Wesdome Gold Mines Announces Initial 300 West Lens Development, Confirms High Grades and Continuity

TSX: WDO

TORONTO, July 21, 2015 /CNW/ - Wesdome Gold Mines Ltd. (TSX: WDO) is pleased to announce positive initial development results in the 300 West Lens at its wholly-owned Eagle River Mine in Wawa, Ontario.

872 METRE LEVEL 300 WEST LENS, DEVELOPMENT DRIFT HIGHLIGHTS:

  • 57.22 grams of gold per tonne ("gpt") with an average width of 1.60 metres over a drift length of 82 metres or 20.76 gpt, with high assays cut to 60.0 gpt.

Rolly Uloth, President and CEO commented, "This initial development ore at the 300 West Zone is higher grade than the development ore encountered on the 750 metre level, announced on April 8, 2015. These sets of results enable us to confirm a new high grade mining zone at the Eagle River mine.  Its rapid development from initial discovery in 2013 to first ore production in June 2015 will contribute to increases in head grades from the Eagle River Mine for the balance of 2015 and beyond, while providing additional mining flexibility."

The 300 zone is located in the western portion of the mine and is part of our recent exploration successes which has identified three parallel zones.  At least four lenses of mineralization have been identified to date in the 300 zone. (See Figure 1).  These lenses are sub-vertically dipping quartz veins located 400 metres north of the mine's main producing structure.  Presently, the Upper 300 lens is in stope production and the 300 West lens is in development.  Current diamond drilling is focused on the 300 East lens to upgrade the mineral resources previously identified there.  Later this year, we will be able to test for extensions of the 300 West lens from a new diamond drill station as underground development advances.  A summary of previous drilling results from the from the 300 West Zone is appended with hole locations provided on the longitudinal section (See Figure 2). The zone remains open at depth.

TECHNICAL DISCLOSURE

All assays are performed by fire assay on 25 gram aliquots at the Eagle River Mine Assay office.  Duplicates, replicates, blanks and standards are regularly performed to monitor quality control.  The technical content of this press release was compiled and reviewed by George N. Mannard, P.Geo, Vice-President, Exploration and "Qualified Person" as defined and required by National Instrument 43-101 "Standards of Disclosure".

ABOUT WESDOME

Wesdome Gold Mines Ltd. is in its 28th year of continuous gold mining operations in Canada.  The Company is currently producing from its Eagle River and Mishi gold mines in Wawa, Ontario, which have earned consistent free cash flow during times of low gold prices.  Wesdome's corporate goal is to build a profitable, long-life, sustainable gold mining Company with modest initial capital costs.  This strategy has enabled the Company to acquire strategic property and infrastructure assets in two politically stable and historically proven mining camps.  Wesdome has significant upside through ownership of its two other properties, the Kiena Mine Complex in Val d'Or, Quebec and the Moss Lake gold deposit located 100 kilometres west of Thunder Bay, Ontario.  These assets are being explored and evaluated to be developed in the appropriate gold price environment.  The Company has approximately 111.0 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol "WDO".

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

APPENDIX: 300 WEST ZONE DRILLING RESULTS


Hole No.

From

(m)

To

(m)

Core Length

(m)

Estimated

True Width

(m)

Grade

(gAu/t)

Cut grade

(gAu/t)

EU-753*

171.50

173.50

2.00

1.40

13.63

12.18

EU-754*

181.20

183.30

2.10

1.42

0.38

0.38

EU-755*

210.20

212.60

2.40

1.40

14.35

7.58

EU-758*

184.50

186.60

2.10

1.41

18.36

14.47

EU-759*

210.00

212.35

2.35

1.39

12.92

7.74

EU-759W*

205.50

207.50

2.00

1.40

112.99

20.61

EU-764*

173.20

175.20

2.00

1.40

9.58

9.36

EU-765*

187.90

190.05

2.15

1.41

173.90

32.04

EU-780*

188.90

192.40

3.50

2.35

79.13

26.17

EU-781*

197.30

201.30

4.00

2.52

65.15

45.88

EU-782*

210.65

213.10

2.45

1.46

230.19

29.16

EU-783*

211.00

213.35

2.35

1.42

53.65

26.16

EU-777**

167.25

169.20

1.95

1.41

12.61

10.36

EU-778**

175.80

177.80

2.00

1.48

121.33

16.72

EU-779**

186.80

189.15

2.35

1.51

115.66

35.65

EU-794**

NO SIGNIFICANT VALUES

EU-795A**

230.60

232.70

2.10

1.48

10.08

10.08

EU-796**

255.40

259.00

3.60

2.06

16.64

14.84

EU-799**

196.50

198.60

2.10

1.48

86.50

29.28

*Previously released (Press Release dated December 4, 2014)

High grades are cut to 60 grams per tonne

**Previously released (Press release dated April 8, 2015)

Press Releases available at www.wesdome.com

Figure 1: 300 Zone Longitudinal Section Overview

Figure 2: 300 Zone Longitudinal Section Blow Up - West Zone

Figure 3: Eagle River Underground Mine, Longitudinal Section

SOURCE Wesdome Gold Mines Ltd.

PDF available at: http://stream1.newswire.ca/media/2015/07/21/20150721_C8361_PDF_EN_449398.pdf

PDF available at: http://stream1.newswire.ca/media/2015/07/21/20150721_C8361_PDF_EN_449394.pdf

PDF available at: http://stream1.newswire.ca/media/2015/07/21/20150721_C8361_PDF_EN_449396.pdf

For further information: Lindsay Carpenter Dunlop, Vice President, Investor Relations, 416-360-3743 ext. 25, ldunlop@wesdome.com or George Mannard, Vice President of Exploration, 416-360-3743 ext. 22, gmannard@wesdome.com; 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

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