Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”)
today announces additional results from underground definition and
exploration drilling at the Company’s 100% owned Kiena Mine Complex
in Val d'Or, Quebec, compiled subsequent to the Company’s February
19, 2020 press release.
In addition, pursuant to a recent announcement
from the Government of Quebec providing relief from certain
emergency measures implemented on March 25, 2020 in response to the
Covid-19 Pandemic, mineral exploration activities in the province
will be permitted to resume effective today. Accordingly, the
Company will be restarting its development and drilling activities
at the Kiena Mine Complex imminently.
Prior to the suspension of activities in March,
seven underground drills were in operation, tasked with infill and
up and down plunge extension drilling of the Kiena Deep A Zone (the
“A Zone”). Between February 19 and March 25, a total of 45 holes
totalling 7,045 metres (“m”) were drilled, and the assay results
for 18 of those holes have been received and are being reported
below. This drilling has continued to confirm the overall
continuity of the geometry and the high-grade gold mineralization
of the A Zone and identified additional mineralization outside of
the most recent resource estimate (Figure 1). The A Zone now
extends down plunge in excess of 830 m (see February 19, 2020 press
release). A total of 47,800 m in 164 new drill holes have now
been drilled since the latest resource estimate (September 2019),
which is expected to be updated later in 2020.
Highlights of the recent drilling are listed below and
summarized in Table 1.
Kiena Deep A Zone
- Hole 6599: 108.2 g/t Au over 3.0 m core length (30.5 g/t Au
cut, 2.8 m true width) A Zone
- Hole 6660: 47.8 g/t Au over 5.2 m core length (42.8 g/t Au cut,
5.0 m true width) A Zone
- Hole 6583: 41.3 g/t Au over 12.4 m core length (23.2 g/t Au
cut, 6.1 m true width) A2 Zone
All assays cut to 90.0 g/t Au. True widths are estimated.
79 Level Exploration Ramp
The 79 level exploration ramp, consisting of 576
m of down ramp development and drill platforms, was completed
earlier in the year. Two drills were mobilized into this area two
weeks prior to the Covid-19 suspension to follow up on several
previous encouraging drill results in the potential up plunge
extension of the A Zone as well as the down dip extension of the VC
zones between the 67 level and 105 level. It is interpreted that
the VC zones are folded as they extend down plunge to possibly
connect with the A Zone. The exploration ramp could also serve as a
haulage drift for any future production from this area as it
accesses the main shaft level dump pocket.
Mr. Duncan Middlemiss, President and CEO
commented, “We are extremely pleased to be resuming development and
drilling activities at the Kiena Mine Complex, and we have
implemented many facility and procedural changes at site to ensure
that these activities can be completed in a safe manner for our
employees, which is our top priority. The drill program will
continue to focus on the testing of the potential up plunge
extension of the A Zone and to convert inferred resources to
indicated resources in advance of an updated resource estimate
later in the year.”
“We look forward to the completion of the
Preliminary Economic Assessment (“PEA”) which is on schedule to be
announced later this month. The purpose of this study is to
determine the viability of mining the existing resources, dated
September 2019, in the immediate reach of the Kiena Mine. This will
include only those resources proximal to the mine infrastructure,
specifically the A Zone, B Zone, S-50, VC Zones and the South Zone,
which contain 450,000 ounces gold (“Au”) of indicated resources
(0.97M tonnes @ 14.5 g/t Au) and 397,000 ounces gold (Au) of
inferred resources (1.12M tonnes @ 11.0 g/t). Given that we
have drilled an additional 47,800 m in 164 new drill holes since
September 2019, we plan to update the mineral resource estimate for
Kiena mid-year. The updated mineral resource estimate will
then be used as a basis for a Prefeasibility Study (“PFS”) to
justify a mine restart. Wesdome’s strategy is to make a production
decision based on those resources in the immediate mine area only.
Longer term, our focus will turn to the remaining resources on the
Kiena property, which all together total 2.83M tonnes @ 8.7 g/t for
788,000 ounces in the measured and indicated category, and 2.92M
tonnes @ 8.6 g/t for 798,000 ounces in the inferred category.
