Wesdome Announces Kiena Deep A Zone Drill Results, VC1 Zone Extension, and Advances Access Development Towards the A Zone Mineralization for Future Bulk Sample

 
Download as PDF Published on: September 15, 2020

TORONTO, Sept. 15, 2020 (GLOBE NEWSWIRE) -- Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces additional results from underground definition drilling and development activities at the Company’s 100% owned Kiena Mine Complex in Val d\'Or, Quebec.

Kiena Deep A Zone Drilling

Seven underground drills are in operation completing primarily definition drilling, with a lesser amount of extension drilling, of the Kiena Deep A Zone (the “A Zone”). Between May and August, a total of 21 holes totalling approximately 6,770 metres (“m”) were drilled within the A Zone 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 down plunge of the most recent resource estimate (Figure 1). The A Zone now extends down plunge in excess of 880 m. 

Highlights of the recent A Zone drilling are listed below and summarized in Table 1.

  • Hole 6584W1: 151.1 g/t Au over 13.1 m core length (35.4 g/t Au cut, 4.0 m true width) A2 Zone

  • Hole 6584W2: 96.0 g/t Au over 10.8 m core length (25.7 g/t Au cut, 3.5 m true width) A2 Zone

  • Hole 6668: 157.7 g/t Au over 2.7 m core length (27.3 g/t Au cut, 2.6 m true width) A Zone

  • Hole 6583W1: 55.1 g/t Au over 6.5 m core length (31.4 g/t Au cut, 3.0 m true width) A1 Zone

All assays cut to 90.0 g/t Au. True widths are estimated.

Mr. Duncan Middlemiss, President and CEO commented, “We are pleased with the ongoing drilling program that continues to focus on definition drilling of the high grade A Zone, in order to convert inferred resources to indicated resources, in advance of an updated resource estimate later in the year and subsequent incorporation into the PFS. The PFS will be used to determine the viability of mining the existing resources in the immediate reach of the Kiena Mine to justify a mine restart. Longer term, our focus will turn to the remaining resources on the Kiena property and the exploration potential.

Drilling productivity was initially challenged upon the return to work May 11th due to manpower issues arising from the COVID-19 regional quarantines in Quebec; however, we now currently have a full complement of drillers and our drilling program is back on track. Recent drilling has indicated the VC1 zone has now been extended down plunge over 475 metres. This zone is reasonably accessible to existing infrastructure and could be an important source of mineralization in the early days of any future mine restart.”

“In addition, we are excited about advancing the access development towards the upper levels of the A Zone mineralization that will position the Company to take a bulk sample, which will validate the geological block model and assess the geomechanical conditions in order to complement the quality of the work being done in the PFS.”

Recent drilling completed from the 79 level exploration ramp has focussed on the down dip extensions of the VC zones, namely the VC1 zone. To date drilling the VC zones below 79 level has been challenged by a series of faults, which will require additional development off the 79 level to provide for a new drill platform. Drilling of the VC1 zone has returned a number of anomalous intersections and extended the zone to depth, which is now interpreted as a separate structure having a different orientation. The mineralization of the VC1 zone has transitioned from a more sulphide rich mineralization found in the upper extents of the mine, to a quartz rich environment with visible gold present at depth, which is congruent with many global high grade deposits. Drilling has extended the VC1 zone 475 m down plunge from 67 Level to 107 Level, where development and drilling are presently being completed (Figure 2). Previous drilling, and two holes from this campaign, namely Hole 6654 (64.0 g/t Au cut over 1.9 m true width (“TW”)) and Hole 6688 (5.5 g/t Au over 3.0 m TW) have provided support to the VC1 zone extending to Hole 6531 (previously released) which intercepted 31.1 g/t Au over 5.1 m (24.3 g/t Au cut over 3.9 m TW) and indicates the higher grade potential of the VC1 with depth. The VC1 zone could be accessed by the 67, 79 and 107 levels that have been recently established.  The VC1 zone remains open at depth and will be a focus for ongoing drilling.

Kiena Deep A Zone Development

In addition to the ongoing drilling, access development is currently being completed towards the A Zone on 111 Level so as to position the Company to take a bulk sample. Future bulk sampling on the A Zone will provide an opportunity to assess the geological block model and rock quality characteristics and will provide the necessary information to complete the ongoing Prefeasibility Study (“PFS”), expected to be completed by H1 2021.

Surface Exploration Drilling

Data compilation, combined with the recent MT and Airborne Mag surveys in the area immediately adjacent to the Kiena mine has resulted in a new geologic interpretation and has identified a number of exploration targets for drilling. A 10,000 m surface drilling program has commenced to test these targets from surface. These initial targets are located along the Marbenite Fault (within 1.5 km from Kiena Mine Complex).

