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Wesdome Gold Mines Ltd
Symbol WDO
Shares Issued 134,979,264
Close 2019-01-28 C$ 4.89
Market Cap C$ 660,048,601
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Wesdome drills 30.6 m of 33.7 g/t Au at Kiena

2019-01-28 07:12 ET - News Release

Mr. Duncan Middlemiss reports

WESDOME ANNOUNCES ONGOING EXPLORATION DRILLING OF KIENA DEEP A ZONE CONTINUES TO EXTEND ZONE UP AND DOWN PLUNGE

Wesdome Gold Mines Ltd. has released additional high-grade results from the continuing underground exploration drilling of the Kiena Deep A zone at its 100-per-cent-owned Kiena mine complex in Val d'Or, Que.

Since the Oct. 12 cut-off date for drill data used in the recent resource estimate released on Dec. 12, 2018, exploration and definition drilling has been continuing with five drills at the Kiena Deep A zone. Since this time, approximately 4,200 metres in 16 holes have been completed. The continuing drilling is utilizing the newly developed ramp and crosscut extensions completed in November, which enhance drill angles and drill efficiencies. These platforms now allow diamond drilling to be able to intersect the up- and down-plunge extension of the Kiena Deep A zone consistently.

The continuing definition/infill drilling has continued to confirm the overall continuity of the Kiena Deep A zone and improve the company's understanding and confidence in the controls on gold mineralization. Drilling to date has identified a well-defined, moderate plunge of approximately 45 degrees to the southeast to the gold mineralization that occurs predominantly along the basalt-chlorite-carbonate schist boundary. Continuing drilling has continued to expand the Kiena Deep A zone up and down plunge, in excess of 50 additional metres in each direction, and has also provided additional confidence in the company's understanding of the up- and down-plunge potential and focus for drilling. Four drills are in operation on the 1,050 m level exploration ramp completing the infill and plunge extension drilling, and a fifth drill is now drilling at the 670 m elevation to test the interpreted up-plunge extension of the A zone toward the VC zone area. This up-plunge extension is understood to be in excess of 425 metres and would be in addition to the 500 metres of plunge length already defined by drilling. This has the potential to significantly add to the resource base, and could be a vital enhancement in any restart scenario.

Highlights of the new drilling are listed below and summarized in the associated table.

Highlights:

Kiena Deep A zone:

  • Hole 6384A: 33.7 grams per tonne gold over 30.6 m core length (28.4 g/t Au cut, 15.0 m true width);
  • Hole 6378: 36.5 g/t Au over 7.0 m core length (18.4 g/t Au cut, 5.0 m true width);
  • Hole 6392: 153.4 g/t Au over 1.4 m core length (35.4 g/t Au cut, 1.3 m true width);
  • Hole 6402: 51.9 g/t Au over 7.6 m core length (17.9 g/t Au cut, 7.6 m true width);
  • Hole 6409: 39.8 g/t Au over 4.7 m core length (20.0 g/t Au cut, 3.6 m true width).

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

Duncan Middlemiss, president and chief executive officer, commented: "We are very pleased with the recent drill results that continue to confirm the continuity and minability of the Kiena Deep A zone. Our current program is targeting the up- and down-plunge extensions and recent resource infill. Based on these objectives, we are extremely encouraged by these results. Drilling has continued to return very high-grade results both up and down plunge from the area of the present resource estimate and we are confident this will continue to grow. Additionally, the down plunge and portions of the downdip extension of the A zone remain open and will also be a focus of the continued drilling. Our 2019 underground exploration program calls for 50,000 metres of drilling with five drills in preparation for an updated resource estimate later in the year. This information will then lead into a preliminary economic assessment and next steps will be determined at that juncture. At this point I would say we are very encouraged with the ongoing success of our Kiena Deep exploration program and the obvious restart ramifications that it may bring."

Technical disclosure

The technical and geoscientific content of this release has been compiled, reviewed and approved by Bruno Turcotte, PGeo (OGQ No. 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 Techni-Lab (ActLabs) of Ste-Germaine-Boule, Que., a certified commercial laboratory (SCC-accredited lab No. 707), and by ALS Minerals of Val d'Or, Que., a certified commercial laboratory (accredited lab No. 689). Sample preparation was done at Techni-Lab (ActLabs) and at ALS Minerals, both in Val d'Or, Que. Assaying was done by fire assay methods with an atomic absorption finish. Any sample assaying greater than three g/t Au was rerun with by fire assay method with gravimetric finish, and any sample assaying greater than 10 g/t Au was rerun with the metallic sieve method in both laboratories. 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 20 to monitor quality control.

About Wesdome Gold Mines Ltd.

Wesdome has had over 30 years of continuous gold mining operations in Canada. The company is 100 per cent 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-plus ounces from two mines in Ontario and Quebec. The Eagle River complex in Wawa, Ont., is currently producing gold from two mines, the Eagle River underground mine and the Mishi open pit, from a central mill.

