Wesdome Announces Drilling at the Eagle River Mine Discovers North Contact Zone and Zones Parallel to the Falcon Zone

TORONTO, Dec. 15, 2021 (GLOBE NEWSWIRE) — Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces the discovery of the North Contact Zone and the discovery of zones of additional mineralization parallel to the Falcon 7 Zone, at the Company’s wholly-owned Eagle River Mine near Wawa, Ontario.

North Contact Zone

The North Contact Zone is a new discovery located along the northern contact of the Mine Diorite and has been intersected by several underground holes that were drilled north of the 300 East zone to test for parallel structures. The gold mineralization along the northern diorite contact occurs as visible gold in quartz veins within a shear zone near the 1,000 metre (‘m’) level. Understanding of the size of this newly identified zone of mineralization will improve with continued drilling that is ongoing for this area (Figure 1). It is interpreted that the North Contact Zone has been previously intersected near surface with widely spaced exploration drilling completed on 200 m spaced sections. This 2016 drilling returned several good intersections in the volcanic rocks adjacent to the mine diorite, including ERM-2016-27 that returned 32.4 g/t Au over 4.8 m (see press release dated September 15, 2016). Based on the recent drilling at depth, it demonstrates the potential for gold mineralization along the north contact extending from the 1,000m level to surface and is within 150 m from mine infrastructure. The strong continuity down plunge is characteristic of the gold mineralization at Eagle River.

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

• Hole 771-E-23: 9.26 g/t over 1.5 m (true width)
• Hole 771-E-32: 12.19 g/t over 3.7 m (true width)

All assays cut to 125.0 g/t Au. True widths are estimated.

Falcon 7 Zone

The Falcon 7 Zone was discovered in 2019 during surface drilling of the volcanic rocks located approximately 200 m west of the mine diorite (see press release dated June 6, 2019). Drilling has been ongoing since the discovery to determine the extent of the zone and to increase confidence of the gold grade distribution. Recently, underground development has been completed on the 622m and 635m levels, and long hole stoping from this development has commenced (Figure 2). Sampling conducted during the development stage and early results from mining confirm high gold grades and strong mineability. 622m Level chip sampling yielded 54.3 grams of gold per tonne (g/t Au) (uncapped) and 37.9 g/t Au (capped at 125 g/t Au) over an average thickness of 2.1 m over a continuous strike length of 75.6 m (See press release dated September 8, 2021).

Falcon 7 Parallel Zones

Recent drilling from the new development intersected several parallel zones to that of the Falcon 7 zone (Figure 3). Although only a limited number of drill holes intersected these mineralized structures thus far, it does highlight the potential to grow the resource base close to existing infrastructure. Considering the plunge extent of known zones of mineralization, the Company is confident that the mineralization in these newly identified zones will display a similar character.

The discovery of these parallel zones shows the potential of the mine diorite and surrounding volcanics to host more zones of mineralization, especially where host structures continue across the diorite-volcanic contact, such as 311 West, 8 and 5 zones. Competency differences between the Mine Diorite and the host volcanic rocks often lead to changes in the host structure’s orientation, which can facilitate the development of dilational zones, which allow for increased fluid movement and alteration to occur during metal deposition. Dilational zones can occur to the east and west of the Mine Diorite and highlight the prospectivity of the volcanic rocks beyond the currently existing footprint of the Eagle River Mine.

Highlights of the recent drilling are listed below and summarized in Table 2.

• Hole 622-E-49: 13.72 g/t over 1.5 m and 11.2 g/t over 1.5
• Hole 640-E-15: 7.60 g/t over 1.5 m and 11.19 g/t over 2.5 m
• Hole 640-E-11: 5.53 g/t over 1.50 m
• Hole 640-E-12: 13.42 g/t over 1.5 m

Assays capped at 60 g/t Au. True widths are estimated.

In addition, development of the 355m level is proceeding and will provide for development and exploration of the Falcon 7 zone at higher elevations in the mine and provide a platform to test for other parallel zones and along strike to the west.

Mr. Duncan Middlemiss, President and CEO commented, “We are pleased with the ongoing development and mining of the Falcon 7 Zone that brings to Eagle a new, shallow high grade mining front away from the deeper levels of the mine. This new development has provided drilling platforms to conduct further exploration, and initial limited drilling has discovered additional parallel zones having the potential to be of significant size and importance as the Falcon 7 zone is currently. Development of the 355 m level is proceeding and will provide for development and exploration of the Falcon 7 zone and other parallel zones at higher elevations in the mine. This is becoming a very prospective area and could be the next mining area at the Eagle River mine. The 355 m Level development is extending 400 m west of the mine diorite and will provide platforms to test for gold mineralization further along strike where surface exploration has returned encouraging results.

Also, the discovery of the North Contact zone, although with limited drilling, represents another target area for exploration and could be easily accessed from existing mine infrastructure. The discovery of this zone and recent indications from drilling demonstrates the ongoing prospectivity of the immediate area of the Eagle River Mine and showcases the quality of this asset. These areas will continue to be a focus of our exploration efforts going forward.”

TECHNICAL DISCLOSURE

Samples are transported in sealed bags to the Eagle River Mine assay office in Wawa, Ontario. Samples are analyzed for gold using standard fire assay technique with gravimetric finish. The performance of the Wesdome Laboratory is monitored through the implementation of a quality assurance – quality control (QA-QC) program designed to follow industry best practices. Wesdome inserts blanks and certified reference standards into the sample sequence for quality control at the laboratory. The QA/QC procedure is described in more detail in the 2016 Technical Report filed on SEDAR on March 17, 2016.

The technical content of this release has been compiled, reviewed, and approved by Michael Michaud, P.Geo., Vice President, Exploration of the Company and a “Qualified Person” as defined in National Instrument 43-101 –

Standards of Disclosure for Mineral Projects

.

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 pandemic, Wesdome has adopted all public health guidelines at 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 success 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 monitor the situation closely and will provide updates as they become available.

ABOUT WESDOME


Wesdome is Canadian focused with two producing underground gold mines.  The Company’s strategy is to build Canada’s next intermediate gold producer, producing 200,000+ ounces from two mines in Ontario and Québec.  The Eagle River Underground Mine in Wawa, Ontario is currently producing gold at a rate of 92,000 – 105,000 ounces per year.    The Kiena Complex is a fully permitted mine with a 930-metre shaft and 2,000 tonne-per-day mill, and a restart of operations was announced on May 26, 2021.  The Company has completed a PFS in support of the production restart decision. Wesdome is actively exploring both underground and on surface within the mine area and more regionally at both the Eagle River and Kiena Complex. The Company also retains meaningful exposure to the Moss Lake gold deposit, located 100 kilometres west of Thunder Bay, Ontario through its equity position in Goldshore Resources Inc. The Company has approximately 140.0 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol “WDO”.

For further information, please contact:

220 Bay Street, 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 statements 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 the Company’s 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 – Drill hole Sample Results from North Contact Zone

Table 2 – Drill hole Sample Results from the Falcon Zone Area

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