June Wesdome Gold Mines Annual and Special Meeting of Shareholders

Transcription

1 June 2017 Wesdome Gold Mines Annual and Special Meeting of Shareholders

2 Cautionary Statements Forward-Looking Information This presentation contains statements or information concerning the business, operations and financial performance and condition of Wesdome Gold Mines Ltd. ( Wesdome or the Company ) which constitute forward-looking statements or information (collectively, forward-looking statements ) within the meaning of applicable Canadian securities legislation. Forward-looking statements relate to future events or the anticipated performance the Company and reflect management s expectations or beliefs regarding such future events and anticipated performance as of the date of this presentation. Forward-looking statements include, but are not limited to, statements with respect to the timing and amount of future production, costs of production, targeted cost reductions, capital expenditures, the success of exploration activities, permitting time lines, government regulation of mining operations, the future price of gold and other minerals, and the timing and issuance of permits. Generally, forward-looking information can be identified by the use of words such as plans, expects, is expected, budget, scheduled, estimates, forecasts, intends, anticipates, believes and variations of such words and phrases or statements that certain actions, events, or results may, could, would, might, or will, occur or be achieved or the negative connotation thereof. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predicted outcomes could differ materially from those contained in such statements. These risks and uncertainties include, but are not limited to, fluctuations in prices of commodities, fluctuations in currency markets, actual results of additional exploration and development activities at the Company s projects, the timing and amount of estimated future production and the costs thereof, capital expenditures, the availability of any additional capital required to bring future projects into production, the failure of plant, equipment or processes to operate as anticipated, accidents, or labour disputes. Risks and uncertainties about Wesdome s business are more fully discussed in the disclosure material filed with the securities regulatory authorities in Canada and available on SEDAR under the Company s profile at Readers are urged to read these materials and should not place undue reliance on the forward-looking statements contained in this presentation. Wesdome assumes no obligation to update the forward-looking information relating to beliefs, opinions, projections, or other factors, should they change, except as required by applicable securities laws. TSX:WDO 2

3 Board of Directors: Significant Industry Experience Charles Page, P.Geo Chairman - Over 40 years experience in the mineral exploration and mining industry - Most recently President and CEO of Queenston Mining, leading the discovery and development of the Upper Beaver deposit in the Kirkland Lake gold camp, until its acquisition by Osisko Mining Charles Main, CPA, CA Duncan Middlemiss, P. Eng Chief Executive Officer Nadine Miller, P. Eng Warwick Morely-Jepson - Chartered Professional Accountant and member of the Chartered Professional Accountants of Ontario and Canada - Over 30 years experience in finance and mining industries - Most recently Chief Financial Officer of Yamana Gold from Professional engineer with over 25 years experience in operational management, mine rehabilitation, development and gold production - Over 10 years of executive management experience - Most recently Chief Executive Officer of St Andrew Goldfields until its sale to Kirkland Lake Gold in January Over 15 years experience in geotechnical engineering and project management in the mining space - Former Business Development Manager at SNC-Lavalin s Mining and Metallurgy unit - Over 35 years experience in the mining industry within operations, project and business development - Formerly Chief Operating Officer and Executive VP of Kinross Gold Crop Rolly Uloth - Over 45 years of senior management experience - Co founder of Rosedale Transport, fifth largest trucking company in Ontario Bill Washington, MBA - Former Head of Global Mining and Metals at National Bank Financial Markets - Over 25 years experience in capital markets, focused exclusively on the mining sector TSX:WDO 3

