TORONTO, May 18 /CNW/ - Wesdome Gold Mines Ltd (WDO: TSX) has launched an aggressive exploration, development and evaluation program this year with the goal of increasing reserves and growing production. Work will be centred on its wholly-owned mining/milling operations in Wawa, Ontario and Val d'Or, Quebec.
HIGHLIGHTS FOR 2010
- 110,000 metres of drilling
- 60% Exploration
- 40% Definition
- $8.0 million drilling expenditures
- $1.0 million Dubuisson development investment
- New Project Pipeline
- S50 Deep
- Mishi Pit
- Moss Lake
G. Mannard, VP Exploration states, "Our properties offer significant potential for growth. Our goal is to demonstrate the potential of these assets in the marketplace where we feel they are undervalued. Rarely can you find a combination of infrastructure, people and geology in such safe and stable places to work. Clearly, our goal at this point is to develop our project pipeline, fill up the mills and assure our future."
In Wawa, development is focused on ramp access in the western portion of the Eagle River mine. Here the 811 Zone remains open at depth. The 811 Zone has provided the bulk of production over the last three years which totals 142,700 ounces of gold from 327,600 tonnes milled at a recovered grade of 13.5 gAu/tonne.
The new ramp (in progress) will open up new ground for drilling in the central portion of the mine at depth. Underground exploration drilling will total 14,000 metres. Half of this will explore extensions of known trends to depth. This component has reasonable potential to replace or increase resources. The other half will provide deep drilling to identify the continuity of the ore structure at depth. This component of the drilling is qualitative in nature and its purpose is to provide confidence and guidance for longer term initiatives including shaft deepening.
An additional 20,000 metres of drilling is planned for definition and delineation drilling at Eagle River with a focus on the 811 Zone (figure 1).
Elsewhere in Wawa, planning and permitting to reactivate the Mishi mine located two kilometres east of the mill, is advancing. Here there is the potential to provide long term supplementary millfeed and production initially from surface mining and later from underground if economic conditions merit. Currently a technical report is being prepared by independent consultants with the purpose of optimizing results and strategies identified by internal studies and providing regulatory disclosure compliance for the stock market. In 2010, Wesdome will drill 6,000 metres to trace the eastern strike extension of the Mishi deposit in an area where little previous work was undertaken due to former property boundary restrictions. Since 2002, the Mishi mine has been operated intermittently producing a total of 15,600 ounces of gold from 135,000 tonnes of ore milled at an average recovered grade of 3.6 gAu/tonne.
In light of all-time high gold prices, management is encouraged by the potential Mishi presents to increase production with little capital at risk.
In total, drilling in the Wawa Camp will total 40,000 metres this year, half towards exploration targets and half towards delineation/definition work. Approximately $3.0 million is allocated for this work.
VAL D'OR CAMP
On March 8, 2010, Wesdome announced its intention to develop the new Dubuisson discovery by driving a 1.0 kilometre drift on the 330 metre level. The strategy is to provide additional production capacity for the Kiena mine complex going forward.
Within the context of this strategy an aggressive surface and underground drilling campaign is underway with the purpose of extending known zones and identifying new potential in the immediate mine area and the area surrounding the Dubuisson discovery that will fall outside the range of proposed future drilling from the new drift (figure 2).
Underground drilling will total 43,000 metres with 24,000 metres of this allocated to definition and delineation drilling of extensions of the VC, North, 388 and S-50 zones (figure 3). The remaining 19,000 metres will test new targets close to existing workings and continue to follow-up on recent success in the S-50 zone at depth beneath existing workings. Recent drilling here has cut corelengths of 10.5 metres grading 20.66 gAu/tonne and 12.8 metres grading 12.31 gAu/tonne (Press Release dated March 29, 2010 available at www.wesdome.com) (figure 4).
Surface drilling will total 27,000 metres with a focus on the Dubuisson and Kiena mine areas.
The Wesdome project has been allocated 5,000 metres of this surface drilling. This work will focus on expanding the potential of zones identified in the December 8, 2009 43-101 Technical Report and Mineral Resource Estimate prepared by InnovExplo Inc. and available at www.sedar.com. Of particular interest is the Wesdome L Zone which remains completely open and undelineated.
In summary, 70,000 metres of exploration and definition drilling is planned at a cost of approximately $5 million with 60% allocated to delineation/definition drilling and 40% for exploration, with an additional $1 million allocated for the Dubuisson drift.
The technical content of this Press Release has been verified by George Mannard PGeo. APGO Vice President Exploration and Paul Arscott PGeo. OGQ Chief Geologist, Kiena mine, both "Qualified Persons" as per requirements of National Instrument 43-101.
Wesdome is an established Canadian gold producer with wholly-owned mining and milling complexes located in Wawa, Ontario and Val d'Or, Québec. Wesdome has been producing gold continually for 20 years on an unhedged basis and to date has produced in excess of 1.0 million ounces. The Company has 100.7 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.
SOURCE Wesdome Gold Mines Ltd.
For further information: For further information: Donovan Pollitt, P.Eng., President and CEO, or Shelly John, Manager, Investor Relations, 8 King St. East, Suite 1305, Toronto, ON, M5C 1B5, Toll Free: 1-866-4-WDO-TSX, Phone: (416) 360-3743, Fax: (416) 360-7620, Email: email@example.com, Website: www.wesdome.com