Wesdome Continues to Expand Kiena High Grade a Zones and Footwall Zones
1
`
PRESS
RELEASE
February 8, 2022
TSX:WDO
WESDOME CONTINUES TO EXPAND KIENA HIGH GRADE A ZONES
AND FOOTWALL ZONES
Toronto, Ontario – February 8, 2022 – Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or
the “Company”) today announces underground exploration drilling results from the Kiena Deep A
Zone at the Company’s 100% owned Kiena Mine Complex in Val d'Or, Quebec.
Recent underground definition and exploration drilling at the Kiena Deep A Zones area has:
• Confirmed the A Zone continues down plunge along the basalt – ultramafic contact with
drilling returning high grade from this continuous zone of mineralization (Figure 1);
• Confirmed the Footwall Zone comprises three subparallel zones and one crosscutting zone
that have now been extended over 300 metres down plunge. Mineralization remains open
laterally and down plunge and additional drilling platforms are being established as the A Zone
ramp progresses to provide for more optimal drilling distances and angles; and
• Confirmed the existence of lower grade stockwork veins within the hanging wall of the A
Zone within brecciated and altered basalt (Figure 2). These zones have the potential to be
mined as access development in the hanging wall due to their proximity to the A Zones stoping
area, and thereby having potential to be added to the resource base.
o These zones are generally located within 5 metres from the contact with the schist (A
Zone) at a grade of 5 – 6 grams gold per tonne and an average thickness of 2 metres.
Drilling is ongoing to better determine the extent of these zones.
Highlights of the recent drilling are listed below and summarized in Table 1.
• Hole 6796W3: 74.6 g/t Au over 30.0 m core length (24.8 g/t Au capped, 5.0 m true width)
A1 Zone
• Hole 6752W9: 38.3 g/t Au over 37.3 m core length (18.2 g/t Au capped, 6.0 m true width)
A Zone
• Hole 6752W8: 35.9 g/t Au over 30.3 m core length (27.0 g/t Au capped, 7.0 m true width)
A Zone
All assays capped at 90.0 g/t Au. True widths are estimated based on 3D model construction.
Mr. Duncan Middlemiss, President and CEO commented, “ We are please d with the recent
underground drilling that continues to define the high grade A Zone and now confirms the extent of
the subparallel Footwall Zone, which we expect to grow further with continued drilling. The Footwall
Zone, and now the newly discovered Hanging Wall Basalt Zones, will positively impact project
2
economics as the same underground infrastructure utilized to access the A Zone can be leveraged to
mine these additional zones on a low unit cost basis.
We are continuing to spend aggressively on exploratio n at Kiena with $17.7 million to be spent in
2022 that includes approximately 50,000 m of underground drilling and 30,000 m of surface drilling.
As part of the 2022 drilling program, 2 underground drills have been moved onto the 33 level to test
historic zones and anomalous drill results further to the east along strike from the Kiena mine. Surface
drilling is ongoing and will be accelerated once the ice has melted utilizing the two barges left at site.
Planned drilling is concentrated around the Shawkey and newly discovered Bourgo zone.
We are also please d with the progress being made ramping up production at Kiena. As planned,
production will ramp up throughout the year with higher production expected in H2 2022. While we
continue to expect commercial production in Q2, p roduction this year will be back end weighted in
H2 2022 as we continue to ramp up , with total production this year forecasted at 64,000 – 75,000
ounces. As per the 2021 Pre-Feasibility Study, completed prior to the F ootwall Zone discovery, the
life of mine average yearly production is 83,574 ounces with costs declining materially in 2024 once
higher output levels are realized. However, with the discover of the Footwall Zone, and most recently
with the Hanging wall Basalt Zone, we expect these new zones could extend the LOM and have the
potential to increase annual production given the increase reserve ounces per vertical metre.”
