Wesdome Reports Final Results of 2015 Mishi Drilling and Announces $6.3M Exploration Budget for 2016

TSX:WDO

TORONTO, Jan. 12, 2016 /CNW/ - Wesdome Gold Mines Ltd. (TSX: WDO) today announces final results of its 2015 shallow definition drilling program designed to confirm extensions of its wholly-owned Mishi Mine and its 2016 exploration budget for the Eagle River and Mishi Mines, located 50 kilometres due west of Wawa, Ontario

Drilling at 25 metre spacing along a 1.3 kilometre strike length confirms continuity both west and east of the Mishi Mine and provide the basis for new resource definition and mine planning.  The 2015 program included 79 holes totalling 9,915 metres of drilling (see Figure 1).  Initial highlights were released on August 18, 2015 and June 27, 2014 (press releases available at www.wesdome.com).

NEW HIGHLIGHTS OF THE M6 EXTENSION:

  • Hole MW15-14: 2.91 grams per tonne (gpt) over 8.13 metres true width
  • Hole MW15-09: 2.96 gpt over 6.97 metres true width
  • Hole MW15-03: 6.41 gpt over 7.87 metres true width
  • Hole MW15-71: 3.40 gpt over 6.49 metres true width

PREVIOUS 2015 HIGHLIGHTS OF THE M6 EXTENSION:

  • Hole MW15-65A: 10.38 gpt over 18.44 metres true width
  • Hole MW15-66: 2.50 gpt over 13.96 metres true width
  • Hole MW15-74: 6.41 gpt over 7.35 metres true width

Rolly Uloth, President, commented, "To date, Mishi drilling has focused on defining immediate pit extensions adjacent to current operations.  In 2016, we will have two drills at Mishi and intend to stepout beyond the resources and assess the overall potential of this extensive mineralized system."

GEOLOGICAL AND OPERATIONAL CONTEXT

The Mishi gold deposit strikes east-west and dips 40 degrees north.  It is situated in a broad regional deformation zone which follows a volcanic-sedimentary contact within the Mishibishu (Big Cat) Greenstone Belt, part of the Archean Wawa-Abitibi Subprovince.

Gold mineralization occurs in a series of tabular ankerite-sericite alteration zones accompanied by fine-grained disseminated pyrite and commonly, a complex of subconformable, deformed smokey quartz veinlets.

The Mishi Mine is an open pit operation located 2 kilometres west of the Company's mill.  The mill has been in continuous operation for 20 years treating ore primarily from the nearby Eagle River Mine which to December 31, 2014, has produced 1.01 million ounces of gold from 3.4 million tonnes at a recovered grade of 9.2 gAu/tonne.

Mishi was put into production to supplement Eagle River production and to improve regional operating efficiencies based on a Pre-Feasibility study released on January 12, 2011 (www.sedar.com).  To December 31, 2014, the Mishi Mine has produced 27,280 ounces of gold from 290,000 tonnes milled at an average recovered grade of 2.9 gAu/tonne.

The existing open pit is 400 metres in length from section 3425E to section 3825E.  At year end, 2014, Proven and Probable Mineral Reserves stood at 1,786,000 tonnes at 2.1 gAu/tonne (112,000 contained ounces).  Additional Indicated Open Pit Mineral Resources stood at 3,688,000 tonnes at 2.1 gAu/tonne or 248,000 contained ounces (see press release dated January 29, 2015).

The Company is advancing its strategy to progressively increase milling capacity and efficiency building on recent drilling successes at both the Mishi and Eagle River Mines.

2016 EXPLORATION BUDGET

In 2016, Wesdome plans a $6.3M exploration drilling program at the Eagle River Complex.

At Mishi the Company intends to triple its exploration budget to ~$1.8M, (~$0.5M in 2015) with the purpose of exploring for resources at depth and assessing the potential of the mineralized system to the west and north where it remains open.

At the Eagle River Mine, the exploration drilling budget will increase to ~$4.5M (~$1.0M in 2015) with three underground drills (up from two in 2015), and two surface drills.  Underground drilling will target parallel gold zones (Zone 7 and 300 Zone) to the north where recent exploration results have indicated new potential (see press release dated November 30, 2015).  Surface drilling will also target additional parallel zones to the north of Eagle River Mine which, to date, remains unexplored.

TECHNICAL DISCLOSURE

The technical disclosure in this press release has been compiled and reviewed by Daniel Lapointe, PGeo. and Mishi Mine Superintendent.  Assaying is performed at the Eagle River Mine Assay Office by fire assay methods.  QA/QC protocols involve independent lab duplicates, standards and blanks.