4 Executive Management Team Duncan Middlemiss, P. Eng Chief Executive Officer - Professional engineer with over 25 years experience in operational management, mine rehabilitation, development and gold production - Over 10 years of executive management experience - Most recently Chief Executive Officer of St Andrew Goldfields until its sale to Kirkland Lake Gold in January 2016 Hemdat Sawh, CPA, CA Chief Financial Officer - Former principal at Grant Thorton LLP - Over 16 years executive management experience at publicly traded mining companies - Most recently Chief Financial Officer of Scorpio Mining until its merger with US Silver Philip Ng, P.Eng, M.Eng Chief Operating Officer George Mannard, P,Geo, MSc.A VP, Exploration Benoit Laplante, P.Eng, MSc.A VP, Corporate Development Lindsay Carpenter Dunlop VP, Investor Relations Heather Laxton Corporate Secretary & CGO Marc-Andre Pelletier VP, Quebec Operations - Professional engineer with over 20 years experience in Canadian underground and open pit mines - Most recently held the position of COO at Queenston Mining prior to its takeover by Osisko Mining; prior to that spent 5 years as VP Operations at Claude Resources - Professional geologist with over 30 years experience, 20+ years with Wesdome - Co-credited with the discovery of Louvicourt - Developed 8 new gold mines - Professional engineer with over 30 years experience in Canadian mines - Numerous senior level positions at intermediate and junior producers including Noranda, Aurizon, and North American Palladium - Over 10 years experience in the development and execution of investor relations programs for publicly traded resource companies - Most recently 5 years as Director of Investor Relations at Kirkland Lake Gold - 20 years of corporate secretarial, corporate governance and securities regulation experience with a focus on the mining sector in Canada, Europe, Russia and West Africa - Most recently Corporate Secretary at Kirkland Lake Gold - Over 20 years experience in operating gold mines in Canada - Most recently VP Operations at St Andrew Goldfields TSX:WDO 4

5 Corporate Structure Symbol TSX:WDO Shares Outstanding M Options 5.2 M Warrants 0 Fully Diluted 139 M 52 Week High/Low $4.40/$1.47 (Average daily volume 900,000 shares) Market Capitalization $440M ($3.29 June 20, 2017) Cash Position $29.6 M (Mar 31, 2017) No Debt Management and Directors 2.2% Analyst Coverage Clarus Securities Echelon Wealth Partners Eight Capital Partners Industrial Alliance Laurentian Bank National Bank Financial PI Financial Major Shareholders Resolute Funds, Van Eck, Royal Bank Investment Management, US Global, Oppenheimer, Mackenzie Financial, 1832 Asset Management, Gabelli TSX:WDO 5

6 One Year Share Price Performance TSX:WDO 6

7 Review of the Last 12 Months July 2016 Duncan Middlemiss appointed CEO upon Rolly Uloth s retirement August 2016 Kiena Deep Discovery in Val d Or, Quebec announced October 2016 Q3/16 Production of 15,667 ounces, a 29% improvement over Q2/16 as a result of an operations optimization plan to resequence underground development and lower costs November 2016 Q3/16 Free cash flow generation of $4.6 M January 2017 Largest exploration program in the Company s history announced - $13.1 M spend amongst all four properties: Eagle River Underground Mine, Mishi Open Pit Mine, Kiena Complex, and Moss Lake Discovery of the 303 E Lens at the Eagle River Underground Mine in Wawa, Ontario wide widths and high grades February 2017 Drilling Expands Kiena Deep discovery to 550 M laterally FY/16 Operating Cash Flow of CAD$19.9 M vs FY/15 CAD$10.0 M FY/16 Net Income of CAD$7.8 M or $0.06/share vs FY/15 loss of (CAD$4.7 M or 0.04/share) Mineral reserves net of 2016 production increased for the fourth consecutive year April 2017 Operations optimization program continues to bear fruit Q1/17 production of 15,162 ounces, multiple high grade zones in production which will continue for the next few years May 2017 Cost cutting program beginning to demonstrate results Q1/17 operating costs of $1,056/ounce, in the low end of Company cost guidance range. Costs expected to be lower in H2/17 Decision taken to drive an exploration ramp at Kiena Company becomes debt free after convertible debenture comes due ($5.0 M of $7.0 M converted) Board strengthened with two new director nominees, Charles Main and Warwick Morely-Jepson Development of the 303 E Lens begins, stope production expected in Q4/17 TSX:WDO 7

