Wesdome Gold Mines Ltd.
Wesdome announces latest drill resultsfrom Kiena deep a zone and resumption of drilling and development activities
TORONTO, May 11, 2020 (GLOBE NEWSWIRE) -- 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 WESDOME
Wesdome 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
President and CEO
416-360-3743 ext. 2029
duncan.middlemiss@wesdome.com
Lindsay Carpenter Dunlop
VP Investor Relations
416-360-3743 ext. 2025
lindsay.dunlop@wesdome.com
220 Bay St, Suite 1200
Toronto, ON, M5J 2W4
Toll Free: 1-866-4-WDO-TSX
Phone: 416-360-3743, Fax: 416-360-7620
Website: 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
Assays
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
Source: https://www.wesdome.com/news/press-releases/index.php?content_id=376
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