Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”)
today announces positive results from underground bulk sample
program on the Kiena Deep A Zone at the Company’s 100% owned Kiena
Mine Complex in Val d'Or, Quebec. The bulk sample provided an
opportunity to confirm the geologic interpretation of the deposit,
test for spatial and grade continuity of the mineralized
structures, validate key assumptions of the mineral resource
estimate and assess the rock quality characteristics.
Highlights of the Bulk
Sample
- A total of 7,032
tonnes were processed from the bulk sample at the Kiena mill. The
7,032 tonnes milled as part of the bulk sample represents the
planned area of the bulk sample. Additional lower grade material
outside of the planned area of the bulk sample was stockpiled on
surface.
- Successfully
tested an area within the December 15, 2020 Mineral Resource
Estimate and confirmed the continuity of the high-grade gold
mineralization within the A and A1 Zones.
- The bulk sample
recovered 6% more gold than the MRE with a feed grade of 15.7 g/t
versus model grade of 14.7 g/t.
- Geotechnical
conditions were sound overall and allowed the Company to assess and
optimize development protocols.
- Total gold
produced was 3,479 ozs with gold recovery in the Kiena mill of
98.2%.
- To date, gold
sales of 1,500 ounces of gold in Q4 2020 and 1,793 ounces in Q1
2021 have been sold, with the remaining to be sold in Q2.
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December 15, 2020 - Block Model * |
Mill Feed ** |
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Tonnes (t) |
Grade (g/t Au) |
Au Ounces |
Tonnes (t) |
Grade (g/t Au) |
Au Ounces |
7,032 |
14.7 |
3,327 |
7,032 |
15.7 |
3,543 |
Block Model Capped |
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Notes on reconciliation table - December 15, 2020 – Block Model
refers to the Company's technical report, titled “Update of the
Mineral Resource Estimate for the Kiena Mine Complex Project,
Val-d’Or, Québec, Canada.”
- Mill Feed contained ounces and head
grade calculated based on gold produced from the Kiena Mill,
including mill tails which graded 0.28 g/t
- A total of 7,032 tonnes were
subsequently processed at Kiena mill. Reconciliation was completed
on milled tonnes only.
- The total tonnes surveyed is the
base line to do the analysis towards the Resource Block Model (BM).
Tonnes of the BM corresponded to the same elevation and equivalent
lateral limits.
- When the calibration of tonnes was
completed, in situ ounces, were redistributed to the areas that
have been mined. The percentage of recovery from Mill was
considered during the process.
- The grade of the muck samples
allowed for the redistribution of the ounces on a pro rata basis,
by zone sent to the Mill.
Mr. Duncan Middlemiss, President and CEO
commented, “We are very pleased with the results of the bulk sample
that confirmed the continuity of the high-grade gold mineralization
of the A Zone, but more importantly demonstrated a 6% positive
reconciliation in the number of ounces recovered from the bulk
sample compared to the resource block model. This is very positive,
and provides confidence in the resource estimate for future
mining.
We are also very encouraged with the
recommissioning and performance of the Kiena mill with gold
recovery in excess of 98%. This certainly confirms the readiness of
the mill for future production. As well, we are in the final stage
of completing the pre-feasibility study and intend to publish the
results this quarter.
In addition, we are continuing our aggressive
exploration drilling program to further expand the A and VC zones
and to follow-up on our discovery of new zones of high-grade
occurring within 50 m of the footwall of the A Zone. All of these
intersections illustrate the untested potential of the entire gold
system proximal to the Kiena mine infrastructure and the
probability of adding high grade ounces per vertical meter.
We are also currently ramping up a large surface
exploration program, with the aim of unlocking additional value on
the Kiena property further to the west and east of the Kiena mine
initially, and later, over the entire property.”
Kiena Deep A Zone Bulk
Sample
The bulk sample consisted of 3.7 m x 4.0 m
lateral development on the 111 Level along the A Zone and A1 Zone
(Figure 1 and 2).
