A Solid Foundation for a Promising Future - Wesdome - Home · • 2016 Cash flow from operations...

A Solid Foundation for a Promising Future

May 2017

TSX:WDO | 2

Cautionary StatementsForward-Looking Information

This presentation contains statements or information concerning the business, operations and financial performance and condition of WesdomeGold Mines Ltd. (“Wesdome” or the “Company”) which constitute forward-looking statements or information (collectively, “forward-lookingstatements”) within the meaning of applicable Canadian securities legislation. Forward-looking statements relate to future events or theanticipated performance the Company and reflect management’s expectations or beliefs regarding such future events and anticipatedperformance as of the date of this presentation. Forward-looking statements include, but are not limited to, statements with respect to the timingand 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 ofpermits. 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 certainactions, 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, thatcontribute to the possibility that the predicted outcomes could differ materially from those contained in such statements. These risks anduncertainties include, but are not limited to, fluctuations in prices of commodities, fluctuations in currency markets, actual results of additionalexploration 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 orprocesses to operate as anticipated, accidents, or labour disputes. Risks and uncertainties about Wesdome’s business are more fully discussed inthe disclosure material filed with the securities regulatory authorities in Canada and available on SEDAR under the Company’s profile atwww.sedar.com. Readers are urged to read these materials and should not place undue reliance on the forward-looking statements contained inthis presentation.

Wesdome assumes no obligation to update the forward-looking information relating to beliefs, opinions, projections, or other factors, should theychange, except as required by applicable securities laws.

http://www.sedar.com/

TSX:WDO | 3

Corporate Structure

SymbolTSX:WDO

Shares Outstanding132.5 M

Options5.4 M

Warrants0

Debentures

1.9 M

Fully Diluted139.2 M

52 Week High/Low$4.40/$1.47 (Average daily volume 500,000 shares)

Market Capitalization$415M ($3.12 March 24, 2017)

Cash Position$29.6 M (Mar 31, 2017)

Debt$4.9 M Convertible Debenture (due May 24, 2017, @ $2.50/share)

Analyst CoverageClarus SecuritiesEchelon Wealth PartnersEight Capital PartnersIndustrial AllianceM PartnersNational Bank FinancialPI Financial

Major ShareholdersResolute Funds, Van Eck, Royal Bank Investment Management, US Global, Oppenheimer, Mackenzie Financial, 1832 Asset Management, Gabelli

Management and Directors2.2%

TSX:WDO | 4

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 2016

Moss Lake, Thunder Bay, Ont.Open Pit Gold DepositResources: Indicated 1.4M oz, Inferred 1.7M oz

Eagle River Complex, Wawa, Ont.Operating Mine Complex, two deposits feed central mill @ ~850 tpdPast Prod.: 1.1 M ozReserves: P&P 446,000 ozResources: M&I 330,000 oz, Inf. 225,000 oz

Kiena, Val d’Or, QuebecProduction Suspended 2013Past Prod.: 1.75 M ozResources: M&I 450,000 oz, Inf. 400,000 ozFully Permitted Mine/Mill Complex on Standby

1 2 3

1

2

3

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Corporate Strategy N

ear T

erm - Stabilize and improve

Wawa operations through mine development of additional high grade zones, providing greater production flexibility- Operational improvements such as ventilation, power, and equipment- Ongoing mine exploration to diversify production locations

Long

er Te

rm -Pipeline of

development projects:- Early success at brownfields exploration at Kiena Complex (shaft and permitted mill)- Commenced drill program at newly consolidated Moss Lake property - Near-mine exploration on surface at Eagle River and step out at Mishi Open Pit

Obj

ectiv

e - Potential for diversified production from three mines in two provinces, Ontario and Quebec - Increased output and lowered costs-Maximizing the potential of all the assets

STRENGTHEN EXPLORE DEVELOP

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Operating Two of Canada’s High Grade Gold MinesRe

serv

e Gr

ade

(g/t

)

Eagle River Underground Ranks 2nd

Rese

rve

Grad

e (g

/t)

