Western Goldfields (WGW)

[lightbeam]

Still running.

[ibreken]

Western Goldfields Shareholders Approve Business Combination with New Gold

VANCOUVER and TORONTO, May 14 /PRNewswire-FirstCall/ -- New Gold Inc. (TSX and NYSE Amex: NGD) ("New Gold") and Western Goldfields Inc. (TSX: WGI and NYSE Amex: WGW) ("Western Goldfields") are pleased to announce that Western Goldfields shareholders have voted in favour of the previously announced business combination between Western Goldfields and New Gold (the "Transaction") at a special meeting of Western Goldfields shareholders held today in Toronto. The Transaction was approved by 84.2% of the votes cast representing 59.4% of Western Goldfields' outstanding shares. Yesterday, the Transaction was also approved at a special meeting of New Gold shareholders.

"We are extremely excited by the outcome of yesterday's and today's shareholder votes and the fact that our shareholders, collectively, so strongly support this transaction," said Randall Oliphant, Chairman of Western Goldfields. "The integration process between the companies is already well underway and we can't wait to utilize the strength of the combined board and management together with our larger platform as an intermediate producer to continue growing the value of this company."

"As a combined company we will have three producing assets, a very exciting, fully funded development project in New Afton and a strategic interest in El Morro, all of which are located in mining friendly jurisdictions," added Robert Gallagher, President and Chief Executive Officer of New Gold. "We believe this collection of assets, with growing production and cash flow, is a great base from which to continue pursuing our vision of becoming a million ounce gold producer."

The completion of the Transaction remains subject to a final hearing by the Ontario Superior Court of Justice (Commercial List) currently expected to take place on May 27, 2009, with closing of the Transaction expected to occur on or about June 1, 2009. The Transaction is structured as a Plan of Arrangement under the Business Corporations Act (Ontario).

Upon completion of the transaction, the combined company is expected to produce between 330,000 and 360,000 ounces of gold in 2009, growing to over 400,000 ounces in 2012, and will have significant reserves and resources with a strong portfolio of mining, development and exploration assets in mining friendly jurisdictions.

About New Gold

New Gold is an intermediate gold mining company with two operating assets: the Cerro San Pedro Mine in Mexico and the Peak Mines in Australia. In addition, the company has development projects in Canada and Chile. For further information on New Gold, please visit http://www.newgold.com/.

About Western Goldfields

Western Goldfields is a gold production and exploration company with a focus on precious metal mining opportunities in North America. The Mesquite Mine, currently Western Goldfields' sole asset, was brought into production in January 2008. For further information on Western Goldfields, please visit http://www.westerngoldfields.com/.

[lightbeam]

Somethings going on at both this week.

[ibreken]

Not a huge fan of the merger short term as WGW share price should have doubled this year with production and cash flow. Longer term it should have far more upside potential though. Market doesn't seem too impressed with the deal on either side. It'd be nice if a rival bidder would step up to the plate.

[Picassa]

8:01AM Western Goldfield and New Gold announce business combination (WGW) 1.48 : The cos announce that they have entered into a definitive agreement pursuant to which New Gold (NGD) will acquire by way of a plan of arrangement all of the outstanding common shares of Western Goldfields in exchange for one New Gold common share and CDN$0.0001 in cash for each common share of Western Goldfields. Upon completion of the Transaction, existing New Gold and Western Goldfields shareholders will own approximately 58% and 42% of the combined company, respectively... The parties expect to complete and mail the joint information circular in April 2009 and plan to hold the special meetings in May 2009. The Transaction is expected to close at the end of May 2009.

[ibreken]

I'm not much of a chart reader but nobody can say that doesn't look good

[Picassa]

CHART

[ibreken]

Here is the entire release. Looking good. They have been buying back shares, accelerated paying back debt and hedged diesel down at nice low prices. Booyah?

Western Goldfields Announces Fuel Hedging Program, Status of Issuer Bid and Revisions to Credit Facility Terms

16:52 EST Thursday, December 18, 2008

TORONTO, Dec. 18 /CNW/ - Western Goldfields Inc. ("Western Goldfields" or the "Company") (TSX:WGI, NYSE Alternext:WGW) is pleased to provide an update on the Company's recent entry into a fuel hedging program, its issuer bid announced in November and revisions to the terms of its credit facility as a result of the new mine plan announced in September 2008.


<<
- Entered into a diesel fuel hedging program for approximately 25% of
the Mesquite Mine's diesel requirements for each of the next two
years.

- Repurchased 2.3 million shares at an average price of C$1.36 through
December 18, 2008 under the terms of its normal course issuer bid
initiated November 7, 2008.