8 Canadian Gold Company with Three 100% Owned Projects 30 years of continuous gold production 2016 Cash flow from operations $19.9 M Eagle River Complex produced 47,737 ozs in 2016 from 2 high grade mines Executing an aggressive company wide exploration program on all assets High grade discovery Aug 2016 at Kiena Complex Drilling initiated at Moss Lake Dec Moss Lake, Thunder Bay, Ont. Open Pit Gold Deposit Resources: Indicated 1.4M oz, Inferred 1.7M oz Eagle River Complex, Wawa, Ont. Operating Mine Complex, two deposits feed central ~850 tpd Past Prod.: 1.1 M oz Reserves: P&P 446,000 oz Resources: M&I 330,000 oz, Inf. 225,000 oz Kiena, Val d Or, Quebec Production Suspended 2013 Past Prod.: 1.75 M oz Resources: M&I 450,000 oz, Inf. 400,000 oz Fully Permitted Mine/Mill Complex on Standby TSX:WDO 8

9 2017 Production and Cost Guidance Combined gold production 52,000 and 58,000 ounces Q Production on track: 15,162 ounces 2017 Guidance: Eagle River Underground Mine 45,000 49, g/t Mishi Open Pit Mine 7,000 9, g/t Q Production Results: Eagle River Underground Mine 13, g/t Mishi Open Pit Mine 1, g/t Combined Operating Cost per ounce: CAD$1,030 - $1,130 per ounce (USD$765 $835 per ounce) Combined All-In Sustaining Costs per ounce sold: CAD$1,450 - $1,550 per ounce (USD$1,075 - $1,150 per ounce) Eagle River reserve grade: 9.2 g/t Sustaining Capex ~CAD$13 $17 M per year Growth/Project Capex of ~CAD$3 M Potential to increase tonnage from the Eagle River Underground Mine Scoping Study at Mishi Open Pit Mine to determine appropriate open pit scenario Mishi reserve grade: 2.0 g/t TSX:WDO 9

10 Q Operating Results Operational Results 1 st Quarter 2017 and 2016 Quarter ended March Eagle tonnes milled 38,578 39,839 Mishi tonnes milled 36,641 36,287 Total tonnes milled 75,219 76,126 Eagle grade (g/t) Mishi grade (g/t) Eagle River Mine mill recovery (%) Mishi Mine mill recovery (%) Eagle recovered grade (g/t) Mishi recovered grade (g/t) Eagle ounces produced 13,588 6,254 Mishi ounces produced 1,574 1,782 Total ounces produced 15,162 8,036 Ounces sold 12,320 8,100 Average realized price (CAD$/oz) 1,631 1,640 Production cash costs (CAD$/oz) 1,056 1,766 All-in-sustaining costs (CAD$/oz) 1,474 2,428 Revenue $20 M $13 M Cash Flow from Operations (loss) $5M ($2.8) M Net Income (loss) $0.7 M ($3.3) M EPS $0.01 ($0.03) Free Cash Flow ($4.2) M ($7.2) M TSX:WDO 10

11 Mineral Reserves (2016 Year End) 15% increase at Eagle River net of depletion Category Tonnes Grade (gau/tonne) Contained Ounces Eagle River Underground Reserves Proven 208, ,000 Probable 949, ,000 Eagle Proven + Probable 1,157, ,000 Mishi Open Pit Reserves Proven 259, ,000 Probable 1,361, ,000 Mishi Proven + Probable 1,620, ,000 Please refer to Notes to Technical Disclosure in the Appendix TSX:WDO 11

12 Mineral Resources (2016 Year End) Operating Assets Category Tonnes Grade (gau/tonne) Contained Ounces Eagle River Underground Resources Inferred 327, ,000 Mishi Open Pit Resources Indicated 3,679, ,000 Inferred 764, ,000 Mishi Underground Resources Indicated 567, ,000 Inferred 437, ,000 Total M + I Resources 330,000 Total Inferred Resources 225,000 Please refer to Notes to Technical Disclosure in the Appendix TSX:WDO 12

