Wesdome Gold Mines Ltd. · TSX:WDO
Wesdome Gold Mines — Technical Presentation (September 2019)
39 slides from Wesdome Gold Mines's technical presentation, Sep 25, 2019
Slide 1: Kiena Mine Complex Updated Mineral Resources
Wesdome Gold Mines Ltd. Kiena Mine Complex Updated Mineral Resources September 25, 2019
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Information This presentation contains statements or information concerning the business, operations and financial performance and condition of Wesdome Gold Mines Ltd. (“Wesdome” or the “Company”) which constitute forward-looking statements or information (colle
Slide 3: Building Canada's Next Mid-Tier Gold Producer
Building Canada’s Next Mid-Tier Gold Producer Proven building blocks to increase shareholder value New high-grade gold discovery in permitted, de- watered former producing mine Low risk expansion of existing mines in proven mining camps Assets in top rated jurisdictions – Ontario and Quebec TSX:WDO
Slide 4: Corporate Structure
Corporate Structure Symbol 52 Week High/Low Analyst Coverage TSX:WDO $7.81/$3.17 (Average daily BMO Capital Markets volume 800,000 shares) Canaccord Genuity Shares Outstanding Echelon Wealth Partners 136.5 M Market Capitalization Eight Capital Partners C$ 864 M Options and RSU’s Industrial Alliance
Slide 5: Canadian Gold Company with Three 100% Owned Projects
Canadian Gold Company with Three 100% Owned Projects • Over 30 years of continuous gold production • 2018 Production of 71,625 ounces • 2019 Guidance: 72,000 – 80,000 ounces (H1 19: 41,446 ounces) 3 • Drilling High grade discovery at Kiena Complex 1 2 • Eagle River Operations funding $27 M explorati
Slide 6: Eagle River Overview
Eagle River Overview Reserves 303 Zone Rock Sample Category Tonnes Grade Contained Ounces (g/t Au) Proven 188,000 14.7 89,000 Probable 860,000 11.4 315,000 Proven 1,048,000 12.0 404,000 and Probable Resources Category Tonnes Grade Contained (g/t Au) Ounces Measured 11,000 10.4 3,700 Indicated 97,000
Slide 7: Eagle River H1 2019 Overview and H2 Guidance
Eagle River H1 2019 Overview and H2 Guidance TSX:WDO | 7
Slide 8: Kiena Complex, Val d'Or, Quebec
Kiena Complex, Val d’Or, Quebec • Mine on care and maintenance since mid-2013 • 2,000 TPD permitted mill • 930 Metre shaft • Ramp system to 1050 m • Underground fully accessible • Past production 1981 – 2013 12,500,000 mt @ 4.5 g/t = 1.75 M ounces produced TSX:WDO | 8
Slide 9: Kiena Complex – Location, Location, Location!
Kiena Complex – Location, Location, Location! Property Size: 65 Square Kilometres TSX:WDO | 9
Slide 10: Kiena Mine Area - Mineralized Zones Included in Resource Estimate
Kiena Mine Area - Mineralized Zones Included in Resource Estimate Resource Update completed by Wesdome and audited by BBA Consulting – 3D block model All other zones elsewhere on the property (polygonal estimates) completed by BBA Consulting TSX:WDO | 10
Slide 11: Database
Database • 6,616 DDH included in the 2019 MRE area • 716 DDH in zones for the 2019 MRE o 20 Mineralized Zones • 163 DDH in the Kiena Deep A Area o 4 Mineralized Zones • August 6, 2019 close-out date for data • Includes an additional 140 drill holes for a total of 36,050 m drilled since October 12, 2
Slide 12: Geologic Modelling
Geologic Modelling Substantial amount of Schist Domain In-Fill drilling has allowed for more confident geologic interpretation and understanding A Zone A1 Zone A2 Zone Longitudinal View – 500NW TSX:WDO | 12
Slide 13: Geologic Modelling
Geologic Modelling A Zone A1 Zone A2 Zone Cross Section View – 1625 NE TSX:WDO | 13
Slide 14: Kiena Deep A Zones - 3d Image
Kiena Deep A Zones - 3d Image TSX:WDO | 14
Slide 15: Domaining – Zone A
Domaining – Zone A Very significant impact over previous model Completed to better separate to populations and ZONE A avoid creation of moderate grade tonnages in area of well defined contact Intercept Avg Au Grade TSX:WDO | 15
Slide 16: Capping on 1m Composites – Zone A
Capping on 1m Composites – Zone A Chosen cap : 165 g/t HG Limit : 100 g/t More data, updated Interpretation, better domaining to single TSX:WDO | 16 population, use of HG limit
Slide 17: Capping on 1m Composites – Zone A1
Capping on 1m Composites – Zone A1 Chosen cap : 110 g/t HG Limit : 55 g/t TSX:WDO | 17
Slide 18: Capping on 1m Composites – Upper Domain (Zone A2)
Capping on 1m Composites – Upper Domain (Zone A2) Chosen cap : 50 g/t TSX:WDO | 18
Slide 19: Capping on 1m Composites – Lower Domain (Zone A2)
Capping on 1m Composites – Lower Domain (Zone A2) Chosen cap : 200 HG Limit : 50 TSX:WDO | 19
Slide 20: Capping Summary
Capping Summary Description | Goupea ‘CAPPING on Im COMPOSITES Au g/t (Based on Point Area) - Selected Scenario [NAME (for information) ; cut | cut ce | eomeoa Uneutcoy | Mex Min | Cie || Cat 2019 Capping (Au g/t) | Nb_Capped Mean cov 3%6Samples Capped | _% Cut Metal Factor $50_100 $50_101 Zone $50