- Revised the terms of its credit facility including: approval of the
new mine plan, timing of completion test and debt repayment schedule.

Fuel Hedging
------------
>>

With the recent decline in diesel prices, Western Goldfields has entered into hedging contracts for approximately 25% of Mesquite's annual diesel consumption for each of the next two years. The Company purchased 1,512,000 gallons of diesel per year at forward prices of $1.82 and $2.00 per gallon in 2009 and 2010, respectively. During 2009 the Company expects Mesquite to consume approximately 5.8 million gallons of diesel fuel. In addition to the hedge price, Western Goldfields pays approximately $0.15 per gallon of additional costs when including taxes and delivery charges. The hedge prices are materially lower than the Company's plan which incorporated budgeted diesel costs of $2.40 in 2009 and $2.75 per gallon thereafter including taxes and delivery charges. Approximately 20% of Mesquite's operating costs are attributable to diesel consumption.


<<
Normal Course Issuer Bid
------------------------
>>

Through December 18, 2008, Western Goldfields has repurchased 2.3 million shares at an average price of C$1.36 per share. The repurchases made by the Company represent approximately 18% of the total allowable under the rules of the issuer bid since the bid commenced on November 7, 2008. The Company has expended a total of C$3.1 million repurchasing shares. Going forward, Western Goldfields will continue to monitor market conditions and repurchase shares in a manner that aims to maximize shareholder value. As a result of the repurchases, Western Goldfields has 134,526,286 basic shares outstanding as of December 18, 2008.


<<
Credit Facility
---------------
>>

On December 17, 2008 the syndicate of banks for Western Goldfields' credit facility approved the Company's new mine plan and amended certain terms of the credit facility. As Mesquite is estimated to generate greater cash flow over the coming years under the new mine plan, the repayment period of the facility was accelerated by two years allowing Western Goldfields to fully repay its debt by December 2012. At September 30, 2008 Western Goldfields had $45.4 million of cash, including $7.5 million of restricted cash, and $86.3 million of debt outstanding.

As a result of the transition into the new mine plan, the date to finish completion testing was moved to June 30, 2009 and, as such, the Company plans to conduct the completion testing in the early part of the new year. Upon successful completion, the interest rate on the facility will be reduced to LIBOR plus 1.75% from the current rate of LIBOR plus 2.20%.

Under the revised repayment schedule of the credit facility, the principal payment due at the end of 2008 will be $17.7 million with an additional $4.7 million and $6.9 million due at the end of June and December 2009, respectively. The remaining balance will be paid in 2010 and beyond. In addition to the annual minimum principal payment, there is a cash sweep mechanism included in the credit facility that requires increased repayments above the semi-annual principal payment based on Mesquite's cash flow generation.

In addition, as part of entering into the fuel hedging program, the Company is working with the representatives of the syndicate banks to make the necessary amendments to the credit facility to secure the fuel hedges with the equivalent collateral that secures the Company's credit facility. The Company is currently amending the security documents and expects this to be completed by the end of the year.


<<
Western Goldfields Inc.
-----------------------
>>

Western Goldfields Inc. is a gold production and exploration company with a focus on precious metal mining opportunities in North America. The Mesquite Mine, currently the Company's sole asset, was brought into production in January 2008, and the Company's focus is now on achieving the anticipated rate of production and completing planned improvements to the property. The Company has 2.8 million ounces in Proven and Probable Reserves as outlined in more detail in its latest annual report on Form 10K filed on www.sedar.com. Western Goldfields common shares trade on the Toronto Stock Exchange under the symbol WGI, and on the NYSE Alternext under the symbol WGW. For further details, please visit www.westerngoldfields.com.


Mr. Wes Hanson, P.Geo., Vice President of Mine Development, Western Goldfields Inc., is the qualified person under National Instrument 43-101 who supervised the preparation of the technical information contained in this news release. Mr. Hanson is an officer of the Company.


This news release shall not constitute an offer to sell or the solicitation of an offer to buy the shares in any jurisdiction.


<<
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 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 "intends", "anticipates", "believes", "expects", "plans" and "hopes" and include, without limitation, statements regarding the Company's plan of business operations, production and cost estimates, potential contractual arrangements, receipt of working capital, anticipated revenues, and capital and operating expenditures. These forward-looking statements are based on the best estimates of management at the time such statements are made. 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, 2007 filed with the U.S. Securities and Exchange Commission and the Ontario Securities Commission, 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.


