July Building Canada s Next Mid-Tier Gold Producer

Transcription

1 July 2018 Building Canada s Next Mid-Tier Gold Producer

2 Cautionary Statements Forward-Looking Information This presentation contains statements or information concerning the business, operations and financial performance and condition of Wesdome Gold Mines Ltd. ( Wesdome or the Company ) which constitute forward-looking statements or information (collectively, forward-looking statements ) within the meaning of applicable Canadian securities legislation. Forward-looking statements relate to future events or the anticipated performance the Company and reflect management s expectations or beliefs regarding such future events and anticipated performance as of the date of this presentation. Forward-looking statements include, but are not limited to, statements with respect to the timing and 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 of permits. 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 certain actions, 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, that contribute to the possibility that the predicted outcomes could differ materially from those contained in such statements. These risks and uncertainties include, but are not limited to, fluctuations in prices of commodities, fluctuations in currency markets, actual results of additional exploration 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 or processes to operate as anticipated, accidents, or labour disputes. Risks and uncertainties about Wesdome s business are more fully discussed in the disclosure material filed with the securities regulatory authorities in Canada and available on SEDAR under the Company s profile at Readers are urged to read these materials and should not place undue reliance on the forward-looking statements contained in this presentation. Wesdome assumes no obligation to update the forward-looking information relating to beliefs, opinions, projections, or other factors, should they change, except as required by applicable securities laws. TSX:WDO 2

3 Wesdome Gold Mines Ltd. Proven building blocks to increase shareholder value New high-grade gold discovery in permitted, dewatered former producing mine Low risk expansion of existing mines in proven mining camps Assets in top rated jurisdictions Ontario and Quebec TSX:WDO 3

4 Corporate Structure Symbol TSX:WDO Shares Outstanding M Options and RSU s 7.2 M Warrants 0 Fully Diluted M 52 Week High/Low $3.46/$1.64 (Average daily volume 650,000 shares) Market Capitalization $440M ($3.29 July 16, 2018) Cash Position $26.5 M (May 1, 2018) No Debt Management and Directors 2.2% Analyst Coverage BMO Capital Markets Clarus Securities Desjardins Capital Markets Echelon Wealth Partners Eight Capital Partners Industrial Alliance Laurentian Bank Mackie Research National Bank Financial PI Financial Major Shareholders 1832 Asset Management, Van Eck, Oppenheimer, Royal Bank Investment Management, Mackenzie Financial, US Global, Gabelli TSX:WDO 4

5 Share Price Performance Six Month Three Year TSX:WDO 5

6 Canadian Gold Company with Three 100% Owned Projects Over 30 years of continuous gold production 2017 earned mine profit $31.5 M (41% increase over 2016) 2017 operating cash flow $27.2 M or $0.20/share (21% increase over 2016) 2017 Eagle River Complex production: 58,980 ozs from 2 high grade mines (24% increase over 2016) Eagle River head grades 10.6 g/t (2016: 7.8 g/t) 2018 Guidance: 62,000 68,000 ozs (H1 2018: 34,576 ozs) Drilling High grade discovery at Kiena Complex Eagle River Complex, Wawa, Ont. Operating Mine Complex, two deposits feed central ~850 tpd Past Prod.: 1.1 M oz Reserves: P&P 518,000 oz Resources: M&I 342,000 oz, Inf. 225,000 oz Kiena, Val d Or, Quebec Production Suspended 2013 Past Prod.: 1.75 M oz Resources: M&I 450,000 oz, Inf. 400,000 oz Fully Permitted Mine/Mill Complex on Standby Moss Lake, Thunder Bay, Ont. Open Pit Gold Deposit Resources: Indicated 1.4M oz, Inferred 1.7M oz TSX:WDO 6

7 Corporate Strategy: Build Canada s Next Intermediate Gold Producer Near Term: STRENGTHEN Eagle River Development of high grade zones Operational improvements, cost reduction Kiena Kiena Deep discovery Aug ,000 metre drill program from recently completed exploration ramp Long Term: EXPLORE Eagle River 7 and 300 zones remain open Near mine exploration ongoing Kiena Airborne mag survey completed on large Kiena land package Explore other targets on land package such as Wesdome property and former Siscoe Mine Objective: BUILD 2 MINES Diversify from single asset producer to 2 mines, one in Ontario and one in Quebec Increase production to 150, ,000 ounces per year, decrease costs and increase cash flow TSX:WDO 7

