Wesdome Gold Mines (TSX: WDO) says it has confirmed excessive gold grades because it drills volcanic rocks close to the Eagle River gold mine 50 km west of Wawa, Ont. The discover is notable as a result of gold on the Eagle River mine is normally hosted in diorite rocks.
Floor and underground drilling (from the 355-metre degree exploration drift) outlined the up-plunge of the Falcon 7 zone to inside 50 metres of floor, intersecting strongly altered and mineralized quartz veins with seen gold.
Falcon 7 zone cores assayed 11.1 grams gold per tonne over 2.6 metres; 22.8 grams gold per tonne over 1.6 metres; and 20.3 grams gold per tonne over 1.5 metres (all true widths). All assays have been capped at 125 grams per tonne.
A variety of drill holes have intersected the hanging wall of the Falcon 7 zone, together with one which returned 40.3 grams gold per tonne over 1.5 metres. This factors towards the potential for parallel or folded limbs of the zone.
Drilling accomplished within the central portion of the Eagle River mine diorite to check for the extension of the North Contact zone outlined a brand new lens of gold mineralization, which is interpreted to be east of and alongside strike from the Mine 7 zone construction. One gap returned 27 grams gold per tonne over 4.6 metres. Drilling right here will proceed from underground platforms.
Wesdome president and CEO Duncan Middlemiss mentioned the outcomes from the Falcon 7 zone could point out a brand new mining zone. The brand new mineralized lens within the diorite is accessible from current underground infrastructure.
Preliminary floor drilling inside the volcanic rocks 150 metres east and down-dip of the beforehand mined 2 zone intersected altered volcanic rocks with quartz veining and visual gold. One gap returned 233 grams gold per tonne over 0.4 metre.
The Eagle River mine is on monitor to provide 95,000 to 105,000 oz. of gold this 12 months from materials with a head grade of 12.1 to 13.4 grams gold per tonne.
Echelon Capital Markets analyst Ryan Walker wrote in a observe printed Wednesday that Wesdome’s natural manufacturing development “solely in a Tier 1 jurisdiction” stays a spotlight for the corporate. Echelon additionally emphasizes the potential for continued optimistic exploration outcomes from drilling at Eagle River and Kiena in Val-d’Or, Que.
“We search for improved operational efficiency within the quarters forward, particularly on the again of commissioning of the paste plant at Kiena (on monitor for Q422) which ought to assist enhance the mining fee ramp-up and velocity up the mine’s manufacturing cycle,” Walker mentioned.
Echelon maintains its “purchase” score for Wesdome shares.
Firm shares have been buying and selling at $9.49 at late afternoon on Wednesday in Toronto. Its shares have traded in a 52-week window of $7.43 and $16.77. It has a market cap of $1.3 billion.