Mr.
Rolly Uloth reports
WESDOME 2013 YEAR END RESERVES INCREASE
Wesdome Gold Mines Ltd. has released updated mineral reserves and resources estimates for
its 100-per-cent-owned, operating Eagle River and Mishi gold mines, located
west of Wawa, Ont. Estimates are updated as at Dec. 31, 2013.
Highlights
- Proven and probable reserves increase 28 per cent;
- Additional measured and indicated resources flat (down 1 per cent);
- Additional inferred resources increase 32 per cent.
Rolly Uloth, president, commented: "These results increase the longevity
of our outlook. Importantly, these are quality ounces with
fully diluted underground reserve grades over 10 grams per tonne gold (g/t Au) and open-pit
reserve grades over two g/t Au. Ongoing investments in improving
efficiency and capacity of our mill is our obvious priority. We are in
a good position to drill off recently discovered parallel zones and
hopefully incorporate resources into the mine plan and thus reserves.
These new zones remain open in all directions."
MINERAL RESERVES AT DEC. 31, 2013
Mine Category Tonnes Grade Contained gold
(g/t Au) (ounces)
Eagle River Proven 109,000 11.7 41,000
Probable 411,000 9.7 128,000
Proven plus probable 520,000 10.1 169,000
Mishi Proven 198,000 2.5 16,000
Probable 1,394,000 2.2 96,000
Proven plus probable 1,592,000 2.2 112,000
Total 281,000
ADDITIONAL MINERAL RESOURCES AT DEC. 31, 2013
Mine Category Tonnes Grade Contained gold
(g/t Au) (ounces)
Eagle River Measured - - -
Indicated 167,000 8.3 44,000
Measured and indicated 167,000 8.3 44,000
Inferred 437,000 7.5 105,000
Mishi open pit Measured - - -
Indicated 3,688,000 2.1 248,000
Measured and indicated 3,688,000 2.1 248,000
Inferred 764,000 2.4 59,000
Mishi underground Measured - - -
Indicated 567,000 4.5 82,000
Measured and indicated 567,000 4.5 82,000
Inferred 437,000 5.8 81,000
Total Measured and indicated 374,000
Inferred 245,000
All mineral reserves and mineral resources estimates have been made in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 and assume a gold price of $1,300 per ounce.
All mineral resources are in addition to mineral reserves.
Mineral resources are not in the current mine plan and therefore do not have demonstrated economic viability.
As per Section 4.2 (b)(ii) of National Instrument 43-101, the change in mineral reserves and resources for the Eagle River and Mishi mines does not constitute a material change in the affairs of the company. For the Eagle River mine refer to the technical report filed on SEDAR, dated December, 2005, by Strathcona Mineral Services Ltd.
All mineral reserves and resources at Eagle River employ a 1.5-metre minimum width, a three g/t Au minimum grade for continuity and include one m of external dilution.
The Mishi mine mineral resource estimates were completed by InnovExplo Inc. in an NI 43-101 technical report dated Aug. 25, 2010, and filed on SEDAR. The initial Mishi mineral reserves estimates were compiled in an NI 43-101 report by InnovExplo Inc. dated Jan. 12, 2011, and also filed on SEDAR.
At Mishi, proven reserves include broken ore, stockpiles and about half of two five-metre benches (benches 2990 and 2995). A one g/t Au cut-off grade is employed.
Mishi resources are based on InnovExplo's 2010 model employing a one g/t Au cut-off grade. This has been adjusted to reflect production, broken ore and stockpiles mined in 2012 and 2013. Actual ore mined and milled reconciles very well with the block model. This is clearly a robust and reliable model to date and is carried forward subject to production reconciliation.
Qualified persons for the mineral reserves and mineral resources estimates as per NI 43-101 are as follows:
Eagle River
- George N. Mannard, PGeo, vice-president, exploration, Wesdome Gold Mines.