Mishi Open Pit Ranks 3rd

Source: National Bank Financial

2.0

0

1

2

3

4

5

6

Meliadine

Meadow

bank

Mishi

Canadian Malartic

Detour Lake

Rainy River

Young-Davidson

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2017 Production and Cost GuidanceCombined gold production 52,000 and 58,000 ounces

Q1 2017 Production on track: 15,162 ounces

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)

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

2017 Guidance:Eagle River Underground Mine 45,000 – 49,000 ounces @ 8.8 – 9.2 g/t

Mishi Open Pit Mine 7,000 – 9,000 ounces @ 1.8 - 2.2 g/t

Q1 2017 Production Results:Eagle River Underground Mine 13,588 ounces @ 11.5 g/t

Mishi Open Pit Mine 1,574 ounces @ 1.7 g/t

Eagle River reserve grade: 9.2 g/t

Mishi reserve grade: 2.0 g/t

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Q1 2017 Operating Results Operational Results – 1st Quarter 2017 and 2016

Quarter ended March 312017 2016

Eagle tonnes milled 38,578 39,839Mishi tonnes milled 36,641 36,287Total tonnes milled 75,219 76,126Eagle grade (g/t) 11.5 5.6Mishi grade (g/t) 1.7 1.8Eagle River Mine mill recovery (%) 95.3 88.0Mishi Mine mill recovery (%) 80.9 85.0Eagle recovered grade (g/t) 11.0 4.9Mishi recovered grade (g/t) 1.3 1.5Eagle ounces produced 13,588 6,254Mishi ounces produced 1,574 1,782Total ounces produced 15,162 8,036Ounces sold 12,320 8,100Average realized price (CAD$/oz) 1,631 1,640Production cash costs (CAD$/oz) 1,056 1,766All-in-sustaining costs (CAD$/oz) 1,474 2,428Revenue 20 M 13MCash Flow from Operations (loss) $5M ($2.8M)Net Income (loss) $695,000 ($3.3M)EPS $0.01 ($0.03)Free Cash Flow ($4.1M) ($7.1M)

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Operations Optimization 2017• Cost cutting program underway • Upgrading equipment • Completion of ventilation raise system (surface to 960m)• Development into higher grade reserve blocks accelerated• Road construction at Mishi to lower trucking costs• Filtration system at mill improved with new velvet backing on

drum filters • Added capacity with the recommissioning of belt filter

Production and

Development

• Drifting on 7 Zone at the 890 metre level (42 m @ 11.26 g/t cut

• Drifting on 7 Zone at the 945 metre level (63 m @ 12.63 g/t cut)

• 7 Zone commenced production late 2016, well ahead of schedule

• Additional definition drilling • New 303 East lens - unprecedented widths at high grades

close to mine infrastructure • Tighter dilution controls in place

Grade

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Eagle River Mine: 1.1 M oz of Production

• Quartz diorite stock (2 km x 0.5 km) hosts 1.1 M oz of past production

at Eagle River from 8, 6 and 2 Zone structures (1995 to 2017)

• Parallel 7 and 300 Zones to north offer new potential throughout the mine

• 2016 Production: 40,252 oz. (170,369 t @ 7.9g/t)7 Zone Surface

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Eagle River Parallel Gold Zones Remain Open

4200 elev4200 elev

100 m

open

open

open

open

Section 9400E(looking west)

Section 9400E(looking west)

• Discovery of two new parallel gold zones in 2013• Exploration in 2014 and 2015 leads to reserve growth with expanding potential within mine footprint • Mining of 300 Zone began in Q3 – 2015, 7 Zone in production since Q4 2016 • Recent widths at 300 North Zone wider than previously encountered

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Eagle Drilling to Diversify Production Locations Longitudinal Section Looking North

303 East Lens (New)844-E-27: 28.72 gAu/t uncut (19.03 gAu/t cut) over 20.67 m true TW844-E-28: 20.75 gAu/t uncut (13.36 gAu/t cut) over 17.94 m TW

7 ZoneEU-759W: 20.4 g/tAu over 5.6 m CLEU-782: 29.5 g/tAu over 3.0 m CLEU-783: 101.0 g/tAu over 2.7 m CL

300 Zone WestEu-778: 121.3 g/t over 2.0 m CLEU-779: 1115.7 g/t over 2.4 m CLEU-780L 79.1 g/t over 3.5 m CLEU-781: 65.2 g/t over 4.0 m CLEU-782: 230.2 g/t over 2.5 m CL