8 2018 Guidance: Production to Increase by 10%, Costs to Reduce by 10% Amounts are denominated in Canadian Guidance dollars Gold production Eagle River Mishi Head grade (g/t) 55,000 59,000 ounces 7,000-9,000 ounces 62,000 68,000 ounces Eagle River Mishi Operating cost per ounce 1 $950 - $1,025 US$750-US$800 All-in sustaining cost per $1,400 - $1,475 ounce 1 US$1,100 US$1,160 1 Operating cost per ounce and All-in sustaining cost per ounce are non-gaap measures, please reference the Company s management discussion and analysis for the period ended September 30, 2017 filed on SEDAR for their calculations. TSX:WDO 8

9 H Operating Results Amounts are denominated in Canadian dollars Second Quarter Year-to-Date Variance % +/(-) Variance % +/(-) Ore milled (tonnes) Eagle River 43,378 34,960 8,418 24% 87,858 73,538 14,320 19% Mishi 25,233 39,117 (13,884) (35)% 58,079 75,758 (17,679) (23)% 68,610 74,077 (5,467) (7)% 145, ,296 (3,359) (2)% Head grade (grams per tonne, g/t ) Eagle River % % Mishi % % Gold production (ounces) Eagle River 14,767 10,597 4,170 39% 31,166 24,185 6,981 29% Mishi 1,860 1,932 (72) (4)% 3,411 3,506 (95) (3)% Total Gold Production 16,628 12,529 4,099 33% 34,576 27,691 6,885 25% Amounts are denominated in Canadian dollars Second Quarter Year-to-Date Variance % +/(-) Variance % +/(-) Production sold (ounces) 18,573 13,030 5,543 43% 34,003 25,350 8,653 34% Revenue from gold sales ($ millions) 2 $31.4 $23.2 $8.2 35% $57.6 $43.3 $ % Average realized price per ounce 3 $1,692 $1,715 ($23) (1)% $1,694 $1,674 $20 1% TSX:WDO 9

10 Q Financial Results (Q August 1) in $000s Three months ended March 31, Increase /decrease Revenues $ 26,217 $ 20,100 30% Expenses Cost of sales 18,764 16,118 16% Corporate and general 1,077 1,431 (25%) Share-based payments Kiena care and maintenance % Write-off of mining equipment ,445 18,634 15% Operating income 4,772 1, % Other expenses (111) (331) (66%) Income before income and mining taxes 4,661 1, % Mining and income tax expense 1, % Net income $ 2,859 $ % Operating cash flows $ 12,423 $ 4,318 Free cash flows 1 $ 3,216 $ (5,942) 1 Refer to the section entitled Non-IFRS Performance Measures for the reconciliation of these non-ifrs measurements to the financial statements. TSX:WDO 10

11 Cash Flow Projections and Gold Price Sensitivity TSX:WDO 11

12 Mineral Reserves (2017 Year End) 21% increase in Eagle River ounces; grade increased by 32% Reserves and Resources as at December 31, Mineral Resources exclusive of Mineral Reserves. The contents of this slide have been verified and approved by Michael Michaud, P. Geo, VP Exploration for the Company and a Qualified Person within the meaning of NI For details, please refer to the Company s press release dated February 26, 2018 and AIF dated March 21, 2018 available on the Company s website and sedar.com TSX:WDO 12

13 Exploration: Two Properties Attain Highest Grade Hits in 2017 Source: Mining Intelligence/Mining.com TSX:WDO 13

14 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 2017 Production: 50,996 ounces (152, g/t) 7 Zone Surface TSX:WDO 14

15 Eagle River Parallel Gold Zones Remain Open open open 4200 elev 4200 elev open Section 9400E (looking west) Section 9400E (looking west) Discovery of two new parallel gold zones in 2013 Exploration in leads to reserve growth with expanding potential within mine footprint Mining of 300 Zone began in Q3 2015, 7 Zone in production since Q Recent widths at 300 North and 303 East Zones wider than previously encountered 100 m open TSX:WDO 15

16 Eagle Drilling to Diversify Production Locations Longitudinal Section Looking North Untested Potential in Parallel Zones 300 Zone West Eu-778: g/t over 2.0 m CL EU-779: g/t over 2.4 m CL EU-780L 79.1 g/t over 3.5 m CL EU-781: 65.2 g/t over 4.0 m CL EU-782: g/t over 2.5 m CL 300 Zone East North Lens (New) : 8.6 g/t over 32.4 m TW : 14.7 g/t over 11.5 m TW Main Lens: g/t over 7.5 m TW : 12.2 g/t over 3.5 m TW : 49.9 g/t over 1.8 m TW 303 East Lens (New) 844-E-27: gau/t uncut (19.03 gau/t cut) over m true TW 844-E-28: gau/t uncut (13.36 gau/t cut) over m TW 7 Zone EU-759W: 20.4 g/tau over 5.6 m CL EU-782: 29.5 g/tau over 3.0 m CL EU-783: g/tau over 2.7 m CL TSX:WDO 16