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 MiddlemissorLindsay 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 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

Hole No.From (m)To (m)Core Length (m)Estimated True width (m)Grade (g/t Au)Cut Grade (90 g/t Au)Name Zone
6654256.4258.42.01.976.7063.95VC1 Zone
6658155.9174.618.810.49.259.25A Zone
6659140.6144.94.33.037.6121.41A Zone
6661*275.5280.44.92.360.9922.88A Zone
6662237.0243.26.24.35.685.68A Zone
6668138.3141.02.72.6157.6727.30A Zone
6669*138.7153.815.19.010.5210.52A Zone
6672*474.9482.98.06.77.777.77A Zone
6684271.8278.06.25.271,.1130.71A Zone
6685264.9267.42.52.432.5432.54A Zone
6686*249.3251.21.91.841.0541.05A Zone
6583W1356.8363.36.53.055.1321.42A1 Zone
6583W3127.4130.43.02.012.1312.13A1 Zone
6583W4170.5181.210.74.35.925.92A1 Zone
6584W2216.2221.85.62.36.456.45A1 Zone
6603AW1288.0292.04.02.08.458.45A2 Zone
6603AW2293.0308.215.23.06.716.71A1 Zone
6668152.0158.06.04.016.0716.07A1 Zone
6704*483.8507.223.412.510.5510.55A1 Zone
6583W2444.7463.719.07.528.8125.42A2 Zone
6583W3142.1151.89.73.070.1130.42A2 Zone
6584W1245.2258.313.14.0151.0635.40A2 Zone
6584W2275.2286.010.83.596.0325.70A2 Zone
6661300.0304.04.02.631.4823.98A2 Zone
6668166.0173.07.06.55.995.99A2 Zone
6688212.3215.33.02.95.485.48VC1 Zone
6704*534.7539.75.02.351.5930.87A2 Zone
* Metallic Sieve Analysis Pending     

Assays

Hole No.From (m)To (m)Core Length (m)Grade (g/t Au)Name Zone 
6583W1356.8358.01.21.94A1 Zone 
6583W1358.0358.70.7117.00A1 Zone 
6583W1358.7359.40.7376.00A1 Zone 
6583W1359.4360.10.77.28A1 Zone 
6583W1360.1361.11.03.84A1 Zone 
6583W1361.1362.21.10.67A1 Zone 
6583W1362.2363.31.11.10A1 Zone 
       
6583W2444.7445.71.04.82A2 Zone 
6583W2445.7446.71.03.89A2 Zone 
6583W2446.7447.71.08.89A2 Zone 
6583W2447.7448.71.02.72A2 Zone 
6583W2448.7449.71.08.54A2 Zone 
6583W2449.7450.71.00.23A2 Zone 
6583W2450.7451.60.90.56A2 Zone 
6583W2451.6452.50.91.25A2 Zone 
6583W2452.5453.51.09.42A2 Zone 
6583W2453.5454.51.01.21A2 Zone 
6583W2454.5455.51.066.50A2 Zone 
6583W2455.5456.51.015.75A2 Zone 
6583W2456.5457.51.092.90A2 Zone 
6583W2457.5458.51.0151.50A2 Zone 
6583W2458.5459.51.024.90A2 Zone 
6583W2459.5460.51.044.60A2 Zone 
6583W2460.5461.51.034.20A2 Zone 
6583W2461.5462.51.09.78A2 Zone 
6583W2462.5463.71.254.90A2 Zone 
       
6583W3127.4128.41.04.41A1 Zone 
6583W3128.4129.41.01.88A1 Zone 
6583W3129.4130.41.030.10A1 Zone 
       
6583W3142.1143.11.0362.00A2 Zone 
6583W3143.1144.11.034.40A2 Zone 
6583W3144.1145.11.024.30A2 Zone 
6583W3145.1146.11.0203.00A2 Zone 
6583W3146.1147.11.023.30A2 Zone 
6583W3147.1148.11.04.46A2 Zone 
6583W3148.1149.11.012.25A2 Zone 
6583W3149.1150.11.07.51A2 Zone 
6583W3150.1150.80.73.28A2 Zone 
6583W3150.8151.81.06.55A2 Zone 
       
6583W4170.5171.51.09.44A1 Zone 
6583W4171.5172.71.21.13A1 Zone 
6583W4172.7173.71.00.90A1 Zone 
6583W4173.7174.71.02.92A1 Zone 
6583W4174.7175.71.02.51A1 Zone 
6583W4175.7176.71.00.48A1 Zone 
6583W4176.7178.01.35.36A1 Zone 
6583W4178.0178.80.82.48A1 Zone 
6583W4178.8179.60.81.03A1 Zone 
6583W4179.6180.40.824.20A1 Zone 
6583W4180.4181.20.820.80A1 Zone 
       
