Wesdome Announces Annual Mineral Resource and Reserve Updates for Eagle River and Kiena Mine Complexes
13 March 2023 - 10:03PM
Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”)
today announces updated Mineral Resource and Mineral Reserve
updates at the Company’s 100% owned Kiena Mine Complex (“Kiena”) in
Val d'Or, Quebec and at the Eagle River Mine (“Eagle River”) near
Wawa, Ontario.
- High Grade Mineral Reserve
Base – At December 31, 2022, Wesdome’s combined proven and
probable mineral reserves totalled 1.0 million ounces (2.4 million
tonnes grading 12.9 grams per tonne ("g/t") gold); combined
measured and indicated mineral resources (exclusive of reserves)
were 350 thousand ounces (1.4 million tonnes grading 7.7 g/t gold);
and combined inferred mineral resources were 1.1 million ounces
(6.4 million tonnes grading 5.2 g/t gold). Reserves and Resource
estimates at both sites reflect higher cut-off grades, reduced
exploration budget in H2, a higher allocation towards definition
and infill drilling (including 25,000 metres in the Falcon Zone at
Eagle River), as well as a more stringent and robust approach to
reconciliation, 3D modeling and resource classification.
- Upgrading Near-mine
Discoveries A Focus – In 2023, the Company has budgeted
137,000 metres of drilling, with a primary focus on the expansion
of mineral reserves and mineral resources and delineating the new
discoveries made in 2022. At Kiena, the Company is following up on
multiple initial discoveries made last year, including the south
limb of the A Zone and several adjacent hanging wall zones which
remain outside of mineral reserves. An exploration ramp is
specifically budgeted to follow-up and expand on the near-surface
Presqu’ile Zone. To the west of Eagle River the Company believes
there is potential for the delineation of a parallel Falcon
structure and further to the East down dip extension of the high
grade 300 Zone that could meaningfully enhance future operational
flexibility of the asset. With an existing large resource base,
efforts in 2023 will focus on converting a portion of these
resources to reserves. Additionally, we have a number of recently
discovered zones and exploration targets at both projects.
- Kiena Ramp Development
Tracking Well – Since year-end, ramp development has
continued to track slightly ahead of budget, with completion of the
ramp to the 129 m-level scheduled by year end. Completion of this
ramp segment will provide access to the high grade Kiena Deep A
Zone, which is associated with areas with the highest ounces per
vertical metre located within the zone.
Table 1: Detailed Mineral Reserve Data (as at December
31, 2022)
EAGLE RIVER (see notes) |
|
31-Dec-22 |
31-Dec-21 |
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000s) |
(g/t Au) |
Ounces |
(000s) |
(g/t Au) |
Ounces |
|
|
|
|
|
|
|
Proven |
148 |
14.5 |
69,000 |
116 |
11.3 |
42,000 |
Probable |
614 |
16.8 |
331,000 |
951 |
15.8 |
482,000 |
Proven & Probable |
762 |
16.3 |
400,000 |
1,066 |
15.3 |
524,000 |
|
|
|
|
|
|
|
KIENA (see notes) |
|
31-Dec-22 |
31-Dec-21 |
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000s) |
(g/t Au) |
Ounces |
(000s) |
(g/t Au) |
Ounces |
|
|
|
|
|
|
|
Proven |
53 |
8.5 |
14,000 |
71 |
13.2 |
30,000 |
Probable |
1,605 |
11.5 |
592,000 |
1758 |
11.0 |
621,000 |
Proven & Probable |
1,658 |
11.4 |
606,000 |
1,829 |
11.1 |
651,000 |
|
|
|
|
|
|
|
CONSOLIDATED (see notes) |
|
31-Dec-22 |
31-Dec-21 |
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000s) |
(g/t Au) |
Ounces |
(000s) |
(g/t Au) |
Ounces |
|
|
|
|
|
|
|
Proven |
201 |
12.8 |
83,000 |
187 |
12.0 |
72,000 |
Probable |
2,219 |
12.9 |
923,000 |
2709 |
12.7 |
1,103,000 |
Proven & Probable |
2,420 |
12.9 |
1,006,000 |
2,895 |
12.6 |
1,175,000 |
|
|
|
|
|
|
|
Notes:
- The effective date of the mineral
reserves estimate is December 31, 2022.
- The Mineral Reserves estimate for
Kiena was prepared by Simon Fontaine P. Eng, Senior Mining
Engineer, an employee of the Company. Benoit Beaulieu P.Eng, an
independent consultant under the supervision of Company personnel,
prepared the Eagle River estimate.