For further information: please visit www.westerngoldfields.com, or contact: Raymond Threlkeld, President and CEO, [phone], [e-mail]; Brian Penny, Chief Financial Officer, [phone], [e-mail]; Hannes Portmann, Director, Corporate Development and Investor Relations, [phone], [e-mail]

© CNW Group

[Picassa]

Western Goldfield provides an update on the its recent entry into a fuel hedging program and revisions to the terms of its credit facility (WGW) 1.30 -0.09 : Co provides an update on the its recent entry into a fuel hedging program and revisions to the terms of its credit facility as a result of the new mine plan announced in September 2008. Co entered into a diesel fuel hedging program for approximately 25% of the Mesquite Mine's diesel requirements for each of the next two years. Co revised the terms of its credit facility including: approval of the new mine plan, timing of completion test and debt repayment schedule. As Mesquite is estimated to generate greater cash flow over the coming years under the new mine plan, the repayment period of the facility was accelerated by two years allowing Western Goldfields to fully repay its debt by December 2012. At September 30, 2008 Western Goldfields had $45.4 mln of cash, including $7.5 mln of restricted cash, and $86.3 million of debt outstanding.

[ibreken]

Western Goldfields Announces Share Repurchase Program

--------------------------------------------------------------------------------

Toronto, Canada, November 4, 2008 -- Western Goldfields Inc. (TSX:WGI, NYSE Alternext:WGW) today announced a share repurchase program by way of a normal course issuer bid (the "Bid") to purchase, through the facilities of the Toronto Stock Exchange (the "TSX") and the NYSE Alternext, certain of its outstanding Common Shares.

Western Goldfields believes that the market price of the Common Shares is not reflective of the Company's underlying value and therefore the Company has decided to undertake the Bid, which will also increase the proportionate interest of, and be advantageous for, the remaining shareholders. Western Goldfields had cash on hand of $45.4 million (including $7.5 million of restricted cash) as of September 30, 2008. The Company is trading at a significant discount to net asset value and the Mesquite Mine is profitable and generating net cash flow. As at November 4, 2008, there were 136,761,919 Common Shares issued and outstanding.

The number of Common Shares to be purchased through the facilities of the exchanges during the period of the Bid from November 7, 2008 to November 6, 2009 will not exceed 12,838,011 Common Shares, or approximately 10% of the Company's public float, the maximum number of shares allowable as defined by the TSX. Purchases will be made at the market price at the time of the acquisition. Common Shares purchased pursuant to the Bid will be cancelled. Western Goldfields has appointed RBC Capital Markets to make the purchases on its behalf.

"Western Goldfields has never been financially stronger. We view a repurchase of Western Goldfields shares as a truly unique opportunity and at this time in the best interest of our shareholders. The Mesquite Mine represents a fully permitted and constructed mine which generates net cash flow and is located in the United States. The shares are trading at a significant discount to their net asset value", said Mr. Randall Oliphant, Chairman, Western Goldfields

[ibreken]

Western Goldfields Announces Record Production, Earnings and Operating Cash Flow in Third Quarter 2008

--------------------------------------------------------------------------------

Record gold sales of 47,535 ounces of gold averaged $870 per ounce in the third quarter compared to 22,760 ounces in the second quarter and 9,960 ounces in the first quarter
Net income of $30.5 million or $0.22 per share, including an after-tax mark-to-market gain of $18.8 or $0.14 per share, in the third quarter
Cash flow provided from operating activities of $16.5 million in the third quarter
Cost of sales of $390 per ounce in the quarter below previous guidance
Strong financial position with cash of $45.4 million, including $7.5 million of restricted cash, an increase of $11.4 million in the quarter
Toronto, November 4, 2008 - Western Goldfields Inc. ("Western Goldfields" or the "Company") (TSX:WGI, NYSE Alternext:WGW) today announced financial results for the three-month and nine-month periods ended September 30, 2008. During the nine-month period ended September 30, 2008 the Company continued to increase production and further improved efficiencies to reduce cost of sales per ounce. Results are based on U.S. GAAP and expressed in U.S. dollars unless otherwise indicated.

"We are pleased to report our strongest quarter ever with our highest sales, lowest cost of sales and most significant cash flow," stated Mr. Raymond Threlkeld, President and Chief Executive Officer.

Gold sales during the quarter totaled 47,535 ounces, at an average cost of sales(1) of $390 per ounce which is below the Company's previous cost guidance. Gold revenues during the quarter were $870 per ounce. Gold production was 42,357 ounces.

Gold sales for the first nine months were 80,255 ounces, at an average cost of sales(1) of $503 per ounce. Gold revenues for the first nine months were $884 per ounce. Gold production was 79,947 ounces.

Subsequent to the quarter end, the Company announced the completion of one of its previously stated value-enhancing initiatives by introducing Western Goldfields' improved mine plan. The improved plan is designed to focus on sequential mining of the Mesquite pits in order to increase production to over 700,000 ounces through the next four years, reduce costs and improve cash flow.

