TORONTO, ON--(Marketwired - February 08, 2017) - Wesdome Gold Mines Ltd. ("Wesdome" or the "Company") (TSX: WDO) is pleased to provide an update of underground drilling progress at its 100% owned Kiena Mine Complex, in Val d'Or, Quebec.
Since the last update on November 15, 2016, a fourth drill has been added on the 960 metre level (Figure 1), 29 drill holes have been completed and assay results have been received for 21 drill holes (Table 1).
The new drilling continues to trace the Kiena Deep mineralized system along an altered and deformed north north west trending ("NNW") basalt-komatiite contact zone. To date, it has been traced 550 metres NNW along strike and over a depth range of 400 metres. It remains open at depth and along trend.
Wesdome continues its accelerated drilling program with the goal of determining the extent, continuity and geometry of the Kiena Deep gold system.
HIGHLIGHTS *(Uncut and cut assay averages over core lengths*)
1. Major step out holes extending trend to a tested length of 550m:
- 6.63 g/t gold over 11.0 m uncut (6.63 g/t cut) in hole 6146
- 7.67 g/t gold over 8.2 m uncut (5.53 g/t cut) in hole 6147
2. Assays received from visible gold occurrences reported November 15, 2016:
- 18.67 g/t gold over 9.8 m uncut (5.44 g/t cut) in hole 6134
- 110.23 g/t gold over 4.1 m uncut (5.91 g/t cut) in hole 6155
- 14.89 g/t gold over 2.0 m uncut (14.89 g/t cut) in hole 6155
3. Additional New Results:
- 27.97 g/t gold over 1.0 m uncut (27.97 g/t cut) in hole 6134
- 34.27 g/t gold over 8.4 m uncut (6.78 g/t cut) in hole 6137
- 306.10 g/t gold over 0.6 m uncut (34.28 g/t cut) in hole 6142
- 6.23 g/t gold over 10.5 m uncut (5.67 g/t cut) in hole 6142
- 41.39 g/t gold over 2.4 m uncut (11.62 g/t cut) in hole 6142
- 24.92 g/t gold over 5.2 m uncut (10.03 g/t cut) in hole 6142
- 11.40 g/t gold over 3.6 m uncut (5.81 g/t cut) in hole 6143
- 43.05 g/t gold over 14.0 m uncut (5.35 g/t cut) in hole 6143
- 10.45 g/t gold over 8.0 m uncut (5.23 g/t cut) in hole 6144
- 18.04 g/t gold over 2.7 m uncut (16.07 g/t cut) in hole 6144
- 14.61 g/t gold over 15.4 m uncut (3.08 g/t cut) in hole 6145A
- 37.71 g/t gold over 0.7 m uncut (34.28 g/t cut) in hole 6150
- 4.68 g/t gold over 4.0 m uncut (4.68 g/t cut) in hole 6151
- 29.52 g/t gold over 0.5 m uncut (29.52 g/t cut) in hole 6151
- 9.11 g/t gold over 1.5 m uncut (9.11 g/t cut) in hole 6152
- 8.75 g/t gold over 1.5 m uncut (8.75 g/t cut) in hole 6152
- 3.47 g/t gold over 16.0 m uncut (3.47 g/t cut) in hole 6154
- 124.98 g/t gold over 4.3 m uncut (13.98 g/t cut) in hole 6154
- 44.85 g/t gold over 1.2 m uncut (34.28 g/t cut) in hole 6154
- 28.00 g/t gold over 17.0 m uncut (2.84 g/t cut) in hole 6155
- 50.14 g/t gold over 1.0 m uncut (34.28 g/t cut) in hole 6156
- 41.89 g/t gold over 2.0 m uncut (18.53 g/t cut) in hole 6156
- 20.28 g/t gold over 7.3 m uncut (10.2 g/t cut) in hole 6156
- 27.25 g/t gold over 0.6 m uncut (27.25 g/t cut) in hole 6157A
- 10.37 g/t gold over 4.8 m uncut (9.49 g/t cut) in hole 6157A
* The geometry of these zones is not clearly understood at this point. Further drilling is required to interpret true widths. Assay intervals include values cut to an arbitrary, historic 1 oz/ton or 34.28 g/t
Mr. Duncan Middlemiss, President and CEO, commented "Drilling results have been accelerated with the goal of delineating and defining this significant new find as quickly and efficiently as possible. This set of Kiena Deep drill results continues to deliver grades substantially higher than the historic production grade profile at Kiena of 4.5 g/t. We are also very encouraged by step out holes confirming mineralization now tested along 550 metres of strike length, indicating a potential large new gold system. Furthermore, in the Company's efforts to accelerate our advanced exploration at Kiena, we are pleased to announce the appointment of Marc-André Pelletier as Vice President of Quebec Operations, who will be based full time at the Kiena Complex. Marc-André has over 20 years' experience in underground gold mining in Canada, and will be working closely with our geologic team to evaluate ramp development. On behalf of management and the board, I would like to welcome him to the Wesdome team."
