WDO.TO · 2017-02-08 12:00:00

Wesdome Drilling Expands Kiena Deep Potential to 550 M Laterally and Hires VP Operations FOR Quebec

Management Changes Exploration Programs

PRESS

RELEASE

FEBRUARY 8 2017

TSX:WDO

WESDOME DRILLING EXPANDS KIENA DEEP POTENTIAL TO 550 m

LATERALLY AND HIRES VP OPERATIONS FOR QUEBEC

Toronto, Ontario – February 8, 2017 – Wesdome Gold Mines Ltd. (“Wesdome” or the “Company”)

(TSX: WDO) is pleased to provide an update of underground drilling progress at its 100% owned

Kiena Mine Complex, in Val d’Or, Quebec.

Since the last update on November 15, 2016, a fourt h drill has been added on the 96 0 metre level

(Figure 1), 29 drill holes have been completed and assay results have been received for 21 drill holes

(Table 1).

The new drilling continues to trace the Kiena Deep mineralized system along an altered and deformed

north north west trending (“NNW”) basalt-komatiite contact zone. To date, it has been traced 550

metres NNW along strike and over a depth range of 400 metres. It remains open at depth and along

trend.

Wesdome continues its accelerated drilling program with the goal of determining the extent, continuity

and geometry of the Kiena Deep gold system.

HIGHLIGHTS *(Uncut and cut assay averages over core lengths*)

1. Major step out holes extending trend to a tested length of 550m:

• 6.63 g/t gold over 11.0 m uncut (6.63 g/t cut) in hole 6146

• 7.67 g/t gold over 8.2 m uncut (5.53 g/t cut) in hole 6147

2. Assays received from visible gold occurrences reported November 15, 2016:

• 18.67 g/t gold over 9.8 m uncut (5.44 g/t cut) in hole 6134

• 110.23 g/t gold over 4.1 m uncut (5.91 g/t cut) in hole 6155

• 14.89 g/t gold over 2.0 m uncut (14.89 g/t cut) in hole 6155

3. Additional New Results:

• 27.97 g/t gold over 1.0 m uncut (27.97 g/t cut) in hole 6134

• 34.27 g/t gold over 8.4 m uncut (6.78 g/t cut) in hole 6137

• 306.10 g/t gold over 0.6 m uncut (34.28 g/t cut) in hole 6142

• 6.23 g/t gold over 10.5 m uncut (5.67 g/t cut) in hole 6142

• 41.39 g/t gold over 2.4 m uncut (11.62 g/t cut) in hole 6142

• 24.92 g/t gold over 5.2 m uncut (10.03 g/t cut) in hole 6142

• 11.40 g/t gold over 3.6 m uncut (5.81 g/t cut) in hole 6143

• 43.05 g/t gold over 14.0 m uncut (5.35 g/t cut) in hole 6143

• 10.45 g/t gold over 8.0 m uncut (5.23 g/t cut) in hole 6144

• 18.04 g/t gold over 2.7 m uncut (16.07 g/t cut) in hole 6144

• 14.61 g/t gold over 15.4 m uncut (3.08 g/t cut) in hole 6145A

• 37.71 g/t gold over 0.7 m uncut (34.28 g/t cut) in hole 6150

• 4.68 g/t gold over 4.0 m uncut (4.68 g/t cut) in hole 6151

• 29.52 g/t gold over 0.5 m uncut (29.52 g/t cut) in hole 6151

• 9.11 g/t gold over 1.5 m uncut (9.11 g/t cut) in hole 6152

• 8.75 g/t gold over 1.5 m uncut (8.75 g/t cut) in hole 6152

• 3.47 g/t gold over 16.0 m uncut (3.47 g/t cut) in hole 6154

• 124.98 g/t gold over 4.3 m uncut (13.98 g/t cut) in hole 6154

• 44.85 g/t gold over 1.2 m uncut (34.28 g/t cut) in hole 6154

• 28.00 g/t gold over 17.0 m uncut (2.84 g/t cut) in hole 6155

• 50.14 g/t gold over 1.0 m uncut (34.28 g/t cut) in hole 6156

• 41.89 g/t gold over 2.0 m uncut (18.53 g/t cut) in hole 6156

• 20.28 g/t gold over 7.3 m uncut (10.2 g/t cut) in hole 6156

• 27.25 g/t gold over 0.6 m uncut (27.25 g/t cut) in hole 6157A

• 10.37 g/t gold over 4.8 m uncut (9.49 g/t cut) in hole 6157A

* The geometry of these zones is not clearly understood at this point. Further drilling is required to

interpret true widths. Assay intervals include values cut to an arbitrary, historic 1 oz/ton or 34.28 g/t

Mr. Duncan Middlemiss, President and CEO, commented “Drilling results have been accelerated with

the goal of delineating and defining this significant new find as quickly and efficiently as possible. This

set of K iena Deep drill results continue s to deliver grades substantially higher than the historic

production grade profile at Kiena of 4.5 g/t. We are also very encouraged by step out holes confirming

mineralization now tested along 550 metres of strike length, indicating a potential large new gold system.

