en.Wedoany.com Reported - Canada's Wesdome Gold Mines (Toronto Stock Exchange code: WDO) announced that after updating its reserve estimates, the mine life of its two operating mines has been extended to eight years, laying the foundation for sustained production at least until 2033. The Toronto-based company said on Thursday that combined reserves at the two mines increased by 17% to a record 1.4 million ounces. At the Eagle River mine in Ontario, the reserve base grew by 39% to 676,000 ounces; at the Kiena mine in Quebec, it rose slightly to 711,000 ounces after accounting for mining depletion.
Wesdome stated that these reserves are expected to support production levels over the next three years: 180,000 to 205,000 ounces in 2026, 185,000 to 220,000 ounces in 2027, and 185,000 to 230,000 ounces in 2028. By then, the Eagle River and Kiena mines are each expected to account for roughly half of annual production. The company said this marks the first time both assets are supported by an eight-year reserve plan. Against a backdrop of weakness in the Toronto precious metals mining sector on Thursday afternoon, Wesdome's shares rose 2.3% to C$24.14, giving the company a valuation of approximately C$3.6 billion (US$2.5 billion). Over the past year, the stock has traded in a range of C$15.94 to C$30.98.
CEO Anthea Bath said this achievement marks a defining milestone in Wesdome's development journey. The company has increased mineral reserves, extended mine life across its entire asset portfolio, and developed mine plans that support production growth, improved operational performance, and significant free cash flow generation. At the Eagle River mine, the global model plan has successfully converted near-mine tonnage at an economic gold price of US$1,800 per ounce, providing additional material to improve mill utilization and extend mine life while retaining flexibility to reschedule the mine plan. At the Kiena mine, the company will focus on improving execution at the Kiena Deep zone, as well as flexibility across multiple mining horizons, including the Presqu’île zone, which is expected to achieve commercial production this fall.
Wesdome forecasts that the updated mine plan will generate over C$1 billion in free cash flow over the next three years, assuming a gold price of US$4,000 (C$5,680) per ounce. During this period, all-in sustaining costs are expected to be broadly in line with the company's 2026 guidance of US$1,525 to US$1,700 per ounce. The company also indicated that reserves could increase further. Opportunities not included in the reserves include improved productivity, execution, and optimization plans at both mines, as well as the conversion of resources to reserves. A set of identified exploration targets has potential gold mineralization ranging from 2.4 million to 6.3 million ounces, including 27.1 million to 40 million tonnes of ore, with a weighted average gold grade of 2.7 to 4.9 grams per tonne across the two assets. These opportunities are expected to leverage existing infrastructure and provide multiple avenues to extend mine life and support potential future growth.
Desjardins Securities mining analyst Allison Carson noted in a report that Wesdome still has significant exploration upside potential, and its exploration targets will generate a longer mine life than these studies, which are merely a snapshot in time.
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