TECHNICAL DISCLOSURE
The underground technical and geoscientific content of this release has been compiled, reviewed
and approved by Bruno Turcotte, P.Geo., (OGQ #453) Chief Geologist – Underground
Exploration of the Company. The surface technical and geoscientific content of this release has
been compiled, reviewed and approved by Yan Ducharme, P.Geo., (OGQ #690) Exploration
Manager of the Company. Both are a "Qualified Person" as defined in National Instrument 43-101
-Standards of Disclosure for Mineral Projects.
Analytical work was performed by ALS Minerals of Val -d’Or (Quebec), a certified commercial
laboratory (Accredited Lab #689). Sample preparation was done at ALS Minerals in Val d'Or
(Quebec). Assaying was done by fire assay methods with an atomic absorptio n finish. Any sample
assaying >3 g/t Au was rerun by fire assay method with gravimetric finish, and any sample
assaying >10 g/t Au was rerun with the metallic sieve method. In addition to laboratory internal
duplicates, standards and blanks, the geology department inserts blind duplicates, standards and blanks
into the sample stream at a frequency of one in twenty to monitor quality control.
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 outbreak, Wesdome has adopted all public health guidelines
regarding safety measures and protocols at all of its mine operations and corporate office. In addition,
our internal COVID-19 Taskforce continues to monitor deve lopments and implement policies and
programs intended to protect those who are engaged in business with the Company.
3
Through care and planning, to date the Company has successfully maintained operations, however
there can be no assurance that this will c ontinue despite our best efforts with the emergence of new,
highly contagious variants such as Omicron. To date the company has been impacted by this most
recent variant outbreak, with employees at both operations and corporate office becoming infected.
Impacts of significant numbers of employees being absent have been limited so far however future
conditions may warrant reduced or suspended production activities which could negatively impact our
ability to maintain projected timelines and objectives. Conse quently, the Company’s actual future
production and production guidance is subject to higher levels of risk than usual. We are continuing
to closely monitor the situation and will provide updates as they become available.
ABOUT WESDOME
Wesdome is Canadian focused with two producing underground gold mines. The Company’s goal is
to build Canada’s next intermediate gold producer, producing over 200,000 ounces from two mines
in Ontario and Québec. The Eagle River Underground Mine in Wawa, Ontario is currently producing
gold at a rate of 92,000 – 105,000 ounces per year. The recently re-started Kiena Complex in Val d’or,
Quebec is a fully permitted underground mine and milling operation . Wesdome is actively exploring
both underground and on surface within the mine areas 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 14 1.6 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 St, 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 sec urities 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
4
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 additio n 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
5
Table 1: Kiena Complex Underground Drilling Assay and Composite Results
Composites
Hole No.
From
(m)
To
(m)
Core
Length (m)
Estimated
True
width (m)
Grade (g/t
Au)
Cut Grade (90
g/t Au)
Name
Zone
6752W6 39.8 53.4 13.6 5.0 3.49 3.49 A Zone
6752W7 114.0 121.5 7.5 3.0 6.83 6.83 A Zone
6752W8 176.0 206.3 30.3 7.0 35.91 27.01 A Zone
6752W9 541.5 578.8 37.3 6.0 38.34 18.23 A Zone
6796W1 4.4 43.1 38.7 4.0 4.04 4.04 A Zone
6796W2 94.2 109.4 15.2 4.5 3.49 3.49 A Zone
6796W2 146.1 152.0 5.9 4.0 46.79 22.18 A1 Zone
6796W3 304.0 334.1 30.1 5.0 74.61 24.82 A1 Zone
N104-K008 425.8 462.5 36.7 6.5 5.57 5.57 A1 Zone
6796W2 181.4 190.6 9.2 3.5 5.40 5.40 A2 Zone
N104-K008 470.9 476.2 5.3 4.1 3.77 3.77 A2 Zone
6796 510.6 521.6 11.0 3.1 32.05 13.19 FWZ_1
6796W1 107.9 120.6 12.7 3.0 2.87 2.87 FWZ_1
6796W2 200.5 215.4 14.9 4.7 6.14 6.14 FWZ_1
6796W1 123.8 134.6 10.8 3.2 6.34 6.34 FWZ_2
6796W2 217.4 239.2 21.8 3.2 10.69 4.71 FWZ_2
6796W1 137.8 144.6 6.8 3.4 4.43 4.43 FWZ_3
6796W2 248.2 257.6 9.4 3.3 2.70 2.70 FWZ_3
6796W2 275.5 287.2 11.7 3.8 33.31 33.31 FWZ_4
Assays
Hole No.
