Attention Business Editors:
Western Goldfields Reports Exciting New Drill Results at Mesquite Mine
- Further drilling at Brownie Hill zone confirms and extends the
previously identified inferred oxide resource
- Drilling at the Big Chief zone identifies new oxide and non-oxide
mineralization below the current Big Chief pit
- Drilling at Vista identifies significant non-oxide mineralization at
depth
- Updated resource estimates at Brownie Hill expected by end of first
quarter
TORONTO, Feb. 8 /CNW/ - Western Goldfields, Inc. (TSX:WGI,
OTC�BB:WGDF.OB) today announced exciting new results from exploration drilling
at its wholly owned Mesquite Mine in Imperial County, California. The Company
now has completed 40,700 feet of the 70,000-foot drilling program that it
announced September 21, 2006. It has received results from nine holes drilled
at the Brownie Hill, Big Chief, and Vista zones, in addition to the seven
holes previously completed at Brownie Hill and announced on December 13, 2006.
"We continue to be very pleased with the results of our exploration
program," said Raymond Threlkeld, President and Chief Executive Officer.
"These results confirm the potential for additional resources at the Mesquite
Mine, and should further increase the value of our property and our company.
We continue to view Mesquite as being a truly unique and exciting North
American opportunity."
The results received for the Brownie Hill zone include an additional five
holes, confirming the dimensions and grade of the previously identified
inferred resource. Hole WM16 intersected 230 feet of oxide mineralization
averaging 0.024 ounces per ton of gold, extending the inferred mineral
resource approximately 150 feet to the northwest along the targeted trend of
mineralization. Approximately 31,000 feet of drilling in 38 holes has been
completed at Brownie Hill, providing drill coverage on a 140 foot by 140 foot
spacing. Results have been received for 12 holes to date, and results for the
remaining holes are currently being analyzed.
The Company received positive results for two holes drilled at the Big
Chief zone, identifying additional oxide and non-oxide mineralization below
the previously mined pit. Two condemnation holes, WM05 and WM06, drilled to
sterilize areas for in-pit waste storage, intersected significant oxide and
non-oxide mineralization. Drill hole WM05 intersected 70 feet of oxide
mineralization averaging 0.044 ounces of gold per ton and 370 feet of
non-oxide mineralization averaging 0.024 ounces of gold per ton. Drill hole
WM06 intersected 115 feet of non-oxide mineralization averaging 0.025 ounces
of gold per ton.
At the Vista zone, a total of four drill holes have been completed on the
Vista mineralization trend targeting the non-oxide mineralization at depth.
Initial results received for two holes include 365 feet of non-oxide
mineralization averaging 0.021 ounces of gold per ton in drill hole WM18.
"The non-oxide mineralization in the Vista pit and thickness of non-oxide
mineralization in drill hole WM05 in the Big Chief pit demonstrate the
excellent potential unfolding at Mesquite," added Mr. Threlkeld. "Our
immediate objective is to complete the drilling at Brownie Hill to provide a
resource and reserve update, and then we will shift the exploration focus to
the oxide and non-oxide resource discovered immediately below the Big Chief
pit. We expect to update the resource estimate for Brownie Hill by the end of
the first quarter of 2007."
All analyses were performed by American Assay Laboratories, Inc. (Reno,
Nevada, USA), an ISO/IEC 17025 certified laboratory.
The data contained in this news release has been prepared under the
supervision of Wes Hanson, P.Geo., Vice President of Mine Development, Western
Goldfields, and the Qualified Person under NI 43-101 for the project. A
complete table of the drill results is included in the Appendix to this
release. Plans and Sections detailing the locations of the Brownie Hill
drilling zone as well as the drill results announced in the Company's news
release dated December 13, 2006, are posted on Western Goldfields' website at
www.westerngoldfields.com.
Western Goldfields, Inc.
------------------------
Under a new, highly experienced, and dynamic management team, Western
Goldfields is a gold producer focused on completing the expansion of its
Mesquite Mine, located in Imperial County, California, and returning the mine
to full production. On August 9, 2006, Western Goldfields announced that the
Mesquite Mine's Proven and Probable reserves are estimated at 2.36 million
ounces of gold and Measured and Indicated resources exclusive of reserves are
estimated at 1.25 million ounces. The Company is estimating average annual
production of 165,000 ounces of gold from the mine at total cost of sales of
approximately $335 per ounce commencing in April 2008, with an initial project
life of 9-1/2 years. In January 2007, the Company closed a public equity
offering for gross proceeds of C$75 million. The Company also has announced
the signing of a mandate letter for a project debt facility to be in place
prior to the arrival of the mining fleet that has been ordered for delivery
for mid-2007. The proceeds of its recent equity offering combined with
additional debt financing will enable Western Goldfields to continue to
advance the development of the Mesquite Mine.