17 Eagle River Parallel Structure Reserve Breakdown Structure Tonnage Grade (gau/tonne) Contained Ounces Percentage of P + P Reserve Ounces Proven and Probable Reserves No , ,000 17% No , ,000 53% No , ,000 23% Other 112, ,000 7% Total 1,059, , % Reserves and Resources as at December 31, The contents of this slide have been verified and approved by Michael Michaud, P. Geo, M.ScA, VP Exploration for the Company and a Qualified Person within the meaning of NI For details, please refer to the Company s press release dated February 26, 2018 and AIF dated March 21, 2018 available on the Company s website and sedar.com TSX:WDO 17

18 New Production Area: 303 E Lens Discovered January 2017 High-grade intercepts at significantly higher widths than previously mined Structure currently traced from 750 metres depth to 1,000 metres depth Remains open Production commenced late Q TSX:WDO 18

19 Latest Drifting Results 300E Structure 864 m Level m of strike length/2.8 m average width/19.6 g/t Au cut/28.3 g/t Au uncut TSX:WDO 19

20 7 Zone Drifting Results - Strike Length Increasing with Depth Drifting Highlights Level Grade Uncut (g/t Au) Grade Cut (g/t Au) Widt h (m) Strike Lengt h (m) Release Date May 31, September 15, E November 30, W November 30, Combined November 30, E November 30, W November 30, Combined November 30, E March 27, W March 27, Combined March 27, E March 27, W March 27, Combined March 27, 2018 TSX:WDO 20

21 2017 Mishi Exploration: Drilling Extends Zone to West Exploration Highlights 2016 reconnaissance drilling program 2017 Exploration: 28,000 m of drilling following up on two targets, 600 m and 1700 m West of pit - resource delineation 2018: Conducting Mishi study in Q2 600 m West of Pit 1.95 g/t over 29.8 m TW 3.08 g/t over 15.5 m TW 3.48 g/t over 17.7 m TW 2.14 g/t over 22.1 m TW 2.52 g/t over 18.8 m TW 2.38 g/t over 11.9 m TW 1,700 m West of Pit 4.28 g/t over 13.5 m TW* 0.60 g/t over 31.3 m TW 1.89 g/t over 32.9 m TW 1.10 g/t over 31.6 m TW * 2016 drilling TSX:WDO 21

22 Kiena Complex, Val d Or, Quebec Mine on care and maintenance since mid ,000 TPD permitted mill 930 Metre shaft Ramp system to 1000 m Underground de-watered Past production ,500, g/t = 1.75 M ounces produced TSX:WDO 22

23 Kiena Complex Location, Location, Location! TSX:WDO 23

24 Kiena Complex Regional Geological Potential Wesdome Deposit 0.4 M oz Resource Siscoe Mine 0.9 M oz prod Presqu ile Deposit 0.1 M oz Resource Kiena Deep Kiena Mine 1.8 M oz TSX:WDO 24

25 Kiena Deep Discovery Why Kiena Deep: Large Regional Structures Multiple zones of ductile and brittle deformation for openings for Au Ultramafic contact tends to pool liquids TSX:WDO 25

26 Kiena Exploration Ramp and Current Drill Targets Kiena Deep A Zone drilling Kiena Ramp Construction announced May 3, 2017 Estimated cost $7.6 M completed under budget Drilling underway: 25 x 25 metre spacing 40,000 metres underground from ramp 10,000 metres underground on auxiliary zones Goal to establish Indicated Resources by Q4 TSX:WDO 26

27 Kiena Deep A Zone Drilling Confirms Presence of Three High Grade Lenses TSX:WDO 27

28 Extended Ramp Development and Recent Results TSX:WDO 28

29 VC Zone Near-Term Production Potential Highlights include: g/t or (17.70 g/t cut to g/t) over 5.6 m true width in hole g/t or (8.56 g/t cut to g/t) over 3.0 m true width in hole g/t (9.26 g/t cut) over 3.0 m true width in hole 6208 VC Zones Important Aspect of restart program TSX:WDO 29

