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Wesdome Increases Eagle River Mine Mineral Reserves by 13% and Mineral Resources by 112%
PR Newswire

TSX:WDO

TORONTO, Feb. 10, 2016 /CNW/ - Wesdome Gold Mines Ltd. (TSX: WDO) is pleased to announce increased Mineral Reserves, net of depletion, at its operating Eagle River and Mishi Mines located west of Wawa, Ontario.  Mineral Reserves and Resources are updated as at December 31, 2015.

HIGHLIGHTS

  • Mineral Reserves at Eagle River and Mishi increase 12% to 431,000 ounces
  • Eagle River Mineral Reserves increase 13% to 300,000 ounces
  • Mishi surface mineable Mineral Reserves increase 8% to 131,000 ounces
  • Mineral Reserves have now doubled over the last 3 years, net of 149,000 ounces of production
  • Eagle River Inferred Mineral Resources increase 112% to 170,000 ounces reflecting drilling successes of new parallel zones
  • Major drilling program launched to include up to 7 drills in 2016 to assess potential to significantly expand Mineral Resources

Mr. Rolly Uloth, President and CEO commented, "In 2015, capital was focused on underground development, specifically to rapidly access the 300 Zone on multiple horizons.  We proved the Zone's continuity and commenced production from this structure in the third quarter."

Additionally, new exploration drill platforms were created to better access and drill test the 300 and 7 Zones.  As a result, Mineral Resources at Eagle River have increased significantly, with grade increasing as well from 8.5 grams per tonne to 9.5 grams per tonne.  Mineral Reserves increased 13%, net of depletion, with the Proven Reserve grade increasing from 8.5 to 10.0 grams per tonne.  Approximately 49% of the Mineral Reserves and 55% of the Mineral Resources at Eagle River are from the recently discovered 300 and 7 parallel Zones.  Recent development work has set the stage for an aggressive drill program in 2016 which will give us an idea of the full potential of these new zones.

At Mishi, the infill drill program increased Mineral Reserves by 8%, net of depletion, and importantly, the life-of-mine stripping ratio improved to 2.5 tonnes of waste per tonne of ore.

In 2016, at the Eagle River Mine, the underground drilling program will consist of 40,000 metres of exploration drilling (versus 17,000 metres in 2015) and an additional surface drill program will consist of 25,000 metres (versus nil in 2015).  This major surface drilling program at Eagle River will test for parallel zones down to 600 metres depth to the North of the mine, which to date has not been explored.  Near Mishi, the Company will increase its surface drilling to 25,000 metres focused to the west of Mishi Mine on the Windarra property.

MINERAL RESERVES AND RESOURCES



MINERAL RESERVES *

Mine

Category

Tonnes

Grade

Contained







(gAu/tonne)

 

Ounces








Dec 31, 2015

Dec 31, 2014

Dec 31, 2013

Dec 31, 2012

Eagle River

Proven

165,000

10.0

53,000

39,000

41,000

35,000


Probable

846,000

9.1

247,000

226,000

128,000

105,000


Proven + Probable

1,011,000

9.2

300,000

265,000

169,000

140,000









Mishi

Proven

157,000

2.2

11,000

12,000

16,000

9,000


Probable

1,728,000

2.2

120,000

109,000

96,000

70,000


Proven + Probable

1,885,000

2.2

131,000

121,000

112,000

79,000









TOTAL




431,000

386,000

281,000

219,000




ADDITIONAL MINERAL RESOURCES *









Mine

Category

Tonnes

Grade

Contained







(gAu/tonne)

 

Ounces








Dec 31, 2015

Dec 31, 2014

Dec 31, 2013

Dec 31, 2012

Eagle River

Inferred

555,000

9.5

170,000

80,000

105,000

46,000









Mishi Open Pit

Indicated

3,679,000

2.1

248,000

248,000

248,000

333,000


Inferred

764,000

2.4

59,000

59,000

59,000

59,000









Mishi Underground

Indicated

567,000

4.5

82,000

82,000

82,000

82,000


Inferred

437,000

5.8

81,000

81,000

81,000

81,000









TOTAL

Indicated



330,000

330,000

330,000

415,000


Inferred



310,000

220,000

245,000

186,000

*

Numbers reflect rounding to nearest 1,000 tonnes and ounces

*

All Mineral Reserves and Mineral Resources estimates have been made in accordance with the Standards of the Canadian
Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101 and assume a gold price of $1,400CDN per ounce.




All Mineral Resources are in addition to Mineral Reserves.




Mineral Resources are not in the current mine plan and therefore do not have demonstrated economic viability.




As per section 4.2 (b)(ii) of National Instrument 43-101, the change in mineral Reserves and Resources for the Eagle River
and Mishi mines does not constitute a material change in the affairs of the Company. For the Eagle River mine refer to the
Technical Report filed on SEDAR, dated December, 2005, by Strathcona Mineral Services Ltd.




All Mineral Reserves at Eagle River employ a 1.5m minimum width, a 3.0 gAu/tonne minimum grade for continuity and include
1.0m of external dilution. Mineral Resources are reported in-situ with no dilution provisions.




The Mishi mine Mineral Resource estimates were completed by InnovExplo Inc. in a 43-101 Technical Report dated August
25, 2010, and filed on SEDAR. The initial Mishi Mineral Reserves estimates were compiled in a 43-101 Report by InnovExplo Inc.
dated January 12, 2011, and also filed on SEDAR.




