Wesdome 2011 year end reserves and resources estimates for its operating mines
TORONTO, Feb. 14, 2012 /CNW/ - Wesdome Gold Mines Ltd. (WDO-TSX) is pleased to release updated mineral reserves and resources estimates for its 100% owned Eagle River, Kiena and Mishi gold mines as of December 31, 2011.
HIGHLIGHTS
-- Proven and Probable Reserves increased 10%, net of depletion to
stand at 350,000 ounces
-- Measured and Indicated Resources total 583,000 ounces
-- Inferred Resources total 186,000 ounces
President and CEO Donovan Pollitt, P.Eng., commented, 'It is gratifying to see reserves at their highest level since we started mining operations 25 years ago. This points to the quality of our properties and people. The new Mishi Mine started processing ore in January, 2012, and will serve to leverage existing mill capacity. We continue to examine opportunities within range of our existing expertise and replace reserves at modest cost.'
RESERVES AND RESOURCES
RESERVES ESTIMATES* December 31, 2011
Mine Category Tonnes Grade Contained
(gAu/tonne) Ounces
Eagle Proven 75,000 12.0 29,000
River
Probable 429,000 10.6 147,000
Proven + 504,000 10.9 176,000
Probable
Kiena Proven 584,000 3.0 56,000
Probable 651,000 2.9 60,000
Proven + 1,235,000 2.9 116,000
Probable
Mishi Proven 174,000 2.7 15,000
Probable 535,000 2.5 43,000
Proven + 709,000 2.6 58,000
Probable
Total 350,000
RESOURCESESTIMATES* December 31, 2011
Mine Category Tonnes Grade Contained
(gAu/tonne) Ounces
Eagle Inferred 204,000 7.1 46,000
River
Kiena Measured 197,000 3.7 23,000
Indicated 1,264,000 3.0 122,000
Measured 1,461,000 3.0 145,000
+
Indicated
Mishi Measured 281,000 2.5 22,000
Indicated 5,455,000 2.4 416,000
Measured 5,736,000 2.4 438,000
+
Indicated
Inferred 1,202,000 3.6 140,000
Total Measured 583,000
+
Indicated
Inferred 186,000
* 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.
All Mineral Resources are in addition to Mineral Reserves except for the Mishi mine where Mineral Reserves are a subset of Mineral Resources.
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 Kiena 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. For the Kiena mine refer to the Technical Report dated April 15, 2005, by Geologica Groupe Conseil, also filed on SEDAR.
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 Mishi Mineral Reserves estimates were compiled in a 43-101 Report by InnovExplo Inc. dated January 12, 2011, and also filed on SEDAR.
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.
Kiena: Marc Ducharme, P.Geo., Chief Exploration Geologist,
Kiena Mine, Wesdome Gold Mines Ltd.
Mishi: Carl Pelletier, P.Geo., InnovExplo Inc.,
independent, Karine Brosseau, P.Eng., InnovExplo
Inc., independent, Nathalie Gauthier, P.Eng.,
InnovExplo Inc., independent
The Company is a Producing Issuer as per national Instrument 43-101 section 5.3.
