A May 17 research report indicated the Deep A zone at Wesdome Gold Mines Ltd. (WDO:TSX) Kiena complex "continues to impress," based on just released assays from five drill holes there, wrote analyst Craig Stanley with Eight Capital. "All intersected gold mineralization greater than 1 ounce per ton (1 oz/ton)."
One of these five holes, hole 6299, turned out to be the second best at Kiena in terms of grade and width in the Deep zone, which is located 200–300m below existing mine infrastructure and formerly known as the Lower Stockwork.
Hole 6299 hit 10.8 meters (10.8m) width of 77.37 grams per ton gold (77.37 g/ton Au) and, Stanley reported, "extended the known mineralization at least 50m downplunge to the east in an area that was previously thought to be truncated at the mafic-ultramafic contact." The hole "intersected alteration, veining and gold mineralization over a downhole length of over 100m within three main mineralized zones." Management plans additional drill holes to further test this area.
Other assay highlights wereassociated with hole 6290 that hit a 20m width of 25.95 g/ton Au and hole 6296 that hit a 5.5m width of 43.32 g/ton Au.
Wesdome reported assays cut to 1 oz/ton, which are historic for the Kiena mine. Yet, the top cut likely will wind up being greater because its Deep zone contains different mineralization and consists of higher grades than what was mined in the past, Stanley pointed out. The historical average mined grade was 4.5 g/ton Au.
So far, 20 holes have been drilled in the Deep A zone this year. Assays have been reported on 12 of them. "To date, the system has been drill traced 600m along the favorable geological contact between 1,000 and 1,400m below surface and remains open up and downplunge and along strike to the northwest," reiterated Stanley.
Three rigs are currently drilling in this area while a fourth is at work near existing mine infrastructure and development. Those areas include the S-50 zone, the primary historic area of production, and the VC zone, which is 600 meters north of the S-50.
Eight Capital has a Buy recommendation and a CA$3 per share price target on Wesdome, whose stock is currently trading at around CA$2.25 per share.
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Disclosures from Eight Capital, Wesdome Gold Mines, First Impressions, May 17, 2018
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