PRESS RELEASE
MISHI RESOURCE ESTIMATE EXCEEDS EXPECTATIONS
PRE-FEASIBILITY STUDY AND DRILL PROGRAM UNDERWAY
Toronto, Ontario – July 12 , 2010 – Wesdome Gold Mines Ltd. (W DO-TSX) is pleased to announce results of a new National Instrument 43-101 compliant resource estimate for its wholly-owned Mishi deposit located two kilometres west of the Company’s mill, near Wawa, Ontario (Figure 1).
Donovan Pollitt, P.Eng. and CEO, co mments “Our Eagle River Mill is cu rrently running at half capacity.
This project offers excellent potentia l for expansion in a stepwise manner with little capital at risk. The deposit is open at depth and to the east at shallow depths where drilling recently commenced”.
This estimate is part of an independent technical report by InnovExplo Inc., a Val d’Or, Quebec based geological and engineering consulting firm. It is based on an exhaustive and detailed compilation and interpretation of existing data. Open pit resour ces are estimated to a depth of 110 metres (2,890 elevation) employing a 1.0 gAu/tonne cut-off grade. Underground resources are estimated below this depth employing a 3.0 gAu/tonne cut-off grade. A three year moving average gold price of $1000Cdn per ounce is used in conjunction with these assumpti ons to justify reasonable prospects for economic extraction. Details of the open pit resources are comp iled with cut-off grade sensitivities in Table 1.
Underground resources are compiled in detail in a lik e manner in Table 2. A detailed breakdown of the cut-off grade sensitivities between 1.0 and 2.0 gAu/t onne for the open pit scenario is provided in Table 3 to provide clarity regarding the grade-tonnage relationship.
Highlights of the new mineral resource estimate include:
- Measured and Indicated Resources total 5.7 million tonnes at 2.4 gAu/tonne or 438,000 contained ounces
- Additional Inferred Resources total 1.2 million tonnes at 3.6 gAu/tonne or 140,000 contained ounces
- 90% of Measured and Indicated Resources fall within an open pit scenario above a depth of 110 metres
- Potential to increase resources with further drilling identified and drilling in progress
- Resources located two kilometres from wholly-owned mill currently operating at half capacity
- Permitting in place subject to closure plan amendments
The technical report supporting t hese estimated will be made available in 45 days, in accordance with regulatory requirements.
The Mishi Deposit is situated at a flexure in the regional Mishibishu Deformation Zone, which follows a mafic volcanic-sedimentary contact. At this locality, a Quartz-Feldspar Porphyry stock is attenuated and truncated by the deformation zone.
The deposit consists of an array of at least ei ght enechelon tabular zones striking east-west, dipping 40 degrees north and plunging 45 degrees northeast.
The mineralization consists of disseminated pyrite in sericiti c alteration zones, sometimes accompanied by smokey quartz veinlets.
Historically, the deposit has been mi ned seasonally by open pit methods by Wesdome. To date, it has produced 15,562 ounc es of gold from 135,495 tonnes milled at a recovered gr ade of 3.57 gAu/tonne.
The mining and metallurgical characteristics of the deposit are known.
Drilling has traced the mineralization to a maximum depth of 300 metres beyond which it remains open.
Current drilling is testing the shallow eastern strike extension of the deposit above a depth of 150 metres.
Existing underground workings extend to within 300 metres of the Mishi Deposit on the 150 metre level.
InnovExplo Inc. is currently preparing an inde pendent National Instrument 43-101 compliant prefeasibility study. The focus of the study initially is a starter pit sc enario to provide millfeed with limited capital outlay. Management believes the resource is sufficient to examine a progressive phased development approach involving pushback pit developm ent and underground conversion. Options for mill capacity and infrastructure expansion will be examined.
Management is encouraged by the new resource esti mates. The study highlights the Company’s prospects for low cost, long term scalable internal growth projects in light of rising gold prices.
The Independent “Qualified Person” for the National Instrument 43-101 compliant Mineral Resource estimate for the Mishi Project are Carl Pelletier, P.G eo. and Karine Brousseau, P.Eng. of InnovExplo Inc.
This press release was prepared by George Mannar d, P.Geo., VP Exploration, Wesdome Gold Mines Ltd. and “Qualified Person” as per National Instrument 43-101.
Wesdome is an establis hed Canadian gold producer with wholly -owned mining and milling complexes located in Wawa, Ontario and Val d’Or, Québec. We sdome has been producing gold continually for 20 years on an unhedged basis and to date has produc ed in excess of 1.0 million ounces. The Company has 100.7 million shares issued and outstanding and trades on the Tor onto Stock Exchange under the symbol “WDO”.