“Our 2020 plan was to drill a total of 85,000 m,
however our ability to meet this goal may be impacted by the
mandated seven week suspension of activity at the Kiena Mine
Complex. With the resumption of activities, we will continue down
ramp development in order to enhance and increase drill platforms
providing access to the lower areas of the A Zone and further our
site preparations. In addition, detailed metallurgical and
environmental studies are being conducted. We are also
continuing the installation of hydrostatic barriers to secure
previously mined out areas, and improving mine ventilation in
further support of a possible mine restart.”
In order to identify additional exploration
targets adjacent to the Kiena Mine, a regional Magnetotelluric
(“MT”) Geophysical Survey has been completed on the lake ice
covering the Kiena deposit and the immediately surrounding volcanic
rocks. The survey was designed to identify deep structures up to
1.5 km below surface. A number of encouraging targets have been
identified and will be drill tested later in the year.
TECHNICAL DISCLOSURE
The technical and geoscientific content of this
release has been compiled, reviewed and approved by Bruno Turcotte,
P.Geo., (OGQ #453) Senior Project Geologist of the Company and a
"Qualified Person" as defined in National Instrument 43-101
-Standards of Disclosure for Mineral Projects.
Analytical work was performed by ALS Minerals of
Val-d’Or (Quebec), a certified commercial laboratory (Accredited
Lab #689). Sample preparation was done at ALS Minerals in Val d'Or
(Quebec). Assaying was done by fire assay methods with an
atomic absorption finish. Any sample assaying >3 g/t Au
was rerun by fire assay method with gravimetric finish, and any
sample assaying >10 g/t Au was rerun with the metallic sieve
method. In addition to laboratory internal duplicates,
standards and blanks, the geology department inserts blind
duplicates, standards and blanks into the sample stream at a
frequency of one in twenty to monitor quality control.
ABOUT WESDOMEWesdome Gold Mines
has had over 30 years of continuous gold mining operations in
Canada. The Company is 100% Canadian focused with a pipeline
of projects in various stages of development. The Company’s
strategy is to build Canada’s next intermediate gold producer,
producing 200,000+ ounces from two mines in Ontario and
Quebec. The Eagle River Complex in Wawa, Ontario is currently
producing gold from two mines, the Eagle River Underground Mine and
the Mishi Open pit, from a central mill. Wesdome is actively
exploring its brownfields asset, the Kiena Complex in Val d’Or,
Quebec. The Kiena Complex is a fully permitted former mine
with a 930-metre shaft and 2,000 tonne-per-day mill. The
Company has further upside at its Moss Lake gold deposit, located
100 kilometres west of Thunder Bay, Ontario. The Company has
approximately 138.5 million shares issued and outstanding and
trades on the Toronto Stock Exchange under the symbol “WDO”.
For further information, please
contact:
Duncan Middlemiss |
or |
Lindsay Carpenter Dunlop |
President and CEO |
|
VP Investor Relations |
416-360-3743 ext. 2029 |
|
416-360-3743 ext. 2025 |
duncan.middlemiss@wesdome.com |
|
lindsay.dunlop@wesdome.com |
220 Bay St, Suite 1200Toronto, ON, M5J 2W4Toll
Free: 1-866-4-WDO-TSXPhone: 416-360-3743, Fax: 416-360-7620Website:
www.wesdome.com
This news release contains “forward-looking
information” which may include, but is not limited to, statements
with respect to the future financial or operating performance of
the Company and its projects. Often, but not always,
forward-looking statements can be identified by the use of words
such as “plans”, “expects”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates”, or “believes”
or variations (including negative variations) of such words and
phrases, or state that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements.
Forward-looking statements contained herein are made as of the date
of this press release and the Company disclaims any obligation to
update any forward-looking statements, whether as a result of new
information, future events or results or otherwise. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. The Company
undertakes no obligation to update forward-looking statements if
circumstances, management’s estimates or opinions should change,
except as required by securities legislation. Accordingly, the
reader is cautioned not to place undue reliance on forward-looking
statements. The Company has included in this news release certain
non-IFRS performance measures, including, but not limited to, mine
operating profit, mining and processing costs and cash costs. Cash
costs per ounce reflect actual mine operating costs incurred during
the fiscal period divided by the number of ounces produced.
