Q3 2021 Wesdome Gold Mines Ltd Earnings Call

November 11, 2021

[music].

Okay.

Good morning, and welcome to Whitestone Gold Mines' third quarter financial results Conference call I will now hand, the call over to Heather relaxing to begin today's call.

Great. Thanks, operator, and good morning, everyone as we get under way here, we just like to remind everyone that during this call we will discuss our business outlook and make forward looking statements. These comments are based on our predictions and expectations as of today.

Cool events or results could cause outcomes to differ materially due to a number of risks and uncertainties, including those mentioned in our detailed cautionary note contained in yesterday's press release and in the company's management discussion and analysis dated November 10, 2021, both documents are available on our website and on SEDAR.

Please note that all figures discussed on this call are in Canadian dollars unless otherwise stated.

<unk> used for this presentation and a recording of this call will be posted on the company's website and now it's over to Lindsay Dunlap Vice President of Investor Relations. Thanks, Heather speaking on the call today will be Dunkin' middle Miss President and CEO. Good morning, Scott Gilbert CFO, Good morning, Mark Andre El J C O O.

Good morning, Mike Michelle Vice President exploration.

And also on the call is Raj Gill VP corporate development.

We will begin today with an operational review from Marc Andre followed by a financial overview from Scott then we will proceed with an exploration update from Mike and finally, Duncan will conclude with a summary and outlook Martin. Please go ahead.

Okay.

The Eagle mine from very well during the quarter producing over 23000 ounces a $13 four grams per tonne. Despite some significant downtime for annual mill maintenance and the installation of the new cone crusher.

Year to date.

The Eagles Heber complex, that's produced 76773 ounces and we are very confident in hitting the mid to high point of the 90 to 105000 ounces guidance range.

We are very excited to begin the production from the Balkans Southern zone on 635 meter level.

It provides a new high grade mining horizon Nik.

<unk> grams per tonne and create small kicks liberty team the mining plan for their future.

I mean, she production came from the surface stockpile and will continue in the first half from 'twenty to 'twenty two until the depletion of the stockpile.

[noise] at Cana.

Reduction restart is going well with initial production.

The mine the original structure.

Oh, great as 50 zone.

<unk> 5511 ounces.

We started mining the first stoping the Angel in early Q4 and greatest source of reconciling with expectations.

We expect to achieve yearly production guidance at Keno.

15 to 25000 ounces.

We will continue to ramp up production rate in 2022 achieving full commercial production rates in Q2 2022.

Several of our construction works are ongoing at the mine such as improvement in work at the tailing management area.

Construction of a new baseband and the installation of a new water treatment facility.

We are very happy with the progress we have made so far on those particular projects.

Now over to Scott for a financial review.

Thanks Mark.

The year to date cash cost of $983 per ounce at AFC of 1400 $6 per ounce Canadian are within our guidance ranges.

ASC at Keener of $18 91 per ounce Canadian results from the low production levels as the mine is ramping up production.

Due to a change in Niobrara standards, all pre commercial revenue and costs will be included in the income statement.

Once commercial production is declared ASC is expected to be in mind, what's the cost of the PFS.

Western generated $35 $3 million in cash margin in Q3, 2021, which includes $34 2 million from Eagle River.

Despite the high cash costs at Keener. It also contributed $1 $1 million of cash margin.

Company wide adjusted net income was $18 $2 million 13 per share.

Free cash flow was $9 one.

Julien as we spent $41 1 million on capital, which include $27 5 million for the Kina restart.

Bulk of Makena Capex spending will be finished in <unk> 2022.

We ended the quarter with a cash balance of $69 5 million and are well positioned to fund our Capex program and exploration activities at Ford Eagle River in Cana.

Makena restart has been fully funded internally.

Now over to you Mike.

Scott.

Eagle River shale development is continuing at the Falcons zone and to date has confirmed the high grade nature of this show and the continuity defined by the exploration drilling.

In September we released the initial set of show results, including 62 meter level that yielded 54 grams per tonne over an average thickness of $2 one meters over a strike length of 75 meters. This.

This development will bring another high grade mining front at a reserve grade of over 20 grams per ton and production has already begun in Q4.

The Falcon seven zone confirms the potential of the surrounding that could volcanic rocks to hold sizable deposits organization.

