Wesdome Gold Mines Ltd. - Drilling expands Mishi potential

TSX: WDO

TORONTO, June 27, 2014 /CNW/ - Wesdome Gold Mines Ltd. (TSX: WDO) is pleased to announce results of recent drilling which have extended the M6 Zone 1,150 metres west of the current pit limit.  Combined with mineralization within and east of the pit, mineralization at shallow depths has now been traced over a length of 1.75 kilometres and remains open in both directions.

• Definition drilling extends M6 Zone 300m west of pit
• Average grade 2.12 gAu/tonne
• Average horizontal width 6.42 m
• Stepout drilling extends M6 Zone a further 850m west
• Results prompt resource re-evaluation

The M6 Zone is not included in current resource estimates west of the pit.  It was initially recognized by drilling in 2011 and subsequently demonstrated good continuity in open pit mining operations.  Drilling in 2011 identified near surface values over a 150 metre strikelength as summarized in Table 1 (Press Release dated November 22, 2011, available at www.wesdome.com).

Shallow definition drilling at 25 metre spacing to 75 metres depth demonstrates good continuity immediately west of the pit limit for 300 metres (sections 3400E to 3100E, Table 2).  These results generate a weighted average grade of 2.12 gAu/tonne over an average horizontal width of 6.42 metres.

Further to the west, limited drilling has traced the zone a further 850 metres to section 2250E.  These results are summarized in Table 3.  Although widely-spaced, this drilling suggests continuity of the M6 Zone and the presence of additional zones (Figure 1 available at www.wesdome.com).

GEOLOGICAL CONTEXT

The Mishi gold deposit strikes east-west and dips 40 degrees north.  It is situated within a broad regional deformation zone which follows a volcanic-sedimentary contact within the Mishibishu Greenstone Belt - part of the Archean Wawa-Abitibi subprovince.

The gold is hosted by a series of conformable, tabular, en echelon sericite-ankerite alteration zones which carry disseminated pyrite and include about 10% smokey quartz veinlets and lenses.

IMPLICATIONS

To December 31, 2013, the Mishi deposit has produced 22,713 ounces of gold from 222,946 tonnes at a recovered grade of 3.17 gAu/tonne.

As of December 31, 2013, Proven and Probable Reserves were estimated at 1,592,000 tonnes at 2.2 gAu/tonne (112,000 ounces).  Additional Indicated Resources were estimated 3,688,000 tonnes at 2.1 gAu/tonne or 248,000 contained ounces (Press Release dated February 10, 2014, available at www.wesdome.com).

The Mishi Mine has served historically as a source of low-cost, incremental millfeed for the Eagle River mill located 2 kilometres to the east.  We are in the process of progressively refurbishing and expanding the mill and related infrastructure to bring it up to permitted capacity of 1,200 tonnes/day.

Drilling results to date are confirming mineralization of potential economic merit extends well beyond reserves and resources limits.  The Company intends to update resource models and pit optimization studies in order to assess the merit of expanding operations further.

TECHNICAL DISCLOSURE

The technical disclosure in this press release has been compiled and reviewed by George Mannard, PGeo and Daniel Lapointe, PGeo, Vice President Exploration and Chief Geologist, respectively.  Assaying is performed at the Eagle River Mine assay office by fire assay methods on 25 gram aliquots.

ABOUT WESDOME

Wesdome is in its 28^th year of continuous mining operations in Canada.  It currently has two producing gold mines and the 3 million ounce Moss Lake deposit in Wawa, Ontario, and owns the Kiena Mine Complex in Val d'Or, Québec.  The Company has approximately 111.1 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.

Table 1:  Previous Results (3200E - 3350E)

* Corelengths approximate true widths

Table 2:  New Definition Results (3100E - 3400E)

Table 3:  New Stepout Results (2250E - 3100E)

SOURCE: Wesdome Gold Mines Ltd.