300 Zone East – North Lens (New)670-125: 8.6 g/t over 32.4 m TW670-130: 14.7 g/t over 11.5 m TW

Main Lens: 670-130 9.9 g/t over 7.5 m TW670-73: 12.2 g/t over 3.5 m TW670-99: 49.9 g/t over 1.8 m TW

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300 Zone Drift Results, September 2016

• Drilling expands 300 East Lens 150 m to east and down plunge

• New 300 North Lens discovered intersecting wide widths up to 32.4 m

• 300 Zone thickening down plunge where it remains open

• New 300 West Zone being developed in Q3/16

• 942 m drift 19.34 g/t (uncut) over 1.61 m average width and 141 m of strike length

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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 670-131: 10.35 gAu/t uncut (10.35 gAu/t cut) over 4.32 m true width

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2016 Drill Results Extend 7 Zone Towards Surface, Production Commenced Q4 2016

Drill Highlights – 2016

• Underground drilling extends 7 Zone 200 metres towards surface

• 15 holes in Zone average: 17.3 g/t Au over 3.2 m (true width)

•7 Zone adjacent to existing mine infrastructure

• Zone remains open to depth and to surface

• Production from this zone commenced H2 2016 after discovery in H2 2013 and well ahead of schedule

890 Drift Sampling – 33.2 g/t over 1.5 m along drift length of 42 m

945 M Drift – 22.63 g/t over 3.32 m average width along drift length of 63 m

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Mishi Open Pit Mine

• Since 2002 deposit has intermittently produced 35,000 oz to date at a grade of 2.8 g/t Au

• 2016 Production 7,485 oz @ 2.0 g/t Au grade (380 tpd)

• Mishi Pit production limited by mill capacity –scoping studies for expansion underway

• Deposit remains open to depth and along strike

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Mishi Operations: Strike and Depth Potential

Section 3550 E Section 3750 E

MISHI MINE Current Operations

East Extension

West Extensionopen open

Plan View

M6 Zone

M2 ZoneM2 Zone

Section 3550 E (looking W) Section 3750 E (looking W)

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2017 Mishi Exploration: Drilling Extends Zone to West

• 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 Pit1.95 g/t over 29.8 m TW3.08 g/t over 15.5 m TW3.48 g/t over 17.7 m TW2.14 g/t over 22.1 m TW2.52 g/t over 18.8 m TW2.38 g/t over 11.9 m TW

1,700 m West of Pit4.28 g/t over 13.5 m TW*0.60 g/t over 31.3 m TW1.89 g/t over 32.9 m TW1.10 g/t over 31.6 m TW

* 2016 drilling

Exploration Highlights

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Kiena Complex, Val d’Or, Quebec

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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 1981 – 2013 12,500,00 mt @ 4.5 g/t = 1.75 M ounces produced

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S-50 Zone Isometric View North

Drill holes2010-2012

Level 91

S-50 Zone - Conceptual Isometric 3D View• S-50 Zone depleted portion (red wireframe)

•Majority of Kiena’s production (10M tons / 1.6 M oz Au) was mined from the S-50 zone where widths range from ~15 to 50 metres wide

•Thicker gold mineralized breccia zones interpreted to be part of a large deformed sigmoidal structure extending northward from the S-

50 tabular shear hosted mineralized zone

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New Discovery Located Close to Existing Infrastructure

Existing Indicated Resources

Zone Cut Grade (cut to 34.28 g/t)

Tonnes Ounces

S50 Deep A 10.87 173,111 60,511

S50 Deep AH 8.53 68,722 18,885

S50 Deep B 3.21 514,100 53,100

TOTAL OUNCES 132,466

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Drilling Expands Kiena Deep Potential to 550 m Laterally

Feb 8 step out hole: 6.63 g/t over 11 m uncut (6.63 m

cut)

Feb 8 step out hole: 7.67 g/t over 8.2 m uncut (5.53

m cut)

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Kiena Deep: 4 Drills, Wide Open

