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Wesdome 2012 year end reserves and resources estimates for its operating mines


Wesdome 2012 year end reserves and resources estimates for its operating mines

TORONTO, Feb. 11, 2013 /CNW/ - Wesdome Gold Mines Ltd. (WDO-TSX) is pleased to release updated mineral reserves and resources estimates for its 100% owned Eagle River, Kiena and Mishi gold mines as of December 31, 2012.

HIGHLIGHTS


    --  Proven and Probable Reserves increased 21%, net of depletion,
        to stand at 423,000 ounces
    --  Measured and Indicated Resources increased 15%, net of
        depletion, to stand at 668,000 ounces
    --  Inferred Resources total 186,000 ounces

President and CEO Donovan Pollitt, P.Eng., commented "Reserves and resources 
continued to grow, net of depletion.  We are investing in infrastructure and 
refining longterm development sequences to ensure that we will be producing 
for many more years to come.  Particularly, we are working hard to increase 
capacity and efficiency at our Eagle River Mill where throughput constraints 
limited our production growth in 2012.  Production growth was 17% in 2012 and 
we are aiming for 20% growth this year.  The geologists have given us a 
conservative resource/reserve base with increasing grades to come.  Refining 
efficiencies in mining methods, material handling, processing and development 
sequencing offer significant potential to increase margins over the medium to 
long term.  This year's increase in reserves and resources with a limited 
drilling budget serves to outline the tremendous exploration merit and 
potential of our assets."

RESERVES AND RESOURCES
                                                       
                        RESERVES ESTIMATES * December 31, 2012

Mine        Category             Tonnes       Grade Contained Gold
                                        (gAu/tonne)       (ounces)

Eagle River Proven              108,000        10.0         35,000
            Probable            327,000        10.0        105,000
            Proven + Probable   435,000        10.0        140,000
                                                                  

Kiena       Proven              520,000         3.1         51,000
            Probable          1,322,000         3.6        153,000
            Proven + Probable 1,842,000         3.4        204,000
                                                                  

Mishi       Proven              150,000         1.9          9,000
            Probable            950,000         2.3         70,000
            Proven + Probable 1,100,000         2.2         79,000
                                                                  
            Total                                          423,000
                                                 
                  RESOURCES ESTIMATES * December 31, 2012

Mine        Category       Tonnes       Grade Contained Gold
                                  (gAu/tonne)       (ounces)

Eagle River Indicated      48,000        16.8         26,000
            Inferred      204,000         7.1         46,000
                                                            

Kiena       Measured      197,000         3.6         23,000
            Indicated   1,723,000         3.4        188,000
            Measured +  1,920,000         3.4        211,000
            Indicated
                                                            

Mishi                                                       
    Open Pit Measured      186,000         2.7         16,000
            Indicated   4,888,000         2.1        333,000
            Measured +  5,074,000         2.1        349,000
            Indicated
                                                            
            Inferred      764,000         2.4         59,000
                                                            

Underground Indicated     567,000         4.5         82,000
                                                            
            Inferred      437,000         5.8         81,000
                                                            

TOTAL       Measured +                               668,000
            Indicated
                                                            
            Inferred                                 186,000

* All Mineral Reserves and Mineral Resources estimates have been made
in accordance with the Standards of the Canadian Institute of Mining,
Metallurgy and Petroleum and National Instrument 43-101.

All Mineral Resources are in addition to Mineral Reserves except for
the Mishi mine where Mineral Reserves are a subset of Mineral
Resources.

Mineral Resources are not in the current mine plan and therefore do not
have demonstrated economic viability.

As per section 4.2 (b)(ii) of National Instrument 43-101, the change in
mineral reserves and resources for the Eagle River, Kiena and Mishi
mines does not constitute a material change in the affairs of the
Company. For the Eagle River mine refer to the Technical Report filed
on SEDAR, dated December, 2005, by Strathcona Mineral Services Ltd. For
the Kiena mine refer to the Technical Report dated April 15, 2005, by
Geologica Groupe Conseil, also filed on SEDAR.