As such the company is continuing to develop and explore the neighboring 311 West zone to this end we started the development of $3 55 meter level exploration drift located along the western margin of the mine to better explore the extension of the 311 zone and also the Falcons zones closer to surface.

<unk> surface drilling is ongoing with two drills, both east and west of the mine to follow up on it almost values returned from regional drilling program in 2020.

Cana drilling continued to focus on the Asia and recently discovered Footwall zone drilling has been slower than usual as a result of the industry wide shortage of skilled drillers. However, we have since implemented measures in order to improve drilling performance going forward.

The Footwall zone is interpreted at several lenses of Goldman organizations located within the 50 meter wide corridor adjacent to the footwall of the <unk> zone.

The Footwall zone runs parallel to the Asia and extends at least 300 meters and remains open laterally and down plunge.

Recent drilling returned 20 grams over nine meters of core life.

Additionally, the recent drilling inside and outside of the current <unk> zone resource block ball shows the potential to expand the current resource estimate one whole returning 132 grams per ton gold over seven meters of Korlym.

As part of our efforts to increase exploration.

We have also moved a diamond drill onto 33 major level on the east side of the Kina mine. This is to better explore a number of historic showings that remain under explored.

We're also pleased with initial surface exploration that returned over 500 grams per tonne over half a meter from the press skills zone and we have now extended the existing mineral resource in this area to a depth of over 300 meters from surface and is now located only 400 meters away from existing mine infrastructure.

The drilling and the Shockey area discovered a new zone called <unk>, which is perpendicular to the general northwest Southeast trend. It consists of course, CT screens with a similar north trended orientation of the nearby <unk> zones.

Any near mine resource has the potential to add additional mill feed.

Great. Thanks, Mike.

This is a very exciting time in the company's evolution from junior to intermediate gold producer.

Eagle River, we have our sights set on increasing our underground high grade production in order to reach the mill capacity in the short term.

So far this year, we have realized an average underground production rate of 650 tons per day of 13, plus gram material.

In 2022, this will ramp up to just above 700 tonnes per day. The Falcon zone discovered just a few years ago outside the mine die right. Now has its first open production, where the reserve grade is almost 20 grams per tonne.

This area is not bottleneck with production restrictions and with additional Falcon stopes coming online through 2022, this will enhance our ability to gradually increase our annual mining rates.

Beginning next year with all production and Wawa coming from the high grade underground mine, we can expect production of over 100000 ounces per year.

With our construction and development progress at Cana, we can see a pathway to an additional 100000 ounces plus per year.

The execution of the plan laid out in our Cana pre feasibility study is going well and we view. This technical report as a base case with the footwall discovery not yet a part of the production scenario.

I believe the Derisking the company with an additional high grade underground gold mine in a tier one jurisdiction is a remarkable event.

On our path to becoming candidates next mid tier gold producer.

We have just outlined our first stope in the zone with very good results with regards to dilution control.

Our plan is to continue mining the use one with another four high grade stopes to come prior to year end.

Our ramp up with manpower and equipment is going well and especially in a challenging and competitive environment.

As stated earlier, we fully expect our unit cost to reduce our Cana as we assume the production profile laid out in our PFS published in June of 2021.

As a reminder, projected costs for makena, PFS or cash cost per ounce of $471 per ounce Canadian and all in sustaining cost of $838 per ounce not including exploration.

I also want to personally thank our friend and colleague Mark Andre Peled shape, there was elected to depart Russ stone for a CEO role.

Mark joined the company in February of 2017 has done a great job in optimizing Eagle River to 100000 ounces of annual production and overseeing the exploration development Technical studies and now startup at Keener amongst all of the additional duties he carried out over the past five years.

I have personally worked with mark often on for nearly 13 years and I can honestly say each day with a joined as I always knew our operations are in capable hands.

And that's what I mean.

I will now open the call up for questions.

Thank you and if you would like to ask a question. Please press star one on your telephone keypad again to ask a question. Please press star one.

And our first question is from Don Demarco of National Bank.

Your line is now open.

Thank you operator, and good morning team first off I'd like to congratulate Mark.

On his new role.

It's a you know you've done a great job at restarting the Kina mail, increasing production at Eagle and I wish you continued success.

My question then is when we look at your your.

Your cost guidance for the year.

And I think it's.

980 to $2 90.

Should we think of that as inclusive of the kina pre commercial production.

Or should we just wait until the <unk>.