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Kiena Exploration Ramp

• Kiena Ramp Construction announced May 3, 2017

• Estimated cost $7.6 M and completion Q1 2018

• 500 metres of ramping and additional 500 metres of exploration drifting

Level 100

50m

• Kiena Ramp Construction announ May 3, 2017

• Estimated cost $7.6 M and compl Q1 2018

• 500 metres of ramping and additi 500 metres of exploration drifting

TSX:WDO | 26

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

Moss Lake Project Optionality

Moss Lake Stock

Central Intermediate to FelsicMetavolcanic Belt

Head Lake Stock

Shebandowan Greenstone Belt

Moss Lake Deposit 1.4 M oz (Indicated @ 1.1 g/t)1.7 M oz (Inferred @ 1.1 g/t)

open

Original Property Boundary

• 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

2017 Exploration Summary

$13.1 M Exploration Drilling Budget

$5M Moss Lake$4M Wawa$4M Kiena

Ontario:Eagle: 3 Drills Mishi: 2 drills

Moss Lake: 2 drills

Quebec:Kiena: 4 drills

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 140,000 104,000 22,000

TSX:WDO | 29

Summary

Experienced Managementteam with proven track

records

Eagle River:Discovering new high-grade

parallel zones close to infrastructure

Kiena:New gold discovery in

existing, permitted, de-watered former producing

mine

Cost cutting program underway at Eagle River

Pipeline of developmentprojects

Aggressive Exploration Programs on all Company

Assets in 2017

Operations in safe jurisdiction, Canada

Eagle River:Low risk expansion of

existing mines in provenmining camp

Appendix

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Executive Management Team

Duncan Middlemiss, P. EngChief 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, CAChief 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.EngChief Operating Officer

- 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

George Mannard, P,Geo, MSc.A VP, Exploration

- Professional geologist with over 30 years experience, 20+ years with Wesdome- Co-credited with the discovery of Louvicourt- Developed 8 new gold mines

Benoit Laplante, P.Eng, MSc.AVP, Corporate Development

- 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

Lindsay Carpenter DunlopVP, Investor Relations

- 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

Heather LaxtonCorporate Secretary & CGO

- 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

Marc-Andre PelletierVP, Quebec Operations

- Over 20 years experience in operating gold mines in Canada - Most recently VP Operations at St Andrew Goldfields

TSX:WDO | 32

Board of Directors

Charles Page, P.GeoChairman

- 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

Duncan Middlemiss, P. EngChief 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

Nadine Miller, P. Eng- 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

Barry Smith, P. Eng, MBA- Co-founder of Rosedale transport with former CEO Rolly Uloth- Former President and CEO of Western Quebec Mines until its Merger with Wesdome in 2007

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 | 33

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 mineralreserves and do not have demonstrated economic viability. Further, the quantity and grade of reported inferred mineral resources are uncertain innature and it cannot be assumed that further exploration will result in all or any part of an inferred mineral resource being upgraded to anindicated 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 Explorationfor the Company and a Qualified Person within the meaning of National Instrument 43-101 - Standards of Disclosure of Mineral Projects (“NI 43-101”).

Qualified Person – Quebec

The technical information contained is this presentation pertaining to Quebec properties, (“Kiena Complex and Kiena Deep”) has been approvedand verified by Marc Duscharme, P. Geo, Exploration Manager for the Company and a Qualified Person within the meaning of National Instrument43-101 – Standards of Disclosure of Mineral Projects (“NI-43-01”).

Additional Information

Additional information about each of the mineral projects as required by NI 43-101, including key assumptions, parameters and methods used toestimate the mineral resources presented in respect of the Company’s projects, can be found in Technical Reports filed for each respectiveproperty on SEDAR at www.sedar.com. 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 | 34