From
(m)
To
(m)
Core Length
(m)
Grade (g/t
Au)
Cut Grade (90 g/t
Au)
Name
Zone
6752W6 39.8 41.3 1.5 2.15 2.15 A Zone
6752W6 41.3 42.8 1.5 4.55 4.55 A Zone
6752W6 42.8 44.3 1.5 3.94 3.94 A Zone
6752W6 44.3 45.8 1.5 2.85 2.85 A Zone
6752W6 45.8 46.7 0.9 0.56 0.56 A Zone
6752W6 46.7 47.5 0.8 2.21 2.21 A Zone
6752W6 47.5 48.5 1.0 3.16 3.16 A Zone
6752W6 48.5 49.5 1.0 3.59 3.59 A Zone
6752W6 49.5 50.5 1.0 1.44 1.44 A Zone
6752W6 50.5 51.4 0.9 4.10 4.10 A Zone
6752W6 51.4 52.4 1.0 10.55 10.55 A Zone
6752W6 52.4 53.4 1.0 2.57 2.57 A Zone
6752W7 114.0 115.5 1.5 2.45 2.45 A Zone
6752W7 115.5 116.2 0.7 0.33 0.33 A Zone
6752W7 116.2 117.0 0.8 12.05 12.05 A Zone
6
6752W7 117.0 117.8 0.8 39.30 39.30 A Zone
6752W7 117.8 119.1 1.3 2.53 2.53 A Zone
6752W7 119.1 120.0 0.9 0.97 0.97 A Zone
6752W7 120.0 121.5 1.5 1.37 1.37 A Zone
6752W8 176.0 177.0 1.0 3.65 3.65 A Zone
6752W8 177.0 178.0 1.0 3.86 3.86 A Zone
6752W8 178.0 178.8 0.8 5.33 5.33 A Zone
6752W8 178.8 179.3 0.5 7.21 7.21 A Zone
6752W8 179.3 180.3 1.0 72.10 72.10 A Zone
6752W8 180.3 181.3 1.0 98.50 90.00 A Zone
6752W8 181.3 182.3 1.0 94.50 90.00 A Zone
6752W8 182.3 183.3 1.0 165.00 90.00 A Zone
6752W8 183.3 184.3 1.0 42.30 42.30 A Zone
6752W8 184.3 185.3 1.0 31.40 31.40 A Zone
6752W8 185.3 186.3 1.0 19.25 19.25 A Zone
6752W8 186.3 187.3 1.0 0.51 0.51 A Zone
6752W8 187.3 188.3 1.0 13.10 13.10 A Zone
6752W8 188.3 189.3 1.0 17.00 17.00 A Zone
6752W8 189.3 190.3 1.0 13.80 13.80 A Zone
6752W8 190.3 191.3 1.0 25.10 25.10 A Zone
6752W8 191.3 192.3 1.0 14.80 14.80 A Zone
6752W8 192.3 193.3 1.0 13.30 13.30 A Zone
6752W8 193.3 194.2 0.9 12.20 12.20 A Zone
6752W8 194.2 195.2 1.0 19.95 19.95 A Zone
6752W8 195.2 196.0 0.8 18.35 18.35 A Zone
6752W8 196.0 197.0 1.0 18.20 18.20 A Zone
6752W8 197.0 198.0 1.0 14.35 14.35 A Zone
6752W8 198.0 199.0 1.0 19.45 19.45 A Zone
6752W8 199.0 200.0 1.0 9.25 9.25 A Zone
6752W8 200.0 201.0 1.0 17.40 17.40 A Zone
6752W8 201.0 202.2 1.2 28.40 28.40 A Zone
6752W8 202.2 203.3 1.1 255.00 90.00 A Zone