- Mineral Reserves are reported above
the 3.88 g/t cut-off grade for Kiena and 6.52g/t for Eagle
River.
- Mineral Reserves demonstrated
economic viability with the following parameters:
- A gold price of C$1,820 (US$1,400) per ounce for the Reserves,
with a USD:CAD exchange rate of 1.30, unchanged from previous
year.
- The minimum mining width used at Kiena was 2.1m, and Eagle
River is 1.5m,
- External dilution for S50 & Martin zones, Sneak, H1ZA, BZA1
and BZA2 lenses in the Kiena Deep zone was calculated at 15%.
Variable external dilution parameters for ZA, A1 & A2 lenses in
the Kiena Deep zone varied from 0.1m to 1.25m depending on the
zone. At Eagle River, an additional 0.5m is external to the
footwall and hanging wall stopes, except for the 300 zone below
1090m, where a value of 1.25m is applied to the footwall and
hanging wall,
- A dilution grade of 0.7 g/t Au is applied for the S50 Zone; for
all other zones at Kiena, a dilution grade of zero is used. At
Eagle River, waste blocks were estimated using a 3.0 g/t gold
cut-off, with un-estimated blocks assigned a 0.16 g/t gold
value,
- A mine recovery factor of 90% is applied at Kiena and Eagle
River,
- The mining cost per tonne at Kiena is C$131.4/t and C$154.6/t
at Eagle River,
- The milling cost per tonne at Kiena is C$46.0/t and C$89.7/t at
Eagle River,
- The surface and G&A cost per tonne at Kiena is C$45.7/t,
and Eagle River is C$94.6/t,
- Selling cost of C$ 2.20/oz, and 97% metallurgical processing
recovery for the S50 & Martin Zones and 98.5% for the Kiena
Deep Zone. Eagle’s selling cost is C$6.55/oz, and the percentage
mill recovery is 97.0%,
- A bulk density factor of 2.8 tonnes per cubic m (t/m³) at Kiena
and 2.7 (t/m³) at Eagle River.
- The Kiena Deep Zone incorporates,
A, A1, A2, H1ZA, BZA1, BZA2 and Sneak lenses.
- Stopes with more than 50% of
Measured Resources were classified as Proven Reserves at Kiena.
Proven and Probable reserves are based on the block model
classification at Eagle River.
- Mineral Reserves have been
estimated following the Standards of the Canadian Institute of
Mining, Metallurgy and Petroleum (“CIM”).
- As required by reporting
guidelines, rounding may result in apparent summation differences
between tonnes, grade, and metal content.
Table 2: Detailed Mineral Resource Data (as at December
31, 2022)
EAGLE RIVER(see notes) |
|
31-Dec-22 |
31-Dec-21 |
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000s) |
(g/t Au) |
Ounces |
(000s) |
(g/t Au) |
Ounces |
|
|
|
|
|
|
|
Measured |
176 |
14.2 |
80,000 |
126 |
13.4 |
54,000 |
Indicated |
290 |
11.3 |
106,000 |
339 |
9.1 |
99,000 |
Measured & Indicated |
466 |
12.4 |
186,000 |
465 |
10.2 |
153,000 |
Inferred |
586 |
14.9 |
281,000 |
596 |
13.3 |
255,000 |
MISHI (see notes) |
|
31-Dec-22 |
31-Dec-21 |
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000s) |
(g/t Au) |
Ounces |
(000s) |
(g/t Au) |
Ounces |
|
|
|
|
|
|
|
Measured |
- |
- |
- |
- |
- |
- |
Indicated |
- |
- |
- |
- |
- |
- |
Measured & Indicated |
- |
- |
- |
- |
- |
- |
Inferred |
2,300 |
1.6 |
120,000 |
2,300 |
1.6 |
120,000 |
KIENA (see notes) |
|
31-Dec-22 |
31-Dec-21 |
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000s) |
(g/t Au) |
Ounces |
(000s) |
(g/t Au) |
Ounces |
|
|
|
|
|
|
|
Measured |
45 |
7.8 |
11,000 |
21 |
9.6 |
6,000 |
Indicated |
926 |
5.1 |
153,000 |
713 |
4.6 |
106,000 |
Measured & Indicated |
971 |
5.3 |
164,000 |
734 |
4.8 |
113,000 |
Inferred |
3,498 |
5.9 |
668,000 |
4,011 |
5.9 |
761,000 |
CONSOLIDATED (see notes) |
|
31-Dec-22 |
31-Dec-21 |
|
Tonnes |
Grade |
Contained |
Tonnes |
Grade |
Contained |
|
(000s) |
(g/t Au) |
Ounces |
(000s) |
(g/t Au) |
Ounces |
|
|
|
|
|
|
|
Measured |
221 |
12.8 |
91,000 |
147 |
12.7 |
60,000 |
Indicated |
1,216 |
6.6 |
259,000 |
1,052 |
6.1 |
205,000 |
Measured & Indicated |
1,436 |
7.7 |
350,000 |
1,199 |
6.9 |
266,000 |
Inferred |
6,384 |
5.2 |
1,069,000 |
6,907 |
5.1 |
1,136,000 |
Notes:
- The effective date of the estimate
is December 31, 2022.
