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Wesdome announces C$203m Kiena restart

27th May 2021

By: Creamer Media Reporter

     

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Toronto-based Wesdome Gold Mines on Wednesday announced the immediate restart of the Kiena Complex, in Val d’Or, Quebec, following the completion of a prefeasibility study (PFS) that yielded an internal rate of return (IRR) of 98%.

The project, which has been under care and maintenance since mid-2013, would require a capital investment of C$230-million.

The PFS capital cost is higher than the 2020 preliminary economic assessment estimate of C$121-million, owing to changes in the project scope that will allow for increased production and a longer mine life as additional resources are delineated.

The asset already has significant infrastructure in place, including a shaft and 2 000 t/d mill and as such, could achieve initial production as early as the third quarter, CEO Duncan Middlemiss said in a statement.

The mine would produce an average of 84 000 oz/y at an all-in sustaining cost of $676/oz. At a gold price of $1 600/oz, Kiena would deliver yearly free cashflow of C$85.5-million between 2022 and 2027.

Kiena has an aftertax net present value of C$367-million, at $1 600/oz, increasing to C$491-million at $1 900/oz. The payback period is 2.7 years.

Edited by Creamer Media Reporter

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