa, Ont., produced 49,660 ounces from 118,961 tonnes milled at an average recovered grade of 13.0 grams per tonne gold. The Kiena mine, in Val d'Or, Que., produced 40,344 ounces from 241,641 tonnes at an average recovered grade of 5.2 grams per tonne gold.

Fourth quarter 2008 production and sales

In the fourth quarter, Wesdome's production totalled 23,089 ounces. Sales during the quarter totalled $21.4-million, with 21,700 ounces sold at an average price of $988 per ounce.

The Eagle River mine produced 11,301 ounces of gold from 32,069 tonnes milled at an average recovered grade of 11.0 grams per tonne gold. The Kiena mine produced 11,788 ounces from 49,906 tonnes milled at an average recovered grade of 7.3 grams per tonne gold.

The company expects these strong grades to translate to a strong fourth quarter financial performance.

Outlook

For 2009 the company forecasts approximately 75,000 ounces production, with about 40,000 ounces from Eagle River and about 35,000 ounces from Kiena. Wesdome expects lower grades in the mining sequence to be offset by lower input costs, throughput increases and higher gold prices. Gold sales to date in 2009 have averaged $1,062 per ounce, the most recent transaction generating $1,116 per ounce.

Wesdome is already seeing decreases in input costs, and labour and services costs due to declining demand and increasing competition.

Year-end financial results for 2008

Wesdome expects to release its fourth quarter and 2008 year-end financial results during the week of March 23, 2009. The company expects strong grades and gold prices to translate into solid financial performance for the fourth quarter of 2008.

Year-end reserves and resources for 2008

Wesdome expects to release updated reserves and resources for the Eagle River and Kiena mines for the year ended Dec. 31, 2008, in the week of Feb. 9, 2009. This release will contain detailed information about 2009 drilling programs at the Eagle River mine and Kiena, as well as on the new Dubuisson zone.

Annual general meeting 2009

Wesdome will host its 2009 annual general meeting at 4 p.m. on Monday, May 4, 2009, at the Alberta Room, at the Royal York Hotel, 100 Front St. West, Toronto, Ont.

Technical information

The technical information in this release has been reviewed by George Mannard, PGeo, vice-president of exploration and qualified person within the meaning of National Instrument 43-101.

Hg