11:00 AM EST, 01/22/2025 (MT Newswires) -- Wesdome Gold Mines ( WDOFF ) was at last look up 2.6% on Wednesday after yesterday providing an update on exploration activities at the Eagle River mine in Ontario, saying the 2024 program delivered high-grade extensions and new targets.

At the 6 Central Zone, increased drilling extended the resource envelope down-plunge by about 70% and identified a parallel zone with strong potential for high-grade mineralization, the company said. At the 300 Zone, which accounts for the majority of the mine's reserves, drilling has confirmed the continuity of high-grade mineralization and provided geological insights regarding the zone's behavior, it added

WDO noted an induced polarization survey completed in late 2024 identified multiple anomalies closely associated with well-known deposits, indicating potential for additional mineralization west of the diorite.

Highlights of the results from the drilling program include 180 grams per tonne gold uncapped over 2.4 meters at the 6 Central Zone and 36.4 g/t gold over 4 meters at the 300 Zone.

Wesdome kept its Outperform rating and C$16.75 price target at National Bank of Canada following the news. On impact, WDO said it complements the operational outperformance it has seen at Eagle and provides readthrough for resource accretion with the pending year-end MRE.

National said its thesis for Wesdome is supported by an all-Canadian portfolio, "executing on a back-end weighted year as the Kiena mine continues to ramp up". The bank noted Kiena production is expected to trend higher in 2025 with both 129 and 136 levels in operation and Presqu'ile catalyst in 2026.

National Bank also cited a potential dividend catalyst with Wesdome's balance sheet delevered. Elevated FCF means more opportunities to fund/expand exploration and find ounces at Kiena and Eagle River, and spare mill capacity at both mills meaning exploration can deliver immediate returns and production growth, tempered by operational challenges. Tthe bank added.

The price target was based on 6.0x EV/EBITDA.

Price: 13.50, Change: +0.33, Percent Change: +2.51