Wesdome Announces Ongoing Exploration Drilling of Kiena Deep A Zone Continues to Extend Zone Up and Down Plunge

TORONTO, Jan. 28, 2019 (GLOBE NEWSWIRE) — Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”) today announces additional high grade results from the ongoing underground exploration drilling of the Kiena Deep A Zone at its 100% owned Kiena Mine Complex, in Val d’Or, Quebec.

Since the October 12^th cut off date for drill data used in the recent resource estimate released on December 12, 2018, exploration and definition drilling has been ongoing with 5 drills at the Kiena Deep A Zone. Since this time, approximately 4,200 metres in 16 holes have been completed. The ongoing drilling is utilizing the newly developed ramp and crosscut extensions completed in November, which enhance drill angles and drill efficiencies. These platforms now allow diamond drilling to be able to intersect the up and down plunge extension of the Kiena Deep A Zone consistently.

The ongoing definition/infill drilling has continued to confirm the overall continuity of the Kiena Deep A Zone and improve our understanding and confidence in the controls on gold mineralization. Drilling to date has identified a well-defined, moderate plunge of approximately 45 degrees to the SE to the gold mineralization that occurs predominantly along the basalt – chlorite-carbonate schist boundary. Ongoing drilling has continued to expand the Kiena Deep A Zone up and down plunge, in excess of 50 additional metres in each direction, and has also provided additional confidence in our understanding of the up and down plunge potential and focus for drilling. Four drills are in operation on the 1050 m level exploration ramp completing the infill and plunge extension drilling, and a 5^th drill is now drilling at the 670 m elevation to test the interpreted up plunge extension of the A Zone towards the VC zone area. This up plunge extension is understood to be in excess of 425 metres and would be in addition to the 500 metres of plunge length already defined by drilling (Figure 1A and 1B and 2). This has the potential to significantly add to the resource base, and could be a vital enhancement in any restart scenario.

Highlights of the new drilling are listed below and summarized in Table 1.

Highlights:

Kiena Deep A Zone

• Hole 6384A: 33.7 g/t over 30.6 m core length (28.4 g/t Au cut, 15.0 m true width)  
• Hole 6378: 36.5 g/t Au over 7.0 m core length (18.4 g/t Au cut, 5.0 m true width)
• Hole 6392: 153.4 g/t Au over 1.4 m core length (35.4 g/t Au cut, 1.3 m true width)
• Hole 6402: 51.9 g/t Au over 7.6 m core length (17.9 g/t Au cut, 7.6 m true width)
• Hole 6409: 39.8 g/t Au over 4.7 m core length (20.0 g/t Au cut, 3.6 m true width)

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

Mr. Duncan Middlemiss, President and CEO commented, “We are very pleased with the recent drill results that continue to confirm the continuity and mineability of the Kiena Deep A Zone. Our current program is targeting the up and down plunge extensions and recent resource infill. Based on these objectives, we are extremely encouraged by these results. Drilling has continued to return very high-grade results both up and down plunge from the area of the present resource estimate and we are confident this will continue to grow. Additionally, the down plunge and portions of the down dip extension of the A zone remain open and will also be a focus of the continued drilling. Our 2019 underground exploration program calls for 50,000 meters of drilling with 5 drills in preparation for an updated resource estimate later in the year. This information will then lead into a Preliminary Economic Assessment and next steps will be determined at that juncture. At this point I would say we are very encouraged with the ongoing success of our Kiena Deep Exploration program and the obvious restart ramifications that it may bring.”

TECHNICAL DISCLOSURE

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 National Instrument 43-101 –Standards of Disclosure for Mineral Projects.

Analytical work was performed by Techni-Lab (ActLabs) of Ste-Germaine-Boule (Quebec), a certified commercial laboratory (SCC Accredited Lab #707) and by ALS Minerals of Val-d’Or (Quebec), a certified commercial laboratory (Accredited Lab #689). Sample preparation was done at Techni-Lab (ActLabs) and at ALS Minerals, both in Val d’Or (Quebec).  Assaying was done by fire assay methods with an atomic absorption finish.  Any sample assaying >3 g/t Au was rerun with by fire assay method with gravimetric finish, and any sample assaying >10 g/t Au was rerun with the metallic sieve method in both laboratories.  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.

ABOUT WESDOME

Wesdome Gold Mines 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 Quebec.  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, Quebec.  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 134.2 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. 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: Kiena Deep A Zone Drilling Results

Composites

Assays

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