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