Drilling continues to identify two styles of mineralization spatially related to a basalt-komatiite (ultramafic) contact zone that trends NNW.
- High grade extensional quartz veins in basalt (Upper Quartz Vein Zone), and
- Albitized stockwork and vein breccia systems in sheared and altered zones (Lower Stockwork Zone).
There are likely multiple zones which remain only partially defined and are open. The full extent of the mineralized system has not been delineated. It has been traced 550 m along the contact area trend between depths 1,000 and 1,400 m and remains open. Step out holes 6146 and 6147 are of significant interest as these holes have intersected quality grade over wide widths some 150 metres north, and 250 metres south along trend of the known mineralized system, which remains open (Figure 1).
Four drills are operating on levels 670m, 770m, 910m and 960m. Challenging drilling conditions in the deformed and altered contact area have been addressed with a combination of bits, drill assemblies and specialized drilling reagents. The experience obtained in these conditions and the additional drill added to the 960m level has resulted in improved success in attaining the desired targets. Shorter holes with better attack angles will continue to accelerate results.
SCOPE AND PURPOSE
The accelerated drilling is designed to delineate the potential size of the Kiena Deep gold system and define its internal geometry as quickly and efficiently as possible.
Confidence in internal grade and continuity will de-risk a decision to initiate ramp development to provide definition drilling and access to Kiena Deep as soon as possible.
The Company intends to continue the drilling campaign with four underground drills. Ongoing evaluation for the requirement of enhanced drill platforms will determine the timing of underground ramp development, as the location of this infrastructure is dependent upon drilling results currently being generated.
The Company is very encouraged by the continued exploration results at Kiena and the potential to re-establish production at this fully permitted facility. As a result, we are pleased to announce the appointment of Marc-Andre Pelletier as Wesdome's Vice-President of Operations for Quebec in charge of the Kiena Mine Advanced Exploration Program. Marc-Andre is an experienced professional mining engineer who was most recently Vice-President of Operations at St Andrew Goldfields Ltd. Prior to Marc-Andre's tenure at St Andrew's he was employed by Barrick Gold Corporation from 2001-2009 elevating to the position of Mine Superintendent at Barrick's Williams Mine. Prior to his Barrick experience Marc-Andre worked extensively in Quebec in progressive technical roles. Throughout his career Marc-Andre has dedicated himself to achieving safety, production, and costs targets. He is a graduate of Laval University in mining engineering and is a resident of Rouyn-Noranda, Quebec.
THE KIENA COMPLEX
The Kiena Mine Complex is a fully permitted, integrated mining and milling infrastructure which includes a 930 metre production shaft and 2,000 tonne per day capacity mill. From 1981 to 2013 the mine produced 1.75 million ounces of gold from 12.5 million tonnes at a grade of 4.5 g/t. The bulk of this production came from the S-50 Zone between depths of 100 and 1,000 metres. In 2013, operations were suspended due to a combination of declining gold prices and lack of developed reserves. The infrastructure has been well preserved on care and maintenance status.