ABOUT WESDOME

Wesdome Gold Mines Ltd. is in its 28th year of continuous gold mining operations in Canada.  The Company is currently producing gold at the Eagle River Complex located near Wawa, Ontario from the Eagle River and Mishi gold mines.  Wesdome's goal is to expand current operations at both mines over the next four years through mill expansion and exploration.  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 118 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


Table 1

MISHI EXPLORATION

2015 BEST RESULTS WESTERN EXTENSION

Hole Id

Section

Zone

from

to

CL

HW

TW

Grade

Grade cut *




(m)

(m)

(m)

(m)

(m)

g/t Au

g/t Au

MW15-37

2925E

M6

122.50

131.00

8.50

13.18

8.47

1.98

1.98



Incl.

124.50

126.00

1.50

2.33

1.50

5.78

5.78




126.50

128.00

1.50

2.33

1.50

1.25

1.25

MW15-29

2950E

M6

42.50

43.00

0.50

0.78

0.50

3.68

3.68

MW15-29

2950E

M6

47.50

48.00

0.50

0.78

0.50

1.92

1.92

MW15-29

2950E

M6

51.50

52.00

0.50

0.78

0.50

3.60

3.60

MW15-29

2950E

M4

64.75

65.50

0.75

1.16

0.75

2.20

2.20

MW15-30

2950E

M6

69.00

78.00

9.00

13.98

8.98

1.70

1.70



Incl.

69.00

74.50

5.50

8.54

5.49

1.99

1.99




76.50

78.00

1.50

2.33

1.50

2.43

2.43

MW15-31

2950E

M6

100.50

104.50

4.00

6.21

3.99

4.52

4.52



Incl.

101.00

103.50

2.50

3.88

2.49

5.92

5.92

MW15-32

2950E

M6

124.80

129.50

4.70

7.27

4.67

1.24

1.24



Incl.

124.80

127.00

2.20

3.40

2.19

1.37

1.37




129.00

129.50

0.50

0.77

0.50

3.48

3.48

MW15-22

2975E

M2

40.50

42.25

1.75

2.46

1.74

1.54

1.54

MW15-23

2275E

M6

63.50

64.25

0.75

1.16

0.75

1.00

1.00

MW15-25

2975E

M6

45.75

54.00

8.25

12.71

8.17

1.22

1.22



Incl.

45.75

46.50

0.75

1.16

0.74

6.60

6.60




51.75

54.00

2.25

3.47

2.23

1.84

1.84

MW15-25

2975E

M6

68.50

72.00

3.50

5.38

3.46

1.29

1.29



Incl.

68.50

69.50

1.00

1.54

0.99

2.52

2.52




71.00

72.00

1.00

1.54

0.99

1.64

1.64

MW15-26

2975E

M6

84.50

85.50

1.00

1.55

1.00

5.02

5.02

MW15-27

2975E

M6

112.00

116.00

4.00

6.19

3.98

6.96

6.96

MW15-27

2975E

M4

128.75

132.50

3.75

5.80

3.73

2.41

2.41

MW15-16

3000E

M4

25.50

26.50

1.00

1.55

1.00

1.78

1.78

MW15-16

3000E

M2

94.00

94.50

0.50

0.71

0.50

2.36

2.36

MW15-18

3000E

M6

52.50

54.50

2.00

3.10

1.99

14.39

14.39

MW15-19

3000E

M6

81.50

83.00

1.50

2.33

1.49

2.99

2.99

MW15-19

3000E

M4

100.50

101.00

0.50

0.78

0.50

2.24

2.24

MW15-20

3000E

M6

108.00

114.50

6.50

10.05

6.46

1.66

1.66



Incl.

108.00

108.50

0.50

0.77

0.50

1.84

1.84




109.50

110.00

0.50

0.77

0.50

3.28

3.28




112.50

113.50

1.00

1.55

0.99

6.96

6.96




114.00

114.50

0.50

0.77

0.50

1.80

1.80

MW15-21

3000E

M6

130.30

137.00

6.70

10.38

6.67

2.19

2.19

MW15-21

3000E

M6

143.00

145.50

2.50

3.87

2.49

2.74

2.74

MW15-13

3025E

M6

52.50

58.00

5.50

8.50

5.46

1.14

1.14



Incl.

52.50

53.00

0.50

0.77

0.50

6.16

6.16




57.50

58.00

0.50

0.77

0.50

5.68

5.68

MW15-13

3025E

M2

153.00

154.00

1.00

1.41

1.00

1.20

1.20

MW15-14

3025E

M6

82.50

90.70

8.20

12.65

8.13

2.91

2.91



Incl.

