Wesdome Gold Mines Ltd. Eagle River 300 East Zone Expands at Depth

 

TSX:WDO

TORONTO, Nov. 30, 2015 /CNW/ - Wesdome Gold Mines Ltd. (TSX: WDO) is pleased to announce exciting new drill results in the 300 East Zone at its wholly-owned Eagle River Mine, Wawa, Ontario.

HIGHLIGHTS INCLUDE:

300 East - North Lens (New)

  • 8.60 gAu/t over 32.40 m true width (TW) in hole 670-125
  • 14.72 gAu/t over 11.50 m TW in hole 670-130
  • 48.74 gAu/t over 2.00 m TW in hole 670-77
  • 13.65 gAu/t over 2.76 m TW in hole 670-73

300 East - Main Lens

  • 9.85 gAu/t over 7.49 m TW in hole 670-130
  • 12.21 gAu/t over 3.47 m TW in hole 670-73
  • 10.32 gAu/t over 3.16 m TW in hole 670-125
  • 49.86 gAu/t over 1.8 m TW in hole 670-99

Rolly Uloth, President and CEO commented, "We have identified two additional lenses within the 300 zone, (production on this zone commenced in the third quarter of this year) that appear to be opening up at depth. The widths are much larger than the existing known 300 zone lenses, with consistent high grades. We are evaluating putting a crosscut into the structure to determine whether bulk mining this new lens will be possible in the future.   Drilling continues as we step-out down plunge on 50 metre sections. The Company is in the final stages of completing its 2016 exploration budget and plans, and notes that it will add a third underground drill plus a surface drill at the Eagle River mine to test outcropping surface zones down to 500 metres."  

The 300 Zone is located in the western portion of the Eagle River Mine approximately 300  metres north and parallel to the mine's main producing structure – the No. 8 Zone (Figure 1).  Initial mining commenced this year in the 300 West Zone.  The 300 East Zone is accessible from existing development headings located as close as 50 metres to the west (Figure 2).  We are currently drilling  the 300 West Zone which remains open at depth and stepping out to delineate the full potential of the 300 East Zone.  Positive results to date give us confidence we will be able to replace or increase reserves again this year.

300 EAST ZONE – IMPLICATIONS

At least 2 subzones – the 300 East Main Lens and 300 East North Lens – are taking shape.  They are partially delineated and thickening down-plunge where they remain open.  A complete list of significant drill results for each zone is appended.  Individual longitudinal projections (Figures 3 and 4) provide locations of the drill hole results and the drilling coverage to date.  A schematic cross-section looking west on section 9600E (Figure 5) illustrates the relative geometrics and geological interpretation to date.

The deepest holes to date have intersected broad widths of strongly sheared and altered Mine Diorite with multiple sets of quartz veins locally demonstrating asymmetric folding.  Ultimately, any potential for future bulk mining will have to be validated by crosscutting the structure with underground workings.

The gold-bearing structures of the 300 East Zone plunge moderately east and appear to be spatially related to an embayment or roll in the dip of the north contact of the Mine Diorite (Figure 5).

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 routinely employed to monitor quality control.  The technical content of this press release has been compiled, reviewed and approved 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 near 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 116 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 EAST ZONE DRILING RESULTS

MAIN LENS (Figure 3)

Hole No. *

From

(m)

To

(m)

Core Length

(m)

Estimated

True Width

(m)

Grade

(gAu/t)

Cut grade **

(gAu/t)

670-72

249.05

250.65

1.60

1.48

8.15

8.15

670-73

255.85

261.25

5.40

3.47

12.21

12.21

670-75

245.50

247.45

1.95

1.49

5.45

5.45

670-77

276.70

279.00

2.30

2.00

3.87

3.87

670-78

298.40

303.00

4.60

3.52

7.22

7.22

670-89

217.40

219.00

1.60

1.54

46.34

26.69

670-96

283.00

285.50

2.50

2.16

0.60

0.60

670-97

272.70

275.00

2.30

1.88

14.73

14.73

670-99

265.40

267.75

2.35

1.80

49.86

49.86

670-100

285.00

286.85

1.85

1.52

27.73

22.92

670-101

310.60

314.00

3.40

2.60

12.75

12.75

670-123

380.20

386.40

6.20

5.83

5.81

5.81

670-125

410.50

414.15

3.65

3.16

10.32

10.32

670-130

433.10

443.70

10.60

7.49

9.85

9.49

NORTH LENS (Figure 4)

Hole No. *

From

(m)

To

(m)

Core Length

(m)

Estimated

True Width

(m)

Grade

(gAu/t)

Cut grade **

(gAu/t)

670-73

271.70

276.00

4.30

2.76

13.65

11.78

670-77

304.70

307.00

2.30

2.00

48.74

37.45

670-96

316.80

320.80

4.00

3.55

5.61

5.61

670-101

343.10

346.60

3.50

2.47

3.46

3.46

670-125

427.50

467.00

39.50

32.40

8.60

6.40

inc.

427.50

435.30

7.80

6.40

5.75

5.75

and

443.90

450.00

6.10

5.50

4.04

4.04

and

458.70

467.00

8.30

6.58

31.54

21.08

670-130

512.05

528.00

15.95

11.50

14.72

14.72

inc.

512.05

518.55

6.50

5.00

24.19

24.19

and

524.35

528.00

3.65

2.10

20.68

20.68

*    holes not drilled in sequence; for location see figures
**  high assays are cut to 140 gAu/t

http://files.newswire.ca/1393/EagleLong.jpg
http://files.newswire.ca/1393/Fig2300Zone.jpg
http://files.newswire.ca/1393/Fig3300EastMain.jpg
http://files.newswire.ca/1393/Fig4300eastnorthlens.jpg
http://files.newswire.ca/1393/Fig5300section.jpg

 

SOURCE Wesdome Gold Mines Ltd.

Image with caption: "Eagle River Longitudinal Section Looking North (CNW Group/Wesdome Gold Mines Ltd.)". Image available at: http://photos.newswire.ca/images/download/20151130_C5966_PHOTO_EN_554305.jpg

Image with caption: "300 Zone Longitudinal View Looking North (CNW Group/Wesdome Gold Mines Ltd.)". Image available at: http://photos.newswire.ca/images/download/20151130_C5966_PHOTO_EN_554297.jpg

Image with caption: "300 East Main Lens Longitudinal View (CNW Group/Wesdome Gold Mines Ltd.)". Image available at: http://photos.newswire.ca/images/download/20151130_C5966_PHOTO_EN_554299.jpg

Image with caption: "300 East North Lens Longitudinal View (CNW Group/Wesdome Gold Mines Ltd.)". Image available at: http://photos.newswire.ca/images/download/20151130_C5966_PHOTO_EN_554303.jpg

Image with caption: "Schematic Cross Section Looking West (CNW Group/Wesdome Gold Mines Ltd.)". Image available at: http://photos.newswire.ca/images/download/20151130_C5966_PHOTO_EN_554301.jpg

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