The Chinese translation is being made; the original is shown for now.
查看配图Partial view of the Eagle River mine site. Credit: Wesdome Gold Mines.
Wesdome Gold Mines (TSX: WDO; US-OTC: WDOFF) has extended gold mineralization near existing workings at its Eagle River mine in Ontario, opening potential mining areas that could require less development to reach.
Hole 26-925-10 in the western extension of the 800 zone cut 10.6 metres grading 8.25 grams gold per tonne from 298.8 metres depth, while work in the shallower 700 zone outlined a potential 200-by-100-metre expansion area beyond the resource model, Wesdome said in a release Monday. The results will feed into a reserve and resource update in the first half of 2027.
“Results are incrementally positive and outline high-grade gold in less explored and shallower parts of the mine, supporting mine life extension,” RBC Capital Markets mining analyst Harrison Reynolds said late Monday in a note. “Several zones returned high grades over meaningful widths near existing infrastructure, which could translate into lower-cost mineable ounces with less incremental development capital.”
The discoveries offer a potential lower-cost route to growth as Wesdome seeks to use spare mill capacity and offset easing grades in its mine plan. The latest results strengthen the case for growth across several zones at Eagle River, about 50 km west of Wawa, National Bank of Canada Capital Markets mining analyst Don DeMarco said in a note Monday evening.
Shares of Wesdome dropped 1.2% to $25.80 Tuesday morning in Toronto, valuing the company at about $3.7 billion (US$2.6 billion). They’ve traded between $19.48 and $37.22 over the past year.
Wider intervals
Other drill results released Monday include hole 26-925-03, which cut 8 metres at 8.3 grams from 262.7 metres depth with no change after capping. The reported intervals are core lengths rather than true widths.
The western extension adds lateral growth potential to earlier evidence that the 800 zone continues at depth, DeMarco said. A previously released surface drill hole intersected mineralization more than 200 metres below the existing zone model, outlining a corridor for further testing in 2027.
“Together these areas could give us more options for where and when we mine. This is growth we can pursue from an operating mine, without the cost or complexity of a greenfield project,” CEO Anthea Bath said.
Elsewhere, drilling between the 800 and 6 Central zones confirmed mineralization first identified in 2025 in drill holes located less than 10 metres from an active ramp. Follow-up work is planned for the first quarter of next year, Wesdome said.
Six growth drill holes in the 700 zone outlined the interpreted expansion area, while other drilling tested the continuity of known mineralization. Four underground exploration drills will continue testing extensions through year-end and into 2027.
Wesdome’s Canadian operations, strong balance sheet and expected free cash flow support spending on exploration and efforts to increase mill utilization, DeMarco said as he maintained his outperform rating and $41 target. Lower grades in the mine plan and the company’s valuation premium remain counterweights to that outlook.
Replacing mined gold
The drilling follows a June update that extended reserve life to eight years at both Eagle River and the Kiena mine in Quebec. Eagle River held 2.9 million proven and probable tonnes grading 7.3 grams gold per tonne for 676,000 oz. as of Dec. 31, 2025.
Wesdome is pursuing a similar strategy at Kiena, where it is testing mineralization close to existing infrastructure while seeking production gains from additional mining areas and operating improvements.
The near-term task is delivering a stronger fourth quarter. Wesdome produced 41,287 oz. in the three months to Sept. 30, missing the 50,500 oz. consensus estimate cited by BMO Capital Markets mining analyst Andrew Mikitchook in an Oct. 13 note.
Eagle River’s throughput rose 10% from the previous quarter, lifting production 13%, Mikitchook said. But blending development and early production ore from Kiena’s Presqu’île zone reduced Kiena’s average grade, weighing on group output.
Wesdome maintained annual guidance of 180,000–205,000 oz., while expecting to finish below the midpoint. That implies roughly 50,000–62,000 oz. in the fourth quarter, compared with its previous quarterly record of about 50,500 oz., Canaccord Genuity said in an Oct. 14 summary of mining analyst Jeremy Hoy’s research.
The company will report third-quarter financial results after markets close on Wednesday.