Furthermore, in the Company’s efforts to accelerate our advanced exploration at Kiena, we are pleased

to announce the appointment of Marc-André Pelletier as Vice President of Quebec Operations, who

will be based full time at the Kiena Complex. Marc-André has over 20 years’ experience in underground

gold mining in Canada, and will be working closely with our geologic team to evaluate ramp

development. On behalf of management and the board, I would like to welcome him to the Wesdome

team.”

GEOLOGICAL CONTEXT

Drilling continues to identify two styles of mineralization spatially related to a basalt -komatiite

(ultramafic) contact zone that trends NNW.

1) High grade extensional quartz veins in basalt (Upper Quartz Vein Zone), and

2) Albitized stockwork and vein breccia systems in sheared and altered zones (Lower Stockwork

Zone).

There are likely multiple zones which remain only partially defined and are open. The full extent of the

mineralized system has not been delineated. It has been traced 550 m along the contact area trend

between depths 1,000 and 1,400 m and remains open. Step out holes 6146 and 6147 are of significant

interest as these holes have intersected quality grade over wide widths some 150 metres north, and 250

metres south along trend of the known mineralized system, which remains open (Figure 1).

DRILLING PROGRESS

Four drills are operating on levels 670m, 770m, 910m and 960m. Challenging drilling conditions in the

deformed and altered contact area have been addressed with a combination of bits, drill assemblies and

specialized drilling reagents. The experience obtained in these conditions and the additional drill added

to the 960m level has resulted in improved success in attaining the desired targets. Shorter holes with

better attack angles will continue to accelerate results.

SCOPE AND PURPOSE

The accelerated drilling is designed to delineate the potential size of the Kiena Deep gold system and

define its internal geometry as quickly and efficiently as possible.

Confidence in internal grade and continuity will de -risk a decision to initiate ramp development to

provide definition drilling and access to Kiena Deep as soon as possible.

The Company intends to continue the drilling campaign with four underground drills. Ongoing

evaluation for the requirement of enhanced drill platforms will determine the timing of underground

ramp development, as the location of this infrastructure is dependent upon drilling results currently

being generated.

MANAGEMENT APPOINTMENT

The Company is very encouraged by the continued exploration results at Kiena and the potential to

re-establish production at t his fully permitted facility . As a result, we are pleased to announce the

appointment of Marc -Andre Pelletier as Wesdome's Vice -President of Operations for Quebec in

charge of the Kiena Mine Advanced Exploration Program. Marc-Andre is an experienced professional

mining engineer who w as most recently Vice -President of Operations at St Andrew Goldfields Ltd.

Prior to Marc -Andre's tenure at St Andrew's he was employed by Barrick Gold Corporation from

2001-2009 elevating to the position of Mine Superintendent at Barrick's Williams Mine. Prior to his

Barrick experience Marc -Andre worked extensively in Quebec in progressive technical roles.

Throughout his career Marc -Andre has dedicated himself to achieving safety, production, and costs

targets. He is a graduate of Laval University in mining engineering and is a resident of Rouyn-Noranda,

Quebec

THE KIENA COMPLEX

The Kiena Mine Complex is a fully permitted, integrated mining and milling infrastructure which

includes a 930 metre production shaft and 2,000 tonne per day capacity mill. From 1981 to 2013 the

mine produced 1.75 million ounces of gold from 12.5 million tonnes at a grade of 4.5 g/t. The bulk of

this production came from the S-50 Zone between depths of 100 and 1,000 metres. In 2013, operations

were suspended due to a combination of declining gold prices and lack of developed reserves. The

infrastructure has been well preserved on care and maintenance status.

TECHNICAL DISCLOSURE

The technical and scientific disclosure in this press release has been prepared and approved by Marc

Ducharme, P. Geo., Chief Exploration Geologist of Wesdome and “Qualified Person” as defined by

National Instrument 43 -101 disclosure standards. Analytical work was performed by Techni -Lab

(ActLabs) of Ste-Germaine-Boulé (Quebec), a certified commercial laboratory (SCC Accredited Lab

#707). Sample preparation was done at Techni-Lab (ActLabs) in Val d’Or (Quebec) and assaying was

done by fire assay methods at Techni-Lab (ActLabs) laboratory in Ste-Germaine-Boulé (Quebec). 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 tw enty to monitor

quality control.

ABOUT WESDOME

Wesdome Gold Mines is in its 29 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 130 million s hares 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. 29 416-360-3743 ext. 25

[email protected] [email protected]

8 King St. East, Suite 811

Toronto, ON, M5C 1B5

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.

Table 1: Kiena Deep Drilling Results Compilation

Hole

No.