Should we exclude it and wait until Kenya's into commercial production before rapidly into our cost averages.

Yeah, absolutely Hey, Don it's Duncan.

No absolutely that is Eagle river ounces only.

We weren't.

Just we the guidance we gave for keener. After it became sort of a firmer with the PFS progress during the year was 15 to 25000 ounces, we feel very confident on that we did not provide cost guidance I mean this whole yeah. My my favorite accounting standard does not Ias 16, I'll just let you know that I mean, the fact that we.

No longer are credit preproduction with revenue from those ounces and have to disclose what that would be on an all in sustaining cost is kind of misleading because obviously, we're not really at a I mean, we only sold 3000 ounces also of Cana. So actually what was remarkable as we still made money on them. So.

Yeah actually its not that I mean, that's actually not about AFC for your first quarter production and it was a low volume of ounces. So yeah, we'll look forward to Q4 and Q1 and so on yeah stressing.

<unk> pre commercial to we have not declared commercial production, we really feel we're going to do that in the second quarter of 2022, Don when you know the Batesville plant gets commission that we have sort of a I'd say a steadier state in terms of production.

Okay. So for 2021 at Eagle, you're sort of approaching the top end of your production guidance next year, we should look forward to a higher throughput 700 tonnes per day plus.

Are there any indications what kind of throughput we might expect out of Cana for the first year.

Yes, it's very much like the PFS.

Hi, Dan it's gonna be.

That's gonna be between 450 to 500 tons per day, So hey coast, maybe slightly higher than the PFS.

Okay, good to hear and so we're looking at the Capex spend on keener and now that you're into.

First production from what we shall we throttled back our capex spend in Q4.

Yeah.

Do you think you're through most of the Capex budget and Makena restart.

No no I don't think so no. We will have we will still have a good capital outlay I'd say in Q1 and Q2 of course, you know probably say we're organically funded I mean, we've got $69 million in the bank.

Our line of credit, which I don't believe we'll ever touch so that's fine.

Right right.

The cash balance is actually up quarter over quarter. Okay. Great. That's all for me thanks, guys.

Right.

Thank you and our next question is from Ralph <unk> of eight capital. Your line is open.

Okay, great. Thanks, operator.

Good morning, Duncan and best wishes in luck to Mark Andre in the future.

I'm kind of I want to ask you about a 311 west and have been taking a look at it and I was just wondering how should we be thinking about it.

Is this part of the story, where we can start to connect the <unk> zone and the Falcons zone or are we testing targets.

And into the volcanics and how far west or are we going to be testing targets.

Spike here.

The 311 parallels the seven zone in the diary. Because then you know the Falcon Sevens out of course, we know now that it joins with the old seven zone in the mine. So right now we've been having some pretty good success, extending the 311 zone through the direct into the volcanic and.

We are testing this we think it's going to be parallel to the.

The 7007 zone as well. So this is why we're putting in that $3 55 meter level development in first it's going to be so we can drill off. This this new three elaborate on call self and 311 right now and also the seven zone and then we can use that development for mining later.

But what I like about it is because.

Now if we have two zones in the volcanic from that area that are up are higher elevations in the mind that really see bottles things.

The bottom part of the mine, but also that development, which is going to go about 500 meters west of the diary puts us out into the volcanic so we can drill more targets from there and certainly we see the <unk> zone extending out there, which is a five zone extending out there.

We've had some some some pretty good hits out there with the surface drilling already we still have a lot more drilling to do but I think that area looks really good to us. So we got us definitely spend a lot of effort out there this year.

Okay, Great, Yes, that's exactly what I was looking for okay.

Okay and should we second question should we expect the footwall zone in the yearend resource update then would it be most correct to assume that you will probably only be able to get 300 meters of down plunge extent into that estimate.

Yeah.

This we certainly our goal is to get.

All of the all of that about 300 meters Footwall zone into a resource I would say just because of the slower drilling that's been done there.

Because we had a shortage of some drillers, which was kind of fixing that problem now, but it's also because it's steepened set about angle.

These long haul so that slowed down the number of drill intersections as well.

We certainly are planning to put in.

A new exploration drift into the footwall, so we'll be able to drill it off and to a loss of extension next year, but for the end of this year.

We're going to certainly try to get all of those al Jazeera, albeit inferred.

We may not get them all but we're certainly that's our goal I mean, we'd like the zone.

