In a Jan. 28 research note, analyst George Topping reported that Wesdome Gold Mines Ltd.'s (WDO:TSX) newly released infill drilling results from the Deep A zone at Kiena "continue to be thick and high grade."
The assays averaged 15.7 grams per ton (15.7 g/t) gold cut over 4.1 meters (4.1m) of true width. As for highlight holes, 6378 demonstrated 5 meters of 18.4 grams per ton (18.4 g/t) gold, 6384A returned 15m of 28.4 g/t gold and 6392 showed 1.3m of 35.4 g/t gold. The results extended the existing resource by 50m both upplunge and downplunge.
These results "probably take the resource to about 500,000 ounces (500 Koz) Au," Topping asserted. The previously announced resource of 340 Koz of gold was announced in early December and only incorporated drill results through October 12. Since then, Wesdome completed another 16 holes for 4,200m of drilling.
Drilling continues with five rigs at work on the property. "Drilling is making the best use of a new ramp and crosscut extensions finished in November, allowing management to be efficient by drilling at the best angle possible," Topping noted.
Four rigs, situated at the 1,050m level, are concentrating on infilling and extending the resource at plunge. The fifth, on the 670m level, is testing the up-plunge extension from the A zone to the VC zone. So far Wesdome believes this extension adds 425m to the already defined 500m plunge length. However, Topping pointed out, "this plus today's drilling results could materially push the resource from 340 Koz to about 1 million ounces."
Topping concluded that "Kiena would be one of the cheapest, quickest restarts available to industry," as the plant and mine there are already permitted for 2,000 tons per day of production. The high-grade A zone could be easily accessed through existing infrastructure.
IA Securities has a Strong Buy rating and a CA$6.20 per share target price on Wesdome, whose stock is currently trading at about CA$5.07 per share.[NLINSERT]
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Disclosures from iA Securities, Wesdome Mines Ltd., Research Update, January 28, 2019
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