Wesdome Discovers New High Grade Zone in Footwall of the Kiena Deep A Zone Including 34.1 g/t Gold Over 18.0 Metres Core Length

TORONTO, March 23, 2021 (GLOBE NEWSWIRE) — Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces underground exploration drilling results from a 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.

Since the beginning of the year, underground drilling has refocused on expansion and exploration drilling, and has recently expanded and continues to expand the A and VC Zones. As part of this drilling, a new high grade gold zone was discovered in the footwall of the A Zone. The following results are part of the 35,000 m drilled since the close-out date of the last mineral resource estimate update (September 18, 2020) and were therefore not included in the December 15, 2020 release.

New High Grade Footwall Zone

Up until only recently, definition drilling of the A Zone was focussed on converting the large inferred resource to indicated as part of the ongoing prefeasibility (“PFS”) study. This recent shift to focus the drilling on exploration resulted in drilling holes through the A zones into the untested footwall rocks. Improved drilling practices and the use of drilling wedges permitted the drills to effectively penetrate this footwall area and resulted in the discovery of at least two new zones of high grade gold mineralization (see Figure 1 and 2).

Given the limited drilling, the orientation and geometry of the mineralization is not known with any certainty; however, it is interpreted that this area consists of at least two lenses and is open laterally and at depth. The mineralization occurs within 50 metres (“m”) of the A2 zone and is located within amphibolitized ultramafic rocks demonstrating good geotechnical properties.

New Footwall Zone Drilling

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

• Hole 6742W2: 11.9 g/t Au over 22.0 m core length (11.9 g/t Au cut)
• Hole 6742W6: 59.7 g/t Au over 5.9 m core length (28.9 g/t Au cut)
• Hole 6742W6: 34.2 g/t Au over 18.0 m core length (16.7 g/t Au cut)
  

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

Mr. Duncan Middlemiss, President and CEO commented, “As we changed our focus from definition drilling to expansion and exploration drilling, we were initially rewarded with the recent expansion of the A and VC zones that are sure to add to the current resource base. Moreover, the discovery of additional high grade gold mineralization within 50 m of the footwall of the A zone could have significant positive impacts on the resources, the ounces per vertical metre, and the overall project economics. Based upon the latest resource estimate of the A Zone, we are already at 1,000 ounces per vertical metre and the potential of this number growing is significant. Its early days with only a few holes, but this drilling highlights the potential to add ounces not only in this area but illustrates the untested potential of the entire gold system around the Kiena mine. Obviously, this footwall zone will be one of the zones of focus for the continuing drilling.

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 VC and B Zones at depth as these would be accessible from the main ramp and would enhance the current ounces per vertical metre already defined in the A Zone. 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.

Also, we expect to have our final reconciliation of the bulk sample in the near term and early indications are positive in terms of grades and tonnes. 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.”

Kiena Deep A Zone Drilling

Recent drilling 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 and are expected to add to the current resource base as the intercepts are located outside the December 2020 mineral resource estimate (“MRE”) (see Wesdome press release dated December 15, 2020).

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

• Hole 6739W3: 46.2 g/t Au over 24.2 m core length (36.6 g/t Au cut, 6.7 m true width) A1 Zone
• Hole 6742W6: 135.8 g/t Au over 7.5 m core length (26.5 g/t Au cut, 4.0 m true width) A1 Zone
• Hole 6742W2: 142.4 g/t Au over 22.2 m core length (22.3 g/t Au cut, 6.0 m true width) A2 Zone
  

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

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.

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 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 139.4 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

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