6584W1245.2246.21.07.75A2 Zone 
6584W1246.2247.21.04.21A2 Zone 
6584W1247.2248.21.00.16A2 Zone 
6584W1248.2249.10.914.00A2 Zone 
6584W1249.1250.31.2699.00A2 Zone 
6584W1250.3251.31.10.55A2 Zone 
6584W1251.3252.31.00.20A2 Zone 
6584W1252.3253.30.912.60A2 Zone 
6584W1253.3254.20.9759.00A2 Zone 
6584W1254.2255.21.0297.00A2 Zone 
6584W1255.2256.21.070.80A2 Zone 
6584W1256.2257.31.165.80A2 Zone 
6584W1257.3258.31.06.77A2 Zone 
       
6584W2216.2217.21.010.60A1 Zone 
6584W2217.2218.21.00.49A1 Zone 
6584W2218.2219.10.92.46A1 Zone 
6584W2219.1220.00.93.51A1 Zone 
6584W2220.0220.90.96.83A1 Zone 
6584W2220.9221.80.915.00A1 Zone 
       
6584W2275.2276.21.054.10A2 Zone 
6584W2276.2277.21.040.40A2 Zone 
6584W2277.2278.21.00.34A2 Zone 
6584W2278.2279.21.02.43A2 Zone 
6584W2279.2280.21.00.09A2 Zone 
6584W2280.2281.21.00.49A2 Zone 
6584W2281.2282.21.00.35A2 Zone 
6584W2282.2283.21.010.25A2 Zone 
6584W2283.2284.21.07.08A2 Zone 
6584W2284.2285.10.9460.00A2 Zone 
6584W2285.1286.00.9564.00A2 Zone 
       
6603AW1288.0289.01.017.65A1 Zone 
6603AW1289.0290.01.08.64A1 Zone 
6603AW1290.0291.01.04.67A1 Zone 
6603AW1291.0292.01.04.42A1 Zone 
       
6603AW2293.1294.61.59.73A1 Zone 
6603AW2294.6295.10.52.57A1 Zone 
6603AW2295.1296.41.316.45A1 Zone 
6603AW2296.4297.41.01.39A1 Zone 
6603AW2297.4298.41.016.40A1 Zone 
6603AW2298.4299.41.02.79A1 Zone 
6603AW2299.4300.41.00.59A1 Zone 
6603AW2300.4301.41.01.05A1 Zone 
6603AW2301.4302.41.08.79A1 Zone 
6603AW2302.4303.51.10.75A1 Zone 
6603AW2303.5304.00.50.94A1 Zone 
6603AW2304.0305.01.01.75A1 Zone 
6603AW2305.0306.11.11.24A1 Zone 
6603AW2306.1307.21.130.00A1 Zone 
6603AW2307.2308.21.011.20A1 Zone 
       
6654256.4257.41.037.90VC1 Zone 
6654257.4258.41.0115.50VC1 Zone 
       
6658155.9156.91.172.90A Zone 
6658156.9157.91.02.90A Zone 
6658157.9158.80.91.35A Zone 
6658158.8159.30.58.48A Zone 
6658159.3160.31.00.70A Zone 
6658160.3161.31.02.48A Zone 
6658161.3162.31.01.96A Zone 
6658162.3163.31.03.13A Zone 
6658163.3164.31.00.28A Zone 
6658164.3165.31.05.82A Zone 
6658165.3166.31.03.48A Zone 
6658166.3167.31.00.94A Zone 
6658167.3168.31.04.55A Zone 
6658168.3169.31.00.75A Zone 
6658169.3170.31.02.66A Zone 
6658170.3171.00.65.84A Zone 
6658171.0171.91.03.26A Zone 
6658171.9172.91.00.12A Zone 
6658172.9173.80.90.11A Zone 
6658173.8174.60.872.30A Zone 
       
6659140.6141.61.00.19A Zone 
6659141.6142.61.01.86A Zone 
6659142.6143.61.00.21A Zone 
6659143.6144.30.7189.50A Zone 
6659144.3144.90.644.70A Zone 
       
6661275.5276.00.51.73A Zone 
6661276.0276.90.90.04A Zone 
6661*276.9278.11.2244.00A Zone 
6661278.1278.90.80.54A Zone 
6661278.9280.41.51.14A Zone 
       
