OMA’s Wesdome’s new Mishi pit pumps-up prospects in Algoma

This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.

New mines in Ontario can come in all shapes, sizes and commodities — Earlier this week, OMA member and gold producer Wesdome officially opened the Mishi Pit, which is being integrated into the company’s precious metal operations in the Wawa area — A group, including company directors, Wesdome investors, financial analysts and employees participated in the ceremony, which included a controlled blast. . . .

Though this addition to Wesdome assets, which is expected to account for 9,000 ounces of gold in 2012, may be modest by some standards, its positive contribution to the local employment scene is quite significant.  The Mishi Pit is located about two kilometres from the company’s Eagle River Mill and 16 kilometres from its larger Eagle River underground gold mine.

The opening of the Mishi Pit itself has directly created 40 new jobs itself adding to the 240 employees at the Eagle River Mine.  Incorporating Mishi ore into the Eagle River mill has created a second shift at the processing plant and led to the hiring of additional employees.

“The Mishi Pit is Wesdome’s third gold-producing asset and represents the company’s commitment to develop quality mining assets in Canada,” said Donovan Pollitt, President of Wesdome.  “The five-year plan for the Mishi Pit allows us to maximize the use of existing infrastructure such as the Eagle River mill and allows us to explore, evaluate and hopefully extend this large mineralized system.”

The opening of Mishi Pit has also created its own internal spin-off job creation.  Wesdome maintains an office, a warehouse and an assay laboratory in Wawa.  The opening of the Mishi Pit has increased the company’s need to monitor grade control and dilution.  Recently, the assay laboratory started a second shift and the number of employees has increased from 15 to 30.  In addition, the company has started doing custom assay work for other mining companies in the area.

Wawa, which is approximately two hours by road north of Sault Ste. Marie has a population of about 3,700 people.  Gold mining began in the area in 1896 and iron ore mining also has taken place nearby.  Mining operations in Ontario acquire more than 90% of their input costs in Canada and export more than 80% of their products.  Operations like Wesdome’s Eagle River Mine and Mill and Mishi Pit support regional development and infrastructure in the areas where they produce minerals, as well as make positive contributions to the provincial economy. 

Wesdome’s Eagle River mine near Wawa started commercial precious metal production in 1996 and Wesdome began production from the former producing Kiena property near Val d’Or, Quebec in 2006. The company produced 52,500 ounces of gold in 2006, 72,085 ounces of gold in 2007, 90,004 ounces of gold in 2008, 96,152 ounces of gold in 2009, 70,000 ounces in 2010 and 47,750 ounces in 2011.   Anticipated production for 2012 is 60,000 ounces of gold. The company’s head office is in Toronto.