Wesdome Announces Filing of NI 43-101 Technical Report for Previously Announced Mineral Resource Estimate at the Kiena Mine Complex, Quebec

TORONTO, Jan. 29, 2021 (GLOBE NEWSWIRE) -- Wesdome Gold Mines Ltd. (TSX:WDO) (“Wesdome” or the “Company”) today announces that the Company has filed an independent technical report prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) supporting the mineral resource estimate for the Kiena Mine Complex in Val d’Or, Quebec, reported in the Company’s news release dated December 15, 2020.

The technical report, titled “Update of the Mineral Resource Estimate for the Kiena Mine Complex Project, Val-d’Or, Québec, Canada.” The full report can be found on the Company’s website at www.wesdome.com and under the Company’s issuer profile at www.sedar.com.

HIGHLIGHTS OF MINERAL RESOURCE ESTIMATE – December 15, 2020

 
Comparison of 2020 MRE vs 2019 MRE for Kiena Deep A Zones 
 
 INDICATEDINFERRED 
3.0 g/t cut-offTonnes
Gold Grade
 (g/t)
Gold
Ounces
Tonnes
Gold Grade
 (g/t)
Gold
Ounces
 
2019 MRE                  679,200 18.6            405,100                   676,300 15.3            332,000  
2020 MRE              1,252,200 17.8            717,400                   307,400 12.0            118,700  
Difference+84%
-4%
+77%
-55%
-22%
-64%
 

HIGHLIGHTS OF MINERAL RESOURCE ESTIMATE (“MRE”) – December 15, 2020

Kiena Deep A Zones Mineral Resource Estimate Sensitivity Table (namely zones ZA, ZA1, ZA2 and H1ZA)

 INDICATEDINFERRED 
 TonnesGold Grade
 (g/t)
Gold
Ounces
TonnesGold Grade
 (g/t)
Gold
Ounces
 
4.5 g/t              1,056,500 20.4             694,000                   239,500 14.4             110,600  
4.0 g/t              1,115,300 19.6             702,000                   258,700 13.6             113,200  
3.5 g/t              1,182,100 18.7             710,100                   281,700 12.8             116,000  
3.0 g/t              1,252,200 17.8             717,400                   307,400 12.0             118,700  
2.8 g/t  1,279,400  17.5  719,900       325,700  11.5  120,400   
2.5 g/t              1,330,700 16.9             724,300                   341,900 11.1             121,800  
              

Kiena Complex Mineral Resource Estimate by Area (2.8 g/t Au cut-off)

AREAINDICATEDINFERRED 
TonnesGold Grade
 (g/t)
Gold
Ounces
TonnesGold Grade
 (g/t)
Gold
Ounces
 
Kiena Deep              1,279,400                       17.5             719,900                   325,700                       11.5             120,400  
S50                  146,600                         4.5                21,400                   100,000                         3.7                12,000  
VC                  137,700                         4.8                21,200                   169,500                         5.3                28,600  
ZB                              -                             -                           -                       74,000                         4.1                  9,800  
South Zones                    63,200                         4.2                  8,400                   211,900                         3.9                26,700  
Presquile                              -                             -                           -                     255,600                         6.7                55,100  
Dubuisson                              -                             -                           -                     744,600                         6.7             160,200  
Martin                  163,100                         4.8                25,000                   109,100                         4.3                15,000  
North West                              -                             -                           -                     285,800                         4.0                37,100  
Wesdome*                              -                             -                           -                 1,129,400                         5.3             191,400  
TOTAL  1,789,900           13.8   795,900    3,405,600             6.0   656,200   

*Reported at 3.6 g/t Au cut-off

MINERAL RESOURCE UPDATE

The updated mineral resource estimate includes drill data as of September 18, 2020. It includes an additional 213 drill holes for a total of 60,865 m drilled since August 6, 2019 (close-out date for September 25, 2019 resource). Of which, an additional 122 new drill holes in Kiena Deep for a total of 35,280 m in the update of the Kiena Deep Zones. The drilling information was used to update the interpretation of the geologic model, geometry of the mineralized zones and domains resulting in a higher degree of confidence in the resource estimate.

The 2019 Preliminary Economic Assessment (“PEA”) has not been updated in light of the 2020 MRE. The 2020 MRE does not have a negative impact on or otherwise adversely affect the mineral resource inventory that formed the basis of the 2019 PEA.