                       KIENA DEEP A ZONE DRILLING RESULTS
Composites
Hole No.     From     To  Core length  Estimated true width    Grade   Cut grade
              (m)    (m)          (m)                   (m) (g/t Au)    (g/t Au)

6297        228.8  232.5          3.7                   3.6     2.28        2.28
6297        243.5  247.5          4.0                   3.9     3.65        3.65
6313        101.5  104.3          2.8                   2.2     5.75        5.75
6378        221.3  228.3          7.0                   5.0    36.50       18.35
6379        150.2  152.8          2.6                   1.6     7.94        7.94
6384A       260.0  274.0           14                   4.0     4.98        4.98
6384A       280.0  310.6         30.6                **15.0    33.72       28.36
6392        166.8  168.2          1.4                   1.3   153.43       35.38
6394        166.0  168.0          2.0                   1.8     3.08        3.08
6402         59.1   66.7          7.6                   7.6   *51.92      *17.89
6402        102.2  105.7          3.5                   3.5    *6.54       *6.54
6403         57.7   61.0          3.3                   3.2   *22.28      *22.28
6409        559.6  564.3          4.7                   3.6    39.79       20.00
6409        572.3  575.3          3.0                   2.0     5.43        5.43
6409        583.3  587.3          4.0                   2.7     2.68        2.68

* Preliminary results; reassay by metallic sieve method is pending.                             
** Estimated true width is based on two holes (6384 and 6384A).                                  

Assays
Hole No.       From       To      Core length       Grade           Cut grade
                (m)      (m)              (m)    (g/t Au)         (90 g/t Au)

6297          228.8    229.6              0.8        1.50                1.50
6297          229.6    230.5              0.9        0.70                0.70
6297          230.5    231.5              1.0        3.14                3.14
6297          231.5    232.5              1.0        3.46                3.46

Hole No.       From       To      Core length       Grade           Cut grade
                (m)      (m)              (m)    (g/t Au)         (90 g/t Au)

6297          243.5    244.5              1.0        4.37                4.37
6297          244.5    245.5              1.0        3.50                3.50
6297          245.5    246.5              1.0        1.10                1.10
6297          246.5    247.5              1.0        5.62                5.62

Hole No.       From       To      Core length       Grade           Cut grade
                (m)      (m)              (m)    (g/t Au)         (90 g/t Au)

6313          101.5    101.9              0.4       36.08               36.08
6313          101.9    102.9              1.0        0.90                0.90
6313          102.9    103.9              1.0        0.26                0.26
6313          103.9    104.9              1.0        1.30                1.30

Hole No.       From       To      Core length       Grade           Cut grade
                (m)      (m)              (m)    (g/t Au)         (90 g/t Au)

6378          221.3    222.3              1.0        5.70                5.70
6378          222.3    222.8              0.5      251.90               90.00
6378          222.8    223.6              0.8      147.63               90.00
6378          223.6    224.6              1.0        0.17                0.17
6378          224.6    225.3              0.7        2.49                2.49
6378          225.3    226.3              1.0        0.20                0.20
6378          226.3    227.3              1.0        0.64                0.64
6378          227.3    228.3              1.0        3.01                3.01

Hole No.       From       To      Core length       Grade           Cut grade
                (m)      (m)              (m)    (g/t Au)         (90 g/t Au)

6379          150.2    151.1              0.9       22.66               22.66
6379          151.1    152.0              0.9        0.01                0.01
6379          152.0    152.8              0.8        0.30                0.30

Hole No.       From       To      Core length       Grade           Cut grade
                (m)      (m)              (m)    (g/t Au)         (90 g/t Au)

6384A         260.0    261.0              1.0       25.30               25.30
6384A         261.0    261.5              0.5        0.38                0.38
6384A         261.5    262.0              0.5        0.03                0.03
6384A         262.0    262.5              0.5        1.12                1.12
6384A         262.5    263.0              0.5        1.74                1.74
6384A         263.0    263.5              0.5        8.03                8.03
6384A         263.5    264.0              0.5        3.88                3.88
6384A         264.0    265.0              1.0        1.56                1.56
6384A         265.0    266.0              1.0        2.31                2.31
6384A         266.0    267.0              1.0        5.96                5.96
6384A         267.0    268.0              1.0        3.36                3.36
6384A         268.0    269.0              1.0        2.61                2.61
6384A         269.0    270.0              1.0        1.14                1.14

Hole No.       From       To      Core length       Grade           Cut grade
                (m)      (m)              (m)    (g/t Au)         (90 g/t Au)