At Mishi, proven Reserves include broken ore, stockpiles and the remainder of two 5 metre benches in progress. (Bench 2990
and 2985). A 1.0 gAu/tonne cut-off grade is employed.




Mishi Resources are based on InnovExplo's 2010 model employing a 1.0 gAu/tonne cut-off grade. This has been adjusted to
reflect production, broken ore and stockpiles mined from 2012 to 2015. Actual ore mined and milled reconciles very well with
the block model. This is clearly a robust and reliable model to date and is carried forward subject to production reconciliation.




Qualified Persons for the Mineral Reserves and Mineral Resources estimates as per 43-101 are as follows:




Eagle River:

George N. Mannard, P.Geo., Vice President Exploration, Wesdome Gold Mines Ltd.





Mishi:




Reserves:

Daniel Lapointe, P.Geo., Chief Geologist, and George Mannard, P.Geo., Vice President Exploration, both Wesdome
Gold Mines Ltd.



Resources:

Based on a Resource Estimate by Karine Brosseau, P.Eng. and Carl Pelletier, P.Geo., InnovExplo Inc., independent
consultants, dated August 25, 2010. This estimate has been reconciled to include production and stockpiles by
Daniel Lapointe, P.Geo., Chief Geologist, Wesdome Gold Mines Ltd.

EAGLE RIVER MINE

The Eagle River Mine is hosted by a 2.0 km by 0.5 km elliptical quartz diorite stock.  Mineralization is hosted by east-west, steeply north dipping laminated quartz veins.  The mine is serviced by a shaft and ramp system with the deepest mining level at 900 metres.

To date, the mine has produced 3,600,000 tonnes at a recovered grade of 9.10 gAu/tonne, or 1,051,000 ounces of gold, over a 20 year mine life with the bulk of production coming from the main No. 8 vein structure.

In the summer of 2013, two new parallel structures were identified, the No.7 and No. 300 structures located approximately 200 m and 400 m north of the No. 8, respectively.  These have been aggressively explored and developed with the No. 300 Zone commencing production in 2015.

The following tables provide a breakdown of Mineral Reserves and Resources by structure to illustrate the growing significance of these recent developments.



PROVEN AND PROBABLE RESERVE BREAKDOWN

BY STRUCTURE **


Structure

Tonnage

Grade

Contained

Percent



(gAu/tonne)

 

Ounces

(oz)

No. 8

486,000

8.8

137,000

46

No. 300

296,000

9.0

86,000

29

No. 7

166,000

11.4

62,000

20

Other

63,000

7.6

15,000

5






TOTAL

1,011,000

9.2

300,000

100



INFERRED RESOURCE BREAKDOWN

BY STRUCTURE **


Structure

Tonnage

Grade

Contained

Percent



(gAu/tonne)

 

Ounces

(oz)

No. 8

101,000

8.8

28,000

16

No. 300

224,000

11.3

82,000

48

No. 7

47,000

7.1

11,000

7

Other

183,000

8.3

49,000

29






TOTAL

555,000

9.5

170,000

100


**  Numbers reflect rounding to nearest 1000 tonnes and ounces

Inferred Resources are compiled from drilling information at average 50 metre centres.  We believe this is conservative by industry standards and reflects a producer's caution in dealing with vein-type mineralization.

To date, the new parallel structures have only been tested in the west end of the mine at depth.  In 2016, an aggressive underground and surface drilling program will provide an initial test of their potential over the 2 kilometre strike length of the mine.

MISHI MINE

The Mishi Mine is a surface mining operation located 2 kilometres west of the Company's mill.  It consists of a series of tabular sericite-ankerite alteration zones which contain 10% smokey quartz veinlets and lenses.  It strikes east-west, dipping 40 degrees north and follows a regional volcanic-sedimentary rock contact.

To date, the Mishi Mine has produced 423,000 tonnes at a recovered grade of 2.7 gAu/tonne producing 37,000 ounces of gold.

The current open pit has a length of 400 metres and a planned depth of 70 metres.  In 2015, definition drilling at 25 metre centres extended mineralization over a total length of 1,300 metres.

In 2016, we plan an aggressive drilling program to stepout beyond known information to test how big this system could be.  Additionally, geotechnical studies will be initiated to examine the merits of deepening the pit to incorporate substantial Indicated Resources identified to a depth of 110 metres.

Current proven and probable Mineral Reserves have a life-of-mine stripping ratio of 2.5 tonnes of waste per tonne of ore.

ABOUT WESDOME

Wesdome Gold Mines Ltd. is in its 28th year of continuous gold mining operations in Canada.  The Company is currently producing gold at the Eagle River Complex located near Wawa, Ontario from the Eagle River and Mishi gold mines. Wesdome's goal is to expand current operations at both mines over the next four years through mill expansion and exploration. Wesdome has significant upside through ownership of its two other properties, the Kiena Mine Complex in Val d'Or, Quebec and the Moss Lake gold deposit located 100 kilometres west of Thunder Bay, Ontario.  These assets are being explored and evaluated to be developed in the appropriate gold price environment.  The Company has approximately 118 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.

SOURCE Wesdome Gold Mines Ltd.

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