Wesdome Announces Interim Mineral Resource Estimate for Kiena Mine Complex and Continued Drilling Extends Kiena Deep A Zone Along Plunge

TORONTO, Dec. 12, 2018 (GLOBE NEWSWIRE) — Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) is pleased to announce the interim mineral resource estimate at its 100% owned Kiena Mine Complex, in Val d’Or, Québec. The mineral resource estimate includes drill data as of October 12, 2018. Since that time, ongoing underground exploration drilling has continued to return high grade results from the up and down plunge extensions of the Kiena Deep A Zone not currently in the mineral resource estimate.

HIGHLIGHTS OF MINERAL RESOURCE ESTIMATE – December 12, 2018

Table 1: A Zone Mineral Resource Estimate  (Kiena Deep)

Table 2: Recently Drilled in-Mine Resource Estimate at Kiena Complex since 2016 (A, B, South, VC and S50 Zones)

Table 3: Total Kiena Mine Complex Resource Estimate

• Detailed notes in table 4 of this press release.
• Measured and Indicated Resources are exclusive of inferred.            

*All grades capped to between 20 – 90 grams per tonne

EXPLORATION TARGETS

Following a detailed review of all pertinent information up to October 12, 2018, InnovExplo (see Qualified Persons and Technical Information in this press release) concluded that in the region of the down plunge extent of the Kiena Deep A Zone encompassing hole 6299 (see news release dated May 17, 2018) that is parallel to and alongside, but excluded from the A Zone current mineral resource estimate, that could add ounces to the mineral resource estimate with positive drill results and is estimated that the exploration target for the A Zone consists of 300,000-450,000 tonnes grading 8.0 to 11.0 g/t Au for 80,000 – 160,000 ounces Au. This area is not currently in the mineral resource estimate and not based on drilling completed after the October 12, 2018 cut off date for data. This area was drilled in late 2017/early 2018 and is currently considered an exploration target that requires additional drilling before it can be modelled and interpolated. The reader should be cautioned that this exploration target is not a mineral resource estimate and is conceptual in nature. There has been insufficient exploration to define this as a mineral resource, and it is uncertain if further exploration will result in the exploration target being delineated as a mineral resource.

Mr. Duncan Middlemiss, President and CEO commented, “We are pleased with this “snap-shot in time” interim mineral resource estimate for the Kiena Mine Complex and we are confident that the mineral resource will grow as a result of the recent and ongoing drilling of the high grade Kiena Deep A Zone that remains open up and down plunge. This estimate has confirmed our understanding and additional potential of the Kiena Deep A Zone as well as establishing a capping grade of 90.0 g/t Au for future assessments of drilling. We are also pleased with the increased resources, not just at the A Zone, but also in the VC, South and S50 zones, which are important components of any future restart plans. In addition to the mineral resources, the exploration targets included by InnovExplo illustrates the potential quantity and grade that could be upgraded potentially with additional drilling in the next resource update. These results provide us the opportunity to commence our technical studies supporting a potential restart, as we continue to drill and expand the current resource base during 2019.”

“Drilling of the A Zone was originally budgeted for 40,000 metres for 2018; however, only 23,000 metres were completed prior to the data cut off for the resource estimate on October 12,  2018. This delay in drilling was required to develop additional drill platforms in order to provide better angles for greater drill efficiency, and be able to intersect the up and down plunge extension of the Kiena Deep A Zone. The diamond drilling completed since the data cut off is highlighted below and has benefitted from this recent development.”

“Five drills are in operation on the A Zone and remain focussed on the up and down plunge potential in advance of an updated mineral resource estimate later in 2019. Recent drilling has continued to return very high grade results both up and down plunge from the area of the current resource estimate and we are confident this will continue to grow. Hole 6398 was the first hole drilled from the new development to intersect the up plunge extension of the A Zone and returned 19.2 g/t Au, or 9.2 g/t Au cut over 5.4 metres true width. The mineral resource estimate only includes drilling over approximately 400 metres of the potential 1.2 km of plunge length interpreted from our recent 3D geologic modelling and will be our focus going forward.”

The drilling platforms established along a 450-metre access drift completed in the year have enabled us to test the up and down plunge extensions of the Kiena Deep A Zone, that is interpreted to extend up plunge towards the VC Zone area. Since October 2018, a total of 19 holes totalling 5,200 metres have been completed (Figure 1A and 1B). Highlights of the new drilling are listed below and summarized in Tables 5 and 6.