The Mishi mine Mineral Resource estimates were completed by InnovExplo
Inc. in a 43-101 Technical Report dated August 25, 2010, and filed on
SEDAR.  The initial Mishi Mineral Reserves estimates were compiled in a
43-101 Report by InnovExplo Inc. dated January 12, 2011, and also filed
on SEDAR.

At Mishi, proven reserves include broken ore, stockpiles and one 5
metre bench (Bench 2995). A 1.0 gAu/tonne cut-off grade is employed.

Mishi resources are based on InnovExplo's 2010 model employing a 1.0
gAu/tonne cut-off grade. This has been adjusted to reflect production,
broken ore and stockpiles mined in 2012 to Bench 3000. Actual ore
broken amounted to 95,881 tonnes compared to 95,200 tonnes in the
model. This is clearly a robust and reliable model to date and is
carried forward subject to production reconciliation.

Qualified Persons for the Mineral Reserves and Mineral Resources
estimates as per 43-101 are as follows:

Eagle River:  George N. Mannard, P.Geo., Vice President Exploration,
              Wesdome Gold Mines Ltd.

Kiena:        Marc Ducharme, P.Geo., Chief Exploration Geologist, Kiena
              Mine, Wesdome Gold Mines Ltd.

Mishi:         
              Reserves:   Daniel Lapointe, P.Geo., Mishi
                          Superintendent, and George Mannard, P.Geo.,
                          Vice President Exploration, both Wesdome Gold
                          Mines Ltd.
              Resources:  Based on a Resource Estimate by Karine
                          Brosseau, P.Eng. and Carl Pelletier, P.Geo.,
                          InnovExplo Inc., independent consultants,
                          dated August 25, 2010. This estimate has been
                          to reconcile 2012 production and stockpile by
                          Daniel Lapointe, P.Geo., Mishi
                          Superintendent, Wesdome Gold Mines Ltd.

The Company is a Producing Issuer as per national Instrument 43-101 section 
5.3.
                    5-YEAR RESERVES - PRODUCTION RECONCILIATION

EAGLE RIVER MINE
Proven + Probable Reserves Estimates  Actual Production

Date             Tonnes Grade  Ounces  Date  Tonnes Grade  Ounces

Dec 31, 2007    265,000  10.8  92,000  2008 118,916  13.0  49,660

Dec 31, 2008    231,000   9.8  73,000  2009 132,004  14.3  60,754

Dec 31, 2009    400,000   8.6 110,000  2010 155,500   7.4  37,000

Dec 31, 2010    345,000  15.0 167,000  2011 183,984   4.8  28,233

Dec 31, 2011    504,000  10.9 176,000  2012 155,020   6.5  32,223

Dec 31, 2012    435,000  10.0 140,000                            
           CUMULATIVE PRODUCTION:                         207,870

KIENA MINE
Proven + Probable Reserves Estimates  Actual Production

Date             Tonnes Grade  Ounces  Date  Tonnes Grade  Ounces

Dec 31, 2007    534,700   4.5  76,900  2008 241,641   5.2  40,344

Dec 31, 2008    733,000   4.3 102,000  2009 302,034   3.6  35,398

Dec 31, 2009    600,000   4.1  78,000  2010 285,500   3.5  32,000

Dec 31, 2010  1,097,000   2.8  99,000  2011 255,311   2.4  19,516

Dec 31, 2011  1,235,000   2.9 116,000  2012 265,872   2.2  18,814

Dec 31, 2012  1,842,000   3.4 204,000                            
           CUMULATIVE PRODUCTION:                         146,072

MISHI MINE
Proven + Probable Reserves Estimates  Actual Production

Date             Tonnes Grade  Ounces  Date  Tonnes Grade  Ounces

Jan 12, 2011    709,000   2.6  58,000 2012   64,915   2.3   4,776

Dec 31, 2012  1,100,000   2.2  79,000                            

At Eagle River, proven and probable reserves in terms of contained ounces 
decreased 20%.  Grade was low because of severe dilution in a key stope.  We 
expect this to improve.  In 2013, we expect new drilling sites to be 
excavated which will enable us to drill where reserves remain open at depth.

