Wesdome Announces Kiena Deep A Zone Drill Results, VC1 Zone Extension, and Advances Access Development Towards the A Zone Mineralization for Future Bulk Sample

TORONTO, Sept. 15, 2020 (GLOBE NEWSWIRE) — Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces additional results from underground definition drilling and development activities at the Company’s 100% owned Kiena Mine Complex in Val d’Or, Quebec.

Kiena Deep A Zone Drilling

Seven underground drills are in operation completing primarily definition drilling, with a lesser amount of extension drilling, of the Kiena Deep A Zone (the “A Zone”). Between May and August, a total of 21 holes totalling approximately 6,770 metres (“m”) were drilled within the A Zone and are being reported below. This drilling has continued to confirm the overall continuity of the geometry and the high-grade gold mineralization of the A Zone and identified additional mineralization down plunge of the most recent resource estimate (Figure 1). The A Zone now extends down plunge in excess of 880 m. 

Highlights of the recent A Zone drilling are listed below and summarized in Table 1.

• Hole 6584W1: 151.1 g/t Au over 13.1 m core length (35.4 g/t Au cut, 4.0 m true width) A2 Zone
• Hole 6584W2: 96.0 g/t Au over 10.8 m core length (25.7 g/t Au cut, 3.5 m true width) A2 Zone
• Hole 6668: 157.7 g/t Au over 2.7 m core length (27.3 g/t Au cut, 2.6 m true width) A Zone
• Hole 6583W1: 55.1 g/t Au over 6.5 m core length (31.4 g/t Au cut, 3.0 m true width) A1 Zone

All assays cut to 90.0 g/t Au. True widths are estimated.

Mr. Duncan Middlemiss, President and CEO commented, “We are pleased with the ongoing drilling program that continues to focus on definition drilling of the high grade A Zone, in order to convert inferred resources to indicated resources, in advance of an updated resource estimate later in the year and subsequent incorporation into the PFS. The PFS will be used to determine the viability of mining the existing resources in the immediate reach of the Kiena Mine to justify a mine restart. Longer term, our focus will turn to the remaining resources on the Kiena property and the exploration potential.

Drilling productivity was initially challenged upon the return to work May 11th due to manpower issues arising from the COVID-19 regional quarantines in Quebec; however, we now currently have a full complement of drillers and our drilling program is back on track. Recent drilling has indicated the VC1 zone has now been extended down plunge over 475 metres. This zone is reasonably accessible to existing infrastructure and could be an important source of mineralization in the early days of any future mine restart.”

“In addition, we are excited about advancing the access development towards the upper levels of the A Zone mineralization that will position the Company to take a bulk sample, which will validate the geological block model and assess the geomechanical conditions in order to complement the quality of the work being done in the PFS.”

Recent drilling completed from the 79 level exploration ramp has focussed on the down dip extensions of the VC zones, namely the VC1 zone. To date drilling the VC zones below 79 level has been challenged by a series of faults, which will require additional development off the 79 level to provide for a new drill platform. Drilling of the VC1 zone has returned a number of anomalous intersections and extended the zone to depth, which is now interpreted as a separate structure having a different orientation. The mineralization of the VC1 zone has transitioned from a more sulphide rich mineralization found in the upper extents of the mine, to a quartz rich environment with visible gold present at depth, which is congruent with many global high grade deposits. Drilling has extended the VC1 zone 475 m down plunge from 67 Level to 107 Level, where development and drilling are presently being completed (Figure 2). Previous drilling, and two holes from this campaign, namely Hole 6654 (64.0 g/t Au cut over 1.9 m true width (“TW”)) and Hole 6688 (5.5 g/t Au over 3.0 m TW) have provided support to the VC1 zone extending to Hole 6531 (previously released) which intercepted 31.1 g/t Au over 5.1 m (24.3 g/t Au cut over 3.9 m TW) and indicates the higher grade potential of the VC1 with depth. The VC1 zone could be accessed by the 67, 79 and 107 levels that have been recently established.  The VC1 zone remains open at depth and will be a focus for ongoing drilling.

Kiena Deep A Zone Development

In addition to the ongoing drilling, access development is currently being completed towards the A Zone on 111 Level so as to position the Company to take a bulk sample. Future bulk sampling on the A Zone will provide an opportunity to assess the geological block model and rock quality characteristics and will provide the necessary information to complete the ongoing Prefeasibility Study (“PFS”), expected to be completed by H1 2021.

Surface Exploration Drilling

Data compilation, combined with the recent MT and Airborne Mag surveys in the area immediately adjacent to the Kiena mine has resulted in a new geologic interpretation and has identified a number of exploration targets for drilling. A 10,000 m surface drilling program has commenced to test these targets from surface. These initial targets are located along the Marbenite Fault (within 1.5 km from Kiena Mine Complex).

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 ALS Minerals of Val-d’Or (Quebec), a certified commercial laboratory (Accredited Lab #689). Sample preparation was done at ALS Minerals in Val d’Or (Quebec).  Assaying was done by fire assay methods with an atomic absorption finish.  Any sample assaying >3 g/t Au was rerun by fire assay method with gravimetric finish, and any sample assaying >10 g/t Au was rerun with the metallic sieve method.  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 138.5 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol “WDO”.

For further information, please contact:

220 Bay St, Suite 1200
Toronto, ON, M5J 2W4
Toll Free: 1-866-4-WDO-TSX
Phone: 416-360-3743, Fax: 416-360-7620
Website: www.wesdome.com

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 Complex Drilling Assay and Composite Results

Composites

Assays

Photos accompanying this announcement are available at

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Figure 1

3D View Kiena Deep A Zone

Figure 2

3D View of VC Area