13 Mineral Resources (2016 Year End) Development & Exploration Assets Category Tonnes Grade (gau/tonne) Contained Ounces Kiena Complex Resources Measured 63, ,300 Indicated 2,439, ,000 Total M + I Resources 2,500, ,300 Total Inferred Resources 1,563, ,400 Moss Lake Resources Total M + I Resources 39,795, ,377,000 Total Inferred Resources 50,364, ,751,000 Please refer to Notes to Technical Disclosure in the Appendix TSX:WDO 13

14 2017 Exploration Summary Commitment to Sustainability $13.1 M Exploration Drilling Budget $5M Moss Lake $4M Wawa $4M Kiena Ontario: Eagle: 3 Drills Mishi: 1 drills Moss Lake: 2 drills Quebec: Kiena: 4 drills H1/17 2 drills H2/17 concurrent with ramp construction Property 2017 Metres 2016 Metres 2015 Metres Eagle Underground Exploration Drilling 25,000 40,000 17,000 Eagle Surface Exploration Drilling 15,000 25,000 0 Mishi Exploration Drilling 15,000 25,000 5,000 Kiena Complex 45,000 10,000 0 Moss Lake 40,000 4,000 0 Total 140, ,000 22,000 TSX:WDO 14

15 Eagle Drilling to Diversify Production Locations Longitudinal Section Looking North 300 Zone West Eu-778: g/t over 2.0 m CL EU-779: g/t over 2.4 m CL EU-780L 79.1 g/t over 3.5 m CL EU-781: 65.2 g/t over 4.0 m CL EU-782: g/t over 2.5 m CL 300 Zone East North Lens (New) : 8.6 g/t over 32.4 m TW : 14.7 g/t over 11.5 m TW Main Lens: g/t over 7.5 m TW : 12.2 g/t over 3.5 m TW : 49.9 g/t over 1.8 m TW 303 East Lens (New) 844-E-27: gau/t uncut (19.03 gau/t cut) over m true TW 844-E-28: gau/t uncut (13.36 gau/t cut) over m TW 7 Zone EU-759W: 20.4 g/tau over 5.6 m CL EU-782: 29.5 g/tau over 3.0 m CL EU-783: g/tau over 2.7 m CL TSX:WDO 15

16 2017 Drilling 303 E Lens Returns Wide, High Grade Intersections Highlights January 26, 2017 Hole 844-E-26: 7.08 gau/t uncut (5.86 gau/t cut) over 8.88 m true width Hole 844-E-27: gau/t uncut (19.03 gau/t cut) over m true width Hole 844-E-28: gau/t uncut (13.36 gau/t cut) over m true width Hole 844-E-29: gau/t uncut (24.60 gau/t cut) over 3.93 m true width Hole : gau/t uncut (10.35 gau/t cut) over 4.32 m true width TSX:WDO 16

17 2017 Drifting and Production Planning 173.7m of strike length / 2.85m average width / g/t Au cut / g/t Au uncut TSX:WDO 17

18 2017 Mishi Exploration: Drilling Extends Zone to West Exploration Highlights 2016 reconnaissance drilling program 2017 Exploration: 15,000 m of drilling to follow up on two targets, 600 m and 1700 m West of pit - resource delineation 600 m West of Pit 1.95 g/t over 29.8 m TW 3.08 g/t over 15.5 m TW 3.48 g/t over 17.7 m TW 2.14 g/t over 22.1 m TW 2.52 g/t over 18.8 m TW 2.38 g/t over 11.9 m TW 1,700 m West of Pit 4.28 g/t over 13.5 m TW* 0.60 g/t over 31.3 m TW 1.89 g/t over 32.9 m TW 1.10 g/t over 31.6 m TW * 2016 drilling TSX:WDO 18

19 Kiena Complex, Val d Or, Quebec TSX:WDO 19

20 Kiena Deep Discovery: Plan View Mine on care and maintenance since mid-2013 Mine/Mill infrastructure in good shape 4 drill rigs operating from U/G platforms testing for repetition along a Z-fold interpretation up to 500 metres below existing infrastructure 2,000 TPD permitted mill 930 Metre shaft Ramp system to 1000 m Underground de-watered Past production ,500, g/t = 1.75 M ounces produced TSX:WDO 20

