Wesdome to commence year-round production at Mishi Mine

WAWA, ON, July 12, 2011 /CNW/ --
WAWA, ON, July 12, 2011 /CNW/ - Wesdome Gold Mines Ltd (WDO: TSX)
('Wesdome' or the 'Company') is pleased to provide an update on the
progress of the development program at its wholly-owned Mishi Pit
project, near the Eagle River Mill.

Following the filing of the Closure Plan Amendment with the Ministry of
Northern Development, Mines and Forestry, the Mishi Pit project team
initiated pit de-watering, brush clearing and waste pad construction
activities on July 11, 2011.  Further pre-stripping will commence
shortly.

The Mishi mine is being developed for an initial 5-year plan to
supplement the production from the Eagle River mine (see press release
Nov. 29, 2010).  This surface mining operation is located only 2.0
kilometres from the Eagle River Mill and is expected to produce at an
average of 1,000 ounces per month over this time frame. There is
significant potential to increase this projected mine life and drilling
is currently underway on the immediate extensions of the deposit.

Highlights of the project as currently planned include:

    --  709,000t at 2.55 g/t for 52,952 ounces over 5 years*
    --  Operating costs of $CDN 914/ounce over 5 years
    --  Low capital costs of $CDN 1.3 million and $CDN 0.5 million in
        sustaining capital costs
    --  Potential to expand resources with further drilling
    --  Potential to increase production rates going forward

Donovan Pollitt, CEO, comments 'We are very excited to be proceeding
with the Mishi Pit on a full-time basis.  We believe the economics of
this project are compelling at current gold prices and could grow our
production profile as soon as the fourth quarter of 2011. It is
important to note that our five-year mining scenario will involve
processing about 710,000 tonnes of ore, which is a fraction of the
currently estimated resources.  We see excellent expansion potential
for this asset going forward.'

*The appended relevant tables and graphs demonstrating the proposed
production schedule and economic sensitivities are extracted from a
43-101 Prefeasibility Study Technical Report completed by InnovExplo
Inc., an independent consulting firm from Val d'Or, Quebec.  The
Prefeasibility study results are available at www.sedar.com and are summarized in a Press Release dated November 29, 2010 available
at www.wesdome.com.  The Mineral Reserves estimate is summarized below.

 __________________________________________________________________
|                        OPEN PIT MINERAL RESERVE ESTIMATE*        |
|__________________________________________________________________|
|Category         |Metric Tonnes|Grade (gAu/tonne)|Recovered Ounces|
|_________________|_____________|_________________|________________|
|Proven           |    174,363  |         2.66    |       13,593   |
|_________________|_____________|_________________|________________|
|Probable         |    535,067  |         2.51    |       39,359   |
|_________________|_____________|_________________|________________|
|Proven & Probable|    709,431  |         2.55    |       52,952   |
|_________________|_____________|_________________|________________|

* Independent Qualified Person as per National Instrument 43-101 is
Nathalie Gauthier, P.Eng., Innovexplo Inc. Val d'Or, Quebec.


* CIM definitions were followed for Mineral Reserves.


* The Mineral Reserves are contained within the stated Mineral
Resources.


* Numbers may be subject to rounding errors.

Technical information in this release has been reviewed by George
Mannard, P.Geo., Vice President Exploration and by Nathalie Gauthier,
P.Eng., senior engineer of InnovExplo Inc.

ABOUT WESDOME

Wesdome is an established Canadian gold producer with wholly-owned
mining and milling complexes located in Wawa, Ontario and Val d'Or,
Québec.  Wesdome has been producing gold continually for 22 years on an
unhedged basis and to date has produced in excess of 1.2 million
ounces.  The Company has 101.9 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.

HIGHLIGHTS OF PREFEASIBILITY STUDY   (all figures expressed in $CDN)

 _____________________________________________________________
|Ore (tonnes)                                       |  709,431|
|___________________________________________________|_________|
|Grade (gAu/tonne)                                  |     2.55|
|___________________________________________________|_________|
|Mill Recovery (%)                                  |     91.1|
|___________________________________________________|_________|
|Gold Produced (oz)                                 |   52,952|
|___________________________________________________|_________|
|                                                   |         |
|___________________________________________________|_________|
|Mine Life (includes 8 mo. pre-production)          |  5 years|
|___________________________________________________|_________|
|Life of Mine (LOM) Stripping Ratio                 |      4.7|
|___________________________________________________|_________|
|                                                   |         |
|___________________________________________________|_________|
|Gold Price (3-year trading average to Nov. 1, 2010)|$1,069/oz|
|___________________________________________________|_________|
|Net Revenue (millions)                             |    $56.5|
|___________________________________________________|_________|
|Operating Cost (millions)                          |    $48.4|
|___________________________________________________|_________|
|Operating Cash Flow (millions)                     |     $8.1|
|___________________________________________________|_________|
|                                                   |         |
|___________________________________________________|_________|
|Capital Cost (millions)                            |     $1.3|
|___________________________________________________|_________|
|LOM Sustaining Capital (millions)                  |     $0.5|
|___________________________________________________|_________|
|Net Cash Flow (millions)                           |     $6.1|
|___________________________________________________|_________|
|Net Present Value at 5% discount rate (millions)   |     $4.5|
|___________________________________________________|_________|
|IRR                                                |      38%|
|___________________________________________________|_________|

PROPOSED PRODUCTION SCHEDULE

 _____________________________________________________________________
|      |                                         SUMMARY              |
|______|______________________________________________________________|
|      |      Mill Ore  |   Waste |Overburden|   Total |S.R. |  Gold  |
|______|________________|    (t)  |   (t)    |   rock  |Excl.|Produced|
|      |   (t) |Au (g/t)|         |          |    (t)  | OVB |  (oz)  |
|      |       |        |         |          |         |     |        |
|      |       |        |         |          |         |     |        |
|______|_______|________|_________|__________|_________|_____|________|
|Year 1| 38,417|    2.47|  505,946|    89,172|  544,363| 13.2|   2,774|
|______|_______|________|_________|__________|_________|_____|________|
|Year 2|181,541|    2.51|1,315,540|         -|1,497,081|  7.2|  13,356|
|______|_______|________|_________|__________|_________|_____|________|
|Year 3|181,634|    2.50|  926,176|         -|1,107,810|  5.1|  13,286|
|______|_______|________|_________|__________|_________|_____|________|
|Year 4|183,408|    2.79|  482,280|         -|  665,688|  2.6|  14,993|
|______|_______|________|_________|__________|_________|_____|________|
|Year 5|124,432|    2.34|  121,328|         -|  245,760|  1.0|   8,543|
|______|_______|________|_________|__________|_________|_____|________|
|      |709,431|    2.55|3,351,271|    89,172|4,060,702|  4.7|  52,952|
|______|_______|________|_________|__________|_________|_____|________|

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