These measures are not defined under IFRS and therefore should not
be considered in isolation or as an alternative to or more
meaningful than, net income (loss) or cash flow from operating
activities as determined in accordance with IFRS as an indicator of
our financial performance or liquidity. The Company believes that,
in addition to conventional measures prepared in accordance with
IFRS, certain investors use this information to evaluate the
Company's performance and ability to generate cash flow.
Table 1: Kiena Complex Drilling Assay and Composite
Results
Composites
Hole No. |
From(m) |
To(m) |
Core Length(m) |
Estimated Truewidth (m) |
Grade(g/t Au) |
Cut Grade(90 g/t Au) |
NameZone |
6589 |
388.6 |
392.4 |
3.8 |
3.6 |
5.97 |
5.97 |
VC1 Zone |
6651 |
256.6 |
259.5 |
2.9 |
1.9 |
11.20 |
11.20 |
VC1 Zone |
6652* |
257.4 |
260.4 |
3.0 |
2.0 |
11.56 |
11,56 |
VC1 Zone |
6616 |
242.3 |
245.6 |
3.3 |
3.1 |
10.97 |
10.97 |
VC6 Zone |
6618 |
265.5 |
269.5 |
4.0 |
3.7 |
9.84 |
9.84 |
VC6 Zone |
6599 |
244.5 |
247.5 |
3.0 |
2.8 |
108.19 |
30.53 |
A Zone |
6605AW3 |
367.3 |
368.3 |
1.0 |
0.5 |
32.60 |
32.60 |
A Zone |
6624 |
168.9 |
183.2 |
14.3 |
9.1 |
11.77 |
11.77 |
A Zone |
6625 |
144.5 |
150.1 |
5.7 |
3.4 |
9.89 |
9.89 |
A Zone |
6630 |
235.7 |
239.2 |
3.5 |
2.4 |
7.43 |
7.43 |
A Zone |
6631* |
209.4 |
210.4 |
1.0 |
0.7 |
30.90 |
30.90 |
A Zone |
6632 |
242.0 |
248.5 |
6.5 |
5.1 |
11.84 |
11.84 |
A Zone |
6634* |
193.0 |
196.2 |
3.2 |
2.7 |
45.05 |
40.64 |
A Zone |
6660* |
285.2 |
290.3 |
5.2 |
5.0 |
47.81 |
42.83 |
A Zone |
6583* |
620.9 |
624.9 |
4.0 |
2.0 |
6.58 |
6.58 |
A1 Zone |
6584 |
506.0 |
509.0 |
3.0 |
1.8 |
5.64 |
5.64 |
A1 Zone |
6599 |
251.5 |
256.0 |
4.5 |
4.2 |
7.11 |
7.11 |
A1 Zone |
6605AW3 |
379.6 |
382.6 |
3.0 |
1.7 |
7.51 |
7.51 |
A1 Zone |
6660* |
298.3 |
301.0 |
2.7 |
2.6 |
40.51 |
37.25 |
A1 Zone |
6581W3 |
474.3 |
477.3 |
3.0 |
2.0 |
8.45 |
8.45 |
A2 Zone |
6583 |
628.9 |
641.3 |
12.4 |
6.1 |
41.30 |
23.24 |
A2 Zone |
6584* |
578.0 |
588.0 |
10.0 |
3.8 |
22.00 |
19.00 |
A2 Zone |
6605AW1 |
273.6 |
290.7 |
17.1 |
7.4 |
19.87 |
11.23 |
A2 Zone |
* Metallic Sieve
Analysis Pending |
|
|
|
|
