Wesdome Gold Announced an Increased Updated Mineral Resource Estimate for Kiena

   Wesdome Gold Mines Ltd. (TSX: WDO)

Announced an updated Mineral Resource Estimate at its 100% owned Kiena Mine Complex, in Val d’Or, Québec.

This estimate shall form the basis on which the Kiena PFS is founded. The company plans to complete the PFS in H1 of 2021, and contingent upon those results, decide on the potential next steps and timing of the Kiena Mine restart.

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Wesdome TSX : WDO
Stage Production, Development
Metals Gold
Market cap C$1.55 B   @ C$11.09
Location Ontario and Quebec, Canada

 

WESDOME ANNOUNCES UPDATED MINERAL RESOURCE ESTIMATE FOR KIENA MINE COMPLEX WITH A SIGNIFICANT INCREASE IN INDICATED MINERAL RESOURCES IN THE A ZONES

 

TORONTO, Dec. 15, 2020 (GLOBE NEWSWIRE) — Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) is pleased to announce an updated Mineral Resource Estimate (“MRE”) at its 100% owned Kiena Mine Complex, in Val d’Or, Québec.

This estimate shall form the basis on which the Kiena Prefeasibility Study (“PFS”) is founded. The company plans to complete the PFS in H1 of 2021, and contingent upon those results, decide on the potential next steps and timing of the Kiena Mine restart.

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HIGHLIGHTS

  • Definition drilling increased Kiena Deep A Zones Indicated Resources by 77% from 405,100 ounces to 717,400 ounces of gold since 2019, at a similar cut-off grade of 3.0 g/t Au.
  • Inferred Resources in the Kiena Deep A Zones of 120,400 ounces.
  • Kiena Mine Complex Mineral Resources total 796,000 ounces of Indicated and 656,000 ounces of Inferred.

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“We are pleased with our drilling efforts that have converted a large portion of the existing A Zones inferred resources to indicated resources in spite of the lower than planned drilling metres due to the operational disruptions attributed to the COVID-19 restrictions. Our focus changed to conversion of the A Zones inferred resources into indicated resources, as the timeliness of our restart decision is paramount to the company’s objective of adding another producing asset.

We are also pleased with the limited amount of exploration drilling that has extended the A Zones over 880 metres (“m”) down plunge. The A Zones remain open at depth and there exists additional potential to add ounces per vertical meter by exploring the adjacent VC and B Zones at depth as these would be accessible off the down ramp. Currently the deepest portion of the resource resides at the 1686m elevation and will be ramp accessible.

In addition to the update of the Kiena Deep and VC zones, all previous polygonal resources were converted to 3D block model during this MRE update in order to be consistent across the Kiena Mine Complex. This resulted in a small reduction of inferred ounces in some zones, but the total resources across the property are now more reflective of how these zones may be mined in the future.

We have restarted the Kiena mill to process the A Zone development material and assess the current resource estimate based on grade capping levels. The recent development and processing of the A Zone will be used to inform the ongoing prefeasibility study on aspects of the geological model, geomechanics, and milling parameters. The PFS is on schedule to be released in the first half of 2021.

With a large portion of the definition drilling completed, the underground drilling will continue with seven drills; however, the focus will be on near mine exploration and zone extensions, of which there are numerous targets. In addition, we are currently ramping up a large surface exploration program, with the aim of unlocking additional value on the Kiena property.”

– Mr. Duncan Middlemiss, President and CEO

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Comparison of 2020 MRE vs 2019 MRE for Kiena Deep A Zones

INDICATED INFERRED
3.0 g/t cut-off Tonnes Gold Grade
(g/t)
Gold
Ounces
Tonnes Gold Grade
(g/t)
Gold
Ounces
2019 MRE 679,200 18.6 405,100 676,300 15.3 332,000
2020 MRE 1,252,200 17.8 717,400 307,400 12.0 118,700
Difference +84% -4% +77% -55% -22% -64%

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HIGHLIGHTS OF MINERAL RESOURCE ESTIMATE (“MRE”) – December 15, 2020

Kiena Deep A Zones Mineral Resource Estimate Sensitivity Table (namely zones ZA, ZA1, ZA2 and H1ZA)

INDICATED INFERRED
Tonnes Gold Grade
 (g/t)
Gold
Ounces
Tonnes Gold Grade
 (g/t)
Gold
Ounces
4.5 g/t 1,056,500 20.4 694,000 239,500 14.4 110,600
4.0 g/t 1,115,300 19.6 702,000 258,700 13.6 113,200
3.5 g/t 1,182,100 18.7 710,100 281,700 12.8 116,000
3.0 g/t 1,252,200 17.8 717,400 307,400 12.0 118,700
2.8 g/t 1,279,400 17.5 719,900 325,700 11.5 120,400
2.5 g/t 1,330,700 16.9 724,300 341,900 11.1 121,800

 

Kiena Complex Mineral Resource Estimate by Area (2.8 g/t Au cut-off)

INDICATED INFERRED
AREA Tonnes Gold Grade
(g/t)
Gold
Ounces
Tonnes Gold Grade
(g/t)
Gold
Ounces
Kiena Deep 1,279,400 17.5 719,900 325,700 11.5 120,400
S50 146,600 4.5 21,400 100,000 3.7 12,000
VC 137,700 4.8 21,200 169,500 5.3 28,600
ZB 74,000 4.1 9,800
South Zones 63,200 4.2 8,400 211,900 3.9 26,700
Presquile 255,600 6.7 55,100
Dubuisson 744,600 6.7 160,200
Martin 163,100 4.8 25,000 109,100 4.3 15,000
North West 285,800 4.0 37,100
Wesdome* 1,129,400 5.3 191,400
TOTAL 1,789,900 13.8 795,900 3,405,600 6.0 656,200
*Reported at 3.6 g/t Au cut-off

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MINERAL RESOURCE UPDATE

The updated mineral resource estimate includes drill data as of September 18, 2020. It includes an additional 213 drill holes for a total of 60,865 m drilled since August 6, 2019 (close-out date for September 25, 2019 resource). Of which, an additional 122 new drill holes in Kiena Deep for a total of 35,280 m in the update of the Kiena Deep Zones. The drilling information was used to update the interpretation of the geologic model, geometry of the mineralised zones and domains resulting in a higher degree of confidence in the resource estimate.

The 2019 Preliminary Economic Assessment (“PEA”) has not been updated in light of the 2020 MRE. The 2020 MRE does not have a negative impact on or otherwise adversely affect the mineral resource inventory that formed the basis of the 2019 PEA.

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This article has been partially redacted due to its length, to read the full news release, please click HERE

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ABOUT WESDOME

Wesdome 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 Québec.

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, Québec. 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 138.9 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol “WDO”.

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