A total of approximately 66 drift rounds were
blasted, which allowed for thorough geotechnical assessment and
geological mapping, photographing and sampling from the faces of
each development round. Chip and muck sampling was completed
systematically to determine average grade for each round. A total
of 984 muck and 238 chip samples were collected in addition to
quality control samples. During the development of this portion of
the A Zone, visible gold was observed on about 75% of the faces
(Figure 4).
The initial development has confirmed the
continuity of the A Zones high grade gold mineralization along
strike. Visible gold is associated with folded quartz veins which
are located within an overall zone of strong amphibole alteration
within a sheared corridor. The amphibolite is located at the
contact between basalt/feldspar porphyry dyke and ultramafic rocks.
Detailed muck and chip samples (uncapped) presented in Figure 3,
shows the grade and geological continuity. Reconciliation with
capped muck samples (165 g/t Au) was 8% above mill feed.
Processing of the Bulk
Sample
The Kiena mill was restarted to process the
Kiena Deep bulk sample. The development material came from two
zones, namely the A and A1 Zones. The milled tonnage was measured
using a conveyor scale. Daily throughput reached up to 41
tonnes per hour (“tph”) with no issues during the extraction of the
bulk sample. The grade and recovery values provided by the mill
were determined using multiple sampling points, per cent solids
measurements, tailing grade sampling, laboratory analysis and
refined ounces (during the milling) and the ounces recovered during
the cleaning of the SAG and ball mills after milling was
completed.
All calculations and sampling methods have been
validated using an independent mineral processing consultant. The
material recovered during the cleaning of the balls mills was sent
to a third-party refiner, Sipi Metals Corp (precious metal refinery
based in Chicago, USA) and was included in the overall bulk sample
reconciliation.
TECHNICAL DISCLOSURE
The technical and geoscientific content of this
release has been compiled, reviewed and approved by Bruno Turcotte,
P.Geo., (OGQ #453) Senior Project Geologist and Audrey Lapointe,
Geo. (OGQ #975), Production Chief Geologist, of the Company and a
"Qualified Person" as defined in National Instrument 43-101
-Standards of Disclosure for Mineral Projects.
QUALITY CONTROL AND REPORTING
PROTOCOLS
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
absorption finish. Any sample assaying >100 g/t Au was rerun by
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 to
monitor quality control for chip and muck samples.
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 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 at the Eagle River Complex,
however there can be no assurance that this will continue despite
our best efforts. Future conditions may warrant reduced or
suspended production activities which could negatively impact 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 closely monitor the situation and will provide
updates as they become available.
ABOUT WESDOMEWesdome Gold Mines
has had over 30 years of continuous gold mining operations in
Canada. The Company is 100% Canadian focused with a pipeline
of projects in various stages of development. The Company’s
strategy is to build Canada’s next intermediate gold producer,
producing 200,000+ ounces from two mines in Ontario and Quebec. 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. The Company has approximately 139.4
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 |
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VP Investor Relations |
416-360-3743 ext. 2029 |
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416-360-3743 ext. 2025 |
duncan.middlemiss@wesdome.com |
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lindsay.dunlop@wesdome.com |
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220 Bay St, Suite 1200 |
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Toronto, ON, M5J 2W4 |
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Toll Free: 1-866-4-WDO-TSX |
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Phone: 416-360-3743, Fax: 416-360-7620 |
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Website: www.wesdome.com |
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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.
Figures accompanying this announcement are available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/e47cee2b-ba5a-482e-a497-535acd3bb024
https://www.globenewswire.com/NewsRoom/AttachmentNg/c877c3c4-369e-4a34-8542-0677fa9d91f1
https://www.globenewswire.com/NewsRoom/AttachmentNg/35c47c7c-762b-4e2b-8a41-5caa676d272c
https://www.globenewswire.com/NewsRoom/AttachmentNg/dfe44e30-fdc7-4acb-a5d9-dfb7660575b1
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