The technical and scientific disclosure in this press release has been prepared and approved by Marc Ducharme, P. Geo., Chief Exploration Geologist of Wesdome and "Qualified Person" as defined by National Instrument 43-101 disclosure standards. Analytical work was performed by Techni-Lab (ActLabs) of Ste-Germaine-Boulé (Quebec), a certified commercial laboratory (SCC Accredited Lab #707). Sample preparation was done at Techni-Lab (ActLabs) in Val d'Or (Quebec) and assaying was done by fire assay methods at Techni-Lab (ActLabs) laboratory in Ste-Germaine-Boulé (Quebec). 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.
Wesdome Gold Mines is in its 29th year of continuous gold mining operations in Canada. The Company is 100% Canadian focused with a pipeline of projects in various stages of development. 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, which is being explored and evaluated to be developed in the appropriate gold price environment. The Company has approximately 130 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol "WDO."
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.
|Table 1: Kiena Deep Drilling Results Compilation|
|6134||440.00||441.00||1.00||27.97||27.97||Upper quartz vein (VG)|
|797.00||806.80||9.80||18.67||5.44||Lower stockwork (VG)|
|6137||444.10||452.50||8.40||34.27||6.78||Lower stockwork (VG)|
|6138||Target not attained (ABD)|
|438.70||439.30||0.60||306.10||34.28||Lower stockwork (VG)|
|581.30||583.70||2.40||41.39||11.62||Lower stockwork (VG)|
|598.80||604.00||5.20||24.92||10.03||Lower stockwork (VG)|
|6143||489.40||493.00||3.60||11.40||5.81||Lower stockwork (VG)|
|504.00||518.00||14.00||43.05||5.35||Lower stockwork (VG)|
|609.00||617.00||8.00||10.45||5.23||Lower stockwork (VG)|
|629.00||631.70||2.70||18.04||16.07||Lower stockwork (VG)|
|6145||Target not attained (ABD)|
|6145A||408.80||424.20||15.40||14.61||3.08||Lower stockwork (VG)|
|6146||377.50||388.50||11.00||6.63||6.63||Lower stockwork? (VG)|
|490.00||498.20||8.20||7.67||5.53||Lower stockwork (VG)|
|6148||Target not attained (ABD)|
|6150||418.70||419.40||0.70||37.71||34.28||Upper quartz vein (VG)|
|6151||170.00||174.00||4.00||4.68||4.68||Upper quartz vein|
|245.50||250.50||5.00||2.51||2.51||Upper quartz vein|
|385.50||386.00||0.50||29.52||29.52||Upper quartz vein (VG)|
|6152||271.50||273.00||1.50||1.57||1.57||Lower stockwork (VG)|
|457.10||458.60||1.50||8.75||8.75||Lower stockwork (VG)|
|6153||Target not attained (ABD)|
|6153A||Target not attained (ABD)|
|405.70||410.00||4.30||124.98||13.98||Lower stockwork (VG)|
|447.50||448.70||1.20||44.85||34.28||Lower stockwork (VG)|
|6155||388.50||405.50||17.00||28.00||2.84||Lower stockwork (VG)|
|421.40||423.40||2.00||14.89||14.89||Lower stockwork (VG)|
|6156||274.00||275.00||1.00||50.14||34.28||Lower stockwork (VG)|
|412.00||414.00||2.00||41.89||18.53||Lower stockwork (VG)|
|437.00||444.30||7.30||20.28||10.20||Lower stockwork (VG)|
|6157||Target not attained (ABD)|
|6157A||477.00||477.60||0.60||27.25||27.25||Lower stockwork (VG)|
|516.5||521.3||4.80||10.37||9.49||Lower stockwork (VG)|
|* Assay intervals include values cut to an arbitrary, historic 1 oz / ton or 34.28 g/t Au|
|(VG) = visible gold|
|(ABD) = Hole abandoned|
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For further information, please contact:
President and CEO
416-360-3743 ext. 29
Lindsay Carpenter Dunlop
VP Investor Relations
416-360-3743 ext. 25
8 King St. East, Suite 811
Toronto, ON, M5C 1B5
Toll Free: 1-866-4-WDO-TSX