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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.
Drilling at Wesdome’s (TSX:WDO) Kiena gold complex in Val D’Or, Quebec, has extended the high-grade Kiena Deep A zone downdip and confirmed the limits of existing mineralization.
Drill highlights from stepout work, which extended the A zone by 100 metres downplunge to a total of 830 metres, include 10 metres of 114.8 g/t gold and 17.2 metres of 25.3 g/t gold.
Highlights of infill drilling include 9.2 metres of 66.8 g/t gold and 10.5 metres of 106.3 g/t gold.
Wesdome has also completed an exploration ramp, which will provide drill platform locations to test the up-plunge extensions of the Deep A zone
Seven drills are currently working on the Kiena Deep A zone with an updated resource estimate for the property expected later this year. Work is ongoing on a preliminary economic assessment evaluating a potential re-start of mining at Kiena, expected in the second quarter.
Wesdome has also completed an exploration ramp, which will provide drill platform locations to test the up-plunge extensions of the Deep A zone.
“Not only does it (the ramp) provide optimal drill platforms for testing the up-plunge extension of the Kiena Deep A zone, the ramp would also serve as a haulage drift for any future production from this area as it accesses the main shaft level dump pocket,” Duncan Middlemiss, the company’s president and CEO, said in a release. “Any additional resources found in this area could greatly enhance the project restart time line and reduce initial capital investment.”
This year, the company plans to drill 75,000 metres at Kiena and continue with underground development as well as metallurgical and engineering studies ahead of a potential mine restart.
Current indicated resources for the Deep A zone stand at 679,200 tonnes grading 18.55 g/t gold for a total of 405,100 oz. with additional inferred resources of 676,300 tonnes at 15.27 g/t gold for a total of 332,000 oz.
The property features a 2,000 t/d permitted mill, as well as a shaft and ramp system. The mine produced an estimated 1.8 million oz. between 1981 and 2013 at a head grade of 4.5 g/t gold.
Earlier in February, Wesdome also released exploration results from its Eagle River mine in Ontario, where drilling extended the Falcon zones as well as the 303 Lens within the 300 East zones. The 300 East zones are a potential source of short- to medium-term mill feed while Falcon is now a potential future near-mine resource. Exploration at Eagle River is ongoing with five drill rigs.
This year, the company expects to produce 90,000 oz. to 100,000 oz. of gold, primarily from the Eagle River underground mine near Wawa.
(This article first appeared in the Canadian Mining Journal)