30 One Drill Focused on Auxiliary Zone Drilling VC Zone North Extension S50 South Zone Extension TSX:WDO 30

31 Moss Lake - Coldstream Acquisition April 2016 Dominant land holdings, 36 km along Shebandowan Gold Belt containing four deposits open for expansion Moss Lake Deposit remains open Pit and Mineral Resource constrained by property boundary 2017 drilling extends strike length mineralization from 2kms to 4.5 kms Geophysical expression (IP) extends over a strike length of 8 kms Potential to significantly add to resources TSX:WDO 31

32 2018 Exploration Summary Sustained Investment $10.8 M Exploration Drilling Budget Eagle: 3 Underground Drills 1 Surface Drill (Summer) Kiena: 3-4 Underground 1 Surface Drill (Summer) Property 2018 Metres 2017 Metres 2016 Metres 2015 Metres Eagle Underground Exploration Drilling Eagle River Underground Definition Drilling 25,000 24,000 27,000 22,000 25,000 35,000 32,000 20,000 Eagle Surface Exploration Drilling 5,000 15,000 25,000 0 Mishi Exploration Drilling 0 15,000 25,000 5,000 Kiena Complex 62,000 45,000 10,000 0 Moss Lake 0 25,000 4,000 0 Total 117, , ,000 47,000 TSX:WDO 32

33 Summary LOW RISK: Expansion of existing mines in proven mining camps LOW CAPEX: Kiena: New gold discovery in existing, permitted, dewatered former producing mine HIGHLY EXECUTABLE: Eagle River: new highgrade parallel zones close to infrastructure Aggressive Exploration Programs in Wawa and Val d Or Pipeline of development projects Operations in safe jurisdiction, Canada Experienced Management team with proven track records TSX:WDO 33

34 Appendix

35 Executive Management Team Duncan Middlemiss, P. Eng Chief 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 Ben Au, CPA, CA Chief Financial Officer Marc-Andre Pelletier, P.Eng Chief Operating Officer Michael Michaud, P.Geo VP, Exploration Lindsay Carpenter Dunlop VP, Investor Relations Stacy Kimmett VP, Human Resources Heather Laxton Corporate Secretary & CGO Vincent Ramcharan, P.Eng Director of Sustainability - Over 35 years of experience in financial management and reporting, regulatory compliance, M&A, and P&L management - Over 11 years at Agnico Eagle Mines in increasingly senior financial reporting roles - Most recently Chief Financial Officer of St Andrew Goldfields Ltd until its acquisition by Kirkland Lake Gold - Professional engineer with over 20 years experience in operating gold mines in Canada - Over 9 years at Barrick Gold in increasingly senior operational management roles - Most recently VP Operations at St Andrew Goldfields until its acquisition by Kirkland Lake Gold - Professional geologist with over 30 years experience in domestic and international gold exploration and mining - Former Principal of SRK Consulting Inc - Most recently Chief Geologist at Iamgold - 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 - Over 20 year experience in human resources focusing on policy development, compliance, and change management - Most recently Sr. Director, Human Resources at St Andrew Goldfields - 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 - Professional engineer with 20+ years mining experience in operations, construction, sustainability, environment, indigenous peoples, and permitting - Corporate and management experience with Cliffs, International Minerals, SNC-Lavalin(for Barrick, Inmet, BHP, Sherritt, Gold Reserves) - Most recently Director, Sustainability at Richmont Mines (acquired by Alamos Gold in November 2017) TSX:WDO 35

36 Board of Directors Charles Page, P.Geo Chairman - 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 Charles Main, CPA, CA Duncan Middlemiss, P. Eng Chief Executive Officer Nadine Miller, P. Eng Warwick Morely-Jepson Rolly Uloth Bill Washington, MBA - Chartered Professional Accountant and member of the Chartered Professional Accountants of Ontario and Canada - Over 30 years experience in finance and mining industries - Most recently Chief Financial Officer of Yamana Gold from 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 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 - Over 35 years experience in the mining industry within operations, project and business development - Formerly Chief Operating Officer and Executive VP of Kinross Gold Corp - Over 45 years of senior management experience - Co founder of Rosedale Transport, fifth largest trucking company in Ontario - 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 36