6752W8 203.3 204.8 1.5 4.63 4.63 A Zone
6752W8 204.8 206.3 1.5 4.08 4.08 A Zone
6752W9 541.5 542.5 1.0 5.69 5.69 A Zone
6752W9 542.5 543.5 1.0 1.32 1.32 A Zone
6752W9 543.5 544.2 0.7 4.05 4.05 A Zone
6752W9 544.2 545.0 0.8 0.83 0.83 A Zone
6752W9 545.0 545.7 0.7 0.13 0.13 A Zone
6752W9 545.7 546.3 0.6 6.73 6.73 A Zone
6752W9 546.3 547.2 0.9 0.27 0.27 A Zone
6752W9 547.2 547.8 0.6 0.17 0.17 A Zone
6752W9 547.8 548.7 0.9 0.56 0.56 A Zone
6752W9 548.7 550.0 1.3 3.53 3.53 A Zone
7
6752W9 550.0 551.5 1.5 2.58 2.58 A Zone
6752W9 551.5 553.0 1.5 0.69 0.69 A Zone
6752W9 553.0 554.5 1.5 1.54 1.54 A Zone
6752W9 554.5 556.0 1.5 0.29 0.29 A Zone
6752W9 556.0 557.0 1.0 1.01 1.01 A Zone
6752W9 557.0 557.6 0.6 1.87 1.87 A Zone
6752W9 557.6 558.6 1.0 470.00 90.00 A Zone
6752W9 558.6 559.6 1.0 178.50 90.00 A Zone
6752W9 559.6 560.6 1.0 6.33 6.33 A Zone
6752W9 560.6 561.3 0.7 32.00 32.00 A Zone
6752W9 561.3 562.2 0.9 36.50 36.50 A Zone
6752W9 562.2 563.0 0.8 206.00 90.00 A Zone
6752W9 563.0 563.9 0.9 312.00 90.00 A Zone
6752W9 563.9 564.5 0.6 1.59 1.59 A Zone
6752W9 564.5 565.3 0.8 3.24 3.24 A Zone
6752W9 565.3 566.0 0.7 10.30 10.30 A Zone
6752W9 566.0 566.6 0.6 50.20 50.20 A Zone
6752W9 566.6 567.6 1.0 31.10 31.10 A Zone
6752W9 567.6 568.6 1.0 71.10 71.10 A Zone
6752W9 568.6 569.6 1.0 3.23 3.23 A Zone
6752W9 569.6 570.3 0.7 7.83 7.83 A Zone
6752W9 570.3 571.3 1.0 14.60 14.60 A Zone
6752W9 571.3 572.3 1.0 20.60 20.60 A Zone
6752W9 572.3 573.3 1.0 10.70 10.70 A Zone
6752W9 573.3 574.3 1.0 12.75 12.75 A Zone
6752W9 574.3 575.3 1.0 16.90 16.90 A Zone
6752W9 575.3 576.3 1.0 13.35 13.35 A Zone
6752W9 576.3 576.8 0.5 1.66 1.66 A Zone
6752W9 576.8 577.8 1.0 8.34 8.34 A Zone
6752W9 577.8 578.8 1.0 10.15 10.15 A Zone
6796 510.6 512.1 1.5 0.36 0.36 FWZ_1
6796 512.1 513.6 1.5 0.10 0.10 FWZ_1
6796 513.6 515.1 1.5 222.00 90.00 FWZ_1
6796 515.1 516.6 1.5 1.80 1.80 FWZ_1
6796 516.6 518.1 1.5 0.02 0.02 FWZ_1
6796 518.1 519.3 1.2 0.03 0.03 FWZ_1