For further information, please contact:
Donovan Pollitt, P.Eng. or Shelly John President & CEO Manager, Investor Relations
8 King St. East, Suite 1305 Toronto, ON, M5C 1B5 Toll Free: 1-866-4-WDO-TSX Phone: 416-360-3743, Fax: 416-360-7620 Email: [email protected], Website: www.wesdome.com
This news release contains “forward-looking information” which may include, but is not limited to, statements with respect to t he future financial or operating performance of the Company and its projects . Often, but not always, forward-looking statements can be id entified 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 re sults “may”, “could”, “would”, “might” or “will” be taken, occur or be achi eved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual result s, performance or achievements of the Company to be materially different from any future results, performance or achievements ex pressed or implied by the forward-looking statements. Forward- looking statements contained herein are made as of the date of this pr ess release and the Company disc laims any obligation to update an y forward-looking statements, whether as a result of new informati on, future events or results or otherwise. There can be no assu rance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those an ticipated 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.
Table 1
Summary
Zone Category Cut ‐off Tonnes Au g/t Oz Au Zone Category Cut ‐off Tonnes Au g/t Oz Au
> 6 g/t 13,500 8.46 3,667 > 6 g/t 40,100 14.31 18,453
> 5 g/t 22,100 7.27 5,175 > 5 g/t 48,000 12.87 19,844
> 4 g/t 38,300 6.08 7,482 > 4 g/t 53,300 12.02 20,606
> 3 g/t 67,600 4.94 10,742 > 3 g/t 68,600 10.11 22,314
> 2 g/t 123,400 3.83 15,181 > 2 g/t 93,200 8.07 24,170
> 1 g/t 280,900 2.46 22,192 > 1 g/t 718,500 2.24 51,662
> 6 g/t 165,500 9.83 52,278 > 6 g/t 13,900 12.25 5,463
> 5 g/t 239,900 8.48 65,393 > 5 g/t 15,200 11.68 5,693
> 4 g/t 367,800 7.06 83,531 > 4 g/t 16,700 11.04 5,919
> 3 g/t 683,100 5.39 118,360 > 3 g/t 19,400 9.98 6,236
> 2 g/t 1,513,400 3.76 182,728 > 2 g/t 27,900 7.65 6,859
> 1 g/t 4,888,200 2.12 333,940 > 1 g/t 45,600 5.26 7,701
> 6 g/t 178,900 9.72 55,945 > 6 g/t 54,000 13.78 23,916
> 5 g/t 262,100 8.38 70,569 > 5 g/t 63,100 12.58 25,537
> 4 g/t 406,000 6.97 91,012 > 4 g/t 70,000 11.79 26,525
> 3 g/t 750,700 5.35 129,102 > 3 g/t 88,100 10.08 28,550
> 2 g/t 1,636,700 3.76 197,909 > 2 g/t 121,100 7.97 31,029
> 1 g/t 5,169,200 2.14 356,132 > 1 g/t 764,100 2.42 59,362
Zone Tonnes Au g/t Oz Au Zone Tonnes Au g/t Oz Au
ENV 197,200 1.72 10,879 ENV 2,400 1.38 107
Z2_4 4,096,900 2.02 265,613 Z2_4 472,700 1.35 20,574
Zone 6 408,400 3.37 44,266 Zone 6 71,800 8.12 18,741
Zone 8 18,500 1.29 768 Zone 8 1,500 1.40 69
Zone 10 416,800 2.44 32,659 Zone 10 136,300 1.81 7,943
Zone 12 31,400 1.93 1,949 Zone 12 11,200 1.30 471
Zone 14 0 0.00 0 Zone 14 49,500 6.54 10,409
Zone 16 0 0.00 0 Zone 16 18,600 1.76 1,049
TOTAL 5,169,200 2.14 356,132 TOTAL 764,100 2.42 59,362
Mishi Deposit
Wesdome Gold Mines
Final Results ‐ Open Pit
All
Measured
All
Category Category
Inferred
Indicated Inferred reclassified Meas + Ind Total Inf Measured + Ind > 1 g/t Au Total Inferred > 1 g/t Au
Table 2
Summary
Zone Category Cut ‐off Tonnes Au g/t Oz Au Zone Category Cut ‐off Tonnes Au g/t Oz Au
> 6 g/t 0 0.00 0 > 6 g/t 81,100 8.82 23,013
> 5 g/t 0 0.00 0 > 5 g/t 149,900 7.25 34,962
> 4 g/t 0 0.00 0 > 4 g/t 177,600 6.83 38,999
> 3 g/t 0 0.00 0 > 3 g/t 259,000 5.71 47,573
> 6 g/t 76,500 7.60 18,704 > 6 g/t 69,600 8.78 19,650
> 5 g/t 147,500 6.57 31,156 > 5 g/t 80,400 8.35 21,582
> 4 g/t 294,600 5.52 52,301 > 4 g/t 118,300 7.11 27,044
> 3 g/t 567,100 4.52 82,359 > 3 g/t 178,600 5.88 33,796
> 6 g/t 76,500 7.60 18,704 > 6 g/t 150,800 8.80 42,663
> 5 g/t 147,500 6.57 31,156 > 5 g/t 230,300 7.64 56,543
> 4 g/t 294,600 5.52 52,301 > 4 g/t 295,900 6.94 66,043
> 3 g/t 567,100 4.52 82,359 > 3 g/t 437,600 5.78 81,369
Zone Tonnes Au g/t Oz Au Zone Tonnes Au g/t Oz Au
ENV 200 4.76 28 ENV 200 3.52 20
Z2_4 479,600 4.54 69,937 Z2_4 334,100 5.55 59,628
