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.
Underground drilling by Wesdome Gold Mines (TSX: WDO) at the Kiena mine complex in Val d’Or, Quebec, has expanded the high grade Footwall zone over 300 metres down plunge.
Drilling in the footwall returned excellent grades: 41.2 g/t gold over 51.2 metres (capped at 25.7 g/t); 27.7 g/t gold over 12.3 metres (capped at 27.7 g/t); and 16.7 g/t gold over 9.0 metres (capped at 14.9 g/t). All assays were cut to 90.0 g/t, but true lengths have not been estimated.
“This new discovery could have major positive impacts on the project, in particular on the next updated mineral resource estimate, the number of ounces per vertical meter, and on global economic characteristics of the project,” said company president and CEO Duncan MIddlemiss in announcing the results of recent drilling.
Wesdome is drilling the Deep A zone, and those results will be included in a future resource upgrade. The resource numbers released in December 2020 and are part of the pre-feasibility study (PFS) currently underway.
“Additionally,” he continued, “the recent A zone high grade intercepts inside and outside of the current A zone resource block model shows the potential to expand the current resource estimate.”
The A zone recently returned these assays: 122.1 g/t gold over 4.7 metres true width (capped at 26.7 g/t); 96.1 g/t gold over 7.1 metres true width (capped at 47.4 g/t); and 24.5 g/t gold over 7.0 metres true width (capped at 21.1 g/t). All assays were cut to 90 g/t.
This year the company will also test exploration targets including the B zone at depth and conduct a surface program beginning east and west of the Kiena mine.
Middlemiss concluded, “The PFS is progressing well, and we expect to have it completed in Q2, with a possible re-start decision shortly thereafter. The pre-production timeframe is less than six months, potentially driving the Kiena mine into commercial production in Q4 of this year.”
(This article first appeared in the Canadian Mining Journal)