66613003011.0120.00A2 Zone 
66613013021.00.44A2 Zone 
66613023031.04.82A2 Zone 
66613033041.00.66A2 Zone 
       
6662237.0237.80.830.00A Zone 
6662237.8238.50.70.02A Zone 
6662238.5239.20.70.03A Zone 
6662239.2240.21.00.20A Zone 
6662240.2241.21.01.12A Zone 
6662241.2242.21.02.84A Zone 
6662242.2243.21.07.00A Zone 
       
6668138.3139.10.8530.00A Zone 
6668139.1140.11.00.10A Zone 
6668140.1141.00.91.79A Zone 
       
6668152.0153.01.035.50A1 Zone 
6668153.0154.01.033,2A1 Zone 
6668154.0155.01.07.43A1 Zone 
6668155.0156.01.07.72A1 Zone 
6668156.0157.01.02.92A1 Zone 
6668157.0158.01.09.63A1 Zone 
       
66681661671.022.00A2 Zone 
66681671681.00.38A2 Zone 
66681681691.00.03A2 Zone 
66681691701.00.15A2 Zone 
66681701711.00.05A2 Zone 
66681711721.02.08A2 Zone 
66681721731.017.25A2 Zone 
       
6669*138.7139.50.870.40A Zone 
6669139.5140.40.90.44A Zone 
6669140.4141.41.04.13A Zone 
6669141.4142.41.00.39A Zone 
6669142.4143.41.01.19A Zone 
6669143.4144.41.00.75A Zone 
6669144.4145.41.02.14A Zone 
6669145.4146.10.76.55A Zone 
6669146.1147.11.02.83A Zone 
6669*147.1147.80.731.30A Zone 
6669*147.8148.81.015.75A Zone 
6669148.8149.81.02.42A Zone 
6669149.8150.81.01.75A Zone 
6669*150.8151.81.039.90A Zone 
6669151.8152.81.00.36A Zone 
6669152.8153.81.03.97A Zone 
       
6672474.9475.91.04.12A Zone 
6672475.9476.91.02.18A Zone 
6672476.9477.91.06.49A Zone 
6672*477.9478.91.021.00A Zone 
6672478.9479.91.00.90A Zone 
6672479.9480.50.68.03A Zone 
6672*480.5481.20.724.30A Zone 
6672481.2482.10.94.32A Zone 
6672482.05482.90.82.32A Zone 
       
6684271.8272.81.0328.00A Zone 
6684272.8273.91.19.29A Zone 
6684273.9275.01.10.09A Zone 
6684275.0276.01.00.04A Zone 
6684276.0277.01.00.05A Zone 
6684277.0278.01.0102.50A Zone 
       
6685264.9265.40.52.89A Zone 
6685265.4266.41.078.60A Zone 
6685266.4267.41.01.31A Zone 
       
6686249.3250.20.90.11A Zone 
6686250.2251.21.077.90A Zone 
       
6688212.3213.31.08.82VC1 Zone 
6688213.3214.31.02.61VC1 Zone 
6688214.3215.31.05.02VC1 Zone 
       
6704*483.8484.60.89.22A1 Zone 
6704484.6485.20.64.99A1 Zone 
6704485.2485.90.70.14A1 Zone 
6704485.9486.60.74.22A1 Zone 
6704486.6487.61.03.34A1 Zone 
6704487.6488.10.55.58A1 Zone 
6704488.1488.90.88.55A1 Zone 
6704488.9489.70.80.86A1 Zone 
6704489.7490.71.00.89A1 Zone 
6704490.7491.71.01.15A1 Zone 
6704491.7492.71.02.00A1 Zone 
6704492.7493.71.02.36A1 Zone 
6704493.7494.71.00.98A1 Zone 
6704494.7495.71.02.10A1 Zone 
6704495.7496.71.01.32A1 Zone 
6704496.7497.71.01.09A1 Zone 
6704497.7498.71.00.10A1 Zone 
6704498.7499.50.80.88A1 Zone 
6704499.5500.91.47.04A1 Zone 
6704500.9501.40.50.18A1 Zone 
6704*501.4502.41.040.30A1 Zone 
6704*502.4503.41.021.00A1 Zone 
6704*503.4504.41.019.90A1 Zone 
6704*504.4505.41.037.20A1 Zone 
6704*505.4506.41.030.00A1 Zone 
6704*506.4507.20.861.00A1 Zone 
       
6704*534.7535.50.8149.50A2 Zone 
6704*535.5536.30.8160.00A2 Zone 
6704536.3537.31.04.56A2 Zone 
6704537.3538.31.02.67A2 Zone 
6704538.3539.71.42.22A2 Zone 
       
* Metallic Sieve Analysis Pending   

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