Exploration Drilling at the Eagle River Mine Continues to Return High Grade Values From Falcon Zones and 300 East Zones
Exploration Drilling at the Eagle River Mine Continues to Return High Grade
Values From Falcon Zones and 300 East Zones
TORONTO, Feb. 12, 2020 -- Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces results
from the ongoing underground and surface exploration drilling program at the Company’s wholly-owned Eagle River Mine in
Wawa, Ontario.
Falcon Zones
Surface drilling continues to extend and better define the Falcon Zones, located in volcanic rocks approximately 200 metres
(“m”) west of the mine diorite (see press release dated June 6, 2019). The Falcon Zones occur near the contact between
tholeiitic mafic volcanic and calc-alkaline felsic to intermediate volcanics, which are commonly sheared with biotite-sericite
altered and laminated quartz veins with visible gold. Surface drilling has continued to expand the zone of mineralization to a
depth of 4400 m elevation (i.e. 600 vertical m below surface) and over a strike of 200 m.
In order to better test the down plunge extension of the Falcon Zone, a drill rig has been positioned underground on the 772 m
elevation. Initial drilling from underground has intersected visible gold mineralization in quartz veining approximately 70 m down
plunge of the Falcon Zone. Assaying of this hole returned 160.5 g/t Au over 3.9 metres (Figure 1 and 2). Given the steep
easterly plunge defined by the recent drilling, it is interpreted that the Falcon 7 Zone now extends an additional 500 m down
plunge and is the up plunge extension of the 7 Zone currently being mined near the 1,000 m elevation. This down plunge
extension of the Falcon Zone is located proximal to existing mine infrastructure, and as such, remains one of the priorities for
surface and underground drilling in the first half of 2020. The Falcon Zones have the potential to provide additional workplaces
required to increase the tonnage milled from Eagle River underground.
Highlights of the recent drilling are listed below and summarized in Table 2.
• Hole ERM-2019-60: 2,690.0 g/t over 0.5 m core length (60.0 g/t Au cut, 0.4 m true width)
• Hole ERM-2019-63: 49.4 g/t Au over 3.0 m core length (23.2 g/t Au cut, 2.2 m width)
• Hole ERM-2019-02: 16.0 g/t Au over 6.4 m core length (9.5 g/t Au cut, 4.7 m true width)
• Hole 772-E-58: 160.5 g/t Au over 3.9 m core length (73.4 g/t Au cut*, 2.2 m true width) – underground drill hole
Assays capped at 60 g/t Au. *Assays capped at 125 g/t Au. True widths are estimated.
300 East Zones - 303 Lens
Ongoing extension and definition drilling of the 300 East Zones, and in particular the 303 Lens, has continued to return high
grade gold intersections (see October, 2019 press release). The 303 Lens defines a zone that is interpreted to be the
intersection between two conjugate structures, namely the 301 and 300 East Zones, where increased widths and grades have
been returned. Initially defined from the 750 m-level to 1,000 m-level, this zone has now been extended an additional 300 m
down plunge to the 1,300 m-level (Figure 3). The down plunge extension is a relatively more tabular zone that now measures in
excess of 100 m along strike with above average widths and grades. The down plunge extension is more similar to the
adjacent 300 East Zones and the gold mineralization remains open down plunge.
Highlights of the recent drilling are listed below and summarized in Table 1.
303 Lens
• Hole 925-E-113: 49.1 g/t Au over 6.4 m core length (13.7 g/t Au cut, 4.1 m true width)
• Hole 925-E-132: 128.8 g/t Au over 5.0 m core length (51.6 g/t Au cut, 2.5 m true width)
• Hole 925-E-134: 23.8 g/t Au over 13.2 m core length (18.4 g/t Au cut, 6.6 m true width)
All assays cut to 140.0 g/t Au. True widths are estimated.
The recent drilling results from the Falcon and 300 East Zones will be included in the 2019 year end mineral resources and
reserves to be released on March 10, 2020.
Mr. Duncan Middlemiss, President and CEO, commented, "We are pleased with our ongoing exploration efforts at the Eagle
River Mine at both the Falcon and 300 East Zones. Surface drilling at the Falcon zone has demonstrated the potential to
define a mineral resource that extends towards the mine infrastructure. The objective is to continue our resource definition
efforts in this area using two surface drills. Intersecting the down plunge extension with underground drilling really shows the
potential of the Falcon 7 Zone extending to the Mine 7 Zone, an additional 400-500 metres of potential down plunge extension.