"We are very excited about the improved mine plan as it increases production and cash flow in the next four years for the benefit of our shareholders," said Mr. Threlkeld.

Third Quarter and Year-to-Date Highlights

For the third quarter 2008, gold sales totaled 47,535 ounces, at an average cost of sales(1) of $390 per ounce which was below the Company's previous cost guidance. The Company produced 42,357 ounces of gold.

Production for the third quarter continued to ramp-up. The Company continued to focus on controlling costs and improving equipment efficiency resulting in lower cost of sales(1) per ounce than previously forecast, despite a decrease in shovel availability that negatively impacted production.

Total year-to-date gold sales totaled 80,255 ounces, at an average cost of sales(1) of $503 per ounce. The Company produced 79,947 ounces of gold.

Third Quarter 2008 Nine Months 2008
Tons Mined Grade Tons Mined Grade
Ore Mined 3,012,630 0.023 6,266,543 0.026
Waste Mined 11,280,193 -- 34,152,652 --

TOTAL 14,292,823 40,419,195



Financial Results

For the third quarter, Western Goldfields reported net income of $30.5 million compared to a net loss of $36.4 million for the third quarter of 2007. For the three and nine-month periods ended September 30, 2008, the Company had net income to common shareholders of $30.5 million and $6.8 million, or $0.22 and $0.05 per share, respectively. This compares to a loss of $36.4 million and $43.0 million, or $0.31 and $0.39 per share for the three and nine-month periods ended September 30, 2007, respectively. The net income for the three and nine months includes a after-tax gain of $18.8 million and loss of $1.2 million, respectively, arising from the mark-to-market of contracts for the forward sale of gold, which were taken out as a requirement of our term loan facility. The mark-to-market gain reflects the fact that the spot gold price decreased from $930 per ounce at June 30, 2008 to $885 at September 30, 2008. Year-to-date results for 2008, as compared with 2007, show an increase in gold sold to 80,255 ounces from 6,101 ounces; the average selling price per ounce rose to $884 in 2008 from $665 in 2007.

Liquidity and Capital Resources

At September 30, 2008, the Company's cash balance was $45.4 million, including restricted cash of $7.5 million. In addition, the Company had unutilized credit facilities of $18.7 million. The Mesquite Mine generated $16.5 million and $3.0 million of cash flow from operating activities for the three and nine-month periods ended September 30, 2008, respectively.

Capital Expenditures

The third quarter represented Western Goldfields' last significant quarter of expansion capital spending with the Company incurring $5.2 million of capital expenditure at its Mesquite mine. Planned spending for the balance of the year is $1.6 million. The Company expects future capital requirements to achieve the current mine plan at Mesquite to be minimal. We continue to assess the potential of the sulfide resources.

2008 Outlook

Gold sales for full-year 2008 are expected to total approximately 117,000 ounces of gold at an average cost of sales(1) of $500 per ounce. The Mesquite Mine is expected to sell approximately 37,000 ounces of gold in the fourth quarter.

(1) Cost of sales per ounce is defined as cost of sales as per the Company's financial statements divided by the number of ounces sold.

Western Goldfields Inc.

Western Goldfields Inc. is an independent gold production and exploration company with a focus on precious metal mining opportunities in North America. The Mesquite Mine, currently the Company's sole asset, was brought into production in January 2008, and the Company's focus is now on achieving the anticipated rate of production and completing planned improvements to the property. The Company has 2.8 million ounces in Proven and Probable Reserves. Western Goldfields common shares trade on the Toronto Stock Exchange under the symbol WGI, and on the New York Stock Exchange Alternext under the symbol WGW.

Mr. Wes Hanson, P.Geo., Vice President of Mine Development, Western Goldfields Inc., is the qualified person under National Instrument 43-101 who supervised the preparation of the technical information contained in this news release. Mr. Hanson is an officer of the Company.

[ibreken]

Looks like my prediction was waaaaay off. Fuel costs going up etc mean this will be one of those 'long term holds', but the gold in the ground means there is considerable value there. I'll adjust my share price predictions to one year out. I'm surprised with oil at the level it is at that gold is still under $1000.


---'When you control what will be seen, you will be seen for what you truly are'---
ibreken

[ibreken]

Good to see benz. I'm still baffled this is trading this low though with gold this high. I'm not even watching the day to day trading. I just saw your post and checked where it was trading. I'm not planning on selling until at least June so I'm avoiding watching the day to day moves and am just checking in once every couple of weeks. By June if gold holds up I truly believe this should be in the $5-6 range minimum if gold stays above $800 (and they aren't acquired before).
I mean honestly, 2nd quarter they should be producing 40,000 ounces of gold at a cost of $365 an ounce. If gold holds up that's $600 an ounce or optimistically $24 million profits or cash flow at least for the second quarter Wayyyy undervalued and once the producer multiple applies it should move fast. Scotia upgraded it last week, now every analyst covering it has at least an outperform rating on the stock. Too da MOON

[benzdealeror2]

4 buck$$$$

Bang!

