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Wesdome Gold Mines Ltd. (WDO-TSX) is
pleased to release updated mineral reserve and resources estimates for its 100%
owned Eagle River, Kiena and Mishi gold mines as of December 31, 2010.
HIGHLIGHTS <<
- Proven and Probable reserves increased 70%, net
of depletion to 319,000
ounces
- Measured and Indicated resources increased 365%
to 629,000 ounces
>>
President and CEO Donovan
Pollitt, P.Eng., commented "We worked hard in
2010 to demonstrate the potential and long-life nature of our mines and are
pleased to see our reserves and resources grow significantly. We will
continue to develop growth projects such as Mishi and Dubuisson to leverage
existing infrastructure capacity.
As always, we continue to examine
opportunities to repeat our success elsewhere."
<<
RESERVES AND RESOURCES
RESERVES ESTIMATES(x) December 31, 2010
Mine
Category
Tonnes Grade (gAu/tonne)
Ounces
Eagle River Proven
88,400
11.0 31,000
Probable
256,600
16.5 136,000
Proven +
345,000
15.0 167,000
Probable
Kiena
Proven
534,000
2.9 50,000
Probable
563,000
2.7 49,000
Proven + Probable
1,097,000
2.8 99,000
Mishi
Proven
174,000
2.7 14,000
Probable
535,000
2.5 39,000
Proven + Probable
709,000
2.6 53,000
Total
319,000
>>
<<
RESOURCES ESTIMATES(x) December 31, 2010
Mine
Category Tonnes
Grade (gAu/tonne) Ounces
Eagle River Indicated
83,000
7.9 21,000
Inferred
331,000
6.6 70,000
Kiena
Measured
409,000
3.6 47,000
Indicated
956,000
4.0 123,000
Measured +
1,365,000
3.9 170,000
Indicated
Mishi
Measured
281,000
2.5 22,000
Indicated
5,455,000
2.4 416,000
Measured + Indicated
5,736,000
2.4 438,000
Inferred
1,202,000
3.6 140,000
Total
Measured + Indicated
629,000
>>
<<
(x) 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(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, W.
Lucko, P.Geo., Senior Geologist, Eagle River mine
Kiena:
Ron Leber, P.Geo., Chief Mine Geologist, Kiena mine, Marc
Ducharme, P.Geo., Chief Exploration Geologist, Kiena mine
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.
>>
<<
5-YEAR RESERVES - PRODUCTION RECONCILIATION
EAGLE RIVER MINE Proven + Probable Reserves
Estimates
Actual Production
Date
Tonnes Grade
Ounces
Date Tonnes
Grade Ounces
Dec 31, 2005 217,000 11.3
7,800
2006 135,000 10.1 43,699
Dec 31, 2006 253,000 12.9
105,000
2007
76,676 13.1 32,299
Dec 31, 2007 265,000 10.8
92,000
2008 118,916 13.0 49,660
Dec 31, 2008 231,000 9.8
73,000
2009 132,004 14.3 60,754
Dec 31, 2009 400,000 8.6
110,000
2010 155,500 7.4 37,000
Dec 31, 2010 345,000 15.0
167,000
CUMULATIVE PRODUCTION:
618,196 11.2 223,412
KIENA MINE Proven + Probable Reserves
Estimates
Actual Production
Date
Tonnes Grade
Ounces
Date Tonnes
Grade Ounces
Dec 31, 2005
- -
- 2006 94,200 3.1 9,300
Dec 31, 2006 795,000 4.4
113,000
2007 284,757 3.9 35,404
Dec 31, 2007 534,700 4.5
76,900
2008 241,641 5.2 40,344
Dec 31, 2008 733,000 4.3
102,000
2009 302,034 3.6 35,398
Dec 31, 2009 600,000 4.1
78,000
2010 285,500 3.5 32,000
Dec 31, 2010 1,097,000
2.8
99,000
CUMULATIVE PRODUCTION:
1,208,132 3.9
152,446
>>
At the Eagle River mine,
proven and probable reserves in terms of
contained ounces rose 50% net of depletion. More importantly, the quality of
the reserves improved with the average diluted grade increasing to 15.0
gAu/tonne. A 35% dilution factor
is employed at Eagle River. The
higher
average grades are weighted by some high grade ore outlined in the 811 zone
between depths of 700 and 850 metres.
This material will start being
introduced into the mining sequence in 2012.
At Kiena, proven and
probable reserves in terms of contained ounces
increased 25% net of depletion.
Significant additions came from the 388 and
S50 zones. The grades at Kiena
are lower and therefore gold prices will have
to maintain current levels to ensure viability.
The Mishi mine looks very
profitable at current gold prices.
An eight
month period of pre-stripping is required to reach sustainable mining over a
5-year life as currently planned.
Work will systematically continue to
evaluate potential scenarios to fully delineate and develop the much larger
resource.
In 2011, we will continue
to evaluate our existing assets for organic
growth potential. 2010
demonstrated positive drill results and we aim for
another busy year of drilling.
Acquisition opportunities which fit our
regional development strategy will continue to be examined with discipline.
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 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.
To view this news release in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/February2011/02/c7021.html
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