We keep drilling into it and hitting gold there so.

We're pretty happy to see how it how big it's going to get and then how we can then incorporate into the mine plan, but.

A lot of that.

You know the sort of the confidence grades and tonnes there probably wont come until maybe next year. After we've got.

The new waste development in the hanging wall. So we can drill it off properly.

Yep Yep, that's excellent okay. Thanks, Paul.

Yeah, I think one of the issues we have here is because the ramp.

It extends down deeper we're going to get better and better drill platforms and so really just.

Alluding to what Mike said, I mean, typically is definitely sort of a down dip drilling at a non ideal angle you definitely want to get a lot more perpendicular to the zone to truly understand its characteristics.

I think that that footwall just to go a long way to salvage without.

Thank you and our next question is from Ryan Walker of Echelon partners. Your line is open.

Hi, guys.

Back to drilling.

You had fairly aggressive or very aggressive programs planned for both mines, where would you say you are in the Grand scheme of thing relative to the initial goals and then I.

I guess, what's in the <unk>.

Hopper is essentially for results you have to come out or in the lab and what we've heard from everyone and their uncle that the liabilities are pretty are pretty extensive right now.

Yeah, we're certainly.

We've done well with surface drilling I would say over the last few months at both at Eagle added Kita. That's why we were able to extend press Gill and that new Borgata zone. So we're happy about that underground at Eagle. The drilling is coming back online I would say that the aggressive plan we had for exploration this year when the drilling meter started.

Fall short because of Covid and whatnot, we kind of pulled in our horns and said, let's get our replace our ounces first but we're going to wind up this year. So we've kind of cut back a little bit on the underground exploration at Eagle.

Certainly on the Kina side.

It's been a bit of a challenge we've certainly made some changes in.

And we're going to continue to drill off that footwall zone.

There.

Okay, Great and then just in terms of their stuff in the lab now we'll see over the next several weeks.

In the interim.

Yes, we've had some results back from Makena Footwall zone.

So it might be making a release on that later, making before Christmas.

Certainly we have some some some hits to an eagle that we want to probably get out there within the next few weeks.

Sure as well, but yes, we do we did have some results coming in and I think it was up slow part we went through in the summer with the drilling problems I think that that's getting corrected now so we'll have more steadier news flow as we go forward here.

Great. Thanks, that's it for me.

Great. Thanks, Brian.

Thank you.

There are no further questions at this time. This concludes today's conference call. Thank you for participating you may now disconnect.

Thank you.

Yeah.

Okay.

Yes.

Sure.

Okay.

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Good morning, and welcome to West Elm Gold Mines' third quarter financial results Conference call I will now hand, the call over to Heather relaxing to begin today's call.

Great. Thanks, operator, and good morning, everyone as we get underway here and we just like to remind everyone that during this call. We will discuss our business outlook and make forward looking statements. These comments are based on our predictions and expectations as of today actual events or results could cause outcomes to differ materially due to a number of risks and uncertainties.

Including those mentioned in our detailed cautionary note contained in yesterday's press release and in the company's management discussion and analysis. They didn't November 10th 2021, both documents are available on our website and on SEDAR.

Note that all figures discussed on this call are in Canadian dollars unless otherwise stated.

The slides used for this presentation and a recording of this call will be posted on the company's website and now it's over to Lindsay Dunlap Vice President of Investor Relations. Thanks, Heather speaking on the call today will be Dunkin' middle Miss President and CEO. Good morning, Scott Gilbert CFO, Good morning, Marc Henri Paul J C O O.

Good morning, Mike Michelle Vice President exploration and also on the call as Raj Gill VP corporate development.

We will begin today with an operational review from Marc Andre followed by a financial review from Scott. Then we will proceed with an exploration update for Mike and finally, Duncan will conclude with a summary and outlook Martin. Please go ahead.

Thank you.

Do you go to the upper mines performed very well during the quarter producing over 23000 ounces a 13 four grams per tonne. Despite some significant downtime for annual mill maintenance and the installation of the new cone crusher.

Year to date.

The Eagles Heber complex US produced 76773 office and we are very confident in hitting the mid to high point of the 90 to 105000 ounces guidance range.

We are very excited to begin the production from the <unk> zone on 635 meter level.

It provides a new high grade mining horizon, and you have 20 grams per tonne and create small flexibility in the mining plan for the future.