Good pick breki!

[ibreken]

It should be $5+ with gold at $940. I think it will come by mid year. I'll hold for $6 or a buyout. Largest gold mine in U.S. not owned by a major? Ripe for a buyout

[benzdealeror2]

This is going to 4 bucks short term..

Bank it!

[ibreken]

I'm just glad to own a stock that actually really is producing gold....unlike 'another' stock we know
Actually I wasn't all that impressed the way I saw it tanked last week when gold dipped and the markets melted down. The juniors all got hit but this one shouldn't have been hit that bad. People seem more willing to sell than I would like. Even today it gapped up nicely and lost all the gains during the session. Shamefully I was out of the country for the past couple of weeks and totally cut off from the market so I couldn't scoop up the 'cheapies'. With gold above $900 this thing should be north of $5 a share within a few months if not already. RBC upgraded the stock yesterday. I personally think they are still underestimating on all their numbers but here it is.

Western Goldfields Gets RBC Upgrade On Strong Mesquite Start

10:24am ET (Dow Jones Newswires)

TORONTO (Dow Jones)--A strong start at Western Goldfields Inc.'s (WGW) Mesquite Mine in southeastern California led RBC Capital Markets to upgrade the stock to outperform from sector perform.
Last week, the Toronto company announced the first gold pour of 1,000 ounces at Mesquite, transforming Western Goldfields into a gold producer. Production was achieved three months ahead of the feasibility study schedule and on budget, "a rarity these days," according to RBC.

Western Goldfields is targeting gold production from Mesquite in 2008 of 155,000-165,000 ounces at a cash cost of US$355-US$365 an ounce.

RBC's Michael Curran had been projecting a much slower ramp-up for the operation, forecasting 65,000 ounces of gold for 2008, but has now increased his production forecast for the year to 147,000 ounces at a cash cost of US$359 an ounce.

In a research report Thursday, Curran said his target price on the stock remains C$5, though the strong start to the project and compelling returns from the current share price level prompted the upgrade to outperform.

In Toronto Thursday, Western Goldfields is up 5.2% to C$3.42.

RBC considers the Mesquite mine to be the first building block for an eventual Tier II gold producer, noting that Western Goldfields management has "extensive experience" running much larger gold producers.

Curran said he expects increased investor interest in Western Goldfields over the next two-to-three quarters as it ramps up production in the first half of 2008. He said potential catalysts for the shares in the short-term include explorationg drill results at Mesquite and merger and acquisition activity.

The analyst considers the successful delivery of the Mesquite mine restart as "a springboard to further transactions and/or acquisitions."

Curran said impediments to his target price on Western Goldfields include commodity-price fluctuations, greater-than-expected mine operating and new project construction costs as well as increasing energy, material and manpower costs.

RBC has raised its 2008 cash-flow projection for Western Goldfields to 38 U.S. cents a share from 13 U.S. cents and now puts 2008 earnings at 17 U.S. cents a share, up from its previous projection of 4 U.S. cents. RBC's 2008 revenue forecast has also increased significantly to US$115.1 million from US$51 million.

RBC has provided investment-banking services to Western Goldfields in the last 12 months. Curran doesn't own the stock.

Company Web site: http://www.westerngoldfields.com
-Judy McKinnon, Dow Jones NewsWires; 416-306-2100
(END) Dow Jones Newswires
01-24-08 1024ET
Copyright (c) 2008 Dow Jones & Company, Inc

[benzdealeror2]

This is solid breki....No doubt.

good pick...;)

[ibreken]

Western Goldfields Announces First 2008 Gold Pour at Mesquite Mine

All dollar amounts are in US millions (unaudited)

First gold pour for 2008 production of 1,000 ounces
January sales and production ahead of budget
Exploration drilling expected to begin by end January

Toronto, Ontario, Canada, January 17, 2008 -- Western Goldfields Inc. (TSX:WGI, AMEX:WGW) today announced that it has completed the first gold pour of 1,000 ounces for 2008 production at its Mesquite Mine in California. Gold sales for the month of January are expected to be approximately 2,700 ounces, exceeding the January budget by more than 30%.

"Placement of ore on the leach pad is ahead of schedule and gold recovery is as predicted which will enable the Mesquite Mine to achieve the production targets announced in December 2007," reported Mr. Raymond Threlkeld, President and Chief Executive Officer. "As we add more ore to the leach pad, production levels will increase, and we expect to produce approximately 155,000-165,000 ounces of gold in 2008."