Assays
Hole No. |
From(m) |
To(m) |
Core Length(m) |
Grade(g/t Au) |
NameZone |
6581W3 |
474.3 |
475.0 |
0.7 |
34.30 |
A2 Zone |
6581W3 |
475.0 |
476.3 |
1.3 |
0.76 |
A2 Zone |
6581W3 |
476.3 |
477.3 |
1.0 |
0.36 |
A2 Zone |
|
|
|
|
|
|
6583 |
620.9 |
621.9 |
1.0 |
1.11 |
A1 Zone |
6583* |
621.9 |
622.9 |
1.0 |
20.00 |
A1 Zone |
6583 |
622.9 |
623.9 |
1.0 |
2.94 |
A1 Zone |
6583 |
623.9 |
624.9 |
1.0 |
2.27 |
A1 Zone |
|
|
|
|
|
|
6583 |
628.9 |
629.9 |
1.0 |
2.90 |
A2 Zone |
6583 |
629.9 |
630.9 |
1.0 |
7.18 |
A2 Zone |
6583 |
630.9 |
631.9 |
1.0 |
0.22 |
A2 Zone |
6583 |
631.9 |
632.9 |
1.0 |
0.97 |
A2 Zone |
6583 |
632.9 |
633.9 |
1.0 |
0.10 |
A2 Zone |
6583 |
633.9 |
635.0 |
1.1 |
0.26 |
A2 Zone |
6583 |
635.0 |
635.9 |
0.9 |
39.40 |
A2 Zone |
6583 |
635.9 |
636.9 |
1.0 |
20.50 |
A2 Zone |
6583 |
636.9 |
637.9 |
1.0 |
157.00 |
A2 Zone |
6583 |
637.9 |
638.9 |
1.0 |
33.90 |
A2 Zone |
6583 |
638.9 |
639.9 |
1.0 |
247.00 |
A2 Zone |
6583 |
639.9 |
640.6 |
0.7 |
4.02 |
A2 Zone |
6583 |
640.6 |
641.3 |
0.7 |
5.44 |
A2 Zone |
|
|
|
|
|
|
6584 |
506.0 |
507.0 |
1.0 |
8.16 |
A1 Zone |
6584 |
507.0 |
508.0 |
1.0 |
0.18 |
A1 Zone |
6584 |
508.0 |
509.0 |
1.0 |
8.58 |
A1 Zone |
|
|
|
|
|
|
6584* |
578.0 |
579.0 |
1.0 |
114.00 |
A2 Zone |
6584* |
579.0 |
580.0 |
1.0 |
96.00 |
A2 Zone |
6584 |
580.0 |
581.0 |
1.0 |
1.15 |
A2 Zone |
6584 |
581.0 |
581.6 |
0.6 |
0.60 |
A2 Zone |
6584 |
581.6 |
582.4 |
0.8 |
1.33 |
A2 Zone |
6584 |
582.4 |
583.3 |
0.9 |
0.33 |
A2 Zone |
6584 |
583.3 |
584.0 |
0.7 |
1.65 |
A2 Zone |
6584 |
584.0 |
585.0 |
1.0 |
0.12 |
A2 Zone |
6584 |
585.0 |
586.0 |
1.0 |
1.02 |
A2 Zone |
6584 |
586.0 |
587.0 |
1.0 |
1.61 |
A2 Zone |
6584 |
587.0 |
588.0 |
1.0 |
3.23 |
A2 Zone |
|
|
|
|
|
|
6589 |
388.6 |
389.6 |
1.0 |
1.71 |
VC1 Zone |
6589 |
389.6 |
390.6 |
1.0 |
0.01 |
VC1 Zone |
6589 |
390.6 |
391.6 |
1.0 |
2.51 |
VC1 Zone |
6589 |
391.6 |
392.4 |
0.8 |
23.10 |
VC1 Zone |
|
|
|
|
|
|
6599 |
244.5 |
245.3 |
0.8 |
1.90 |
A Zone |
6599 |
245.3 |
246.5 |
1.2 |
0.06 |
A Zone |
6599 |
246.5 |
247.5 |
1.0 |
323.00 |
A Zone |
|
|
|
|
|
|
6599 |
251.5 |
253.1 |
1.6 |
4.05 |
A1 Zone |
6599 |
253.1 |
254.0 |
0.9 |
0.41 |