82.50

83.50

1.00

1.54

0.99

3.06

3.06




86.50

90.70

4.20

6.48

4.17

4.59

4.59

MW15-15

3025E

M6

118.00

118.50

0.50

0.77

0.50

4.92

4.92

MW15-06

3050E

M2

80.00

81.00

1.00

1.41

1.00

1.00

1.00

MW15-08

3050E

M6

22.75

27.50

4.75

7.39

4.75

1.38

1.38

MW15-09

3050E

M6

66.50

73.50

7.00

10.85

6.97

2.96

2.96

MW15-10

3050E

M6

100.50

107.00

6.50

10.03

6.45

1.49

1.49



Incl.

103.50

107.00

3.50

5.40

3.47

2.17

2.17

MW15-11

3050E

M6

135.50

139.50

4.00

6.18

3.97

3.91

3.91

MW15-02

3075E

M6

27.25

36.70

9.45

14.64

9.41

1.10

1.10

Incl.

3075E

M6

27.25

28.75

1.50

2.32

1.49

1.70

1.70


3075E

M6

34.00

36.70

2.70

4.18

2.69

2.15

2.15

MW15-02

3075E

M4

48.25

49.00

0.75

1.16

0.75

1.44

1.44

MW15-03

3075E

M6

72.00

79.90

7.90

12.25

7.87

6.41

6.41

MW15-04

3075E

M6

104.00

113.50

9.50

14.74

9.48

3.55

3.55


Incl.

M6

104.00

107.50

3.50

5.43

3.49

3.87

3.87



M6

108.00

111.00

3.00

4.66

2.99

5.17

5.17



M6

112.75

113.50

0.75

1.16

0.75

1.80

1.80

MW15-05

3075E

M6

133.50

138.50

5.00

7.74

4.98

3.72

3.72



Incl.

136.00

138.00

2.00

3.10

1.99

7.87

7.87

MW15-66

3125E

M6

94.00

108.00

14.00

21.71

13.96

2.50

2.50

MW15-69A

3125E

M6

120.30

128.40

8.10

12.56

8.08

1.93

1.93



Incl.

121.80

122.70

0.90

1.40

0.90

4.99

4.99




123.60

124.20

0.60

0.93

0.60

3.32

3.32




126.30

128.40

2.10

3.26

2.09

3.28

3.28

MW15-77

3137.5E

M6

24.75

32.00

7.25

11.21

7.20

1.81

1.81

MW15-78

3137.5E

M6

42.75

45.00

2.25

3.48

2.24

2.25

2.25

MW15-79

3137.5E

M6

58.00

66.00

8.00

12.38

7.96

1.83

1.83



Incl.

58.00

59.50

1.50

2.32

1.49

6.12

6.12




63.00

66.00

3.00

4.64

2.98

1.25

1.25

MW`15-64

3150E

M6

43.50

45.00

1.50

2.33

1.50

1.24

1.24

MW15-65A

3150E

M6

96.00

114.60

18.60

28.68

18.44

10.38

1.83


3150E

Incl.

96.00

97.00

1.00

1.54

0.99

1.44

1.44


3150E


100.00

101.00

1.00

1.54

0.99

2.12

2.12


3150E


105.30

108.00

2.70

4.16

2.68

65.18

6.27


3150E


110.70

111.90

1.20

1.85

1.19

7.63

7.63


3150E


113.40

114.60

1.20

1.85

1.19

1.34

1.34

MW15-68

3150E

M6

129.50

130.50

1.00

1.55

1.00

5.02

5.02

MW15-73

3162.5E

M6

22.50

29.25

6.75

10.47

6.73

1.93

1.93



Incl.

22.50

24.90

2.40

3.72

2.39

4.39

4.39

MW15-73

3162.5E

M4

47.50

48.25

0.75

1.16

0.75

3.00

3.00

MW15-74

3162.5E

M6

40.50

47.90

7.40

11.43

7.35

6.41

5.07



Incl.

40.50

44.50

4.00

6.18

3.97

2.94

2.94




46.50

47.90

1.40

2.16

1.39

25.11

18.05

MW15-75

3162.5E

M6

60.25

68.50

8.25

12.75

8.20

2.41

2.41



Incl.

60.25

63.25

3.00

4.64

2.98

5.46

5.46




67.50

68.50

1.00

1.55

0.99

2.22

2.22

MW15-76

3162.5E

M6

87.00

99.00

12.00

18.56

11.93

1.72

1.72



Incl.