This is significant, as the extension of this zone is proximal to mine infrastructure and has the potential to be included in future
mine production and ultimately augment production rates in the medium term. Underground drilling continues to test this area
down plunge.”
“We are also pleased with the results of drilling of the 300 East Zones that continues to show the high grade nature and good
continuity of this zone that will be an important part of the production profile for the short and medium term. Elsewhere, we are
continuing to aggressively explore the Eagle River deposit with five underground drill rigs to extend the known 7 East and 311
West Zones and testing for parallel zones of mineralization in the eastern portion of the mine diorite.”
Given the recent success defining gold mineralization in the volcanic rocks surrounding the mine diorite, surface mapping and
prospecting, with potential follow-up trenching and drilling, is planned for this summer. There are many historic gold showings
in the volcanic rocks that remain underexplored along a 20km trend.
TECHNICAL DISCLOSURE
The sampling of, and assay data, from surface drill core is monitored through the implementation of a quality assurance -
quality control (QA-QC) program designed to follow industry best practice. Samples are transported in sealed bags to AGAT
Laboratories in Timmins Ontario for preparation. Pulps are transported to Mississauga, Ontario for gold assay by fire assay
with AAS finish. Samples with high grade gold are further assayed with a gravimetric finish and by metallic screen assay
where visible gold is present. Wesdome inserts blanks and certified standards in the sample sequence for quality control.
For underground drilling, the sampling of, and assay data from, underground drill core is monitored through the implementation
of a quality assurance - quality control (QA-QC) program designed to follow industry best practice. Samples are transported in
sealed bags to Eagle River Mine assay office in Wawa, Ontario. Samples are analyzed for gold using standard fire assay
technique with gravimetric finish. Wesdome inserts blanks and certified reference standard in the sample sequence for quality
control.
The technical content of this release has been compiled, reviewed and approved by Michael Michaud, P.Geo., Vice President,
Exploration of the Company and a "Qualified Person" as defined in National Instrument 43-101 -Standards of Disclosure for
Mineral Projects.
ABOUT WESDOME
Wesdome Gold Mines is in its 30 th year of continuous gold mining operations in Canada. The Company is 100% Canadian
focused with a pipeline of projects in various stages of development. 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, which is being explored and evaluated to be developed in the appropriate
gold price environment. The Company has approximately 138.0 million shares issued and outstanding and trades on the
Toronto Stock Exchange under the symbol “WDO.”
For further information, please contact:
Duncan Middlemiss orLindsay Carpenter Dunlop
President and CEO VP Investor Relations
416-360-3743 ext. 2029 416-360-3743 ext. 2025
[email protected] [email protected]
220 Bay Street, 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
Drilling Composites
Table 1
Drilling Composites – 303 Lens
Hole From
(m)
To
(m)
Width
(m)
True Width
(m)
Au (Uncut)
g/t
Au (Cut 140)
g/t
