WGI/WGDF not fooling around like others claiming they can't get results on drilling. LOL. Looking good.
Western Goldfields Reports Exciting New Drill Results at Mesquite Mine
2007-02-08 16:27 ET - News Release
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- 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.
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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.
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