TORONTO, July 12 /CNW/ - Wesdome Gold Mines Ltd. (WDO-TSX) is pleased to announce results of a new National Instrument 43-101 compliant resource estimate for its wholly-owned Mishi deposit located two kilometres west of the Company's mill, near Wawa, Ontario (Figure 1).
Donovan Pollitt, P.Eng. and CEO, comments "Our Eagle River Mill is currently running at half capacity. This project offers excellent potential for expansion in a stepwise manner with little capital at risk. The deposit is open at depth and to the east at shallow depths where drilling recently commenced".
This estimate is part of an independent technical report by InnovExplo Inc., a Val d'Or, Quebec based geological and engineering consulting firm. It is based on an exhaustive and detailed compilation and interpretation of existing data. Open pit resources are estimated to a depth of 110 metres (2,890 elevation) employing a 1.0 gAu/tonne cut-off grade. Underground resources are estimated below this depth employing a 3.0 gAu/tonne cut-off grade. A three year moving average gold price of $1000Cdn per ounce is used in conjunction with these assumptions to justify reasonable prospects for economic extraction. Details of the open pit resources are compiled with cut-off grade sensitivities in Table 1. Underground resources are compiled in detail in a like manner in Table 2. A detailed breakdown of the cut-off grade sensitivities between 1.0 and 2.0 gAu/tonne for the open pit scenario is provided in Table 3 to provide clarity regarding the grade-tonnage relationship.
Highlights of the new mineral resource estimate include:
- Measured and Indicated Resources total 5.7 million tonnes at 2.4
gAu/tonne or 438,000 contained ounces
- Additional Inferred Resources total 1.2 million tonnes at 3.6
gAu/tonne or 140,000 contained ounces
- 90% of Measured and Indicated Resources fall within an open pit
scenario above a depth of 110 metres
- Potential to increase resources with further drilling identified and
drilling in progress
- Resources located two kilometres from wholly-owned mill currently
operating at half capacity
- Permitting in place subject to closure plan amendments
The technical report supporting these estimated will be made available in 45 days, in accordance with regulatory requirements.
The Mishi Deposit is situated at a flexure in the regional Mishibishu Deformation Zone, which follows a mafic volcanic-sedimentary contact. At this locality, a Quartz-Feldspar Porphyry stock is attenuated and truncated by the deformation zone.
The deposit consists of an array of at least eight enechelon tabular zones striking east-west, dipping 40 degrees north and plunging 45 degrees northeast.
The mineralization consists of disseminated pyrite in sericitic alteration zones, sometimes accompanied by smokey quartz veinlets.
Historically, the deposit has been mined seasonally by open pit methods by Wesdome. To date, it has produced 15,562 ounces of gold from 135,495 tonnes milled at a recovered grade of 3.57 gAu/tonne. The mining and metallurgical characteristics of the deposit are known.
Drilling has traced the mineralization to a maximum depth of 300 metres beyond which it remains open. Current drilling is testing the shallow eastern strike extension of the deposit above a depth of 150 metres. Existing underground workings extend to within 300 metres of the Mishi Deposit on the 150 metre level.
InnovExplo Inc. is currently preparing an independent National Instrument 43-101 compliant pre-feasibility study. The focus of the study initially is a starter pit scenario to provide millfeed with limited capital outlay. Management believes the resource is sufficient to examine a progressive phased development approach involving pushback pit development and underground conversion. Options for mill capacity and infrastructure expansion will be examined.
Management is encouraged by the new resource estimates. The study highlights the Company's prospects for low cost, long term scalable internal growth projects in light of rising gold prices.
The Independent "Qualified Person" for the National Instrument 43-101 compliant Mineral Resource estimate for the Mishi Project are Carl Pelletier, P.Geo. and Karine Brousseau, P.Eng. of InnovExplo Inc. This press release was prepared by George Mannard, P.Geo., VP Exploration, Wesdome Gold Mines Ltd. and "Qualified Person" as per 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 & 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: firstname.lastname@example.org, Website: www.wesdome.com