Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Wesdome Gold Mines (TSX: WDO) continues to drill the recently discovered high-grade Falcon 311 zone at its Eagle River gold mine with bonanza results. Hole 857-E-24 returned 269.6 g/t gold over 2.3 metres, including 1,261 g/t gold over 0.5 metre.
The Eagle River underground mine is located 50 km west of Wawa, Ontario. It has been producing gold for over 25 years. Exploration on the property recently discovered the Falcon zones, which may allow production to grow to 850 t/d from 650 t/d, the company said.
At Falcon 311, hole 857-E-16A returned 53.0 g/t gold over 2.9 metres, and hole 857-E-04 returned 24.7 g/t gold over 2 metres core length. (All assays were capped at 125 g/t gold.)
The Falcon 311 zone remains open in all directions, including up-plunge towards the surface.
“By leveraging our experience and understanding of the Falcon 7 zone, the team was able to quickly identify and define this new discovery at a higher hit rate per hole,” Wesdome CEO Anthea Bath said in a news release.
Falcon 7 was initially discovered in 2019 and in production by 2021.
“Falcon 311 is now the second zone identified in the volcanic rocks west of the mine diorite, confirming the prospectivity in an area that has seen limited drilling historically. The exploration along this horizon as well as the definition and expansion of this new discovery will remain a priority for drilling in the coming months,” she added.
Based on drilling to date, the Falcon 311 zone has been traced at least 200 metres along plunge and nearly 100 metres along strike. There is further potential to expand to surface almost 900 metres along plunge, similar to the Falcon 7 zone.
The Eagle River mine produced 87,799 oz. of gold in 2023, up from 82,002 oz. in 2022.