A1 Zone |
6599 |
254.0 |
255.0 |
1.0 |
0.02 |
A1 Zone |
6599 |
255.0 |
256.0 |
1.0 |
25.3 |
A1 Zone |
|
|
|
|
|
|
6605AW1 |
273.6 |
274.5 |
0.9 |
241.00 |
A2 Zone |
6605AW1 |
274.5 |
275.4 |
0.9 |
102.50 |
A2 Zone |
6605AW1 |
275.4 |
276.4 |
1.0 |
2.89 |
A2 Zone |
6605AW1 |
276.4 |
277.6 |
1.2 |
0.11 |
A2 Zone |
6605AW1 |
277.6 |
279.0 |
1.4 |
0.32 |
A2 Zone |
6605AW1 |
279.0 |
280.0 |
1.0 |
0.02 |
A2 Zone |
6605AW1 |
280.0 |
281.0 |
1.0 |
0.02 |
A2 Zone |
6605AW1 |
281.0 |
282.0 |
1.0 |
0.61 |
A2 Zone |
6605AW1 |
282.0 |
283.0 |
1.0 |
0.03 |
A2 Zone |
6605AW1 |
283.0 |
284.0 |
1.0 |
0.10 |
A2 Zone |
6605AW1 |
284.0 |
285.0 |
1.0 |
0.06 |
A2 Zone |
6605AW1 |
285.0 |
285.7 |
0.6 |
0.16 |
A2 Zone |
6605AW1 |
285.7 |
286.7 |
1.0 |
2.94 |
A2 Zone |
6605AW1 |
286.7 |
287.7 |
1.0 |
5.17 |
A2 Zone |
6605AW1 |
287.7 |
288.7 |
1.0 |
4.33 |
A2 Zone |
6605AW1 |
288.7 |
289.7 |
1.0 |
6.84 |
A2 Zone |
6605AW1 |
289.7 |
290.7 |
1.0 |
5.85 |
A2 Zone |
|
|
|
|
|
|
6605AW3 |
367.3 |
368.3 |
1.0 |
32.60 |
A Zone |
|
|
|
|
|
|
6605AW3 |
379.6 |
380.6 |
1.0 |
19.15 |
A1 Zone |
6605AW3 |
380.6 |
381.6 |
1.0 |
2.95 |
A1 Zone |
6605AW3 |
381.6 |
382.6 |
1.0 |
0.44 |
A1 Zone |
|
|
|
|
|
|
6616 |
242.3 |
243.3 |
1.0 |
35.80 |
VC6 Zone |
6616 |
243.3 |
244.3 |
1.0 |
0.03 |
VC6 Zone |
6616 |
244.3 |
245.6 |
1.3 |
0.29 |
VC6 Zone |
|
|
|
|
|
|
6618 |
265.5 |
266.5 |
1.0 |
5.77 |
VC6 Zone |
6618 |
266.5 |
267.5 |
1.0 |
20.70 |
VC6 Zone |
6618 |
267.5 |
268.5 |
1.0 |
10.50 |
VC6 Zone |
6618 |
268.5 |
269.5 |
1.0 |
2.38 |
VC6 Zone |
|
|
|
|
|
|
6624 |
168.9 |
169.9 |
1.0 |
11.05 |
A Zone |
6624 |
169.9 |
170.9 |
1.0 |
0.56 |
A Zone |
6624 |
170.9 |
172.1 |
1.2 |
3.55 |
A Zone |
6624 |
172.1 |
173.1 |
1.0 |
0.09 |
A Zone |
6624 |
173.1 |
174.1 |
1.0 |
2.62 |
A Zone |
6624 |
174.1 |
175.1 |
1.0 |
10.05 |
A Zone |
6624 |
175.1 |
176.1 |
1.0 |
0.12 |
A Zone |
6624 |
176.1 |
177.1 |
1.0 |
59.50 |
A Zone |
6624 |
177.1 |
177.7 |
0.6 |
6.19 |
A Zone |
6624 |
177.7 |
178.4 |
0.7 |
2.69 |
A Zone |
6624 |
178.4 |
179.5 |
1.1 |
36.90 |
A Zone |
6624 |
179.5 |
180.5 |
1.0 |
2.27 |
A Zone |
6624 |
180.5 |
181.5 |
1.0 |
1.61 |
A Zone |
6624 |
181.5 |
