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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 has released drill results from the past-producing Kiena mine complex in Val d’Or in Quebec. The drill highlights include 3 metres of 108.2 g/t gold, 5.2 metres of 47.8 g/t gold and 12.4 metres of 41.3 g/t gold.
As reported in February, the ‘A’ zone has been traced for over 830 metres down plunge with additional assays pending.
Prior to a province-wide exploration suspension in March due to the covid-19 pandemic – now lifted – seven drills were completing infill and extension drilling at the site.
Wesdome has drilled 47,800 metres in 164 holes since a September resource update for Kiena with a further resource update expected mid-year
Wesdome has drilled 47,800 metres in 164 holes since a September resource update for Kiena with a further resource update expected mid-year.
A 576-metre underground exploration ramp with drill platforms was completed earlier this year, the company intends to use this new development to target up-plunge extensions of the ‘A’ zone and down-dip extensions of the ‘VC’ zones – Wesdome suspects that these two zones may connect.
The company is on track to announce the results of a preliminary economic assessment (PEA) on Kiena later this month.
This study will examine the mining of existing near-mine resources within five zones.
These currently contain a total of 970,000 indicated tonnes at 14.5 g/t gold for a total of 450,000 gold oz. and a further 1.1 million inferred tonnes at 11 g/t gold for a total of 397,000 oz.
The mid-year resource update would then form the basis of a preliminary feasibility study on a restart of the mine.
Wesdome said it intends to make a production decision based on the near-mine resources.
Metallurgical and environmental studies are underway. A recent geophysical survey over the site has also generated new targets for drill testing.
On care and maintenance since 2013, the Kiena complex contains a permitted, 2,000 t/d mill, a 930-metre shaft, and a ramp system that extends to 1,050 metres depth.
Wesdome’s stock was up 1.5% on the TSX Tuesday afternoon. The company has a C$1.59 billion market capitalization.
(This article first appeared in the Canadian Mining Journal)
