Wesdome's No. 7 Zone Expands, Continuity Confirmed with Initial Drift

TSX:WDO

TORONTO, May 31, 2016 /CNW/ - Wesdome Gold Mines Ltd. (TSX: WDO) is pleased to announce further encouraging drill results and initial drifting results from its ongoing 7 Zone exploration target at its wholly-owned Eagle River Mine, Wawa, Ontario.

Initial encouraging drill results from 11 drill holes (900-E-74 to 900-E-84) were released February 23, 2016.  This press release provides results from 15 new underground drill holes (900-E-85 to 900-E-100) and initial findings from the surface drill program.  The 7 Zone has now been traced 200 metres ('m") up-plunge from existing reserves to the 840 m level and continues to remain open towards surface. (Figure 1).

DRILLING HIGHLIGHTS (see Table 1)

• Hole 900-E-87  28.58 gAu/t over 1.50 m true width
• Hole 900-E-90  13.35 gAu/t over 2.18 m true width
• Hole 900-E-92  55.50 gAu/t over 1.57 m true width
• Hole 900-E-100  6.85 gAu/t over 1.51 m true width

Initial drifting on the 890 m level has confirmed continuity and strong grades along the extended 7 Zone.

890 M LEVEL DRIFT HIGHLIGHTS (see Figure 1)

• Length: 42.0 m
• Grade:
  • 33.15 gAu/tonne ("gAu/t") uncut
  • 11.26 gAu/t (cut to 60 gAu/t)
• Average width: 1.5 m 

Rolly Uloth, President and CEO commented "This zone continues to remain open towards surface and below the existing reserves. Initial drifting has open up the zone at 890 metres demonstrating continuity and strong grades.  We will open up a second drift at 945 metres depth this summer and start mining.  An underground drill has been moved to the 350 metre level to continue tracing this zone upwards. The objective of the surface drill program is to confirm structure. Results indicate that the surface vein is continuous and well-developed with assays to date returning lower grades."

SURFACE DRILLING

Initial surface drilling, which commenced March 1, 2016, has traced the No. 7 Zone quartz vein from the surface showing to a depth of 150 m.  Although the vein and structure is continuous, results to date are subeconomic, with the best sections returning 2.24 gAu/t over 0.9 m corelength and 2.44 gAu/t over 0.3 m corelength (Figure 2). Similar grades in the vein exist adjacent to existing reserve and mining blocks.

GEOLOGICAL CONTEXT/IMPLICATIONS

The Company is developing and exploring two new parallel zones, the No. 7 and 300, located 200 m and 400 m north, respectively, of the main structure that has supported production of greater than 1.0 million ounces of gold over the last 20 years.  Initial production from the 300 Zone commenced last summer.

Drilling in early 2016 (Press Release dated February 23, 2016) extended an existing deep reserve block upwards enabling us to advance future production from the 7 Zone.  The Company's goal is to have all three structures in commercial production as soon as possible.

TECHNICAL DISCLOSURE

The technical disclosure in this press release has been compiled and reviewed by George N. Mannard, PGeo., VP Exploration of Wesdome and "Qualified Person" as defined by National Instrument 43-101 disclosure standards.  Assaying is performed at the Eagle River Mine Assay office by fire assay methods on 25 gram aliquots.  QA/QC protocols involve regular lab duplicates and replicates, standards and blanks.

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 and exploration properties 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 129 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.

Table 1

* individual assays > 60 gAu/t are reduced to 60 gAu/t

SOURCE Wesdome Gold Mines Ltd.