Moss Lake Mineral Resource estimate upgraded and increased

TORONTO, July 14 /CNW/ - Moss Lake Gold Mines Ltd. (MOK: TSX-V) is pleased to announce an updated NI 43-101 compliant Mineral Resource estimate for its wholly-owned Moss Lake gold deposit located 100 kilometres due west of Thunder Bay, Ontario. This estimate is part of an independent technical report undertaken by Watts, Griffis and McOuat Limited Consulting Geologists and Engineers.

Highlights of the new resource estimate include:

    
    -   Tonnage and contained ounces of gold increase by 8% over previous
        estimates

    -   65% of resources upgraded to the Indicated resource category

    -   Mineral Resource geometry favours open pit mining techniques

    -   Potential for resource growth recognized in the gap between the Main
        and QES zones
    

The technical report supporting these estimates will be made available within 45 days in accordance with regulatory requirements.

    
                      Table 1 - MOSS LAKE MINERAL RESOURCES
      Prepared by WGM (using a 0.001 opt Au cutoff and 0.300 opt Au top cut)
    -------------------------------------------------------------------------
      Category      Zone                 Tons        opt Au     Contained Au
                                      (million)                   ('000 oz)
    -------------------------------------------------------------------------
      Indicated     Main Zone            12.5         0.023           291
                    QES Zone             27.8         0.029           816
                                         ----         -----           ---
                    Total Indicated      40.3         0.027         1,107

      Inferred      Main Zone            16.5         0.025           418
                    QES Zone              4.2         0.025           107
                                         ----         -----           ---
                    Total Inferred       20.7         0.025           525
    -------------------------------------------------------------------------
    Notes: (1) This Mineral Resource estimate was prepared by Mr. Kurt
               Breede, P.Eng., who is an independent Qualified Person, and is
               effective July 14th, 2010.
           (2) Mineral Resources which are not Mineral Reserves do not have
               demonstrated economic viability. The estimate of Mineral
               Resources may be materially affected by environmental,
               permitting, legal, title, taxation, sociopolitical, marketing,
               or other relevant issues.
           (3) The quantity and grade of reported Inferred resources in this
               estimation are uncertain in nature and there has been
               insufficient exploration to define these Inferred resources as
               an Indicated or Measured Mineral Resource and it is uncertain
               if further exploration will result in upgrading them to an
               Indicated or Measured Mineral Resource category.
           (4) The Mineral Resources were estimated using the Canadian
               Institute of Mining, Metallurgy and Petroleum (CIM), CIM
               Standards on Mineral Resources and Reserves, Definitions and
               Guidelines prepared by the CIM Standing Committee on Reserve
               Definitions and adopted by CIM Council December 11, 2005.
           (5) This estimate was prepared using an inverse distance
               interpolated block model and reported within an interpreted
               wireframe of the mineralized envelope at a 0.015opt Au (or
               0.5 g/tonne Au) limit and excludes all blocks with a grade
               below 0.001 opt Au. The cutoff grade of 0.015 opt Au was
               selected as the basis on which the two Zones were modelled in
               the geological interpretation, and considered the parameters
               that would likely determine the economic viability of an open
               pit mining operation at Moss Lake. These included likely mine
               dilution, metallurgical recoveries, operating costs and a gold
               price of US$900/oz (at an exchange rate of US$1:C$1.10),
           (6) The resource estimate extends to a depth of 870 feet which is
               deemed a practical cutoff to maintain reasonable stripping
               ratios in a surface mining operation.
    

Management of Moss Lake believes the pragmatic application of blasthole grade control techniques on a bench by bench basis offers potential to realize better grades in an eventual mining operation. Table 2 demonstrates the cut-off grade sensitivity of Moss Lake Mineral Resource estimates.

    
         Table 2 - MOSS LAKE MINERAL RESOURCES CUTOFF GRADE SENSITIVITY
    -------------------------------------------------------------------------
                Main
     Cutoff     Zone            QES Zone            Total           Contained
      Grade   (million    Au    (million    Au    (million    Au        Au
     (opt)      Tons)    (opt)    Tons)    (opt)    Tons)    (opt)  ('000 oz)
    -------------------------------------------------------------------------
    Indicated
    0.001       12.5     0.023    27.8     0.029    40.3     0.027    1,107
    0.010        9.3     0.029    25.1     0.032    34.3     0.031    1,069
    0.015        7.2     0.034    21.7     0.035    28.8     0.035      998
    0.020        5.0     0.041    17.0     0.040    22.0     0.040      881
    Inferred
    0.001       16.5     0.025     4.2     0.025    20.7     0.025      525
    0.010       13.2     0.030     3.8     0.027    17.0     0.029      500
    0.015       10.1     0.035     3.1     0.030    13.3     0.034      454
    0.020        8.0     0.041     2.0     0.035    10.0     0.040      397
    -------------------------------------------------------------------------
    

The Moss Lake deposit consists of the Main and QES zones (Figure 1). Fracture-controlled and disseminated pyrite mineralization are accompanied by sericite and hematite alteration hosted by a suite of intermediate to syenitic sills near the south contact of the Moss Lake Syenite Stock. Gold grade distribution, host rocks and alteration patterns evoke an Archean Porphyry Model.

The mineralized material extends for 8,500 feet of strikelength and remains open at depth. The resource estimate is restricted to a depth of 870 feet from surface.

A 1,000 foot long gap exists between the Main and QES zone defined by limited previous drilling. This area offers potential to increase resources with further rigorous drilling.

The updated resource estimate includes 15 drill holes completed in 2008 in order to validate historical data and refine the resource models. This work updates a previous report completed in 2006 (www.sedar.com - Technical Report, November 27, 2006, Moss Lake Gold Mines Ltd.).

The independent "Qualified Persons" for the 43-101 compliant Mineral Resource Estimate are Richard W. Risto, P.Geo and Kurt Breede, P.Eng. of Watts, Griffis and McOuat Limited. This press release was prepared by George Mannard, P.Geo, "Qualified Person" and President of Moss Lake in consultation with the aforementioned independent "Qualified Persons".

Moss Lake Gold Mines Ltd. is a 56% owned subsidiary of Wesdome Gold Mines Ltd. (WDO-TSX). It trades on the TSX-Venture Exchange under the symbol "MOK" and has 45.2 million shares issued and outstanding.



For further information: For further information: George Mannard, P.Geo, President or Shelly John, Manager, Investor Relations, 8 King St. East, Suite 1305, Toronto, ON, M5C 1B5, Phone: 416-360-3743, Fax: 416-360-7620, Email: info@mosslakegold.com, Website: www.mosslakegold.com

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