21 Kiena Deep: Challenging Drilling Conditions TSX:WDO 21

22 Kiena Deep Project Initial Interpretation 91 LVL 100 LVL TSX:WDO 22

23 Kiena Deep Project S50 Zone Extension Partially Developed Resources Untested room to extend depth 5.00 g/t Au over 11.7m Level 96 Level 98 Level 100 Open at depth TSX:WDO 23

24 Kiena Deep Project S50 Zone & South Zone Extension Other targets open at depth South Zone 21.0 g/t Au over 7.5m 10.6 g/t Au over 5.1m 6.8 g/t Au over 18.5m S50 Zone 4.9 g/t Au over 16.6m Level 38 TSX:WDO 24

25 Kiena Deep Project VC Zone & North Zone Extension Other targets open at depth North Zone Level 43 VC Zone Level 52 Level 67 Level g/t Au over 14.3m g/t Au over 1.4m g/t Au over 6.6m Open at depth Open at depth TSX:WDO 25

26 Kiena Deep Project Drill Location & Proposed Ramp N Komatiite Drill 1 Level 67 Upper Quartz Zone Zone A Exploration ramp Level 67 Level 100 Drill 2 (Level 96-98) Zone B Level 77 Level 91 TSX:WDO 26

27 Moss Lake - Coldstream Acquisition April 2016 Coldstream and Hamlin Properties are adjacent to Moss Lake deposit Purchased for $400,000 cash; and 454,545 common shares Acquisition eliminates historic property boundary along strike of Moss Lake deposit Dominant land holdings, 36 km along Shebandowan Gold Belt containing four deposits open for expansion Exploration drilling program 2017 with 2 drill rigs TSX:WDO 27

28 Moss Lake Project Optionality Moss Lake Stock Original Property Boundary open Central Intermediate to Felsic Metavolcanic Belt Moss Lake Deposit 1.4 M oz 1.1 g/t) 1.7 M oz 1.1 g/t) Head Lake Stock Shebandowan Greenstone Belt Moss Lake Deposit remains open Pit and Mineral Resource constrained by property boundary Drill Program planned in 2017 to expand deposit to the northeast onto the Coldstream acquisition and southwest along mineralized trend Potential to significantly add to resources TSX:WDO 28

29 Summary Kiena: New gold discovery in existing, permitted, dewatered former producing mine Eagle River: Discovering new highgrade parallel zones close to infrastructure Operations in safe jurisdiction, Canada Aggressive Exploration Programs on all Company Assets in 2017 Cost cutting program underway at Eagle River Pipeline of development projects Experienced Management team with proven track records New Board of Directors Contain Significant Mining and Public Company experience TSX:WDO 29

30 Appendix

31 Notes to Technical Disclosure Technical Disclosure Mineral Resources This presentation contains information regarding mineral resources estimated at the Company s projects. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Further, the quantity and grade of reported inferred mineral resources are uncertain in nature and it cannot be assumed that further exploration will result in all or any part of an inferred mineral resource being upgraded to an indicated or measured mineral resource category. Qualified Person - Ontario The technical information contained in this presentation has been reviewed and approved by George N. Mannard, P.Geo, M.ScA, VP Exploration for the Company and a Qualified Person within the meaning of National Instrument Standards of Disclosure of Mineral Projects ( NI ). Qualified Person Quebec The technical information contained is this presentation pertaining to Quebec properties, ( Kiena Complex and Kiena Deep ) has been approved and verified by Marc Ducharme, P. Geo, Chief Exploration Geologist for the Company and a Qualified Person within the meaning of National Instrument Standards of Disclosure of Mineral Projects ( NI ). Additional Information Additional information about each of the mineral projects as required by NI , including key assumptions, parameters and methods used to estimate the mineral resources presented in respect of the Company s projects, can be found in Technical Reports filed for each respective property on SEDAR at Other important operating information can be found in the Company's AIF, MD&A and press releases. Financial Disclosure Unless otherwise indicated, all dollar values herein are in CDN$. TSX:WDO 31

32 Kiena Complex Drill Core August 2016 TSX:WDO 32