37 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 mineral reserves and do not have demonstrated economic viability. Further, the quantity and grade of reported inferred mineral resources are uncertain in nature and it cannot be assumed that further exploration will result in all or any part of an inferred mineral resource being upgraded to an indicated or measured mineral resource category. Qualified Person - Ontario The technical information contained in this presentation has been reviewed and approved by Michael Michaud, P.Geo, M.ScA, VP Exploration for the Company and a Qualified Person within the meaning of National Instrument Standards of Disclosure of Mineral Projects ( NI ). Qualified Person Quebec The technical information contained is this presentation pertaining to Quebec properties, ( Kiena Complex and Kiena Deep ) has been approved and verified by Marc Ducharme, P. Geo, Chief Exploration Geologist for the Company and a Qualified Person within the meaning of National Instrument Standards of Disclosure of Mineral Projects ( NI ). Additional Information Additional information about each of the mineral projects as required by NI , including key assumptions, parameters and methods used to estimate the mineral resources presented in respect of the Company s projects, can be found in Technical Reports filed for each respective property on SEDAR at 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 37

38 Mineral Resources (2017 Year End) Operating Assets Category Tonnes Grade (gau/tonne) Contained Ounces Eagle River Underground Resources Indicated 50, ,000 Inferred 334, ,000 Mishi Open Pit Resources Indicated 3,679, ,000 Inferred 764, ,000 Mishi Underground Resources Indicated 567, ,000 Inferred 437, ,000 Total M + I Resources 342,000 Total Inferred Resources 225,000 Reserves and Resources as at December 31, Mineral Resources exclusive of Mineral Reserves. The contents of this slide have been verified and approved by Michael Michaud, P. Geo, M.ScA, VP Exploration for the Company and a Qualified Person within the meaning of NI For details, please refer to the Company s press release dated February 22, 2017 and AIF dated March 21, 2018 available on the Company s website and sedar.com TSX:WDO 38

39 Mineral Resources (2016 Year End) Development & Exploration Assets Category Tonnes Grade (gau/tonne) Contained Ounces Kiena Complex Resources Measured 63, ,300 Indicated 2,439, ,000 Total M + I Resources 2,500, ,300 Total Inferred Resources 1,563, ,400 Moss Lake Resources Total M + I Resources 39,795, ,377,000 Total Inferred Resources 50,364, ,751,000 Reserves and Resources as at December 31, Mineral Resources exclusive of Mineral Reserves The contents of this slide have been verified and approved by Michael Michaud, P. Geo, M.ScA, VP Exploration for the Company and a Qualified Person within the meaning of NI For details, please refer to the Company s AIF dated March 21, 2018 available on the Company s website and sedar.com TSX:WDO 39

40 Eagle River/Mishi Complex Central Ontario Located in Hemlo/Wawa Gold Camp Celebrating 20 years of production 1,000, 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 TSX:WDO 40

41 303 E Lens Extended Up-Plunge TSX:WDO 41

42 303 E Zone Zoomed View June 11, 2018 TSX:WDO 42

43 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 844-E-27: gau/t uncut (19.03 gau/t cut) over m true width Hole 844-E-28: gau/t uncut (13.36 gau/t cut) over m true width Hole 844-E-29: gau/t uncut (24.60 gau/t cut) over 3.93 m true width Hole : gau/t uncut (10.35 gau/t cut) over 4.32 m true width TSX:WDO 43

44 Mishi Operations: Strike and Depth Potential M6 Zone open West Extension M2 Zone MISHI MINE Current Operations M2 Zone East Extension open Plan View Section 3550 E Section 3750 E Section 3550 E (looking W) Section 3750 E (looking W) TSX:WDO 44

45 New Discovery Located Near Existing Infrastructure Existing Indicated Resources Zone Cut Grade (cut to g/t) Tonnes Ounces S50 Deep A ,111 60,511 S50 Deep AH ,722 18,885 S50 Deep B ,100 53,100 TOTAL OUNCES 132,466 TSX:WDO 45

46 S-50 Zone Isometric View North S-50 Zone - Conceptual Isometric 3D View S-50 Zone depleted portion (red wireframe) Majority of Kiena s production (10M tons or 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 Level 91 Drill holes TSX:WDO 46

47 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) TSX:WDO 47

48 Kiena Deep Drilling Constrained TSX:WDO 48

49 Moss Lake Project Optionality Moss Lake Stock Original Property Boundary open Central Intermediate to Felsic Metavolcanic Belt Moss Lake Deposit 1.4 M oz 1.1 g/t) 1.7 M oz 1.1 g/t) Head Lake Stock Shebandowan Greenstone Belt 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 49

50 2013 Moss Lake PEA (2.5 M oz. study) NE open SW NE open 300 m 2.5 km SW General View of Mineralized Zones Longitudinal and Plan View of Moss Lake Pit 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) TSX:WDO 50

51 Kiena Complex Drill Core August 2016 TSX:WDO 51