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 10.2 68,000

Probable 949,000 9.0 276,000

Eagle Proven + Probable 1,157,000 9.2 344,000

Mishi Open Pit Reserves

Proven 259,000 1.8 15,000

Probable 1,361,000 2.0 87,000

Mishi Proven + Probable 1,620,000 2.0 102,000

• Reserves and Resources as at December 31, 2016. • Mineral Resources exclusive of Mineral Reserves. • The contents of this slide have been verified and approved George Mannard, P. Geo, M.ScA, VP Exploration for the Company and a Qualified Person within

the meaning of NI 43-101• For details, please refer to the Company’s press release dated February 22, 2017 and AIF dated February 22, 2017 available on the Company’s website and

sedar.com

TSX:WDO | 35

Eagle River Parallel Structure Reserve BreakdownStructure Tonnage Grade (gAu/tonne) Contained Ounces

Percentage of P + P Reserve Ounces

Proven and Probable Reserves

No. 8 255,000 10.6 87,000 25%

No. 300 456,000 9.0 132,000 38%

No. 7 310,000 9.2 91,000 27%

Other 136,000 7.8 34,000 10%

Total 1,157,000 9.2 344,000

• Reserves and Resources as at December 31, 2016. • The contents of this slide have been verified and approved George Mannard, P. Geo, M.ScA, VP Exploration for the Company and a Qualified Person within


sedar.com

TSX:WDO | 36


Eagle River Underground Resources

Inferred 327,000 8.1 85,000

Mishi Open Pit Resources

Indicated 3,679,000 2.1 248,000

Inferred 764,000 2.4 59,000

Mishi Underground Resources

Indicated 567,000 4.5 82,000

Inferred 437,000 5.8 81,000

Total M + I Resources 330,000

Total Inferred Resources 225,000

Mineral Resources (2016 Year End)Operating Assets

• Reserves and Resources as at December 31, 2016. • Mineral Resources exclusive of Mineral Reserves. • The contents of this slide have been verified and approved George Mannard, P. Geo, M.ScA, VP Exploration for the Company and a Qualified Person within


sedar.com

TSX:WDO | 37


Kiena Complex Resources

Measured 63,700 4.06 8,300

Indicated 2,439,800 5.62 441,000

Total M + I Resources 2,500,600 5.59 449,300

Total Inferred Resources 1,563,300 7.97 400,400

Moss Lake Resources

Total M + I Resources 39,795,000 1.1 1,377,000

Total Inferred Resources 50,364,000 1.1 1,751,000

Mineral Resources (2016 Year End)Development & Exploration Assets

• Reserves and Resources as at December 31, 2016. • Mineral Resources exclusive of Mineral Reserves• The contents of this slide have been verified and approved by George Mannard, P. Geo, M.ScA, VP Exploration for the Company and a Qualified Person

within the meaning of NI 43-101• For details, please refer to the Company’s AIF dated February 22, 2017 available on the Company’s website and sedar.com

TSX:WDO | 38

2016 Operating Results Operational results – 4th Quarter and Annual

Quarter ended December 31 Year ended December 312016 2015 2016 2015

Eagle tonnes milled 42,607 42,185 170,369 173,189Mishi tonnes milled 30,714 33,100 138,688 132,038Total tonnes milled 73,321 75,285 309,037 305,227Eagle River head grade (g/t) 8.2 9.2 7.9 7.8Mishi head grade (g/t) 1.6 2.3 2.0 2.6

Eagle River underground mill recovery (%) 94.6 94.2 93.5 94.9Mishi Open Pit mill recovery (%) 81.6 79.6 85.4 87.3Eagle ounces produced 10,595 11,625 40,252 41,013Mishi ounces produced 1,292 1,945 7,485 9,457Total ounces produced 11,887 13,570 47,737 50,470Ounces sold 13,490 16,023 48,680 49,804

Average realized price (CAD$/oz)* 1,655 1,474 1,676 1,475Average realized price (US$/oz)* 1,240 1,104 1,265 1,153

Production cash costs (CAD$/oz)* 1,185 1,029 1,194 1,115

Production cash costs/oz (US$/oz)* 888 770 901 872

All-in-sustaining costs (CAD$/oz)* 1,702 1,388 1,707 1,542All-in-sustaining costs (US$/oz)* 1,275 1,039 1,289 1,206

Average 1 USD to CAD exchange rate 1.3344 1.3353 1.3253 1.2790

* Note: Refer to the section entitled “Non-IFRS Performance Measures” in the 2016 Annual Management’s Discussion and Analysis for the reconciliation of these non-IFRS measurements to the Financial Statements

