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Friday, Feb 14, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.

Gold

Wesdome Gold Mines success at Eagle River bodes well for 2025

This operational momentum has been driven by consistent improvements quarter over quarter

Wesdome Gold Mines success at Eagle River bodes well for 2025
At the Eagle River mine. Image via Wesdome Gold Mines.

Wesdome Gold Mines Ltd. (TSE: WDO) (OTCMKTS: WDOFF) exploration programs at Eagle River Mine in Ontario have successfully verified and expanded key zones close to existing infrastructure.

The president and CEO, Anthea Bath, said on Wednesday that this could potentially extend the mine’s life.

Wesdome announced a strong third quarter in 2024, showing significant growth in gold production compared to previous periods.

This success has put the company on track to achieve a record production year. Bath waxed optimistic about about meeting the mid-point of their annual production guidance. She emphasizing improved access to high-grade ore at both Eagle River and Kiena mines.

Consistent quarter-over-quarter improvements have driven operational momentum, with Eagle River specifically benefiting from enhanced mill throughput due to high-grade ore access.

“Eagle River delivered exceptional exploration results in 2024, reflecting the prospectivity of this high-grade asset and the strength of our team,” Bath said.

“With more than 105,000 metres of surface and underground drilling completed during the year, we successfully delineated and expanded key zones close to existing infrastructure, identified new targets and advanced our understanding of the geology.”

The 2024 exploration program has delivered high-grade extensions and identified new targets, which could potentially extend the mine’s life. Significant drilling results from zones like 6 Central, Falcon 311, and 300 have shown the prospectivity of this asset.

Additionally, these findings are important for Wesdome as they aim to boost throughput at their mill and are part of the technical studies to assess the mine’s longevity.

Read more: High grades in Nicaragua expected to raise Calibre Mining’s mineral resource

Read more: Calibre Mining shuffles strength into its board for future growth

Infill drilling has confirmed high-grade mineralization

At the 6 Central Zone, drilling has extended the resource area down-plunge by approximately 70 per cent, or 250 metres. It has also uncovered a parallel zone with strong high-grade mineralization potential. Furthermore, situated near existing infrastructure and open at depth, the zones present an opportunity to establish a new mining area at intermediate depths.

The 300 Zone currently holds the majority of Eagle River’s reserves.  Subsequent infill drilling has confirmed the continuity of high-grade mineralization. It’s also offered valuable geological insights into the zone’s characteristics. Additionally, step-out drilling targeting the northeast-dipping extension of the structure has successfully demonstrated mineralization continuity. This demonstrates the zone’s potential for further exploration and resource conversion.

A recent surface exploration program included an induced polarization survey conducted late in the year, which identified several anomalies linked to known deposits. These findings suggest potential for additional mineralization west of the diorite, reinforcing Eagle River’s long-term potential and identifying several targets for future exploration.

On the corporate front, Wesdome has made strategic appointments to strengthen its exploration capabilities. Ronald ‘Jono’ Lawrence was appointed as Senior Vice President, Exploration and Resources, effective January 1, 2025. With over 30 years of experience in exploration across various continents, the company expects Lawrence to significantly contribute to resource expansions and exploration strategies.

The market has responded positively to Wesdome’s recent updates, with analysts suggesting that the company is on track for a record year. he stock’s performance has seen an uptick, reflecting investor confidence in the company’s direction and operational capabilities.

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