6796 519.3 520.5 1.2 0.02 0.02 FWZ_1
6796 520.5 521.1 0.6 0.01 0.01 FWZ_1
6796W1 4.4 5.9 1.5 2.26 2.26 A Zone
6796W1 5.9 6.9 1.0 1.28 1.28 A Zone
6796W1 6.9 7.9 1.0 1.38 1.38 A Zone
6796W1 7.9 8.9 1.0 0.75 0.75 A Zone
6796W1 8.9 9.9 1.0 65.70 65.70 A Zone
6796W1 9.9 11.9 2.0 0.89 0.89 A Zone
8
6796W1 11.9 13.4 1.5 8.21 8.21 A Zone
6796W1 13.4 14.9 1.5 2.07 2.07 A Zone
6796W1 14.9 16.4 1.5 2.01 2.01 A Zone
6796W1 16.4 17.9 1.5 0.04 0.04 A Zone
6796W1 17.9 19.4 1.5 0.04 0.04 A Zone
6796W1 19.4 20.9 1.5 0.03 0.03 A Zone
6796W1 20.9 22.4 1.5 0.02 0.02 A Zone
6796W1 22.4 23.9 1.5 0.02 0.02 A Zone
6796W1 23.9 25.4 1.5 0.02 0.02 A Zone
6796W1 25.4 26.9 1.5 6.53 6.53 A Zone
6796W1 26.9 28.4 1.5 0.02 0.02 A Zone
6796W1 28.4 29.9 1.5 0.02 0.02 A Zone
6796W1 29.9 31.4 1.5 0.02 0.02 A Zone
6796W1 31.4 32.9 1.5 0.02 0.02 A Zone
6796W1 32.9 34.4 1.5 0.02 0.02 A Zone
6796W1 34.4 35.9 1.5 0.03 0.03 A Zone
6796W1 35.9 36.9 1.0 0.10 0.10 A Zone
6796W1 36.9 37.9 1.0 0.14 0.14 A Zone
6796W1 37.9 38.9 1.0 1.03 1.03 A Zone
6796W1 38.9 39.7 0.8 5.42 5.42 A Zone
6796W1 39.7 40.7 1.0 0.05 0.05 A Zone
6796W1 40.7 41.7 1.0 17.65 17.65 A Zone
6796W1 41.7 42.4 0.7 37.40 37.40 A Zone
6796W1 42.4 43.1 0.7 4.97 4.97 A Zone
6796W1 107.9 109.0 1.1 3.15 3.15 FWZ_1
6796W1 109.0 110.0 1.0 0.13 0.13 FWZ_1
6796W1 110.0 111.0 1.0 1.73 1.73 FWZ_1
6796W1 111.0 112.0 1.0 0.44 0.44 FWZ_1
6796W1 112.0 112.7 0.7 0.35 0.35 FWZ_1
6796W1 112.7 113.8 1.1 3.79 3.79 FWZ_1
6796W1 113.8 114.8 1.0 1.57 1.57 FWZ_1
6796W1 114.8 115.6 0.8 8.68 8.68 FWZ_1
6796W1 115.6 116.6 1.0 0.89 0.89 FWZ_1
6796W1 116.6 117.6 1.0 0.36 0.36 FWZ_1
6796W1 117.6 118.6 1.0 0.61 0.61 FWZ_1
6796W1 118.6 119.7 1.1 0.39 0.39 FWZ_1
6796W1 119.7 120.6 0.9 16.30 16.30 FWZ_1
6796W1 123.8 124.9 1.1 1.62 1.62 FWZ_2
6796W1 124.9 126 1.1 1.62 1.62 FWZ_2
6796W1 126.0 127.1 1.1 2.19 2.19 FWZ_2
6796W1 127.1 128.1 1.0 16.30 16.30 FWZ_2
6796W1 128.1 129.0 0.9 46.00 46.00 FWZ_2
6796W1 129.0 130.0 1.0 4.38 4.38 FWZ_2
6796W1 130.0 131.1 1.1 0.03 0.03 FWZ_2