EXPLORATION & DEVELOPMENT

High-grade intercept at Wesdome's Kiena attracts attention

Miner looking to assess restarting shuttered mine complex

Staff reporter
 Wesdome has reported high gold grades from resource definition drilling at its shuttered Kiena complex in Quebec

Wesdome has reported high gold grades from resource definition drilling at its shuttered Kiena complex in Quebec

The fully-permitted Kiena was shuttered in 2013 and is across the border from Wesdome's high-grade Eagle River complex in Ontario.

Other highlights from the Deep A Zone included 4.3m at 126.3g/t gold and 9m at 44.5g/t.

Five rigs are at work as Wesdome aims to update Kiena's resource in the second half of this year.

The Kiena Deep A Zone has an indicated 310,300 tonnes at 9.95g/t gold for 99,300 ounces and an inferred 656,100t at 11.43g/t for 241,100oz.

The total Kiena complex has a measured and indicated 3.1Mt at 5.81g/t for 582,600oz and an inferred 4.1Mt at 7.57g/t for 1Moz.

President and CEO Duncan Middlemiss said the resource update would lead into a preliminary economic assessment expected in early 2020 "and next steps will be determined at that juncture".

The company celebrated 30 years on the Toronto Stock Exchange last month and reported stronger-than-expected June quarter production results. 

Wesdome shares have been on an upward trajectory over the past 18 months, from about C$2 at the start of 2018 to touch $7.02 intraday yesterday, the highest point since March 2003, according to Bloomberg.

They closed down 2.47% to $6.72, on a day Toronto's gold equities collectively closed down 4%, capitalising Wesdome at $917 million (US$694 million).

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