Wesdome Announces Definition Drilling of Kiena Deep A Zone Continues to Confirm Continuity

TORONTO, Oct. 31, 2018 (GLOBE NEWSWIRE) -- Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces additional high grade results from the ongoing underground exploration drilling of the Kiena Deep A Zone at its 100% owned Kiena Mine Complex, in Val d'Or, Quebec.

Recent infill drilling has continued to confirm the overall continuity of the Kiena Deep A Zone and improve our understanding and confidence in the controls on gold mineralization. Additionally, continued three-dimensional modelling of the Kiena Deep A Zone and independent review of the geologic interpretation has provided additional confidence in our understanding of the up and down plunge potential and focus for ongoing drilling.

Following the continued success of the ongoing diamond drill program, the Company took the decision to extend the current exploration platforms by a total of 450 metres to continue to define the possible extension of the Kiena Deep A Zone to the northwest, southeast and down dip. This additional development will be completed by November 5, 2018.

As this drill drift development continues, 4 drills are in operation on the A Zone and remain focussed on definition drilling, with less focus on extension drilling along the margins of the mineralized zone, until once the additional development is completed in the next week. The Q4 resource estimate will include all data as of October 12, 2018, which includes drilling over approximately 400 metres of the potential 1 km of plunge length interpreted from limited drilling. This additional potential will be the focus of ongoing drilling and included in an updated resource estimate in 2019.

Since September, a total of 21 holes totalling 5,600 metres have been completed (Figure 1A and 1B). Highlights of the new drilling are listed below and summarized in Table 1.

Highlights:

Kiena Deep A Zone

• Hole 6376: 21.1 g/t over 6.1 m core length (5.1 g/t Au cut, 5.4 m true width)  
  
  
  
  
• Hole 6367: 13.5 g/t Au over 9.1 m core length (10.3 g/t Au cut, 9.1 m true width)
  
  
  
  
• Hole 6366: 43.7 g/t Au over 2.4 m core length (12.1 g/t Au cut, 1.9 m true width)
  
  
  
  
• Hole 6380: 17.9 g/t Au over 10.3 m core length (8.9 g/t Au cut, 8.6 m true width)

All assays cut to 34.28 g/t Au. True widths are estimated.

Mr. Duncan Middlemiss, President and CEO commented, “We are very pleased with the recent drill results that continue to confirm the continuity and mineability of the Kiena Deep A Zone. Additionally, we remain excited by the up plunge extension of the A Zone that would have the potential to significantly add to the resource base, and could be a vital enhancement in any restart scenario. We remain committed to developing a resource estimate in the fourth quarter and recognize at this time that this will definitely be a ‘snapshot in time’ as we have not closed off the Deep Zone A up and down plunge. Additionally, the resource estimate will include a review of the grade capping that would have a significant impact on the average grade of the deposit.”

Recent drilling has identified a well-defined, moderate plunge of approximately 45 degrees to the SE to the gold mineralization that occurs predominantly along the basalt – chlorite-carbonate schist boundary (See news release dated September 11, 2018). Continued 3D modelling of the geology, structure and mineralized quartz veins have increased our understanding and confidence in the up and down plunge potential of the Kiena Deep A Zone that could extend over 1 km along plunge towards the VC6 zone (Figure 2: 3D view of the Kiena Deep A Zone). 

This updated geologic interpretation has been verified by independent review by two consulting firms including InnovExplo, who support the interpretation of the Kiena Deep A Zone, and will be incorporated into the Q4 resource estimate.

Additionally, the down plunge and portions of the down dip extension of the A Zone remains open and will also be a focus of the continued drilling.

TECHNICAL DISCLOSURE

The technical and geoscientific content of this release has been compiled, reviewed and approved by Bruno Turcotte, P.Geo., (OGQ #453) Senior Project Geologist of the Company and a "Qualified Person" as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

Analytical work was performed by Techni-Lab (ActLabs) of Ste-Germaine-Boule (Quebec), a certified commercial laboratory (SCC Accredited Lab #707). Sample preparation was done at Techni-Lab (ActLabs) in Val d'Or (Quebec).  Assaying was done by fire assay methods and all samples with visible gold were assayed by metallic sieve method at Techni-Lab (ActLabs) laboratory in Ste-Germaine-Boule (Quebec). In addition to laboratory internal duplicates, standards and blanks, the geology department inserts blind duplicates, standards and blanks into the sample stream at a frequency of one in twenty to monitor quality control.

ABOUT WESDOME

Wesdome Gold Mines has had over 30 years of continuous gold mining operations in Canada.  The Company is 100% Canadian focused with a pipeline of projects in various stages of development.  The Company’s strategy is to build Canada’s next intermediate gold producer, producing 200,000+ ounces from two mines in Ontario and Quebec.  The Eagle River Complex in Wawa, Ontario is currently producing gold from two mines, the Eagle River Underground Mine and the Mishi Open pit, from a central mill.  Wesdome is actively exploring its brownfields asset, the Kiena Complex in Val d’Or, Quebec.  The Kiena Complex is a fully permitted former mine with a 930-metre shaft and 2,000 tonne-per-day mill.  The Company has further upside at its Moss Lake gold deposit, located 100 kilometres west of Thunder Bay, Ontario.  The Company has approximately 134.2 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol “WDO”.

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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: Kiena Deep Zone A Drilling Results

Assays

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