Wesdome Gold Mines says its Kiena mine in Quebec could produce 10% to 15% more gold without major new capital spending. It is also running a 125,000-metre drilling programme to extend the mine's life.
At a glance
- Wesdome expects Kiena to lift output 10% to 15% by using its existing mill and infrastructure more fully.
- Kiena's 2026 guidance is 75,000 to 90,000 ounces, a 13% rise at the midpoint over 2025.
- The company plans 125,000 metres of drilling in 2026 across about 100 targets.
Background
Wesdome Gold Mines is a Toronto-listed gold producer with two underground mines: Eagle River in Ontario and Kiena in Val-d'Or, Quebec. Kiena returned to commercial production in 2022. Reserves are the part of a deposit that has been shown to be economic to mine, so drilling that adds to them extends a mine's planned life.
What happened
Wesdome told The Northern Miner that Kiena could raise production by 10% to 15% without major new capital spending. The plan relies on running the existing operation more effectively rather than building new plant.
Kiena produced about 73,000 ounces of gold in 2025. Its 2026 guidance is 75,000 to 90,000 ounces, and the midpoint represents a 13% increase over 2025. Across both of its mines, Wesdome expects 180,000 to 205,000 ounces this year.
Where the extra gold comes from
Kiena's mill can process 2,040 tonnes of ore a day. Under a strategy it calls Fill-the-Mill, Wesdome aims to run it at no less than 80% of capacity. A new ramp to surface, opened in May 2026, gives easier access underground for equipment and materials.
The Presqu'île zone is expected to add 250 to 400 tonnes of ore a day once it ramps up. Ore at Kiena currently grades 8 to 9.5 grams of gold per tonne.
What it means
Growth without large capital spending lets a miner turn higher gold prices into cash rather than new debt. Wesdome is also drilling hard to extend Kiena's life. Its 2026 programme covers 125,000 metres across about 100 targets on the property.
One recent hole stands out. At the Shawkey 10 target, hole SH-26-001 cut 106.5 metres grading 3.1 grams per tonne uncapped, or 2.6 grams capped. Kiena held 711,000 ounces of proven and probable reserves at the end of 2025, in 2.6 million tonnes grading 8.7 grams per tonne. Wesdome's two mines together hold about 1.4 million ounces, with reserve-based plans running to 2033.
Our read
Outlook: neutral. A 10-15% rise at one mine is far too small to affect gold prices. The story matters for Wesdome and its shareholders.
What to watch
- Kiena's quarterly output against its 75,000 to 90,000 ounce guidance.
- How quickly the Presqu'île zone ramps up toward 250 to 400 tonnes a day.
- Drill results from Shawkey and Kiena Deep that could add to reserves.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-10-24.
Detailed analysis
Timeline
- 2026-10-08: Wesdome outlines a 10-15% production boost at Kiena without major new capital.
Supply Drivers
Wesdome plans to fill more of Kiena's 2,040-tonne-a-day mill rather than build new capacity.
Mining Production
Kiena's 2026 guidance of 75,000-90,000 ounces is 13% above 2025 at the midpoint.
What could lift prices
- Wesdome's plan uses existing mills rather than new mines, so it adds little new supply.
- Higher gold prices make extra ounces at existing mines more valuable.
What could weigh on prices
- Miners squeezing more output from existing mills adds gold supply without new projects.
- Strong drill results could extend Kiena's production for years.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Canada | Low | A Quebec gold mine plans more output and a large drilling programme. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Gold Mining | Positive | An established mine is growing output without major new capital. |
Who gains, who loses
- Wesdome shareholders: More ounces from existing infrastructure can lift cash flow without new debt.
- Wesdome, if grades slip: The planned gain depends on keeping ore grades at 8 to 9.5 grams per tonne.
Other ways this could play out
- If Presqu'île ramps up on schedule, Kiena could finish 2026 near the top of its guidance.
- If grades fall toward the low end of 8 grams per tonne, output gains could be smaller.
Price risks
- One mine's output has no meaningful effect on gold prices.
- Wesdome's returns depend far more on the gold price than on Kiena's volume gains.
Historical comparison
- Eagle River, since 1995: Wesdome's Ontario mine has produced more than 2 million ounces of gold.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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