Wesdome Announces Initial Sill Development ON the Falcon 7 Zone at the Eagle River MINE Returns High Grade GOLD Values
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PRESS
RELEASE
September 8, 2021
TSX:WDO
WESDOME ANNOUNCES INITIAL SILL DEVELOPMENT ON THE
FALCON 7 ZONE AT THE EAGLE RIVER MINE RETURNS HIGH
GRADE GOLD VALUES
Toronto, Ontario – September 8 2021 – Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome”
or the “Company”) today announces results from the initial sill development on the Falcon 7 Zone
at the Company’s wholly-owned Eagle River Mine near Wawa, Ontario.
Falcon 7 Zone
The Falcon 7 Zone was discovered in 2019 and now initial sill development has been completed on
the 622 and 635 levels in preparation for mining in Q4. Chip sampling and test holes during the
initial development confirms earlier exploration drill results by returning high gold grades over
continuous strike length (Figures 1 - 5). The 2020 mineral reserves for the Falcon 7 were 136,344
tonnes grading 19.7 g/t Au totalling 86,177 ounces. Expansion and definition drilling are ongoing.
Historically, mineralization of the Eagle River Mine has been hosted in the mine diorite; however,
the Falcon 7 Zone is hosted in volcanic rocks west of the intrusion. Hence, the discovery and
subsequent development of the Falcon 7 Zone is important to the Company as it highlights the
prospectivity of the volcanic rocks both to the east and west to host additional gold mineralization
beyond the currently existing footprint of the Eagle River Mine. Consequently, near-mine
exploration is continuing and is focusing on the adjacent Falcon 300 Zone; further exploration work
targets the westerly along strike extension of the Falcon structure where limited drilling has returned
several encouraging results in volcanic rocks.
Highlights of the recent development are found below, detailed assay results are listed in Tables 1
and 2.
622 Level – Chip sampling yielded 54.3 grams of gold per tonne (g/t Au) (uncapped) and 37.9 g/t
Au (capped at 125 g/t Au) over an average thickness of 2.1 metres (m) over a continuous strike
length of 75.6 m.
• Sill 622-720-311 Line#L31: 178.5 g/t Au (99.6 g/t Au capped) over 2.0 m.
• Sill 622-720-311 Line #L03: 92.8 g/t Au (62.4 g/t Au capped) over 6.2 m.
635 Level – Chip sampling yielded 67.3 g/t Au (uncapped) and 34.3 g/t Au (capped) over an
average thickness of 1.9 m over 61.0 m.
• Sill 635-720-L04W: 168.8 g/t Au (88.2 g/t Au capped) over 2.0 m.
• Sill 635-720-L03W: 265.6 g/t Au (71.2 g/t Au capped) over 1.5 m.
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Mr. Duncan Middlemiss, President and CEO commented," We are pleased with the development of
the Falcon 7 Zone that will bring to Eagle another high-grade mining front at a reserve grade of
almost 20 g/t. We expect to start production activities in the 4th quarter and going forward, Falcon
will comprise a significant portion of the mill feed at Eagle River. Further, the discovery and
imminent production from the Falcon 7 Zone reaffirms the potential of the surrounding volcanic
rocks to host sizeable deposits of gold mineralization and I remain encouraged with our ongoing
surface exploration outside of the mine diorite.”
The stated goal of the Company is to increase production of the Eagle River Mine to approximately
100,000 oz per year. To achieve this goal consistently over the next years, operations within the mine
need to be spread out so bottle necks can be avoided. The Falcon 7 Zone development is an
important aspect of this operational planning as it is situated away from the main mining area at
depth thereby providing a separate work area away from heavier mine traffic.
The underground development at Falcon on the western extent of the mine also provides an
opportunity to target by drilling the structures west of the mine diorite in a region of the mine that
has historically had very little attention. In the event of a successful exploration campaign the
development in this area would provide easy access.
TECHNICAL DISCLOSURE
Samples are transported in sealed bags to the Eagle River Mine assay office in Wawa, Ontario.
Samples are analyzed for gold using standard fire assay technique with gravimetric finish. The
performance of the Wesdome Laboratory is monitored through the implementation of a quality
assurance - quality control (QA-QC) program designed to follow industry best practices. Wesdome
inserts blanks and certified reference standards into the sample sequence for quality control at the
laboratory. The QA/QC procedure is described in more detail in the 2016 Technical Report filed on
SEDAR on March 17, 2016
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.
