Wesdome Expands Recently Discovered High Grade Footwall Zone Over 300 Metres Down Plunge, Drilling 41.2 g/t Gold Over 51.1 Metres Core Length

TORONTO, May 19, 2021 (GLOBE NEWSWIRE) — Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces underground exploration drilling results from the new high grade gold discovery in the footwall of the Kiena Deep A Zone at the Company’s 100% owned Kiena Mine Complex in Val d’Or, Quebec.

On March 23, 2021, Wesdome announced the initial discovery of a new high grade gold zone in the footwall of the A Zone, which has been the focus of our drilling over the past several months. In addition, drilling has been ongoing to extend the A Zone laterally and down plunge.

New High Grade Footwall Zone

To date, the Footwall Zone is defined by new intersections of gold mineralization located within a 50 metre (‘m’) wide corridor adjacent to the footwall of A2 Zone. Gold mineralization is associated with quartz ± visible gold veins that are spatially associated with amphibolite altered komatiite and basaltic komatiite units. In some areas, gold mineralization is also observed in deformed basalt and/or flow breccias present within ultramafic units. Similar to the Kiena Deep A Zone, gold mineralization is deformed by subsequent folding, shearing, and faulting.

Up to now, only 6 holes passed through the lithologies containing gold mineralization of the Footwall Zone. Given the limited drilling, it is difficult, at this time, to determine an exact number of new lenses forming the corridor of the Footwall Zone. The orientation, dip and geometry of these new lenses are still not known with sufficient certainty to determine the true widths. The Footwall Zone corridor remains open laterally and down plunge. The location of new gold intercepts in recent holes suggest that Footwall Zone extends over 300 m along plunge. The deepest hole returned 41.2 g/t Au (uncapped) over 51.2 m core length (Figures 1 and 2).

Footwall Zone Drilling

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

• Hole 6760W1: 41.2 g/t Au over 51.2 m core length (25.7 g/t Au capped)
• Hole 6742W3: 27.7 g/t Au over 12.3 m core length (27.7 g/t Au capped)
• Hole 6742W10: 16.7 g/t Au over 9.0 m core length (14.9 g/t Au capped)
  

All assays cut to 90.0 g/t Au. True widths are unknown at this time.

Kiena Deep A Zone Drilling

Ongoing drilling also continues to better define and expand the Kiena Deep A Zone predominantly along the lateral extensions of the zone (Figure 3). The high grades intersected will be included in future resource updates as the intercepts are located both inside and outside the December 2020 mineral resource estimate (MRE), which is the foundation on which the current PFS has been established. (See Wesdome press release dated December 15, 2020).

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

• Hole 6750: 122.1 g/t Au over 7.5 m core length (26.7 g/t Au capped, 4.7 m true width) A Zone
• Hole 6742W3: 96.1 g/t Au over 8.0 m core length (47.4 g/t Au capped, 7.1 m true width) A1 Zone
• Hole 6735: 24.5 g/t Au over 17.3 m core length (21.1 g/t Au capped, 7.0 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 recent exploration drilling that not only returned the best ever drill hole intercept at Kiena of 41 g/t Au over 51 metres, but also continues to confirm the presence of a new high grade corridor in the footwall to the A Zone. Initial drilling has already extended the corridor of the Footwall Zone over 300 metres down plunge thus confirming the potential to add new high grade resources at depth. This zone remains open laterally and along plunge.

This new discovery could have major positive impacts on the project, in particular on the next updated mineral resource estimate, the number of ounces per vertical meter, and on global economic characteristics of the project. Additionally, the recent A Zone high grade intercepts inside and outside of the current A Zone resource block model shows the potential to expand the current resource estimate.

We also have a number of other excellent exploration targets to test this year, and have in place an aggressive but focussed program to test these targets, including the B Zone at depth. Additionally, we are also currently ramping up a large surface exploration program, with the aim of unlocking additional value on the Kiena property further to the west and east of the Kiena mine initially, and later, over the entire property.

Finally, the PFS is progressing well, and we expect to have it completed in Q2, with a possible re-start decision shortly thereafter. The pre-production timeframe is less than six months, potentially driving the Kiena Mine into commercial production in Q4 of this year.”

TECHNICAL DISCLOSURE

The technical and geoscientific content of this release has been compiled, reviewed and approved by Bruno Turcotte, P.Geo., (OGQ #453) Chief Geologist – Underground Exploration of the Company and a “Qualified Person” as defined in National Instrument 43-101 –

Standards of Disclosure for Mineral Projects

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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.

COVID-19

The health and safety of our employees, contractors, vendors, and consultants is the Company’s top priority. In response to the COVID-19 outbreak, Wesdome has adopted all public health guidelines regarding safety measures and protocols at all of its mine operations and corporate offices. In addition, our internal COVID-19 Taskforce continues to monitor developments and implement policies and programs intended to protect those who are engaged in business with the Company.

Through care and planning, to date the Company has successfully maintained operations, however there can be no assurance that this will continue despite our best efforts. Future conditions may warrant reduced or suspended production activities which could negatively impact our ability to maintain projected timelines and objectives. Consequently, the Company’s actual future production and production guidance is subject to higher levels of risk than usual. We are continuing to closely monitor the situation and will provide updates as they become available.

ABOUT WESDOME


Wesdome Gold Mines is a 100% Canadian focused Company that has had over 30 years of continuous gold mining operations in Canada.  The Company’s strategy is to build an intermediate gold producer, producing 200,000+ ounces from two mines in Ontario and Quebec. The Eagle River Complex in Wawa, Ontario is currently increasing gold production from the high-grade Eagle River Underground Mine.  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 is currently completing a PFS in support of a production restart decision. The Company is in the process of divesting of its Moss Lake gold deposit, located 100 kilometres (“kms”) west of Thunder Bay, Ontario. The Company has approximately 139.4 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: Kiena Complex Drilling Assay and Composite Results

Composites

Assays

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