Drill Tracker Weekly: Wesdome Drills High-grade Gold at Eagle Mine

Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.

Wesdome Gold Mines (TSX:WDO)

Price: $1.19

Market cap: $132 million

Cash estimate: $15 million

Project: Eagle River

Country: Canada

Ownership: 100 percent

Reserves: 816,000 tonnes at 10.1 g/t gold

Project status: mine exploration step-out drilling

• Wesdome Gold Mines announced the third set of drill results from the 300 zone at its 100-percent-owned Eagle mine in Wawa, Ontario. The underground Eagle mine and Mishi stockpile are currently producing 48,000 ounces gold per year at an estimated cash cost of US$900 per ounce with all-in sustaining costs of US$1,300; the company expects the latter to drop to $1,000 in Q1 2015.

• Highlights from current drilling include 2 meters grading 121.33 g/t gold and 2.35 meters of 115.66 g/t gold (both uncut). The company also reported estimated true thickness and gold grades cut to 60 g/t gold. The corresponding results for the two high-grade intervals are 1.48 meters grading 16.72 g/t gold and 1.52 meters of 35.65 g/t gold. The more conservative cut grades are still above the stated mine reserve grade of 10.1 g/t gold. With a true thickness of approximately 1.5 meters, it is expected the veins could potentially be economically mined, including accounting for some dilution expected while mining the narrow subvertical quartz veins.

• The company has also developed a horizontal exploration/pre-production drift along the strike of the 300 zone. It returned two intervals of 51 meters grading 15.2 g/t gold with an average width of 1.7 meters, and 36 meters of 15.4 g/t gold with an average width of 2.2 meters (both values cut to 60 g/t gold). Wesdome expects to be mining on the 300 zone in the second half of 2015.

Development history: operated by Wesdome since 1996; 1 million ounces gold produced to date; all-in sustaining costs of US$1,300 per ounce of gold

Current drilling: 2 meters at 121 g/t gold (uncut), 1.48 meters at 16.73 (cut and true width); 2.35 meters at 115 g/t gold (uncut), 1.51 meters at 35.65 (cut and true width)

Risks Analysis

Data contained in DRILL TRACKER WEEKLY is based on early stage exploration activity. The results are obtained at the very early stages of exploration and therefore, individual results may not be reproducible with additional trenching or drilling, nor may the results ultimately lead to the discovery of an economic deposit. Delineation of a resource body requires an extensive data gathering exercise according to guidelines set out in National Instrument 43-101 before investors can be reliably assured of a competent body of mineralization that may be of economic interest. DRILL TRACKER WEEKLY is designed to highlight individual trench or drill results, which stand out as being materially anomalous and are particularly worth of note – a type of early warning flag for a particular property that warrants further attention. Hence, DRILL TRACKER WEEKLY does not provide a recommendation to buy, sell or hold a specific equity – it is an information reference source to help quantify the meaning and relevance of early stage exploration results. 

Relevant Disclosures Applicable to: Drill Tracker Weekly

1. The research analyst or a member of the research analyst’s household owns and/or has options to acquire shares of the subject issuer. At the date of this release the author, Wayne Hewgill, owns shares in the following company: Fission Uranium Corp. (TSX.FCU)
2. Integra Gold Corp. (ICG) is currently under coverage at Mackie Research Capital by analyst Peter Campbell
3.  In March 2014, Peter Campbell visited the Lamaque Gold Project in Val-d’Or, Québec. Travel to and from the site in Val d’Or were paid by Integra Gold Corp. 

Analyst Certification

I, Wayne Hewgill certify that the information in this report is sourced through public documents that are believed to be reliable but accuracy and completeness as represented in this report cannot be guaranteed. The author has not received payment from any of the companies covered in this report. This report makes no recommendations to buy, sell or hold. Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.