All reserves and resources at Eagle River incorporate a dilution factor of 
35%.  All reserves have been incorporated into the mine plan.  Reserves are 
outlined to a depth of 850 metres beyond which mine planning has not yet been 
undertaken.  In 2012, drilling at 25 metre centres below 850 metres in the 
811 Zone outlined indicated resources totalling 48,000 tonnes at 16.8 
gAu/tonne to a maximum depth of 1,000 metres.  The two deepest holes drilled 
here returned 45.91 gAu/tonne over a true width of 4.50 metres and 59.67 
gAu/tonne over a true width of 1.81 metres at respective depths of 957 metres 
and 975 metres.  We will be in a position to drill potential extensions of 
this zone to depths of up to 1,300 metres in the second half of 2013.

The Eagle River mine has now been producing gold continuously for 18 years.  
To date, the mine has produced 919,086 ounces of gold from 3,170,934 tonnes at 
an average recovered grade of 9.0 gAu/tonne.

At Kiena, proven and probable reserves in terms of contained ounces increased 
76% year over year.  This is principally due to the inclusion of portions of 
the Dubuisson and Northwest Zones into the mine plan and hence reserves 
(120,000 ounces).  Measured and indicated resource estimates increased 45% 
primarily due to preliminary inclusion of three lenses in the S50 Deep area 
located 150 to 350 metres below existing workings.  Indicated resource 
estimates here total 921,000 tonnes at 4.5 gAu/tonne or about 130,000 
ounces.  These lenses remain open at depth.  All reserve and resource 
estimates at Kiena employ dilution factors of 10 to 25%.

Recently, the Kiena mine has been operating on very tight margins.  Reserve 
and resource estimates are based on a gold price of $1,650 Cdn per ounce.  
Mining viability, reserve and resource estimates are acutely leveraged and 
reliant on external factors, particularly future gold prices.  Within our 
longer term development and mine plan we are focused on developing and 
sequencing in order of increasing grades.  This will help reduce this 
inherent risk.

Since Wesdome restarted production at Kiena in August, 2006, the mine has 
produced 190,938 ounces of gold from 1,729,342 tonnes at an average recovered 
grade of 3.4 gAu/tonne.  Historic production at Kiena now totals 1,749,705 
ounces from 12,441,463 tonnes at an average grade of 4.37 gAu/tonne.

The new Mishi mine commenced commercial production January 1, 2012.  A total 
of 64,915 tonnes were milled at a recovered grade of 2.3 gAu/tonne to produce 
4,776 ounces of gold.  This reconciles well with previous reserve estimates 
taking a 91% recovery rate into account.  Proven and probable reserves, in 
terms of contained ounces, increased 36% net of depletion compared to last 
year.  The main addition to reserves came from planning a 200 metre long 
eastern pit extension which added 290,000 tonnes at 1.8 gAu/tonne.  We are 
employing a 1.0 gAu/tonne cut-off grade for the block model and reserves are 
situated within a planned pit which now has a life-of-mine stripping ratio of 
only 2.71:1.  To date we have mined 1,213,664 tonnes of waste and 95,881 
tonnes of ore at a stripping ratio of 12.66:1.

The current mine plan is now about 20% of the resource.  The first year's 
results reconcile very closely with the resource model.  This gives us 
confidence that further drilling is likely to cost-effectively continue to 
increase reserves.

In addition to its operating mines, Wesdome's resource base is complemented by 
significant indicated and inferred resources found on its 100% owned Wesdome 
Property in Val d'Or, Quebec and through its 57.6% owned subsidiary Moss Lake 
Gold Mines Ltd.  For details on these other assets please view 43-101 
compliant technical disclosure available at www.wesdome.com or www.sedar.com.

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.

 

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: invest@wesdome.com, 
Website: www.wesdome.com

SOURCE: Wesdome Gold Mines Ltd.

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/February2013/11/c4339.html

CO: Wesdome Gold Mines Ltd.
ST: Ontario
NI: PCS FIELD 

-0- Feb/11/2013 12:30 GMT

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