COVID-19
The health and safety of our employees, contractors, vendors, and consultants is the Company’s top
priority. In response to the COVID-19 pandemic, Wesdome has adopted all public health guidelines
at its mine operations and corporate offices. In addition, our internal COVID-19 Taskforce continues
to monitor developments and implement policies and programs intended to protect those who are
engaged in business with the Company.
Through care and planning , to date the Company has successfully maintained operations ; however,
there can be no assurance that this success will continue despite our best efforts. Future conditions
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may warrant reduced or suspended production activities which could negatively impa ct our ability to
maintain projected timelines and objectives. Consequently, the Company’s actual future production
and production guidance is subject to higher levels of risk than usual. We are continuing to monitor
the situation closely and will provide updates as they become available.
ABOUT WESDOME
Wesdome is Canadian focused with two producing underground gold mines. 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 Undergr ound Mine in Wawa, Ontario is currently producing
gold at a rate of 92,000 – 105,000 ounces per year. The Kiena Complex is a fully permitted mine
with a 930-metre shaft and 2,000 tonne -per-day mill, and a restart of operations was announced on
May 26, 2021. The Company has completed a PFS in support of the production restart decision.
Wesdome is actively exploring both underground and on surface within the mine area and more
regionally at both the Eagle River and Kiena Complex. The Company also retains meaningful exposure
to the Moss Lake gold deposit, located 100 kilometres west of Thunder Bay, Ontario through its equity
position in Goldshore Resources Inc. The Company has approximately 140.0 million shares issued
and outstanding and trades on the Toronto Stock Exchange under the symbol “WDO”.
For further information, please contact:
Duncan Middlemiss or Lindsay 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 statements 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 the Company’s 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
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Table 1 - Sill Development Chip Sample Results – Falcon 7 Zone – 622 Level
* The quoted average width is based on vein material and gold mineralization in the adjacent host
rock over a 1.5m minimum thickness.
Table 2 - Sill Development Chip Sample Results – Falcon 7 Zone – 635 Level
Line Thickness Uncut Cut 125
622-720-L03 6.20 92.79 62.38
622-720-L04 4.50 68.96 60.68
622-720-L05 3.40 27.68 14.46
622-720-L06 1.50 1.67 1.67
622-720-L07 1.50 23.14 23.14
622-720-L08 1.50 38.54 38.54
622-720-L09 1.50 97.55 52.87
622-720-L10 1.50 23.87 23.87
622-720-L11 1.50 35.69 35.69
622-720-L13 1.50 14.79 14.79
622-720-L14 1.50 32.60 27.89
622-720-L15 1.50 146.77 29.20
622-720-L16 1.50 4.00 4.00
622-720-L17 1.50 5.55 5.55
622-720-L18 1.80 65.72 54.40
622-720-L19 1.80 56.69 54.91
622-720-L20 1.60 0.84 0.84
622-720-L21 1.50 6.10 6.10
622-720-L24 2.20 106.87 60.23
622-720-L25 2.60 73.47 68.41
622-720-L26 1.80 13.52 13.52
622-720-L29 2.30 7.85 7.85
622-720-L30 1.50 17.99 17.99
622-720-L31 2.00 178.46 99.62
Average 2.07 54.31 37.85
Insitu Thickness and Grades (cut 125g/t)
622-720 Sill (Falcon)
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* The quoted average width is based on vein material and gold mineralization in the adjacent host
rock over a 1.5m minimum thickness.
Line Thickness Uncut Cut 125
635-720-L01E 1.50 9.12 9.12
635-720-L02E 1.50 96.06 51.57
635-720-L03E 1.50 11.57 11.57
635-720-L01W 1.50 18.27 18.27
635-720-L02W 1.50 176.17 66.97
635-720-L03W 1.50 265.58 71.26
635-720-L04W 2.00 168.81 88.24
635-720-L05W 1.80 9.72 9.72
635-720-L06W 1.50 154.26 50.26
635-720-L07W 2.90 46.24 28.05
635-720-L08W 1.60 17.16 17.16
635-720-L10W 3.50 40.50 40.50
635-720-L13W 2.60 10.00 10.00
635-720-L14W 2.10 17.14 17.14
Average 1.93 67.29 34.26
Insitu Thickness and Grades (cut 125g/t)
635-720 Sill (Falcon)
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Figure One
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Figure Two