925-E-113 202.7 209.1 6.4 4.1 49.13 13.71
925-E-115 254.3 258.6 4.3 3.3 37.55 28.58
925-E-116 298.0 300.8 2.8 2.1 22.19 22.19
925-E-117 321.8 323.6 1.9 1.5 0.15 0.15
925-E-119 331.85 343.05 11.20 6.42 28.54 16.21
925-E-120 334.1 338.4 4.3 2.2 68.13 57.93
925-E-121 339.2 343.0 3.8 2.9 10.72 10.72
925-E-122 348.8 351.5 2.7 1.5 0.55 0.55
925-E-123 329.9 331.8 2.0 1.5 35.30 29.92
925-E-130 244.2 247.2 3.0 2.4 9.61 9.61
925-E-131 275.9 277.9 2.0 1.5 8.39 8.39
925-E-132 271.1 276.1 5.0 2.5 128.78 51.59
925-E-134 389.6 402.8 13.2 6.6 23.83 18.41
Table 2
Drilling Composites – Falcon Zone
Hole From
(m)
To
(m)
Width
(m)
True
Width
(m)
Au (Uncut)
g/t
Au (Cut 60)
g/t Zone
772-E-58 173.8 177.7 3.9 2.2 160.48 73.35 y
ERM-2019-66 175.5 176.0 0.5 0.4 1.05 1.05 Falcon 300
ERM-2019-66 172.0 172.5 0.5 0.4 1.43 1.43 Falcon 300
ERM-2019-72 9.0 9.5 0.5 0.3 1.74 1.74 Falcon 300
ERM-2019-72 3.0 3.5 0.5 0.3 1.90 1.90 Falcon 300
ERM-2019-61 227.0 227.5 0.5 0.4 3.08 3.08 Volcanics
ERM-2019-50 130.5 131.0 0.5 0.4 6.69 6.69 Volcanics
ERM-2019-70 42.5 43.0 0.5 0.3 7.41 7.41 Falcon 300
ERM-2019-68 401.9 402.4 0.5 0.4 21.20 21.20 8 Zone
ERM-2019-60 114.5 115.0 0.5 0.4 2690.00 60.00
Upper
Volcanics
ERM-2019-72 91.8 92.4 0.6 0.4 5.73 5.73 Falcon 7
ERM-2019-66 74.8 75.5 0.7 0.5 1.43 1.43
Upper
Volcanics
ERM-2019-67 347.8 348.5 0.7 0.4 2.21 2.21 Falcon 7
ERM-2019-66 275.9 276.7 0.8 0.6 1.37 1.37 Falcon 7
ERM-2019-64 207.0 208.0 1.0 0.6 1.14 1.14 Falcon 300
ERM-2019-66 161.0 162.0 1.0 0.7 1.26 1.26 Falcon 300
ERM-2019-72 301.0 302.0 1.0 0.7 1.27 1.27 8 Zone
ERM-2019-70 93.0 94.0 1.0 0.6 1.50 1.50 Volcanics
ERM-2019-66 270.2 271.2 1.0 0.7 1.87 1.87 Falcon 7
ERM-2019-66 163.0 164.0 1.0 0.7 2.22 2.22 Falcon 300
ERM-2019-67 217.0 218.0 1.0 0.6 3.26 3.26 Falcon 300
ERM-2019-69 524.8 525.8 1.0 0.8 4.95 4.95 8 Zone
ERM-2019-61 238.0 239.5 1.5 1.3 2.81 2.81 Falcon 7
ERM-2019-63 128.0 130.0 2.0 1.4 1.03 1.03 Falcon 300
ERM-2019-62 166.0 168.0 2.0 1.5 1.25 1.25 Falcon 300
ERM-2019-52 65.0 67.0 2.0 1.3 5.80 5.80 Falcon 300
ERM-2019-52 174.7 177.3 2.6 1.8 2.03 2.03 Volcanics
ERM-2019-69 524.3 527.0 2.7 2.1 2.42 2.42 8 Zone
ERM-2019-62 253.0 256.0 3.0 2.4 1.81 1.81 Volcanics
ERM-2019-63 273.0 276.0 3.0 2.2 49.35 23.17 Falcon 7
ERM-2019-49 593.9 597.7 3.8 2.6 23.90 22.51 Falcon 7
ERM-2019-64 326.0 330.0 4.0 2.6 1.32 1.32 Falcon 7
ERM-2019-57 173.0 179.0 6.0 4.7 1.04 1.04 Falcon 300
ERM-2019-70 520.2 527.2 7.0 5.8 1.17 1.17 8 Zone
ERM-2019-55 185.0 186.0 1.0 0.6 0.44 0.44 Falcon 7
ERM-2019-56 226.0 227.5 1.5 1.3 0.88 0.88 Falcon 7
ERM-2019-64 326.0 327.5 1.5 1.0 2.17 2.17 Falcon 7
ERM-2019-54 160.2 161.8 1.6 1.2 0.70 0.70 Falcon 7
ERM-2019-01 424.0 425.0 1.0 0.8 14.50 14.50 Falcon 7
ERM-2019-01 501.0 502.5 1.5 1.2 2.14 2.14
Lower
Volcanics
ERM-2019-02 387.1 393.5 6.4 4.7 15.95 9.49 Falcon 300
including 388.2 391.1 2.9 2.1 35.29 20.79 Falcon 300
ERM-2019-04 389.0 390.6 1.6 1.0 12.56 12.56 Falcon 300
including 389.0 390.1 1.1 0.7 16.89 16.89 Falcon 300
ERM-2019-05 428.0 429.8 1.8 1.5 6.12 6.12 Falcon 7
ERM-2019-06 353.0 353.5 0.5 0.4 5.15 5.15 Falcon 300
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/344ed5ca-4968-4688-bd4d-1be9716dce92
https://www.globenewswire.com/NewsRoom/AttachmentNg/0cfd00d1-ae0c-4b69-832c-63836cc33e08
https://www.globenewswire.com/NewsRoom/AttachmentNg/f3cb7bd8-6cb4-4fa6-abaf-da76f32d7a9f
PDF available: http://ml.globenewswire.com/Resource/Download/bea617f4-cb91-4d40-9a66-79d9fbde6102