"The announcement of the first gold pour at Mesquite is the final milestone in the transformation of Western Goldfields from a developer to a producer," said Mr. Randall Oliphant, Chairman. "Now that we have achieved production at Mesquite -- three months ahead of the Feasibility Study schedule and on budget -- we are now focused on growth strategies to enhance shareholder value."

Capital spending through year-end 2007 on the expansion project was $98.4 million, and the remainder of the $109.2 million development capital will be spent in the first quarter of 2008 when the remainder of the leach pad, processing facility and truck shop are completed. Western Goldfields had cash on hand of approximately $51 million, including $7.5 million in restricted cash, at the end of 2007. To date, the Company has drawn down $77 million of the $87 million credit facility available for the Mesquite expansion. "Western Goldfields has sufficient cash on hand and projected cash flow to meet all its requirements for 2008, along with cash to be utilized for strategic purposes," added Mr. Oliphant.

Exploration drilling of the Brownie Hill deposit is scheduled to begin in the last week of January. During 2008, approximately $1.0 million will be spent on additional definition and exploratory drilling. The drilling will be focused on the follow up of mineralization found outside the current reserve area at Brownie Hill, where approximately 200,000 ounces of gold were added into reserves in 2007.

The technical 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.

Western Goldfields Inc.

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 in January 2008. With estimated 2008 production of between 155,000-165,000 ounces, the Company is the only multi-million ounce US gold reserve not controlled by a major gold company. Western Goldfields common shares trade on the Toronto Stock Exchange under the symbol WGI, and on the American Stock Exchange under the symbol WGW. For further details, please visit www.westerngoldfields.com.

[ibreken]

Last $4.01

[ibreken]

$3.97 BID ! Up about 20% in two weeks.

[ibreken]

Those companies seem to have some great properties and should perform well. Not a huge fan of OTCBB stocks in general but for U.S. mining co's I guess it's normal so unless they are Canadian companies that is where they must be for now until they uplist to the AMEX or higher.
TBLC's website's music was very soothing also. Made me feel like I was floating away into an oasis I left it playing in the background it was so calming.

Edit : I must have that song ! ! !

[silver100]

GORO and TBLC remain at the top of my list for 2008, but take a look at any of the other boards I post on here and I think they will do great as well.

[ibreken]

Wow alias registered almost 3 years ago and your first post today? You are very patient
I was wondering what other companies he was talking about too but I didn't want to push too much.

[zztop]

Hi there,
"As I said this company will likely do just fine, but I believe others out there will do better"

Could you metion which other companies might do better.
tia

[ibreken]

benz, hope you had a merry Christmas. Do you know what the 'f' stands for beside many of the trades in the depth quotes from quotemedia on ihub? Many of the trades have this for WGW and I don't know what kind of trade it is designating it as. In the index of symbols I don't see an 'f'.

[benzdealeror2]

This looks like a keeper....Cant wait for the action next week and beyond.

GLTY

[ibreken]

Up 9.34%. People getting in before the index inclusions on Monday. Gold being up didn't hurt either.

[ibreken]

News about the index inclusions

December 20, 2007
Western Goldfields to be Added to S&P/TSX Global Gold Index and Global Mining Index

Toronto, Canada, December 20, 2007 -- Western Goldfields Inc. (TSX:WGI, AMEX:WGW) is pleased to report that Standard & Poor's Index Operations has announced Western Goldfields will be included in the S&P/TSX Global Gold Index and Global Mining Index effective as at the open on Monday, December 24, 2007. The S&P/TSX Global Gold Index and Global Mining Index are leading benchmarks of global gold and mining industry sectors. "This represents another important milestone in our corporate development as we seek to grow our business and to create greater liquidity for our shareholders," said Mr. Randall Oliphant, Chairman, Western Goldfields.

Western Goldfields Inc.

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 in January 2008. With estimated 2008 production of between 155,000-165,000 ounces, the Company is the only multi-million ounce US gold reserve not controlled by a major gold company. Western Goldfields common shares trade on the Toronto Stock Exchange under the symbol WGI, and on the American Stock Exchange under the symbol WGW. For further details, 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 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 "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. 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, the uncertainties involved in interpreting drilling results and those set forth in the Company's Annual Report on Form 10-KSB for the year 1 ended December 31, 2006 filed with the U.S. Securities and Exchange Commission, 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.