From

(m)

Core length

(m)

Assay

(g/t Au)

Cut

Grade*

(g/t Au) Target

6134 440.00 441.00 1.00 27.97 27.97 Upper quartz vein (VG)

797.00 806.80 9.80 18.67 5.44 Lower stockwork (VG)

Incl. 797.00 799.40 2.40 69.86 15.82 Lower stockwork

822.00 834.00 12.00 1.24 1.24 Lower stockwork

6135 381.50 382.40 0.90 1.21 1.21 Lower stockwork

6136 620.70 622.70 2.00 1.04 1.04 Lower stockwork

627.10 628.10 1.00 1.26 1.26 Lower stockwork

6137 444.10 452.50 8.40 34.27 6.78 Lower stockwork (VG)

Incl. 444.10 445.90 1.80 151.88 23.59 Lower stockwork

6138

Target not attained

(ABD)

6139 399.70 401.60 1.90 1.73 1.73 Lower stockwork

6140 Results pending

6141 Results pending

6142 435.00 437.00 2.00 1.32 1.32 Lower stockwork

438.70 439.30 0.60 306.10 34.28 Lower stockwork (VG)

475.50 486.00 10.50 6.23 5.67 Lower stockwork

581.30 583.70 2.40 41.39 11.62 Lower stockwork (VG)

591.60 594.00 2.40 3.35 3.35 Lower stockwork

598.80 604.00 5.20 24.92 10.03 Lower stockwork (VG)

Incl. 598.80 601.00 2.20 55.92 20.74 Lower stockwork

6143 489.40 493.00 3.60 11.40 5.81 Lower stockwork (VG)

Incl. 489.40 490.00 0.60 67.83 34.28 Lower stockwork

504.00 518.00 14.00 43.05 5.35 Lower stockwork (VG)

Incl. 504.00 504.90 0.90 171.33 34.28 Lower stockwork

6143 537.10 546.30 9.20 1.29 1.29 Lower stockwork

6144 569.20 570.20 1.00 3.19 3.19 Lower stockwork

583.00 585.20 2.20 5.40 5.40 Lower stockwork

609.00 617.00 8.00 10.45 5.23 Lower stockwork (VG)

Incl. 609.00 611.00 2.00 37.94 17.04 Lower stockwork

629.00 631.70 2.70 18.04 16.07 Lower stockwork (VG)

Incl. 631.00 631.70 0.70 41.88 34.28 Lower stockwork

6145

Target not attained

(ABD)

6145A 408.80 424.20 15.40 14.61 3.08 Lower stockwork (VG)

Incl. 414.40 418.20 3.80 56.86 10.14 Lower stockwork

6146 377.50 388.50 11.00 6.63 6.63 Lower stockwork? (VG)

6147 393.00 430.00 37.00 1.69 1.69 Lower stockwork

490.00 498.20 8.20 7.67 5.53 Lower stockwork (VG)

6148

Target not attained

(ABD)

6150 418.70 419.40 0.70 37.71 34.28 Upper quartz vein (VG)

6151 170.00 174.00 4.00 4.68 4.68 Upper quartz vein

245.50 250.50 5.00 2.51 2.51 Upper quartz vein

385.50 386.00 0.50 29.52 29.52 Upper quartz vein (VG)

6152 271.50 273.00 1.50 1.57 1.57 Lower stockwork (VG)

383.10 386.00 2.90 1.88 1.88 Lower stockwork

393.00 394.50 1.50 9.11 9.11 Lower stockwork

400.50 403.50 3.00 5.06 5.06 Lower stockwork

457.10 458.60 1.50 8.75 8.75 Lower stockwork (VG)

6153

Target not attained

(ABD)

6153A

Target not attained

(ABD)

6154 335.00 351.00 16.00 3.47 3.47 Lower stockwork

Incl. 338.00 346.90 8.90 4.97 4.97 Lower stockwork

405.70 410.00 4.30 124.98 13.98 Lower stockwork (VG)

447.50 448.70 1.20 44.85 34.28 Lower stockwork (VG)

6155 388.50 405.50 17.00 28.00 2.84 Lower stockwork (VG)

Incl. 401.40 405.50 4.10 110.23 5.91 Lower stockwork

421.40 423.40 2.00 14.89 14.89 Lower stockwork (VG)

6156 274.00 275.00 1.00 50.14 34.28 Lower stockwork (VG)

412.00 414.00 2.00 41.89 18.53 Lower stockwork (VG)

437.00 444.30 7.30 20.28 10.20 Lower stockwork (VG)

Incl. 441.00 444.00 3.00 44.08 21.77 Lower stockwork

6157

Target not attained

(ABD)

6157A 477.00 477.60 0.60 27.25 27.25 Lower stockwork (VG)

516.5 521.3 4.80 10.37 9.49 Lower stockwork (VG)

* Assay intervals include values cut to an arbitrary, historic 1 oz / ton or 34.28 g/t Au

(VG) = visible

gold

(ABD) = Hole abandoned

Figure 1: Kiena Deep Gold Discovery Schematic Plan View

Figure 2a: Kiena Deep Exploration Isometric Northwest View

← Back to feed