6384A         280.0    281.0              1.0       61.80               61.80
6384A         281.0    282.0              1.0       40.30               40.30
6384A         282.0    283.0              1.0       84.60               84.60
6384A         283.0    284.0              1.0        8.75                8.75
6384A         284.0    285.0              1.0       17.85               17.85
6384A         285.0    286.0              1.0       11.95               11.95
6384A         286.0    287.0              1.0        8.79                8.79
6384A         287.0    288.0              1.0       46.90               46.90
6384A         288.0    289.0              1.0      109.00               90.00
6384A         289.0    290.0              1.0      138.00               90.00
6384A         290.0    291.0              1.0        3.66                3.66
6384A         291.0    292.0              1.0       41.30               41.30
6384A         292.0    293.0              1.0       31.20               31.20
6384A         293.0    294.0              1.0       31.60               31.60
6384A         294.0    295.0              1.0      187.00               90.00
6384A         295.0    296.0              1.0       11.25               11.25
6384A         296.0    297.0              1.0       29.30               29.30
6384A         297.0    298.0              1.0       29.60               29.60
6384A         298.0    299.0              1.0       77.50               77.50
6384A         299.0    300.0              1.0        4.76                4.76
6384A         300.0    301.0              1.0        3.62                3.62
6384A         301.0    302.0              1.0        4.74                4.74
6384A         302.0    303.0              1.0        1.58                1.58
6384A         303.0    304.0              1.0        2.22                2.22
6384A         304.0    305.0              1.0       19.20               19.20
6384A         305.0    306.0              1.0        6.76                6.76
6384A         306.0    307.0              1.0        8.53                8.53
6384A         307.0    307.6              0.6        1.03                1.03
6384A         307.6    308.3              0.7        1.84                1.84
6384A         308.3    309.2              0.9        1.16                1.16
6384A         309.2    309.9              0.7        6.18                6.18
6384A         309.9    310.6              0.7        3.90                3.90

Hole No.       From       To      Core length       Grade           Cut grade
                (m)      (m)              (m)    (g/t Au)         (90 g/t Au)

6392          166.8    167.3              0.5      420.55               90.00
6392          167.3    168.2              0.9        5.03                5.03

Hole No.       From       To      Core length       Grade           Cut grade
                (m)      (m)              (m)    (g/t Au)         (90 g/t Au)

6394          166.8    167.3              0.5        3.17                3.17
6394          167.3    168.2              0.9        0.13                0.13
6394          167.3    168.2              0.9        5.86                5.86

Hole No.       From       To      Core length       Grade           Cut grade
                (m)      (m)              (m)    (g/t Au)         (90 g/t Au)

6402           59.1     60.4              1.3     *289.00              *90.00
6402           60.4     61.5              1.1        7.34                7.34
6402           61.5     62.7              1.2        2.92                2.92
6402           62.7     64.0              1.3        0.55                0.55
6402           64.0     65.2              1.2        3.18                3.18
6402           65.2     66.7              1.5        1.88                1.88

Hole No.       From       To      Core length       Grade           Cut grade
                (m)      (m)              (m)    (g/t Au)         (90 g/t Au)

6402          102.2    103.3              1.1      *20.48              *20.48
6402          103.3    104.5              1.2        0.18                0.18
6402          104.5    105.7              1.2        0.11                0.11

Hole No.       From       To      Core length       Grade           Cut grade
                (m)      (m)              (m)    (g/t Au)         (90 g/t Au)

6403           57.7     58.2              0.5      *54.20              *54.20
6403           58.2     59.1              0.9        0.17                0.17
6403           59.1     59.9              0.8        0.07                0.07
6403           59.9     60.4              0.5      *67.60              *67.60
6403           60.4     61.0              0.6      *20.70              *20.70

Hole No.       From       To      Core length       Grade           Cut grade
                (m)      (m)              (m)    (g/t Au)         (90 g/t Au)

6409          559.6    560.6              1.0     *183.00              *90.00
6409          560.6    561.3              0.7        0.28                0.28
6409          561.3    562.3              1.0        0.05                0.05
6409          562.3    563.3              1.0        0.15                0.15
6409          563.3    564.3              1.0        3.61                3.61

Hole No.       From       To      Core length       Grade           Cut grade
                (m)      (m)              (m)    (g/t Au)         (90 g/t Au)

6409          572.3    573.3              1.0      *15.10              *15.10
6409          573.3    574.3              1.0        0.13                0.13
6409          574.3    575.3              1.0        1.06                1.06

Hole No.       From       To      Core length       Grade           Cut grade
                (m)      (m)              (m)    (g/t Au)         (90 g/t Au)

6409          583.3    584.1              0.8        3.92                3.92
6409          584.1    584.7              0.6        3.43                3.43
6409          584.7    585.3              0.6        1.33                1.33
6409          585.3    586.3              1.0        0.22                0.22
6409          586.3    587.3              1.0        4.51                4.51

* Preliminary results; reassay by metallic sieve method is pending.         

We seek Safe Harbor.

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