Mineral reserves and resources estimates are updated as at December 31, 2014.

HIGHLIGHTS

  • Eagle River Proven and Probable reserves increase 57% to 265,000 ounces at an average grade of 10.1 gAu/tonne
  • Mishi Proven and Probable surface mineable reserves increase 8% to 121,000 ounces at an average grade of 2.1 gAu/tonne
  • Reserve blocks remain open to expansion
  • Significant increases in definition drilling are planned in 2015, particularly at the open pit Mishi mine to further expand mineral reserves and mineral resources.

Rolly Uloth, President, commented "In 2014, we modestly increased drilling and dramatically increased mineral reserves. This work demonstrates the potential of the recently discovered parallel structures which, along with the mine’s main producing structure remain open laterally and at depth. In 2015 the Company will focus on demonstrating the long term potential of our producing mines in this camp. So far in this regard we have accomplished significant reserve increases net of depletion, upgraded resources to reserves, increased milling capacity, and validated the new parallel zones.

These building blocks put the Company in a position of strength to capitalize on our internal growth prospects and see forward well beyond five years. Importantly, reserves demonstrate high grades with fully diluted underground grades of over 10 grams per tonne, and open pit grades over 2 grams per tonne. These grades provide both a strong defense and natural hedge should gold prices unexpectedly decline and represent tremendous upside margin leverage at current or improved gold prices."

Mr. George Mannard, VP Exploration, added, "It is important to note that after 20 years of production, underground exploration at Eagle River has been relatively shallow with the deepest drilling to date intersecting high grade mineralization at 1,300 metres, and the deepest production level currently at 836 metres. The parallel zone structures remain open laterally and at depth, and they represent exploration targets and internal expansion opportunities for many years to come."

MINERAL RESERVES AND RESOURCES

At the Eagle River Mine reserves increased 57%, net of depletion. Previous Indicated Resources and a portion of Inferred Resources were converted to reserves through detailed drilling and development work. Both the recently discovered No 7 and 300 Zones stood up well to definition drilling and remain open in all directions. The development drift to the 300 zone is 30 metres from completion allowing for rapid incorporation into the near term mine plan. Mineralization in the mine’s main 8 Zone structure remain open at depth.

At Mishi, the current plan demonstrates a life-of-mine stripping ratio of less than 3:1. Open Pit reserves increased 8%, net of depletion, with the addition of a western extension. Mineralization remains open to the east and west. Surface exploration and delineation drilling in 2015 is designed to extend known mineralization and further increase near-surface mineralization in a systematic manner.

In 2014, considerable work was undertaken to improve the efficiency and capacity of our milling operations. While the mill performed admirably in 2014 as compared to past years, an expansion of the Mishi Open Pit reserves may provide much larger quantities of ore for the existing plant. Drilling planned at Mishi in 2015 will provide the basis to analyze the future potential for a much larger throughput plant. With reserves of 386,000 ounces at our operating mines, we can now look out well beyond a 5-year time horizon.

In addition to our operating mines, Wesdome’s resource base is complemented by significant indicated and inferred gold resources found on its 100% owned Val d’Or, Quebec properties and the large Moss Lake deposit near Thunder Bay, Ontario.