5-YEAR RESERVES- PRODUCTIONRECONCILIATION
EAGLE RIVERMINE
Proven + Probable Reserves Estimates Actual Production
Date Tonnes Grade Ounces Date Tonnes Grade Ounces
Dec 253,000 12.9 105,000 2007 76,676 13.1 32,299
31,
2006
Dec 265,000 10.8 92,000 2008 118,916 13.0 49,660
31,
2007
Dec 231,000 9.8 73,000 2009 132,004 14.3 60,754
31,
2008
Dec 400,000 8.6 110,000 2010 155,500 7.4 37,000
31,
2009
Dec 345,000 15.0 167,000 2011 183,984 4.8 28,233
31,
2010
Dec 504,000 10.9 176,000
31,
2011
CUMULATIVE PRODUCTION: 667,080 9.7 207,946
KIENA MINE
Proven + ProbableReserves Estimates ActualProduction
Date Tonnes Grade Ounces Date Tonnes Grade Ounces
Dec 795,000 4.4 113,000 2007 284,757 3.9 35,404
31,
2006
Dec 534,700 4.5 76,900 2008 241,641 5.2 40,344
31,
2007
Dec 733,000 4.3 102,000 2009 302,034 3.6 35,398
31,
2008
Dec 600,000 4.1 78,000 2010 285,500 3.5 32,000
31,
2009
Dec 1,097,000 2.8 99,000 2011 255,311 2.4 19,516
31,
2010
Dec 1,235,000 2.9 116,000
31,
2011
CUMULATIVEPRODUCTION: 1,369,243 3.7 162,662
At the Eagle River Mine, proven and probable reserves in terms of contained ounces increased 5% net of depletion. Previously listed indicated resources in the central portion of the mine were expanded with further drilling and incorporated into the mine plan as probable reserves. The reserve estimates employ a 1.5 metre minimum width and a 35% dilution factor. The overall average grade is weighted by high grade ore defined in the 811 Zone between depths of 700 and 850 metres. This material will start being introduced into the millfeed as development ore in 2012 as scheduled development attains a depth of 740 metres this year. The Eagle River Mine has been producing gold continually for 17 years and to date has produced 3,015,914 tonnes at a recovered grade of 9.2 gAu/tonne to produce 886,778 ounces of gold. The deepest prior mining level was 640 metres. Reserves are outlined to a maximum depth of only 850 metres. Probable reserves are drilled at 25 metre centres. Proven reserves are within 20 metres of drifts in ore. A gold price of $1,400Cdn was employed to estimate reserves at a 3.0 gAu/tonne cut off grade.
At the Kiena Mine, proven and probable reserve estimates in terms of contained ounces increased 17% net of depletion. Portions of the Martin Zone and the South Zone were incorporated into the mine plan and thus, reserves. Probable reserves are drilled at 30 metre centres and proven reserves are drilled at 15 metre centres. A gold price assumption of $1,400Cdn per ounce was employed. The Kiena Mine is a low grade, bulk mining operation that depends on continued strong gold prices and a rigorous development schedule. Since Wesdome recommenced mining operations from new areas, in August, 2006, the mine has produced 1,463,470 tonnes at a recovered grade of 3.7 gAu/tonne, or 172,124 ounces of gold.
The new Mishi Mine is located 2 kilometres west of the Eagle River Mill. Work commenced in August, 2011, and involves an initial 8-month pre-production period as outlined in the January 12, 2011, 43-101 Technical Report and Pre-Feasibility Study completed by InnovExplo, independent consultants (www.sedar.com).
We are proceeding on the 5-year mining plan developed in this study. The study employed a cut-off grade of 1.33 gAu/tonne at a gold price of $1,033Cdn per ounce. Since the gold price has appreciated substantially and the mineral reserves are a relatively discrete portion of a much larger resource estimate, the Company believes this initial 5-year mine plan has good potential for expansion. The Company intends to compile results of 2011 drilling and evaluate potential scenarios to develop a larger resource.
Despite challenging operating conditions experienced in 2011, the Company is very optimistic about its growth prospects over the next three years.
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 over 20 years on an unhedged basis and to date has produced in excess of 1.2 million ounces. The Company has 101.2 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.
Wesdome Gold Mines Ltd.
CONTACT: Donovan Pollitt, P.Eng., CFA
President & CEO
416-360-3743 ext 25
or
George Mannard, P.Geo.
Vice President, Exploration
416-360-3743 ext 22
8 King St. East, Suite 1305
Toronto, ON, M5C 1B5
Toll Free: 1-866-4-WDO-TSX
Phone: 416-360-3743, Fax: 416-360-7620
Email: invest@wesdome.com, Website: www.wesdome.com