Slide 21: Example of 3D Variography – A Zone (202 domain)
Example of 3D Variography – A Zone (202 domain) TSX:WDO | 21
Slide 22: 3D Variography – ZA_W (202)
3D Variography – ZA_W (202) Low nugget to sill ratio – good local continuity Moderate ranges ~40m TSX:WDO | 22
Slide 23: Grade Interpolation - Search Ellipsoids
Grade Interpolation - Search Ellipsoids Orientation Ranges General Parameters Restricted Search on HG Zone BLOCKCODE Search Ellipse Variogram X Y Z Range 1 Range 2 Range 3 Value Azimuth Dip Azimuth inter. Min Max Max/DDH (m) (m) (m) (m) (m) (m) g/t A D A S50_P1 20 10 10 12 24 4 S50_100 @ 104 100 S50
Slide 24: Interpolation – Zone A (Au Grade)
Interpolation – Zone A (Au Grade) 100% blocks interpolated in 3 Pass TSX:WDO | 24
Slide 25: Resource Classification
Resource Classification - The Indicated mineral resource category is manually defined and encloses areas where drill spacing is generally less than 25 metres, blocks are informed by a minimum of three drill holes, and reasonable geological and grade continuity is shown. - The Inferred mineral resour
Slide 26: Final Classification – A Zone
Final Classification – A Zone Closest Dist = 12.5m Class Colour Description 1 NA Proven Reserves Closest Dist = 15m 2 NA Probable Reserves 3 NA Measured Resources 4 Indicated Resources 5 Inferred Resources 6 Exploration Potential TSX:WDO | 26
Slide 27: Final Classification – A2 Zone
Final Classification – A2 Zone Closest Dist = 12.5m Class Colour Description 1 NA Proven Reserves Closest Dist = 15m 2 NA Probable Reserves 3 NA Measured Resources 4 Indicated Resources 5 Inferred Resources 6 Exploration Potential TSX:WDO | 27
Slide 28: Cut-Off Grade Calculation
Cut-Off Grade Calculation Gold price goes along with Wesdome Resources Gold price (1700$ CAN) Cut-off grade proposed to BBA are still 3.0 g/t for Kiena Mine Complex and 4.0 g/t for Polygonal Resources (Wesdome deposit), based on those parameters. TSX:WDO | 28
Slide 29: Resource Highlights
Resource Highlights HIGHLIGHTS Compared to December 2018 Resource Estimate: • Increased Kiena Deep A Zone Indicated resources from 99,300 to 405,100 ounces • Increased Kiena Deep A Zone Inferred resources from 241,100 ounces to 332,000 ounces • Increased Kiena Deep A Zone Indicated resource grade fr
Slide 30: A Zone Resource
A Zone Resource Highlights of Mineral Resource Estimate: A Zone Mineral Resource Estimate Gold Gold Tonnes Grade Ounces 55% Indicated Resource g/t Au Indicated 679,200 18.55 405,100 Total M+I 679,200 18.55 405,100 Inferred 676,300 15.27 332,000 29% Indicated TSX:WDO | 30
Slide 31: Kiena Mine Area
Kiena Mine Area Mineral Resources Proximal to Kiena Mine Development (A, B, South, VC, S50 Zones Gold Grade Gold Tonnes g/t Au Ounces Indicated 968,900 14.46 450,400 Total M+I 968,900 14.46 450,400 Inferred 1,121,200 11.02 397,100 Not sensitive to incremental changes in cut-off grade TSX:WDO | 31
Slide 32: Additional Resources on the Kiena property
Additional Resources on the Kiena property Polygonal Resources Outside of Kiena Mine Area (Martin, Dubuisson, Presqu’ile Zones and Wesdome Deposit) Gold Gold Tonnes Grade Ounces g/t Au 337,70 Indicated 1,859,300 5.65 0 Total 337,70 1,859,300 5.65 M+I 0 401,00 Inferred 1,796,900 6.94 0 TSX:WDO | 32
Slide 33: Global Property Resource (Below 100m Crown Pillar)
Global Property Resource (Below 100m Crown Pillar) Kiena Mine Complex Global Gold Resource Estimate (below 100m thick crown pillar) Gold Gold Tonnes Grade Ounces g/t Au 2,828,20 788,10 Indicated 8.67 0 0 Total 2,828,20 788,10 8.67 M+I 0 0 2,918,10 798,10 Inferred 8.51 0 0 TSX:WDO | 33
Slide 34: Opportunities with Additional Drilling
Opportunities with Additional Drilling TSX:WDO | 34
Slide 35: Next Steps
Next Steps 5 drills in operation to infill, up and down plunge extension, and continue to better define high grades intersected between 1050 and 670 m-levels Explore and better define zones near existing mine infrastructure Currently developing 79 m-level development to more efficiently test up plun
Slide 36: Ongoing Exploration
Ongoing Exploration TSX:WDO | 36
Slide 37: Surface Exploration – Search for Parallel Zones
Surface Exploration – Search for Parallel Zones Parallel “A Zone” Structures ? A Zone TSX:WDO | 37
Slide 38: Summary
Summary LOW CAPEX: HIGHLY EXECUTABLE: LOW RISK: Kiena: New gold discovery Eagle River: new high- Expansion of existing in existing, permitted, de- grade parallel zones close mines in proven watered former producing to infrastructure mining camps mine Aggressive Exploration Operations in safe Pipelin
Slide 39: Discovery of the Year Award in Quebec – top 3 Finalist
Discovery of the Year Award in Quebec – top 3 Finalist TSX:WDO | 39
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