87.00

88.50

1.50

2.32

1.49

3.04

3.04




94.50

99.00

4.50

6.97

4.48

3.28

3.28

MW15-61

3175E

M2

22.00

23.50

1.50

2.11

1.49

4.79

4.79

MW15-62

3175E

M2

57.50

59.00

1.50

2.12

1.50

1.07

1.07

MW15-63

3175E

M6

105.00

112.20

7.20

11.11

7.14

2.26

2.26



Incl.

105.00

107.00

2.00

3.09

1.98

1.99

1.99




108.50

112.20

3.70

5.71

3.67

3.14

3.14

MW15-67

3175E

M6

116.25

117.75

1.50

2.32

1.49

1.18

1.18

MW15-70

3187.5E

M6

23.50

27.50

4.00

6.21

3.99

1.89

1.89

MW15-71

3187.5E

M6

42.00

48.50

6.50

10.10

6.49

3.40

3.40



Incl.

42.00

44.00

2.00

3.11

2.00

5.28

5.28




45.50

47.00

1.50

2.33

1.50

5.27

5.27

MW15-72

3187.5E

M6

65.75

70.50

4.75

7.37

4.74

1.74

1.74

MW15-60

3200E

M6

102.50

110.00

7.50

11.59

7.45

1.69

1.69

MW15-55

3225E

M2

19.70

20.30

0.60

0.93

0.60

1.72

1.72

MW15-56

3225E

M2

43.50

47.50

4.00

5.63

3.98

1.65

1.65

MW15-57

3225E

M6

58.50

59.25

0.75

1.16

0.74

1.04

1.04

MW15-58

3225E

M6

117.00

118.00

1.00

1.55

0.99

2.48

2.48

MW15-54

3250E

M6

94.00

95.00

1.00

1.55

1.00

3.16

3.16

MW15-51

3275W

M4

40.00

43.50

3.50

5.42

3.49

1.80

1.80

MW15-51

3275W

M2

56.30

56.60

0.30

0.42

0.30

1.92

1.92

MW15-52

3275W

M4

43.00

43.90

0.90

1.40

0.90

2.67

2.67

MW15-52

3275W

M2

84.50

85.00

0.50

0.70

0.50

1.12

1.12

MW15-53

3275W

M6

79.90

80.80

0.90

1.39

0.90

2.72

2.72

MW15-53

3275W

M4

89.00

89.50

0.50

0.77

0.50

1.36

1.36

MW15-48

3325E

M2

21.00

22.00

1.00

1.40

0.99

1.22

1.22

MW15-49

3325E

M4

20.50

22.00

1.50

2.33

1.49

3.30

3.30

MW15-49

3325E

M2

48.25

51.00

2.75

3.87

2.74

0.56

0.56

MW15-50

3325E

M8

38.75

39.50

0.75

1.17

0.75

3.84

3.84

MW15-50

3325E

M6

80.00

81.50

1.50

2.33

1.50

2.60

2.60

MW15-46

3350E

M6

69.50

70.25

0.75

1.06

0.75

6.08

6.08

MW15-47

3350E

M6

96.25

97.00

0.75

1.17

0.75

7.52

7.52

* Cut to 45 gAu/tonne

CL – Corelength

TW – True Width

HW – Horizontal (bench) Width

 

Table 2

MISHI EXPLORATION

2015 BEST RESULTS EASTERN EXTENSION

Hole Id

Section

Zone

from

to

CL

HW

TW

Grade

Grade cut *




(m)

(m)

(m)

(m)

(m)