I mean, she production came from the surface stockpile and will continue in the first half of 2020 two until the depletion of the stockpile.

Yeah.

Tina.

That's shown the restart is going well with initial production.

The mine the original structure, so lower grade <unk> zone.

<unk> 5511 ounces.

We started mining the first stoping as all in early Q4 and greatest herself reconciling with expectations.

We expect to achieve yearly production guidance at Keno.

15 to 25000 ounces.

We will continue to ramp up production rate in 2020 to achieving full commercial production rates in Q2 2022.

Several construction works are ongoing at the mines such as improvement in work at attaining management area.

Construction of a new baseline.

And the installation of a new water treatment facility.

Yes.

We are very happy with the progress we have made so far on those particular projects.

Now over to Scott for a financial review.

Thanks Mark.

Eagle River, a year to date cash cost of $983 per ounce at AFC of $14 $6 per ounce Canadian are within our guidance ranges.

At the at Keener up $18 91 per ounce Canadian results from the lower production levels as the mine is ramping up production.

Due to a change in <unk> standards are pre commercial revenue and costs will be included in the income statement once.

Once commercial production is declared ASC is expected to be in line with the costs in the PFS.

Western generated $35 $3 million in cash margin in Q3, 2021, which includes $34 2 million from Eagle River.

Despite the high cash costs at Keener. It also contributed $1 $1 million of cash margin.

Companywide adjusted net income was $18 2 million or <unk> 13 per share free cash outflow was $9 one.

As we spent $41 1 million.

Capital, which includes $27 5 million.

Restart.

Makena Capex spending will be finished in <unk> 2022.

We ended the quarter with a cash balance of $69 5 million and are well positioned to fund our Capex program and exploration activities at Ford Eagle River in Cana.

Makena restart has been fully funded internally.

Now over to you Mike.

Scott.

Legal River shale development is continuing at the <unk> zone and to date has confirmed the high grade nature of this zone and the continuity defined by the exploration drilling.

In September we released the initial set of <unk> results, including 62 meter level that yielded 54 grams per tonne over an average thickness of $2 one meters over a strike length of 75 meters.

This development will bring another high grade mining front at a reserve grade of over 20 grams per ton and production has already begun in Q4.

The Falcon <unk> zone confirms the potential of the surrounding that could not panic rocks to host sizable deposits authorization.

As such the company is continuing to develop and explore the neighboring 311 West zone.

To this end we started to development on $3 55 meter level exploration drift located along the western margin of the mine to better explore the extension of the 311 zone and also the Falcons zones closer to surface.

Also surface drilling is ongoing with two drills, both east and west of the mine to follow up on an almost values returned from regional drilling program in 2020.

Gina drilling continued to focus on the Asia and recently discovered Footwall zone drilling has been slower than usual as a result of the industry wide shortage of skilled drillers. However, we have since implemented measures in order to improve drilling performance going forward.

The Footwall zone is interpreted as several lenders of Goldman organizations located within the 50 meter wide corridor adjacent to the whole wall of the <unk> zone. The Footwall zone runs parallel to the ASR and extends at least 300 meters and remains open laterally and down plunge.

Recent drilling returned 20 grams over nine meters of core life.

Additionally, the recent drilling inside and outside of the current Azonal resource block model shows the potential to expand the current resource estimate one whole returning 132 grams per ton gold over seven meters of Korlym.

As part of our efforts to increase exploration. We have also moved to diamond drill onto 33 major level on the east side of the Cana mine. This is to better explore a number of historic showings that remain under explored.

The drilling and the Shockey area discovered a new zone called Borgo, which is perpendicular to the general northwest Southeast trend. It consists of course, CT screens with a similar north trended orientation of the nearby <unk> zones.

Any near mine resource has the potential to add additional new low fee.

To you Duncan great. Thanks, Mike.

This is a very exciting time in the company's evolution from junior to intermediate gold producer.

Eagle River, we have our sights set on increasing our underground high grade production in order to reach the mill capacity in the short term.

So far this year, we have realized an average underground production rate of 650 tons per day of 13, plus gram material.

In 2022, this will ramp up to just above 700 tons per day, but Falcon zone discovered just a few years ago outside the mind irate now has its first open production, where the reserve grade is almost 20 grams per tonne.

This area is not bottleneck with production restrictions and with additional Falcon stopes coming online throughout 2022, this will enhance our ability to gradually increase our annual mining rates.