[ibreken]

Fair enough. If I bought that low I'd probably have sold too. But we do disagree on the hedge as I don't see gold going over $1000 an ounce and $801 is a nice compfortable level. If gold goes to $2000 an ounce great, two thirds of their production will be getting that price. The company has said their costs (given current energy costs) are just about right on track so unless you see oil hitting $250 a barrel I think they will be just fine. Plus if cost of production ever hit $1000 I would assume we would be entering Mad Max era and total chaos would mean that stock market investing as we know it will have been eliminated
The fact remains that production starts next month and most if not all analysts (not that they really matter) agree that the stock will be assigned a new multiple once production starts. This isn't a exploratory gold company, it is a producer with the largest independant gold mine in the U.S. and should soon be priced accordingly.

[silver100]

Well I also bought this one under 20 cents and was looking at my portfolio where to free up cash at that point. I felt it was time to take a big gain off the table and any hedging is a quick reason to do so IMO. As hedges go this is not a bad one, but that doesn't mean it can't turn toxic if gold runs to $2000 before they pay it off, which is an event I will not rule out.

To finance a mine a company typically has to use one of the necessary evils of dilution or hedging, and this company has done both, so no thanks. This company will do just fine given a steady gold price, but I'd rather hold companies with no hedges and much smaller total outstanding shares, and I do.

"Why on earth would you think a hedge at $801 is bad? It locks in massive profits and anything above that is a bonus for other production."

That is a false statement. It locks in nothing accept a gold price I think will be lower than the market price for most of their production period. Production costs, however, are not set and are in fact sky rocketing at nearly every mine you look at. While it may seem impropable I see it possible that gold is at $2000 a year from now and Western's production costs could rise to say $1000. How does that hedge look then?

As I said this company will likely do just fine, but I believe others out there will do better. Good luck to you.

[ibreken]

Hedged at $801 an ounce (about one third of production). That was the reason you sold? When I first found out about they were hedging it had me worried. But then when I saw they were able to hedge at $801 and ounce while gold was trading at about $650 I knew this was a winner and management were right on the ball. Why on earth would you think a hedge at $801 is bad? It locks in massive profits and anything above that is a bonus for other production. It makes it even more profitable than my example using $750 an ounce. There are good hedges and bad hedges and that was a great hedge, ensuring profitability and securing the financing in one brilliant move.

[silver100]

You fail to mention that they have some of their production hedged, which is the reason I sold.

[ibreken]

Well with the shares out the market cap is under 500 million.
You do have to take into account the mine if fully funded so there shouldn't be any more dilution.
-2.3 million ounces of proven and probable reserves as of today(minimum).
-cost of production of $365 on the high end.
-give gold a price of $750 so $385 per ounce profit
-2.3 million ounces x $385 = 885,000,000 in profit
-165,000 ounces a year x $385 = 63,525,000 in profit (for 2008)

Now these figures are fairly conservative without expanding their resource estimate (the measured and indicated resource isn't included in my calculations [another 1.2 million ounces]). This was a mine they got from Newmont back when gold was in the $300 an ounce range. It's fully permitted and in the U.S. so no B.S. It's worth having a look at the website to see the numbers in their entirety. I think you'll find it pretty solid. It wouldn't surprise me if they are bought out by a major. They are currently the only multi million ounce mine in the U.S. not owned by a major

[benzdealeror2]

The O/S is kinda high but like I said, I need more DD.

Thanks for the heads up.

[ibreken]

Yeah benz as a solid investment I think it is a good bet. They say it's the most undervalued junior in Canada right now. I put about $35 g in it today and am hoping for a minimum of 50% upside within the next few months. Not a 5 bagger or anything but a double is definitely possible and probable and the downside is very limited as long as gold price doesn't get cut in half. I've been flipping it for the past year or so but it's getting down to the wire and I think it's hold time now. Being included in those two Canadian indexes as of Dec 24 is just a bonus I saw after the bell but it bodes well for the future.

[benzdealeror2]

Wow...this looks pretty tempting...DD over the weekend.

GLTA

[ibreken]

Western Goldfields (WGI) will be added to S&P/TSX GLOBAL MINING INDEX plus S&P/TSX GLOBAL GOLD INDEX effective at the open on Monday, December 24, 2007. Toronto Stock Exchange.

[ibreken]

Symbol is now WGW and trades on the AMEX. Is somebody planning on updating this board? Once production starts next month a the stock should be valued at a 'producer' multiple and should move well above current levels.

Western Goldfields Announces 2008 Production on Target
12/13/2007

TORONTO, Dec. 13, 2007 (Canada NewsWire via COMTEX News Network) --
<< - Heap leaching of new ore has commenced at Mesquite - Gold production is on target for January 2008 - Capital costs are in line with forecast >>

Western Goldfields Inc. (TSX:WGI, AMEX:WGW) today announced that heap leaching of new ore has commenced at its Mesquite Mine in California. To date, 900,000 tons of new ore containing approximately 12,500 ounces of gold have been placed on the leach pad and gold production is on target for January 2008.