- The Eagle River Mineral Resource
estimate under the supervision of Company personnel was prepared by
Cath Pitman P.Geo., an independent contractor. Niel de
Bruin P.Geo, Director of Geology at the Company, reviewed and
updated portions of the Eagle River estimate and reviewed the Mishi
estimate. Karine Brousseau, P. Eng., Senior Engineer – Mineral
Resources at the Company, was responsible for the Kiena estimate.
All above persons are considered a ″Qualified Person″ as defined in
NI 43-101.
- Mineral resources are reported
exclusive of mineral reserves; mineral resources that are not
mineral reserves do not have demonstrated economic viability.
- Mineral resources at Kiena and
Eagle River Mine are considered for underground extraction and
within potentially mineable volumes. Kiena’s mineral resource is
reported below the 100m crown pillar. Must take material inside
these volumes below the stated block grade cut-off has been
included in the total.
- Mineral resources at Mishi are
considered for open pit extraction and have been reported within a
conceptual pit design.
- A bulk density factor of 2.8 tonnes
per cubic m (t/m³) was applied at Kiena and 2.7 tonnes per cubic m
(t/m³) at Eagle River and Mishi pit.
- Resources have been reported
considering mining progress as of December 31, 2022.
- Resources are reported using a 3.2
g/t Au cut-off grade at Kiena, 5.36 g/t Au at Eagle River and
0.52g/t Au at Mishi.
- Economic parameters for the
determination of the cut-off grades include:
- A gold price of C$1,950 (US$1,500) per ounce and a USD:CAD
exchange rate of 1.30,unchanged from previous year.
- Mining cost for Kiena, Eagle River, and Mishi were C$105/t,
C$110/t and C$5.0/t milled, respectively,
- Kiena’s processing cost was C$46/t; Eagle River was C$89.7/t,
and Mishi pit at C$21/t which included base processing, sustaining
CAPEX and G&A,
- The G&A cost were C$45.7/t milled at Kiena; and C$94.6t/t
milled at Eagle River, with surface costs included in the G&A
costs,
- Mill recovery for Kiena, Eagle River and Mishi were
respectively 98.5%, 97% and 82%,
- Selling costs of C$2.20/oz for Kiena, C$6.55/oz for Eagle River
and C$6.65/oz for Mishi were used,
- Mineral resources are classified
following CIM standards.
- As required by reporting
guidelines, rounding may result in apparent summation differences
between tonnes, grade, and metal content.
TECHNICAL DISCLOSUREThe underground technical
and geoscientific content of this release has been compiled,
reviewed, and approved by Michael Michaud, P.Geo, Vice President,
Exploration of the Company and Frédéric Langevin, Eng, Chief
Operating Officer of the Company, each a "Qualified Person" as
defined in National Instrument 43-101 -Standards of Disclosure for
Mineral Projects.
ABOUT WESDOMEWesdome is a
Canadian focused gold producer with two high grade underground
assets, the Eagle River mine in Ontario and the recently re-started
Kiena mine in Quebec. The Company also retains meaningful
exposure to the Moss Lake gold deposit in Ontario through its
equity position in Goldshore Resources Inc. The Company’s primary
goal is to responsibly leverage this operating platform and
high-quality brownfield and greenfield exploration pipeline to
build Canada’s next intermediate gold producer. Wesdome trades
on the Toronto Stock Exchange under the symbol “WDO,” with a
secondary listing on the OTCQX under the symbol “WDOFF.”
For further information, please contact: |
|
|
|
Warwick Morley-Jepson or |
Lindsay Carpenter Dunlop |
Interim President and CEO |
VP Investor Relations |
416-360-3743 ext.
2029 |
416-360-3743 ext.
2025 |
w.morley-jepson@wesdome.com |
lindsay.dunlop@wesdome.com |
|
|
|
|
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 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
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