Beginning next year with all production and Wawa coming from the high grade underground mine, we can expect production of over 100000 ounces per year.

With our construction and development progress Sakena, we can see a pathway to an additional 100000 ounces plus per year.

I believe the Derisking the company with an additional high grade underground gold mine in a tier one jurisdiction is a remarkable event.

On our path to becoming Canada's next mid tier gold producer.

We are just now in mind, our first stope in the <unk> zone with very good results with regards to dilution control.

Our plan is to continue mining the USO with another four high grade stopes to come prior to year end.

Our ramp up with manpower and equipment is growing well and especially in a challenging and competitive environment.

As stated earlier, we fully expect our unit cost to reduce the kina as we assume the production profile laid out in our PFS published in June of 2021.

As a reminder, projected costs for makena, PFS or cash cost per ounce of $471 per ounce Canadian and all in sustaining cost of $838 per ounce not including exploration.

I also want to personally thank our friend and colleague Mark Andre <unk>, who was elected to depart Rostov for a CEO role.

Mark joined the company in February of 2017 has done a great job in optimizing Eagle River to 100000 ounces of annual production and overseeing the exploration development Technical studies and now startup at Cana amongst all of the additional duties he carried out over the past five years.

I have personally worked with mark often on for nearly 13 years and I can honestly say each day was enjoying as I always knew our operations are in capable hands.

That's what I mean.

I will now open the call up for questions.

Thank you and if you would like to ask a question. Please press star one on your telephone keypad.

Again to ask a question please press star one.

And our first question is from Don Demarco of National Bank Finance.

Your line is now open.

Thank you operator, and good morning team first off I'd like to congratulate Mark.

On his new role.

You've done a great job at restarting the Kina mail, increasing production at Eagle and I wish you continued success.

My question on <unk>.

When we look at your your.

Your cost guidance for the year.

And I think it's.

980 to $2 90.

Should we think of that as inclusive of the kina pre commercial production.

Or should we just wait until the.

Should we exclude it and wait until Kenya's into commercial production before rapidly into our cost averages.

Yeah, absolutely Hey, Dan It's Duncan no absolutely that is Eagle River ounces only.

We were.

We the guidance we gave for keener after it became sort of familiar with the PFS progress during the year was 15% to 25000 ounces and we feel very confident on that we did not provide cost guidance I mean this whole yeah.

My favorite accounting standard does not Ias 16, I'll, just let you know that I mean, the fact that we no longer credit preproduction with revenue from those ounces and have to disclose what that would be on an all in sustaining costs.

Leading because obviously, we're not really at a I mean, we only sold 3000 ounces also of Makena. So actually what was remarkable as we still made money on them. So.

Yeah actually its not that I mean, that's actually not about AFC for your first quarter production and it was a low volume of ounces. So yes, we will look forward to Q4 and Q1 zone.

Stressing pre commercial to we have not declared commercial production, we really feel we're going to do that in the second quarter of 2020 to dawn win.

<unk> plant is commissioned and we haven't sort of I'd say, a steadier state in terms of production.

Okay. So for 2021 at Eagle Youre sort of approaching the top end of your production guidance next year. We can look forward to a higher throughput 700 tonnes per day plus.

Are there any indications what kind of throughput we might expect out of Cana for the first year.

Yes, it's very much like the PFS.

Hi, Dan it's going to be.

It's going to be between $4 50 to 500 tons per day, So hey coast, maybe slightly higher than the PFS.

Okay, good to hear and so we're looking at the Capex spend on keener and now that you're into.

First production zone, where we shall we throttled back our capex spend in Q4.

Do you think you're through most of the Capex budget and Makena restart.

No I don't think so no. We will have we will still have a good capital outlay I'd say in Q1 and Q2 of course proudly say, we're organically funded I mean, we've got $69 million in the bank.

Our line of credit, which I don't believe we'll ever touch so satisfied.

Right and the cash balance is actually up quarter over quarter. Okay. Great. That's all for me thanks guys.

Great.

Thank you and our next question is from Ralph <unk> of eight capital. Your line is open.

Okay, great. Thanks, operator.

Good morning, Duncan and best wishes in luck to Mark Andre in the future.

Duncan I wanted to ask you about.

The three one onewest and I'm, taking a look at it and I was just wondering how should we be thinking about it.

