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Wesdome Gold Mines Ltd. - Mishi resource estimate exceeds expectations - pre-feasibility study and drill program underway
Wesdome Gold Mines Ltd. - Mishi resource estimate exceeds expectations - pre-feasibility study an...
About this update from Wesdome Gold Mines Ltd.
[{"type":"text","content":"\n\n\n\n Jul. 12, 2010 (Canada NewsWire Group) -- Wesdome Gold Mines Ltd. (WDO-TSX) is pleased to announce results of a new National Instrument 43-101 compliant resource estimate for its wholly-owned Mishi deposit located two kilometres west of the Company's mill, near Wawa, Ontario (Figure 1).\nDonovan Pollitt, P.Eng. and CEO, comments "Our Eagle River Mill is currently running at half capacity. This project offers excellent potential for expansion in a stepwise manner with little capital at risk. The deposit is open at depth and to the east at shallow depths where drilling recently commenced".\nThis estimate is part of an independent technical report by InnovExplo Inc., a Val d'Or, Quebec based geological and engineering consulting firm. It is based on an exhaustive and detailed compilation and interpretation of existing data. Open pit resources are estimated to a depth of 110 metres (2,890 elevation) employing a 1.0 gAu/tonne cut-off grade. Underground resources are estimated below this depth employing a 3.0 gAu/tonne cut-off grade. A three year moving average gold price of $1000Cdn per ounce is used in conjunction with these assumptions to justify reasonable prospects for economic extraction. Details of the open pit resources are compiled with cut-off grade sensitivities in Table 1. Underground resources are compiled in detail in a like manner in Table 2. A detailed breakdown of the cut-off grade sensitivities between 1.0 and 2.0 gAu/tonne for the open pit scenario is provided in Table 3 to provide clarity regarding the grade-tonnage relationship.\n\nHighlights of the new mineral resource estimate include:\n\n\n >\n\n\nThe technical report supporting these estimated will be made available in 45 days, in accordance with regulatory requirements.\nThe Mishi Deposit is situated at a flexure in the regional Mishibishu Deformation Zone, which follows a mafic volcanic-sedimentary contact. At this locality, a Quartz-Feldspar Porphyry stock is attenuated and truncated by the deformation zone.\nThe deposit consists of an array of at least eight enechelon tabular zones striking east-west, dipping 40 degrees north and plunging 45 degrees northeast.\nThe mineralization consists of disseminated pyrite in sericitic alteration zones, sometimes accompanied by smokey quartz veinlets.\nHistorically, the deposit has been mined seasona...