Zijin Mining to take 9.9% stake in Montage Gold
As part of the deal, the Lundin Family Trust also agreed increase its stake in the company from 17.7% to 19.9%.
TORONTO, June 13, 2012 /CNW/ – Wesdome Gold Mines Ltd (WDO: TSX) is pleased to release highlights of its underground drilling program for the first half of 2012.
Highlights of the drilling were the discovery of new zones of good grade located 190 metres northeast of the Dubuisson Zone, which we now call Dubuisson North. Also, drilling below the VC Zone shows potential for the zone to continue to the east of previous downplunge drill coverage.
HIGHLIGHTS INCLUDE
DUBUISSON ZONE
During the first half of the year drilling tested the Dubuisson Zone at depth from our new drift located 200 metres to the south on the 330 metre level. First pass drilling indicates the mineralized system continues at depth, however, results are subeconomic.
At the end of the program, two flat holes were winged to the northeast. These encountered broad mineralized zones, including separate intervals of 16.75 gAu/tonne or 11.97 gAu/tonne (cut to 34.28 gAu/tonne) over a corelength of 12.5 metres (10.2 metres true width) and 10.68 gAu/tonne over 4.3 metres corelength or 3.5 metres true width in hole U-5941. Follow up hole U-5947 encountered correlating intervals grading 2.22 gAu/tonne over 8.5 metres corelength (7.5 metres true width) and 7.26 gAu/tonne over 3.2 metres corelength (2.8 metres true width).
This new Dubuisson North Zone mineralization is located 190 metres northeast of the Dubuisson Zone and remains open in all directions.
To date, the Dubuisson Zone is known to contain at least three lenses of mineralization. The Dubuisson E Zone (Dub E) demonstrates the best internal continuity to date based on drilling at 50 metre centres. It has a strikelength of 150 metres, a height of 200 metres and an average true width of 4.6 metres. The Dub E will be the focus of future underground development. The continuity of the other Dubuisson lenses will be investigated from these underground workings. The new Dubuisson North will be delineated by drilling from sites opened up by this development.
Mineralization at Dubuisson is typlified by broad zones of stockwork veining and pyrite mineralization hosted by vertically dipping albitized diorite bodies commonly in contact with feldspar porphyry dikes or sills.
The recent drilling gives the Company confidence that a significant multizone mineralized system occurs at Dubuisson with significant exploration potential above the 330 metre access level remaining.
VC ZONE
Over the last six years the VC Zone has produced the bulk of Kiena’s better grade production generating 91,500 ounces of gold from 672,000 tonnes at an average grade of 4.3 gAu/tonne. The VC Zone is a plunging pipe-like body with a strikelength of about 60 metres and widths of up to 20 metres. Previous drilling indicated that it pinched out at depth. Recent drilling from the 670 metre level suggests potential remains to the east and at depth. Hole U-5813 encountered 7.18 gAu/tonne over a true width of 10.3 metres and hole U-4539 encountered 5.41 gAu/tonne over a true width of 10.6 metres. The VC Zone is a dislocated fold nose at a basalt-komatiite contact. Mineralization consists of disseminated pyrite in a calcite vein stockwork. The Company intends to delineate the potential continuity of this zone to the east of the previously interpreted plunge trend. A drill will be moved to this target later in the year.
S-50 ZONE
Currently two drills are testing potential at depth of the S-50 Zone from recently completed development. The first drill is providing definition drilling for mine planning of resources immediately adjacent and below the existing ramp system. This area is expected to provide significant production volumes over the next three years.
The second drill is testing potential that the S-50 Zone may be opening up at depth about 250 metres below the previously mentioned resource block. Drilling is taking place from a recently completed exploration drift and is designed to follow-up on very encouraging results originally released March 29, 2010, which included highlights of 12.31 gAu/tonne over a corelength of 12.8 metres (8.2 metres true width) and 20.66 gAu/tonne over a corelength of 10.5 metres (5.5 metres true width). The drill will remain here for the rest of the year.
The S-50 Zone consists of a deformed, albitized vein-breccia-dyke complex situated at a tholeitic basalt-komatiite contact. The S-50 Zone has historically provided about 90% of the 1.7 million ounces produced to date from the Kiena mine. The Company intends to examine if this important zone resumes at depth as previous results would appear to indicate.
TECHNICAL DISCLOSURE
The technical content of this press release has been verified by Marc Ducharme, P.Geo. OGQ, Chief Exploration Geologist, Kiena mine in his capacity as a “Qualified Person”, as per requirements of National Instrument 43-101. Assaying was done by fire assay methods at the Kiena mine assay office. In addition to internal duplicate, standards and blanks, the geology department inserts blind standards and blanks into the sample stream at a frequency of one in twenty to monitor quality control.
ABOUT WESDOME
Wesdome is celebrating its 25th year of continuous mining operations in Canada. It currently has three producing gold mines with wholly-owned mining and milling complexes located in Wawa, Ontario and Val d’Or, Québec. The Company has 101.9 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.
For further information: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: [email protected], Website: www.wesdome.com