Is this part of the story, where we can start to connect the <unk> zone and the Falcons zone or are we testing targets.

You know into the volcanic sand how far west are we going to be testing targets.

Spike here.

The 311 parallels the seven zone in the diary there than the Falcon <unk> zone of course, we know now that it joins with the old <unk> zone in the mine. So right now we've been having some pretty good success, extending the 311 zone through the direct into the volcanic and.

We're testing this we think it's going to be parallel to the.

The 7007 zone as well. So this is why we're putting in that $3 55 meter level development in first it's going to be so we can drill off. This this new three elaborate on call Cellcom 311 results right now and also the <unk> zone and then we can use that development for mining later add.

But what I like about it is because now we have two zones in the volcanic from that area that are up are higher elevations in the mine.

The bottles things.

Part of the mine.

Also that development, which is going to go about 500 meters west of the direct pushes out into the volcanic so we can drill more targets from there and certainly we see the <unk> zone extending out there we see the <unk> zone extending out there and.

And we've had some some some pretty good hits out there with the surface drilling already we still have a lot more drilling to do but I think that area looks really good to us. So we got us definitely spend a lot of effort out there this year.

Okay, Great, Yes, that's exactly what I was looking for.

Yes.

This we certainly our goal is to get.

All of the all of that about 300 meters Footwall zone into a resource I would say just because of the slower drilling that's been done there.

Because we had a shortage of some drillers, which we've kind of fixing that problem now, but it's also because it's deeper and set about angle.

These long haul so that slowed down the number of drill intersections as well.

We certainly are planning to put in.

A new exploration drift into the footwall, so we'll be able to drill it off and drill off its extension next year, but for the end of this year.

Certainly tried to get all those al Jazeera, albeit inferred we.

We may not get them, all but we're certainly that's our goal.

We like the zone.

We keep drilling into it and hitting gold there so.

We're pretty happy to see how it how big it's going to get and then how we can then incorporate into the mine plan, but.

A lot of that.

Sort of the confidence grades and tonnes there probably wont come until maybe next year. After we've got.

No.

New waste development and in the hanging wall. So we can drill it off properly.

Yep Yep, that's excellent okay. Thanks al.

Yes, I think one of the issues. We have here is because of the ramp.

It extends that'll deeper we're going to get better and better drill platforms and so really just.

Alluding to what Mike said, I mean, typically is definitely sort of a down depth drilling at non ideal angle you definitely want to get a lot more perpendicular to the zone.

Truly understand its characteristics so.

I think that that footwall just to go a long way to valve is about.

Yes.

Thank you and our next question is from Ryan Walker of Echelon partners. Your line is open.

Hi, guys.

Back to the drilling.

You had fairly aggressive or very aggressive programs planned for both mines, where would you say you are in the Grand scheme of thing relative to the initial goals and then I.

I guess, what's in the Hopper and essentially for results you have to come out or in the lab and what we've heard from everyone and their uncle that the liabilities are pretty are pretty extensive right now.

Yes, we're certainly.

We've done well with surface drilling I would say over the last few months at both at Eagle added Keener. That's why we were able to extend <unk> in that new Borgata zone. So we are happy about that underground at Eagle. The drilling is coming back online I would say that the aggressive plan we had for exploration this year when the drilling meters started.

Fall short because of Covid and whatnot, we kind of pulled in our horns and said, let's get our let's replace our ounces first that we're going to end up this year. So we've kind of cut back a little bit on the underground exploration at Eagle.

Certainly on the.

Makena side.

Sure.

And a bit of a challenge we've certainly made some changes in.

We're going to continue to drill off that footwall zone.

There.

Okay, Great and then just in terms of is there stuff in the lab now.

See you over the next several weeks.

In the interim.

Yes, we've had some results back from Makena Footwall zone.

So it might be making a release on that later, making before Christmas.

Certainly we have some some some hits to at Eagle that we want to probably get out there within the next few weeks.

Sure as well, but yes, we do have some results coming in and I think it was up slow part we went through in the summer with the drilling problems I think that thats getting corrected now so we'll have more steadier news flow as we go forward here.

Great. Thanks, that's it for me.

Great. Thanks, Brian.

Thank you and there are no further questions at this time. This concludes today's conference call. Thank you for participating you may now disconnect.

Thank you.

Yeah.

Q3 2021 Wesdome Gold Mines Ltd Earnings Call

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