Mishi
-
Reserves: Daniel Lapointe, PGeo, chief geologist, and George Mannard, PGeo, vice-president, exploration, both Wesdome Gold Mines;
- Resources: based on a resource estimate by Karine Brosseau, PEng, and Carl Pelletier, PGeo, InnovExplo Inc., independent consultants, dated Aug. 25, 2010; estimate reconciled to 2012 and 2013 production and stockpiles by Daniel Lapointe, PGeo, chief geologist, Wesdome Gold Mines.
FIVE-YEAR RESERVES -- PRODUCTION RECONCILIATION
EAGLE RIVER MINE
Proven plus probable reserves estimates Actual production
Date Tonnes Grade Ounces Date Tonnes Grade Ounces
Dec. 31, 2008 231,000 9.8 73,000 2009 132,004 14.3 60,754
Dec. 31, 2009 400,000 8.6 110,000 2010 155,500 7.4 37,000
Dec. 31, 2010 345,000 15.0 167,000 2011 183,984 4.8 28,233
Dec. 31, 2011 504,000 10.9 176,000 2012 155,020 6.5 32,223
Dec. 31, 2012 435,000 10.0 140,000 2013 125,000 10.7 42,850
Dec. 31, 2013 520,000 10.1 169,000
Five-year cumulative production 201,060
Life of mine to date (1995 to 2013) 961,936
FIVE-YEAR RESERVES -- PRODUCTION RECONCILIATION
MISHI MINE
Proven plus probable reserves estimates Actual production
Date Tonnes Grade Ounces Date Tonnes Grade Ounces
Jan. 12, 2011 709,000 2.6 58,000 2012 64,915 2.3 4,776
Dec. 31, 2012 1,100,000 2.2 79,000 2013 22,536 3.3 2,362
Dec. 31, 2013 1,592,000 2.2 112,000
Two-year cumulative production 7,138
Life of mine to date (2002 to 2013) 22,713
At the Eagle River mine, proven and probable reserves increased 21 per cent net
of depletion in terms of contained ounces sufficient for in excess of
four years of production at a nominal rate of about 40,000 ounces per year.
Significant increases in indicated resources (up 69 per cent year over year)
and inferred resources (up 128 per cent) reflect the incorporation of new
parallel zones No. 7 and No. 300, discovered in 2013. Further drilling to
be done in 2014 aims to increase confidence in these zones and
hopefully incorporate them into the mine plan and, therefore, reserves.
At the Mishi mine, the mill stockpile grew to stand at 81,400 tonnes at
2.82 g/t Au at year-end. Contract mining was suspended in the
summer to work through the stockpile. The company currently anticipates resuming
mining activities in the latter half of 2014. The refurbishment of
milling and tailings management facilities is progressing in a stepwise
fashion and the company expects a 50-per-cent improvement in throughput compared with 2013.
The anticipated improvements and throughput will reduce unit costs and
increase production. Proven and probable reserve estimates at Mishi
have thus increased 41 per cent year over year. Mineral reserves within the
current mine plan demonstrate a life-of-mine stripping ratio of 2.7:1. To date, the company has mined 1,685,711 tonnes of waste and 180,476 tonnes
of ore at a stripping ratio of 9.3:1. A lot of the heavy lifting
and high-strip early benches of the mine are now substantially behind
the company.
The current mine plan is about 20 per cent of the overall resource (mineral
reserves plus indicated resources). Drilling planned for 2014 and
onward provides the opportunity to cost-effectively reassess mine
planning and mineral reserves and mineral resources estimates moving
forward.
In addition to its operating mines, Wesdome's resource base is
complemented by significant indicated and inferred resources found on
its 100-per-cent-owned Kiena and Wesdome properties in Val d'Or, Que., and
through its 57.6-per-cent-owned subsidiary Moss Lake Gold Mines Ltd. For
details on these other assets please view NI 43-101-compliant technical
disclosure available at the company's website or SEDAR.
We seek Safe Harbor.
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