g/t Au

g/t Au

ME15-01

4050E

M8

16.50

23.00

6.50

9.78

6.29

2.27

2.27

ME15-01

4050E

M6

82.00

96.00

14.00

19.16

13.55

1.73

1.73

ME15-01

4050E

M4

123.00

130.00

7.00

9.64

6.82

1.32

1.32

ME15-01

4050E

M2

169.00

170.00

1.00

1.38

0.98

1.20

1.20

ME15-02

4075E

M8

24.00

27.00

3.00

4.65

2.99

8.98

8.98

ME15-02

4075E

M6

76.00

77.00

1.00

1.55

1.00

1.00

1.00

ME15-02

4075E

M4

103.30

106.00

2.70

3.79

2.68

1.23

1.23

ME15-02

4075E

M2

155.00

158.00

3.00

4.23

2.99

0.84

0.84

ME15-04

4125E

M4

53.70

57.30

3.60

5.09

3.60

1.48

1.48

ME15-04

4125E

M2

65.00

77.00

12.00

16.96

11.99

0.80

0.80


Incl

M2

65.00

65.50

0.50

0.71

0.50

1.36

1.36



M2

67.50

68.00

0.50

0.71

0.50

1.32

1.32



M2

70.50

71.50

1.00

1.41

1.00

1.46

1.46



M2

76.00

77.00

1.00

1.41

1.00

2.54

2.54

ME15-05

4125E

M6

14.00

17.50

3.50

5.42

3.48

6.43

6.43

ME15-05

4125E

M4

51.00

52.50

1.50

2.32

1.49

4.84

4.84

ME15-05

4125E

M2

125.00

144.50

19.50

27.51

19.46

0.82

0.82


Incl

M2

125.00

129.00

4.00

5.65

3.99

0.88

0.88



M2

130.50

131.00

0.50

0.71

0.50

1.44

1.44



M2

132.50

135.00

2.50

3.53

2.49

1.29

1.29



M2

136.75

137.75

1.00

1.41

1.00

1.47

1.47



M2

138.25

143.00

4.75

6.70

4.74

1.00

1.00



M2

144.00

145.00

1.00

1.41

1.00

1.03

1.03

ME15-06

4175E

M4

4.00

6.50

2.50

3.88

2.49

1.50

1.50

ME15-06

4175E

M2

30.75

34.00

3.25

4.58

3.24

1.04

1.04

ME15-06

4175E

M2

37.75

39.00

1.25

1.76

1.24

1.28

1.28

ME15-07

4175E

M6

28.00

28.50

0.50

0.77

0.50

3.96

3.96

ME15-07

4175E

M4

64.00

64.60

0.60

0.93

0.60

1.56

1.56

ME15-07

4175E

M2

95.00

102.00

7.00

9.88

6.98

1.38

1.38


Incl

M2

98.00

101.50

3.50

4.94

3.49

2.05

2.05

ME15-08

4175E

M8

2.50

7.00

4.50

6.98

4.48

1.90

1.90

ME15-08

4175E

M4

111.75

112.50

0.75

1.06

0.75

2.92

2.92

ME15-08

4175E

M2

149.50

161.50

12.00

16.91

11.96

0.76

0.76


Incl

M2

149.50

150.00

0.50

0.70

0.50

2.28

2.28



M2

155.00

157.50

2.50

3.52

2.49

1.19

1.19



M2

160.00

161.50

1.50

2.11

1.49

1.31

1.31

ME15-22

4200E

M2

40.00

41.00

1.00

1.41

1.00

1.40

1.40

ME15-09

4225E

M4

11.00

20.00

9.00

13.90

8.94

1.12

1.12

ME15-09

4225E

M2

31.00

33.50

2.50

3.53

2.49

1.69

1.69

ME15-10

4225E

M6

53.00

53.50

0.50

0.78

0.50

1.76

1.76

ME15-10

4225E

M4

71.00

73.50

2.50

3.53

2.50

2.55

2.55

ME15-10

4225E

M2

90.00

90.50

0.50

0.71

0.50

1.36

1.36

ME15-11

4225E

M4

97.00

97.50

0.50

0.78

0.50

2.08

2.08

ME15-11

4225E

M2

126.50

135.00

8.50

12.00

8.49

1.29

1.29

ME15-12

4250E

M4

36.00

37.00

1.00

1.55

1.00

1.40

1.40

ME15-12

4250E

M2

54.00

59.00

5.00

7.05

4.99

1.55

1.55

ME15-13

4250E

M6

59.50

60.50

1.00

1.54

0.99

7.46

7.46

ME15-13

4250E

M4

93.00

94.50

1.50

2.31

1.49

2.80

2.80

ME15-13

4250E

M2

116.30

117.50

1.20

1.69

1.20

6.05

6.05

ME15-20

4875E

No significant assays






ME15-21

4875E

No significant assays






ME15-14

5100E

No significant assays






ME15-15

5100E

No significant assays






ME15-18

5300E

No significant assays






*    Cut to 45 gAu/tonne

      CL – Corelength

      TW – True Width

      HW – Horizontal (bench) Width

http://files.newswire.ca/1393/Jan2016Fig1.PNG

SOURCE Wesdome Gold Mines Ltd.

Image with caption: "MISHI DRILLING: Plan View & 3D View (CNW Group/Wesdome Gold Mines Ltd.)". Image available at: http://photos.newswire.ca/images/download/20160112_C5539_PHOTO_EN_596318.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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