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Unnoticed and largely unseen, Wesdome Gold Mines is the little operation near the shores of Lake Superior that just keeps producing.
Since pouring its first gold brick in October 1995, Wesdome has quietly gone about its business, deep in the bush, 50 kilometres west of Wawa.
The company has produced more than a million ounces of gold from its flagship Eagle River, Mishi and Edwards mines (the latter was closed in 2002) with the potential for much, much more.
“We plan to be here for a while,” said George Mannard, Wesdome's vice-president of exploration.
Despite the area's rich mining history in iron ore, Wawa has had a checkered past in gold mining over 100 years. There's been plenty of hype, but few ounces.
“That's one of the reasons we've been fairly quiet, we let the numbers speak for themselves,” said Mannard.
Over the last 16 years, its Eagle River Mine alone has produced more than 858,000 ounces of gold from 2.8 million tonnes milled at an average recovered grade of 9.4 grams gold per tonne. All the production has come from depth of 500 metres or less.
Nearby, its Mishi and Magnacon complex has produced more than 15,500 ounces at a recovered grade of 3.57 grams gold per tonne.
“We've generated over a million ounces out of Wawa, and it's still fairly shallow,” said Mannard.
The camp is south of Puskaskwa National Park and serviced by an access road running off the Trans-Canada Highway. The company also operates a mill capable of processing 1,000 tonnes-per-day.
With a workforce of 190, plus about 30 contractors, the operation draws people on a rotational basis from Wawa, Elliot Lake, Timmins, Sudbury, Sault Ste. Marie and Thunder Bay.
Formerly known as River Gold Mines, the company maintains a field office and assay lab in Wawa.
These days, Wesdome is in the midst of an aggressive exploration program with $4.5 million earmarked for 63,000 metres of drilling at its Wawa camp. It's part of a larger $11.7-million exploration budget outlined for this year on its Ontario and Quebec gold properties.
At Wawa, work is focused on its high-grade 811 Zone in the western part of the mine.
The company is working the Mishibishu greenstone belt, which is 60 kilometres by 15 kilometres, and extends under Lake Superior. The belt was extensively staked in the early 1980s following the Hemlo gold discoveries. Wesdome's land package is 18 kilometres long and four kilometres wide. “We picked up all the best stuff in the late '90s when gold prices were low,” said Mannard.
But deep drilling on the property has been limited.
Mannard said the property's geology is made up of a series of lenses, which is an ore body that is thick in the middle and tapers toward the ends.
Over the years, more than 90 per cent of production came from a depth no shallower than 500 metres. Obviously the potential is there to replenish their reserves.
To date, Mannard said the Eagle River property has yielded 5,000 tonnes per vertical metre, which is about 1,500 ounces of gold per vertical metre, “so it's logical to assume that will continue after 15 years of experience.”
An access ramp has been driven into the central portion of the mine down to the 700-metre level which is being used as an underground drilling platform to explore toward the 811 Zone in the mine's west end.
“When you're drilling from underground, it's about a third of the cost of drilling from surface,” said Mannard. “It's even more efficient if you compare it from deep holes from surface.”
In August, the company found new gold zones in previously untested depths in the central portion of the mine.
“Lo and behold we have new lenses popping with some very strong values,” said Mannard. “The big thing is we're going to get in position to drill the 811, which remains open at depth, in the fourth quarter.”
With gold prices hovering at the US$1,800 an ounce range in mid-September, Wesdome is boosting gold production through its mill by bringing the Mishi Pit, a seasonal producer, into a year-round operation.
Located only two kilometres from the mill, plans call for a five-year mine life.
The pit is pegged to produce an average of 1,000 ounces per month and process more than 710,000 tonnes of ore in that span.
“We're in full pre-production development now,” said Mannard. Mishi will produce its first gold by December.
The expanded operation will create as many as 10 jobs, plus provide work for contractors logging the area, removing overburden and air-track drilling.
Wesdome isn't the only gold producer in the Wawa area.
Rouyn-Noranda's Richmont Mines runs its Island Gold Mine and Mill, 83 kilometres northeast of town.
The company reported more than 25,500 ounces of gold sold in the first six months of this year at a recovered grade of 6.05 grams per tonne.
The miner continues to expand its reserves with ongoing definition and exploration drilling.
Nearby, Vancouver's Prodigy Gold is evaluating the past producing Magino Mine for its open pit potential. The company released a preliminary economic assessment earlier this year in preparation for a feasibilty study scheduled for early 2012.
