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WESDOME Wesdome Announces 2021 First Quarter Financial Results TORONTO , May 12 , 2021 ( GLOBE NEWSWIRE ) -- Wesdome Gold Mines Ltd. ( TSX : WDO ) ( " Wesdome " or the " Company " ) today announces first quarter ( " Q1 2021 " ) financial results . All figures are stated in Canadian dollars unless otherwise noted . Mr. Duncan Middlemiss , President and CEO commented , " During the first quarter , a significant milestone was achieved at Kiena , with the completion of the A Zone bulk sample reconciliation which has produced 6 % more gold at a feed grade of 15.7 g / t versus 14.7 g / t in the resource block model grade . Additionally , the bulk sample generated an additional $ 3.9 million from the sale of 1,793 ounces of gold in the quarter . Significant progress was also made towards projects that would benefit the mine re - start , such as development , mill refurbishment , shaft and other construction projects , and work at the tailing management area . The PFS is near completion and the Company intends to release the results of the PFS later in the quarter . During the quarter a total of $ 14.0 million was spent on growth and capital projects ( Q1 2020 : $ 10.6 million ) . Consequently , free cash flow decreased compared to the same period in 2020 , and the cash position remained flat quarter over quarter with $ 63.9 million as of March 31 ( December31 2020 : $ 63.5 million ) , sufficient to fund all exploration , sustaining , and growth capital projects including the potential restart of the Kiena mine The Eagle River Underground Mine produced 53,540 tonnes at a head grade of 12.8 grams per tonne ( " g / t Au " ) for 21,396 ounces produced , within our expectations . Eagle River grades were slightly below the low end of our guidance , however increased throughout the quarter . The Company expects to be within guidance for the year , and remains on track to produce 92,000 105,000 ounces from the Eagle River Complex , plus an additional 15,000 - 25,000 from Kiena pending a restart decision . Exploration activities at both sites ramped up during Q1 and produced very positive results . At Eagle , the Company is embarking on its ' $ 16M exploration campaign with 5 drills underground and 2-3 rigs on surface . Currently a regional structural compilation is underway which will aid in the understanding of the current Eagle River deposit and generate high quality mine and regional targets . As well , definition drilling at the Falcon Zone advanced rapidly , and initial sill development is expected to commence in Q2 , thereby providing an opportunity to assess the gold mineralization of the Falcon Zone within volcanic rocks . At Kiena , an exciting new discovery was made - a new high grade gold zone was discovered in the footwall of the A Zone . This drilling highlights the potential to add ounces , not only in this area but illustrates the untested potential of the entire gold system around the Kiena mine . This footwall zone will be one of the zones of focus for the continued drilling . " The Company has performed well during the quarter despite the Covid - 19 pandemic . Hygiene protocols are well implemented and the operations have been Covid free throughout . We continue to operate diligently keeping our workplaces safe for our employees , contractors , and vendors . Key operating and financial highlights of the Q1 2021 results include : • Gold production of 22,564 ounces from the Eagle River Complex , a 10 % decrease over the same period in the previous year ( Q1 2020 : 25,122 ounces ) : о Eagle River Underground 53,540 tonnes at a head grade of 12.8 grams per tonne for 21,396 ounces produced , 13 % decrease over the previous year ( Q1 2020 : 24,457 ounces ) . ⚫ Mishi Open Pit 17,219 tonnes at a head grade of 2.5 g / t Au for 1,169 ounces produced ( Q1 2020 : 665 ounces ) . • Revenue of $ 46.0 million , a 19.8 % decrease over the previous year ( Q1 2020 : $ 57.3 million ) . • Ounces sold 22,457 , which includes 1,793 ounces from the Kiena bulk sample at an average sales price of $ 2,219 / oz ( Q1 2019 : 26,500 ounces at an average price of $ 2,162 / oz ) . • Cash margin of $ 21.8 million , a 21.0 % decrease over Q1 2020 ( Q1 2020 - $ 27.6 million ) . • Operating cash flow of $ 22.0 million or $ 0.16 per share as compared to $ 33.5 million or $ 0.24 per share for the same period in 2020 . • Free cash flow of $ 0.1 million , net of an investment of $ 12.6 million in Kiena , or nil per share¹ ( Q1 2020 : free cash flow of $ 16.7 million or $ 0.12 per share ) . • Net income and Net income ( adjusted ) 1 of $ 7.1 million or $ 0.05 per share ( Q1 2020 : $ 11.5 million or $ 0.08 per share ) . • Cash position increased to $ 63.9 million compared to $ 63.5 million in the previous quarter . • Cash costs of $ 1,076 / oz or US $ 850 / oz , a 4 % decrease over the same period in 2020 ( Q1 2020 : $ 1,120 / oz or US $ 833 / oz ) due to the inclusion of 1,793 lower cost ounces from the Kiena bulk sample , which was processed in Q4 2020 and sold in Q1 2020 .