TSX:WDO
TORONTO, May 31, 2016 /CNW/ - Wesdome Gold Mines Ltd.
(TSX: WDO) is pleased to announce further encouraging drill results
and initial drifting results from its ongoing 7 Zone exploration
target at its wholly-owned Eagle River Mine, Wawa, Ontario.
Initial encouraging drill results from 11 drill holes (900-E-74
to 900-E-84) were released February
23, 2016. This press release provides results from 15
new underground drill holes (900-E-85 to 900-E-100) and initial
findings from the surface drill program. The 7 Zone has now
been traced 200 metres ('m") up-plunge from existing reserves to
the 840 m level and continues to remain open towards surface.
(Figure 1).
DRILLING HIGHLIGHTS (see Table 1)
- Hole 900-E-87 28.58 gAu/t over 1.50 m true
width
- Hole 900-E-90 13.35 gAu/t over 2.18 m true width
- Hole 900-E-92 55.50 gAu/t over 1.57 m true width
- Hole 900-E-100 6.85 gAu/t over 1.51 m true width
Initial drifting on the 890 m level has confirmed
continuity and strong grades along the extended 7 Zone.
890 M LEVEL DRIFT HIGHLIGHTS (see Figure 1)
- Length: 42.0 m
- Grade:
- 33.15 gAu/tonne ("gAu/t") uncut
- 11.26 gAu/t (cut to 60 gAu/t)
- Average width: 1.5 m
Rolly Uloth, President and CEO
commented "This zone continues to remain open towards surface and
below the existing reserves. Initial drifting has open up the zone
at 890 metres demonstrating continuity and strong grades. We
will open up a second drift at 945 metres depth this summer and
start mining. An underground drill has been moved to the 350
metre level to continue tracing this zone upwards. The objective of
the surface drill program is to confirm structure. Results indicate
that the surface vein is continuous and well-developed with assays
to date returning lower grades."
SURFACE DRILLING
Initial surface drilling, which commenced March 1, 2016, has traced the No. 7 Zone quartz
vein from the surface showing to a depth of 150 m. Although
the vein and structure is continuous, results to date are
subeconomic, with the best sections returning 2.24 gAu/t over 0.9 m
corelength and 2.44 gAu/t over 0.3 m corelength (Figure 2). Similar
grades in the vein exist adjacent to existing reserve and mining
blocks.
GEOLOGICAL CONTEXT/IMPLICATIONS
The Company is developing and exploring two new parallel zones,
the No. 7 and 300, located 200 m and 400 m north, respectively, of
the main structure that has supported production of greater than
1.0 million ounces of gold over the last 20 years. Initial
production from the 300 Zone commenced last summer.
Drilling in early 2016 (Press Release dated February 23, 2016) extended an existing deep
reserve block upwards enabling us to advance future production from
the 7 Zone. The Company's goal is to have all three
structures in commercial production as soon as possible.
TECHNICAL DISCLOSURE
The technical disclosure in this press release has been compiled
and reviewed by George N. Mannard,
PGeo., VP Exploration of Wesdome and "Qualified Person" as defined
by National Instrument 43-101 disclosure standards. Assaying
is performed at the Eagle River Mine Assay office by fire assay
methods on 25 gram aliquots. QA/QC protocols involve regular
lab duplicates and replicates, standards and blanks.
ABOUT WESDOME
Wesdome Gold Mines Ltd. is in its 28th year of continuous gold
mining operations in Canada. The Company is currently
producing gold at the Eagle River Complex located near Wawa, Ontario from the Eagle River and Mishi
gold mines. Wesdome's goal is to expand current operations at both
mines over the next four years through mill expansion and
exploration. Wesdome has significant upside through ownership of
its two other properties, the Kiena Mine Complex and exploration
properties in Val d'Or, Quebec and
the Moss Lake gold deposit located 100 kilometres west of
Thunder Bay, Ontario. These
assets are being explored and evaluated to be developed in the
appropriate gold price environment. The Company has
approximately 129 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. 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
NO. 7 ZONE
SIGNIFICANT INTERSECTIONS
|
Hole No.
|
From
|
To
|
Corelength
|
True Width
|
Grade
|
Cut Grade
*
|
|
(m)
|
(m)
|
(m)
|
(m)
|
(gAu/t)
|
(60 gAu/t)
|
Previously
Released, February 23, 2016
|
900-E-74
|
199.35
|
201.10
|
1.75
|
1.52
|
51.15
|
26.99
|
900-E-75
|
159.60
|
164.00
|
4.40
|
3.37
|
14.82
|
7.71
|
900-E-76
|
122.50
|
124.65
|
2.15
|
1.52
|
1.29
|
1.29
|
900-E-77
|
174.90
|
177.65
|
2.75
|
1.77
|
15.57
|
14.88
|
900-E-78
|
131.25
|
139.80
|
8.55
|
5.50
|
13.63
|
12.47
|
900-E-79
|
117.20
|
126.00
|
8.80
|
6.22
|
13.97
|
11.55
|
900-E-80
|
124.00
|
125.95
|
1.95
|
1.49
|
0.06
|
0.06
|
900-E-81
|
184.50
|
189.65
|
5.15
|
2.95
|
19.57
|
12.44
|
900-E-82
|
139.75
|
145.50
|
5.75
|
4.71
|
9.72
|
7.28
|
900-E-83
|
193.00
|
195.60
|
2.60
|
1.49
|
0.97
|
0.97
|
900-E-84
|
122.65
|
130.40
|
7.75
|
7.49
|
7.09
|
6.65
|
New Drilling,
May 16, 2016
|
900-E-85
|
111.25
|
112.80
|
1.55
|
1.50
|
2.15
|
2.15
|
900-E-86
|
219.30
|
222.75
|
3.45
|
1.48
|
0.36
|
0.36
|
900-E-87
|
173.80
|
176.80
|
3.00
|
1.50
|
28.58
|
18.61
|
900-E-88
|
143.60
|
145.70
|
2.10
|
1.48
|
2.95
|
2.95
|
900-E-89
|
151.45
|
156.50
|
5.05
|
3.25
|
4.93
|
4.93
|
900-E-90
|
111.30
|
114.15
|
2.85
|
2.18
|
13.35
|
13.35
|
900-E-91
|
194.20
|
196.80
|
2.60
|
1.49
|
1.37
|
1.37
|
900-E-92
|
100.95
|
103.00
|
2.05
|
1.57
|
55.50
|
30.62
|
900-E-93
|
not
drilled
|
900-E-94
|
235.60
|
240.00
|
4.40
|
1.50
|
0.41
|
0.41
|
900-E-95
|
165.00
|
168.00
|
3.00
|
1.50
|
0.98
|
0.98
|
900-E-96
|
141.85
|
145.40
|
3.55
|
1.50
|
1.51
|
1.51
|
900-E-97
|
145.20
|
150.95
|
5.75
|
2.88
|
3.53
|
3.53
|
900-E-98
|
153.50
|
155.85
|
2.35
|
1.51
|
0.39
|
0.39
|
900-E-99
|
148.65
|
152.15
|
3.50
|
1.50
|
0.63
|
0.63
|
900-E-100
|
150.45
|
152.80
|
2.35
|
1.51
|
6.85
|
6.85
|
* individual assays > 60 gAu/t are reduced to 60 gAu/t
SOURCE Wesdome Gold Mines Ltd.