182.5 |
1.0 |
17.80 |
A Zone |
6624 |
182.5 |
183.2 |
0.7 |
17.40 |
A Zone |
|
|
|
|
|
|
6625 |
144.5 |
145.1 |
0.6 |
11.45 |
A Zone |
6625 |
145.1 |
146.1 |
1.0 |
0.81 |
A Zone |
6625 |
146.1 |
147.1 |
1.0 |
1.26 |
A Zone |
6625 |
147.1 |
147.7 |
0.6 |
2.65 |
A Zone |
6625 |
147.7 |
148.4 |
0.7 |
43.70 |
A Zone |
6625 |
148.4 |
149.1 |
0.7 |
18.95 |
A Zone |
6625 |
149.1 |
150.1 |
1.0 |
1.47 |
A Zone |
|
|
|
|
|
|
6630 |
235.7 |
236.7 |
1.0 |
7.18 |
A Zone |
6630 |
236.7 |
238.1 |
1.4 |
7.40 |
A Zone |
6630 |
238.1 |
239.2 |
1.1 |
7.71 |
A Zone |
|
|
|
|
|
|
6631* |
209.4 |
210.4 |
1.0 |
30.90 |
A Zone |
|
|
|
|
|
|
6632 |
242.0 |
242.9 |
0.9 |
76.90 |
A Zone |
6632 |
242.9 |
243.7 |
0.8 |
0.36 |
A Zone |
6632 |
243.7 |
244.6 |
0.9 |
0.25 |
A Zone |
6632 |
244.6 |
245.6 |
1.0 |
1.44 |
A Zone |
6632 |
245.6 |
246.6 |
1.0 |
0.04 |
A Zone |
6632 |
246.6 |
247.8 |
1.2 |
0.10 |
A Zone |
6632 |
247.8 |
248.5 |
0.8 |
7.54 |
A Zone |
|
|
|
|
|
|
6634 |
193.0 |
193.7 |
0.7 |
0.18 |
A Zone |
6634* |
193.7 |
194.4 |
0.8 |
80.40 |
A Zone |
6634* |
194.4 |
195.2 |
0.8 |
108.50 |
A Zone |
6634 |
195.2 |
196.2 |
1.0 |
0.11 |
A Zone |
|
|
|
|
|
|
6651 |
256.6 |
257.5 |
0.8 |
0.18 |
VC1 Zone |
6651 |
257.5 |
258.5 |
1.0 |
31.30 |
VC1 Zone |
6651 |
258.5 |
259.5 |
1.0 |
0.49 |
VC1 Zone |
|
|
|
|
|
|
6652* |
257.4 |
258.4 |
1.0 |
14.70 |
VC1 Zone |
6652* |
258.4 |
259.4 |
1.0 |
13.50 |
VC1 Zone |
6652 |
259.4 |
260.4 |
1.0 |
6.47 |
VC1 Zone |
|
|
|
|
|
|
6660* |
285.2 |
286.5 |
1.4 |
109.00 |
A Zone |
6660 |
286.5 |
287.5 |
0.9 |
8.74 |
A Zone |
6660* |
287.5 |
288.5 |
1.1 |
83.10 |
A Zone |
6660 |
288.5 |
289.4 |
0.9 |
0.85 |
A Zone |
6660 |
289.4 |
290.3 |
0.9 |
3.06 |
A Zone |
|
|
|
|
|
|
6660 |
298.3 |
298.9 |
0.6 |
0.15 |
A1 Zone |
6660* |
298.9 |
300.0 |
1.1 |
98.00 |
A1 Zone |
6660 |
300.0 |
301.0 |
1.0 |
1.48 |
A1 Zone |
* Metallic Sieve
Analysis Pending |
|
|
|
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/cf0e2fcd-3399-41ac-9bdd-93cbf60a83d0
PDF
available http://ml.globenewswire.com/Resource/Download/13e3a2e9-68c4-4151-8681-a0988aaf4b65
Wesdome Gold Mines (TSX:WDO)
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