• Kiena Complex
  • Kiena Deep Exploration

The Kiena Complex is located in Val D’Or, Quebec. On March 7, 2013, the Company announced suspension of mining activities at the Kiena mine by June 30, 2013. Accordingly, Proven and Probable Mineral Reserves were reclassified as Measured and Indicated Mineral Resources. Facing decreasing recovered grades, persistent industry cost pressures and uncertainty in the Canadian dollar gold price, Wesdome management determined that mining operations at the Kiena mine were not currently economically feasible and operations should be suspended. Wesdome management continues to believe that the Kiena Complex has excellent geological potential and believes it will deliver value to shareholders at a future date. Wesdome’s Val D’Or land position consists of a contiguous block of mining claims and concessions covering in excess of 7,500 hectares. This 8 kilometre by 9 kilometre block includes 10 shafts, greater than 2.8 million ounces of historic gold production and a central modern mining, 2,000 tonne per day milling and refining complex currently on care and maintenance. The Company is actively assessing various development scenarios, actively exploring its claims and compiling an updated 43-101 compliant technical report. This rare combination of modern, fully permitted infrastructure and extensive contiguous property ownership in a proven, world class gold mining camp resulted from a decades long consolidation effort. The Company considers the Kiena Complex a premiere brownfields exploration and development opportunity.

A recently completed, independent 43-101 report dated December 16, 2015 for the first time assesses the exploration potential and known resources for the entire property. Measured and Indicated resources below a 100 metre crown pillar total 2,500,600 tonnes at 5.59 grams per tonne for 449,000 ounces. Additional inferred resources below a 100 metre crown pillar total 1,563,300 tonnes at a 7.97 grams per tonne for 400,400 ounces. (See details in Reserves and Resources section)

In August 2016, the Company announced initial results of three holes, testing a repetition of the S-50 Zone.

Kiena Complex Plan View

S-50 Zone Isometric View North

Kiena Complex: New Discovery 2016

Property History and the S-50 Zone The first gold discoveries were made on Parker Island (site of the present Kiena Mine surface infrastructure) during the period 1911 to 1914. Kiena Gold Mines Ltd. was established in 1936 as part of the Ventures group of Thayer Lindsley. A shaft with four levels was developed. The Parker Vein had limited extensions. The North Zone was identified by surface drilling and a drift was extended north from the shaft on the 120 metre level. This drift encountered the VC Zone and continued north to provide a drilling platform to test the continuity of the North Zone. In 1940, the operation was abandoned due to limited reserves, economic conditions and the war effort. Twenty years later, the property’s potential was re-examined by G.K. Polk for Falconbridge. Drilling in 1961 based on this work discovered the S-50 Zone. By 1963 exploration work had outlined a resource of 4.5 million tonnes averaging 6.34 gAu/tonne for the S-50 Zone. Shaft No.1 (the current shaft) was sunk to a depth of 400 metres and extensive underground exploration and development was completed. In 1965, the project was again abandoned due to adverse mining conditions and the low gold price of $35US per ounce. In 1979, with soaring gold prices, the project was successfully developed with commercial production commencing in October, 1981. In 1986 Kiena Mines was sold to Campbell Red Lake Mines, which subsequently merged with Dome Mines Ltd. and Placer Development Ltd. to form Placer Dome Canada Ltd. In 1997 Placer Dome sold Kiena to McWatters Mines Inc. Initial production was custom milled offsite until Kiena built their own mill, which commenced in September, 1984. The mill treated 1300 tonnes per day from the S-50 Zone. In 1999 McWatters Mines Inc. decided to develop the North Zone and expand the mill to 2000 tonnes per day capacity. The strategy was to increase production and lower unit costs by providing 1000 tonnes per day from the S-50 Zone and 1000 tonnes per day from the North Zone. The North Zone provided 780,000 tonnes of 3.43 gAu/tonne between 1999 and 2002. Concurrently, the S-50 Zone rapidly depleted and constraints in production from both resulted in mining and milling operations ceasing in October, 2002. On October 1, 2002, the gold price was $321US per ounce.