RECENT DRILLING

Highlights of recent drilling performed subsequent to the drilling included in the mineral resource estimate at the Kiena Deep A Zone includes:

• Hole 6383: 28.0 g/t Au over 24.0 metres core length (14.1 g/t Au cut, 16.5 metre true width)
• Hole 6375: 82.4 g/t Au over 11.1 metres core length (17.8 g/t Au cut, 8.5 metres true width)
• Hole 6370: 120.6 g/t Au over 8.9 metres core length (44.6 g/t Au cut, 8.0 metres true width)
• Hole 6384: 26.4 g/t Au over 13.2 metres core length (17.8 g/t Au cut, 9.3 metres true width)
• Hole 6398: 19.2 g/t Au over 5.9 metres core length (9.2 g/t Au cut, 5.4 metres true width)

All assays are cut to 90.0 g/t Au. True widths are estimated

CONFERENCE CALL

A conference call to discuss these results will be held on Thursday December 13 at 9:00 am ET. Participants may join the call using the following details:

North American Toll Free: 844-202-7109
International Dial In Number: 703-639-1272
Conference ID: 8799803
Webcast link: https://edge.media-server.com/m6/p/x7vraeck

METALLURGICAL TESTING

Preliminary results of the metallurgical testing performed by Centre Technologique des Résidus Industriels returned positive results on four samples with recoveries ranging from 96.4% to 99.3%. Additional metallurgical analysis is planned to best incorporate the A Zone mineralization into the current mill design.

QUALIFIED PERSONS AND TECHNICAL INFORMATION

The independent and qualified persons for the mineral resource estimate, as defined by NI 43 101, are Christine Beausoleil, P.Geo. and Carl Pelletier, P.Geo. (InnovExplo), and are 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.

QUALITY CONTROL AND REPORTING PROTOCOLS

Analytical work was performed by Techni-Lab (ActLabs) of Ste-Germaine-Boule (Quebec), a certified commercial laboratory (SCC Accredited Lab #707). Sample preparation was done at Techni-Lab (ActLabs) in Val d’Or (Québec).  Assaying was done by fire assay methods and all samples with visible gold were assayed by metallic sieve method at Techni-Lab (ActLabs) laboratory in Ste-Germaine-Boule (Québec). In addition to laboratory internal duplicates, standards and blanks, the geology department inserts blind duplicates, standards and blanks into the sample stream at a frequency of one in twenty to monitor quality control.

The mineral resource estimate has been prepared by InnovExplo from Val-d’Or, Québec, and has been reviewed internally by the Company. The full technical report, which is being prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI-43-101”), will be available on SEDAR (www.sedar.com) under the Company’s issuer profile within 45 days from this news release. The effective date of the current mineral resource estimate is December 12, 2018.

Table 4 – Kiena Project Mineral Resource Estimate – December 12, 2018

Notes:

1. The independent and qualified persons for the mineral resource estimate, as defined by NI 43‑101, are Christine Beausoleil, P.Geo. and Carl Pelletier, P.Geo. (InnovExplo), and the effective date of the estimate is December 12, 2018.
2. These mineral resources are not mineral reserves as they do not have demonstrated economic viability.
3. The mineral resource estimate follows CIM definitions and guidelines for mineral resources.
4. Results are presented in situ and undiluted and considered to have reasonable prospects for economic extraction.
5. The estimation combined two (2) estimation methods, ordinary kriging in the Kiena Complex and polygonal for other deposits on the property.
6. The Kiena Complex resources encompasses for 13 zones with a minimum true thickness of 3.0 m using the grade of the adjacent material when assayed or a value of zero when not assayed. High-grade capping varies from 20 to 100 g/t Au (when required) was applied to assay grades prior to compositing grade 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).
7. The zone outside the Kiena Complex encompasses for eight (8) zones with a minimum true thickness of 2.5 metre using a polygonal estimation method. The Measured resources grade were estimated using muck samples, chip samples and test holes, extrapolated up to 25 m above and below drifts opened within the mineralized zone. Indicated resources were estimated from drill hole results using the mid distance between drill hole or a maximum of 30 metres. The high-grade capping was fixed at 34.28 g/t Au with a bulk density values of 2.8 (g/cm³).
8. The estimate is reported for potential underground scenario at cut-off grades of 3.0 g/t Au (> 40° dip) and 4.0 g/t Au (< 40° dip, Wesdome Zone). The cut-off grades were calculated using a gold price of US$1,250 per ounce, a CAD:USD exchange rate of 1.3; mining cost $110/t (> 40° dip); $150/t (< 40° dip); processing cost $35/t; G&A $15/t. The cut-off grades should be re-evaluated in light of future prevailing market conditions (metal prices, exchange rate, mining cost, etc.).
9. The number of metric tons was rounded to the nearest hundred and the metal contents are presented in troy ounces (tonne x grade / 31.10348).
10. InnovExplo 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.

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 134.8 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.

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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.

Table 5: Kiena Deep Zone A Composited Drilling Results

Table 6: Kiena Deep Zone A Drilling Assay Results

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