Zone 6 27,100 3.40 2,957 Zone 6 57,600 7.54 13,959
Zone 8 400 3.30 43 Zone 8 32,200 5.93 6,129
Zone 10 59,900 4.88 9,393 Zone 10 13,600 3.74 1,632
Zone 12 0 0.00 0 Zone 12 0 0.00 0
Zone 14 0 0.00 0 Zone 14 0 0.00 0
Zone 16 0 0.00 0 Zone 16 0 0.00 0
TOTAL 567,100 4.52 82,359 TOTAL 437,600 5.78 81,369
CategoryCategory
Measured
Indicated
Meas + Ind
All
Measured + Ind > 3 g/t Au Total Inferred > 3 g/t Au Inferred Inferred reclassified Total Inf Mishi Deposit Wesdome Gold Mines Final Results ‐ Underground All
Table 3
Open Pit Scenario
Detailed Grade – Tonnage Breakdown
Cut-off Tonnes Grade Ounces
2.0 1,636,705 3.76 197,909
1.9 1,796,184 3.60 207,908
1.8 2,039,631 3.39 222,339
1.7 2,283,745 3.21 236,040
1.6 2,537,577 3.06 249,502
1.5 2,840,003 2.90 264,565
1.4 3,165,299 2.75 279,712
1.3 3,588,658 2.58 298,072
1.2 4,081,663 2.42 317,829
1.1 4,593,878 2.28 336,744
1.0 5,169,161 2.14 356,132
Cut-off Tonnes Grade Ounces
2.0 121,080 7.97 31,029
1.9 136,187 7.30 31,975
1.8 174,580 6.10 34,241
1.7 193,621 5.67 35,307
1.6 279,110 4.44 39,865
1.5 333,933 3.97 42,599
1.4 394,189 3.58 45,417
1.3 458,345 3.27 48,220
1.2 515,788 3.05 50,528
1.1 654,795 2.64 55,658
1.0 764,111 2.42 59,362
Total Measured+Indicated
Total Inferred
Tonnes Meas+Ind ‐ 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000
2.0 1.9 1.8 1.7 1.6 1.5 1.4 1.3 1.2 1.1 1.0
tonnes Ounces Meas+Ind ‐ 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000
2.0 1.9 1.8 1.7 1.6 1.5 1.4 1.3 1.2 1.1 1.0
Ounces Meas+Ind
Mishi Deposit
Wesdome Gold Mines
- The Independent and Qualified Persons for the Mineral Resource Estimate, as defined by Regulation 43-101, are Carl Pelletier, B.Sc., P.Geo. and Karine Brousseau, P.Eng. (InnovExplo inc), and the effective date of the estimate is June 16, 2010.
- Mineral Resources are not Mineral Reserves, having not demonstrable economic viability.
- Results are presented undiluted and in situ. The estimate includes 7 gold-bearing zones and a low-grade envelope which borders the Z2_4 zone.
- Resources were compiled using a cut-off grade between 1.0 g/t, 2.0 g/t, 3.0 g/t, 4.0 g/t, 5.0 g/t and 6.0 g/t Au.
- Cut-off grades must be re-evaluated in light of prevailing market conditions (gold price, exchange rate and mining cost).
- A fixed density of 2.70 g/cm3 was used.
- The underground portion of the Mineral Resource Estimate was discriminated from the open pit portion using a fixed 2890m elevation plan.
- A minimum true thickness of 3.0 m was applied for open pit portion and 1.5 m for underground portion, using the grade of the adjacent material when assayed, or a value of zero when not assayed.
- High grade capping was done on the raw data and established at 45.0 g/t Au for diamond drill holes and 25.0 g/t Au for blast holes.
- Compositing was not done over entire drill hole lengths. Instead, compositing was done on drill hole sections falling within the mineralized zone envelopes (composite = 1 metre).
- Resources were evaluated from drill hole and blast holes results using an ID2 interpolation method in a block model.
- The measured category was interpolated from blast holes assays, and all other categories used diamond drill holes assays. *The measured, indicated and inferred categories were defined using different search ellipsoid parameters shown in table 1.
- Inferred reclassified category is the result of isolated blocks or series of blocks that showed no spatial continuity in terms of grade and/or density of information that were reclassified from Indicated to Inferred.
- Ounce (troy) = Metric Tons x Grade / 31.10348. Calculations used metric units (metres, tonnes and g/t).
- The number of metric tons was rounded to the nearest hundred. Any discrepancies in the totals are due to rounding effects; rounding followed the recommendations in Regulation 43-101.
- InnovExplo is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issue that could materially affect the Mineral Resource Estimate.
Figure 1 – Wesdome Wawa Properties Map