Notes for Kiena Property Resource Estimate, October 31, 2020

(1)These mineral resources are not mineral reserves as they do not have demonstrated economic viability.
(2)The mineral resource estimate follows CIM definitions and guidelines for mineral resources.
(3)Results are presented in situ and undiluted and considered to have reasonable prospects for economic extraction, below a 100 m crown pillar.
(4)The resources include 46 zones with a minimum true thickness of 3.0 m (2.4 m for Wesdome zones) using the grade of the adjacent material when assayed or a value of zero when not assayed. High-grade capping varies from 20 to 265 g/t Au (when required) and was applied to composited assay grades for interpolation using an Ordinary Kriging interpolation method based on 1.0 m composite and block size of 5 m x 5 m x 5 m, with bulk density values of 2.8 (g/cm3). A three-step capping strategy was applied, where capping value decreased as interpolation search distance increased, in order to restrict high grade impact at greater distance. Indicated resources are manually defined and encloses areas where drill spacing is generally less than 30 m, blocks are informed by a minimum of three drill holes, and reasonable geological and grade continuity is shown.
(5)The estimate is reported for potential underground scenario at cut-off grades of 2.8 g/t Au (> 40 degree dip) and 3.6 g/t Au (< 40 degree dip, Wesdome zones only). The cut-off grades were calculated using a gold price of US$1,450 per ounce, a CAD:USD exchange rate of 1.32 (resulting in CAD$1,914 per ounce gold price); mining cost $100/t (>40 degree dip); $150/t (<40 degree dip); processing cost $40/t; G&A $25/t. The cut-off grades should be re-evaluated in light of future prevailing market conditions (metal prices, exchange rate, mining cost, etc.).
(6)The number of metric tonnes and ounces were rounded to the nearest hundred and the metal contents are presented in troy ounces (tonne x grade/31.10348).
(7)The QP is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political or marketing issues, or any other relevant issue not reported in this Technical Report that could materially affect the mineral resource estimate.

QUALIFIED PERSONS AND TECHNICAL INFORMATION

The updated block model mineral resource estimate was prepared by Karine Brousseau P.Eng (OIQ #121871), Senior Engineer – Mineral Resources of the Company and a "Qualified Person" as defined in NI-43-101. The mineral resource estimate has been reviewed and audited by BBA Consulting. Pierre-Luc Richard P.Geo (OGQ #1119) of BBA Consulting, is a "Qualified Person" for the resource estimate as defined in NI-43-101 and is considered to be “independent” of Wesdome for purposes of NI-43-101.

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 NI-43-101.

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 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 Québec.  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, Québec. 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”.

Cautionary Statements Regarding Estimates of Mineral Resources

This news release uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that mineral resources are not economic mineral reserves and that the economic viability of resources that are not mineral reserves has not been demonstrated. The estimate of mineral resources may be materially affected by geology, environmental, permitting, legal, title, socio-political, marketing or other relevant issues. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to an indicated or measured mineral resource category. The mineral resource estimate is classified in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum’s “CIM Definition Standards on Mineral Resources and Mineral Reserves” incorporated by reference into NI 43-101. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for Preliminary Assessment as defined under NI 43-101. Readers are cautioned not to assume that further work on the stated resources will lead to mineral reserves that can be mined economically.

Cautionary Note to United States Investors Concerning Estimates of Reserves and Resources

The mineral reserve and resource estimates reported in this news release were prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) as required by Canadian securities regulatory authorities. The United States Securities and Exchange Commission (the “SEC”) applies different standards in order to classify and report mineralization. This news release uses the terms “measured”, “indicated” and “inferred” mineral resources, as required by NI 43-101. Readers are advised that although such terms are recognized and required by Canadian securities regulations, the SEC does not recognize such terms. Canadian standards differ significantly from the requirements of the SEC. Readers are cautioned not to assume that any part or all of the mineral deposits in these categories constitute or will ever be converted into mineral reserves. In addition, “inferred” mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource exists, is economically or legally mineable or will ever be upgraded to a higher category of mineral resource.

For further information, please contact:

Duncan MiddlemissorLindsay Carpenter Dunlop
President and CEO VP Investor Relations
416-360-3743   ext. 2029 416-360-3743   ext. 2025
duncan.middlemiss@wesdome.com lindsay.dunlop@wesdome.com

220 Bay St. East, 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

PDF available: http://ml.globenewswire.com/Resource/Download/22c32d0d-c606-4097-9839-34a9719df786


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