Western Goldfields, Inc. is listed on the Toronto Stock Exchange and
trades under the symbol WGI, and is quoted on the OTCBB under the symbol
WGDF.OB. For further details regarding the mineral reserves and mineral
resources at Mesquite, please visit www.westerngoldfields.com.
Forward-Looking Information
---------------------------
Certain statements contained in this news release and subsequent oral
statements made by and on behalf of the Company may contain forward-looking
statements and information within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and similar Canadian legislation.
Such forward-looking statements are identified by words such as "estimates",
"intends", "anticipates", "believes", "expects", and "hopes" and include,
without limitation, statements regarding the Company's plan of business
operations, timing and costs to recommence commercial production, economic
viability of the Mesquite Mine, financing options, including entering into a
debt financing arrangement, and the consequences thereof, potential
contractual arrangements, receipt of working capital, anticipated revenues,
exercise of outstanding warrants, and capital and operating expenditures.
There can be no assurance that such statements will prove to be accurate;
actual results and future events could differ materially from such statements.
Factors that could cause actual results to differ materially include, among
others, those set forth in the Company's Annual Report on Form 10-KSB for the
year ended December 31, 2005 filed with the U.S. Securities and Exchange
Commission and on www.SEDAR.com, under the caption, "Risk Factors". Most of
these factors are outside the control of the Company. Investors are cautioned
not to put undue reliance on forward-looking statements. Except as otherwise
required by applicable securities statutes or regulation, the Company
disclaims any intent or obligation to update publicly these forward-looking
statements, whether as a result of new information, future events or
otherwise.
Cautionary Note to U.S. Investors Concerning Estimates of Measured,
Indicated, and Inferred Resources
---------------------------------
This press release uses the terms "measured", "indicated" and "inferred"
mineral resources. United States investors are advised that while such terms
are recognized by Canadian regulations, the United States Securities and
Exchange Commission does not recognize them. United States investors are
cautioned not to assume that all or any part of mineral resources will ever be
converted into mineral reserves. Inferred mineral resources have a great
amount of uncertainty as to their existence, and as to their economic and
legal feasibility. It cannot be assumed that all or any part of an inferred
mineral resource will ever be upgraded to a higher category. Under Canadian
rules, estimates of inferred mineral resources may not form the basis of
feasibility or other economic studies. United States investors are cautioned
not to assume that all or any part of an inferred mineral resource exists, or
is economically or legally mineable.
APPENDIX
MESQUITE MINE
Drilling Results
February 8, 2007
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Intersection Assay
---------------------------- ---------------
Hole Target Horizon From To Interval Gold
Number ------ ------- ------ ---- -------- ------
------ (feet) (feet) (feet) (oz/T)
-------------------------------------------------------------------------
WM05 Big Chief Oxide 0.0 70.0 70.0 0.044
Non-oxide 70.0 440.0 370.0 0.024
Non-oxide 745.0 805.0 60.0 0.013
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WM06 Big Chief Non-oxide 0.0 115.0 115.0 0.025
Non-oxide 335.0 520.0 185.0 0.015
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WM07 Brownie Hill Oxide Reported December 13, 2006
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WM08 Brownie Hill Oxide Reported December 13, 2006
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WM09 Brownie Hill Oxide Reported December 13, 2006
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WM10 Brownie Hill Oxide Reported December 13, 2006
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WM11 Brownie Hill Oxide Reported December 13, 2006
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WM12 Brownie Hill Oxide 300.0 590.0 290.0 0.014
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WM13 Brownie Hill Oxide Reported December 13, 2006
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WM14 Brownie Hill Oxide Reported December 13, 2006
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WM15 Brownie Hill Oxide 315.0 365.0 50.0 0.021
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WM16 Brownie Hill Oxide 300.0 530.0 230.0 0.024
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WM17 Brownie Hill Oxide 320.0 450.0 130.0 0.013
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WM18 Vista Non-oxide 520.0 885.0 365.0 0.021
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WM19 Vista Non-oxide Assays Pending
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WM20 Vista Non-oxide 405.0 470.0 65.0 0.024
Non-oxide 575.0 740.0 165.0 0.011
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WM21 Vista Non-oxide Assays Pending
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WM22 Brownie Hill Oxide 350.0 405.0 55.0 0.023
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%SEDAR: 00021587E
%CIK: 0001208038
For further information: please visit www.westerngoldfields.com, or contact:
Raymond Threlkeld - President and Chief Executive Officer, (416) 324-6005,
rthrelkeld@westerngoldfields.com; Julie Taylor Pantziris - Director,
Regulatory Affairs and Investor Relations, (416) 324-6015,
jtaylor@westerngoldfields.com; Richard Wertheim, Investor and Media
Relations, Wertheim + Company Inc., (416) 594-1600, wertheim@wertheim.ca