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2016 Financial HighlightsFinancial Results – 4th Quarter and Annual

Quarter ended December 31 Year ended December 31

2016 2015 2016 2015(in $000, except per share amounts)Revenue * 22,166 23,622 84,031 73,465Mine operating profit ** 7,133 7,767 26,036 17,680Net income (loss) 2,352 1,110 7,786 (4,701)Net income adjusted ** 3,047 1,977 7,988 3,186

Basic income (loss) per share 0.02 0.01 0.06 (0.04)

Basic income per share adjusted** 0.02 0.02 0.06 0.03

Cash flows from operating activities 4,976 5,153 19,927 10,055

Cash flows from operating activities adjusted ** 5,671 5,783 20,129 12,771Free cash flow ** (3,735) 2,736 (8,437) (5,719)Cash and cash equivalents 26,760 15,424 26,760 15,424Working capital 15,561 12,507 15,561 12,507

* Revenue for the year ended December 31, 2016 includes $2.4 M gold sales from the Kiena Complex mill cleanup in Q3 2016.**Note: Refer to the section entitled “Non-IFRS Performance Measures” in the 2016 Annual Management’s Discussion and Analysis for the reconciliation of these non-IFRS measurements to the Financial Statements

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2013 Moss Lake – PEA (2.5 M oz. study)

300 m

NE

SW

open

General View of Mineralized Zones Longitudinal and Plan View of Moss Lake Pit

2.5 km

SW NE

open

Highlights• Open pit mine and CIL Processing at 40,000 tpd• Life of mine strip ratio of 2.5 : 1• 10 year mine life averaging 244,000 oz. per year

- years 1-5 average 296,000 oz. per year- years 6-10 average 192,000 oz. per year

• Mill recovery: 79.2% to 84.2% (Gravity – CIL)

• Pre-production Capital: $543 M CDN• Operating costs $17.56 CDN per tonne ($922 per

oz.)• Payback period: 1.75 years• After Tax NPV: $196 M at 5% discount rate• After Tax IRR of 12% (assumes Au price of $1551

CDN)

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2016 Surface Drilling Exploration Program

7 Zone Exploration

• Targeting zone up dip and along strike of existing reserve/ mining block

• 29 wide spaced drill holes testing zone at 200 m centres along productive Mine Diorite

• Drilling coverage: 500 m X 1600 m

Zone 300 Exploration

• Targeting zone up dip and along strike of existing reserve/mining block

• 32 wide spaced drill holes testing zone at 200 m centres along productive Mine Diorite

• Drilling coverage: 300 m X 1600 m

Longitudinal Section Looking North Longitudinal Section Looking North

The contents of this slide have been verified and approved by the Company’s VP Exploration, George Mannard, P. Geo a “Qualified Person” for the purpose of National Instrument 43-101 Standards of Disclosure for Mineral Projects Please refer to Company AIF available on the Company’s website and sedar.com

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2016 Eagle River Exploration Program

220 m Level Plan

• Expanded underground drilling program • First expanded surface exploration program since 1995• 55 wide-spaced surface drill holes targeting untested package of mafic volcanic rocks north

of Mine Diorite and up-dip projection of 300 Zone and 7 Zone

The contents of this slide have been verified and approved by the Company’s VP Exploration, George Mannard, P. Geo a “Qualified Person” for the purpose of National Instrument 43-101 Standards of Disclosure for Mineral Projects Please refer to Company AIF available on the Company’s website and sedar.com

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Eagle River/Mishi Complex Central Ontario

• Located in Hemlo/Wawa Gold Camp

• Celebrating 20 years of production

• 1,000,000+ oz @ 9.1 g/t Au

• Current operations ~800 tpd Mill located adjacent to Mishi open pit deposit (permitted to 1,200 tpd)

• Eagle River underground mine located 15 kms to south

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Kiena Complex Drill Core August 2016

A Solid Foundation for a Promising Future - Wesdome - Home · • 2016 Cash flow from operations...

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Transcript of A Solid Foundation for a Promising Future - Wesdome - Home · • 2016 Cash flow from operations...