"We are extremely pleased with the performance of our operations and construction teams who have brought the project in three months ahead of the feasibility schedule and on budget," said Mr. Randall Oliphant, Chairman, Western Goldfields. "Our current capital forecast is within one percent of our original estimate."

"Our prestrip mining and construction of the leach pad and facilities is on schedule to bring the mine into full production in January 2008," said Mr. Raymond Threlkeld, President and Chief Executive Officer. "The last haul truck of our 14-truck fleet arrived this week. We have 177 employees and are currently mining approximately 180,000 tons per day. In 2008, we expect to place approximately 220,000 ounces onto the leach pad."

During 2008, the Mesquite Mine will ramp up production as the operation continues with prestripping, exposing the ore zones and mining of the oxide reserves. Based on the mining schedule and the leaching curve, Mesquite is expected to produce approximately 15,000 ounces of gold in the first quarter. Second quarter production will increase to between 40,000-50,000 ounces of gold, and full year's production for 2008 is expected to be between 155,000-165,000 ounces of gold.

The average cost of sales for the year is expected to be between $355-$365(1) per ounce of gold. Quarterly operating costs are predominantly fixed and, due to the ramping up of gold production in the first quarter, cost of sales per ounce in the first quarter will be significantly higher than the 2008 estimate. In later quarters, the costs will be below the forecast average cost per ounce. The increase in cost of sales from previous estimates is due to current higher fuel costs as well as increased royalty costs based on the current higher gold price. Fuel costs comprise approximately 25% of the cost of sales.

Capital costs are estimated at $109.2 million compared to an original estimate of $108.6 million. With approximately 99 percent of the capital committed and 92 percent spent, the Company is confident that the final project capital will remain consistent with its current forecasts. Capital spending for 2007 is estimated to be $100.0 million, and the remainder of the $109.2 million will be spent in the first quarter of 2008 when the leach pad, processing facility and truck shop are completed.

During 2008, approximately $1.0 million will be spent on additional definition and exploratory drilling of the Brownie Hill deposit, where approximately 200,000 ounces of gold were added into reserves in 2007. The drilling will be focused on the follow up of significant mineralization found outside the current reserve area at Brownie Hill.

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.

Western Goldfields Inc.

-----------------------

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. With a 2.8 million ounce gold reserve, the Company is the only multi-million ounce US gold reserve not controlled by a major gold company. Western Goldfields common shares trade on the Toronto Stock Exchange under the symbol WGI, and on the American Stock Exchange under the symbol WGW. For further details, 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 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 "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, potential increase in estimates of mineral resources or reserves, economic viability of the Mesquite Mine, 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, the uncertainties involved in interpreting drilling results and those set forth in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2006 filed with the U.S. Securities and Exchange Commission, 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.

<< ------------------- (1) Expected cost of sales per ounce is defined as planned cost of sales as per the business plan divided by the number of gold ounces to be sold. >>

%CIK: 0001394186

SOURCE: Western Goldfields Inc.

please visit www.westerngoldfields.com, or contact Raymond Threlkeld, President and Chief Executive Officer, [phone], [e-mail]; Julie Taylor Pantziris, Director, Regulatory Affairs and Investor Relations, [phone], [e-mail]

Copyright (C) 2007 CNW Group. All rights reserved.

[Frankdetroit]

Sorry- I haven't kept this board updated- I have been busy with other things. Stock symbol has changed to wgdff for all concernced.

[silver100]

Press Release Source: Western Goldfields Inc.


Western Goldfields Completes Initial Exploration Program at Mesquite Mine
Thursday September 6, 5:30 pm ET
- Exploration drilling at Vista intersects 30 feet of 0.562 ounces of gold per ton external to the current design pit
- Exploration drilling at Brownie Hill identifies a potential new oxide zone intersecting 130 feet of oxide mineralization averaging 0.021 ounces of gold per ton
- Prestripping and construction on schedule for January 2008 production


TORONTO, Sept. 6 /PRNewswire-FirstCall/ - Western Goldfields Inc. (TSX:WGI, OTC BB:WGDFF.OB) is pleased to announce the completion of its initial exploration program at its wholly-owned Mesquite Mine in Imperial County, California. A total of 125 reverse circulation drill holes (100,385 feet) have been completed and analytical results have been received for all drill holes.
ADVERTISEMENT


Western Goldfields announced a 70,000-foot program of exploration drilling in September 2006. Due to positive results from the Brownie Hill area, the program was increased to 100,000 feet to allow for further infill and exploration drilling to increase the Resource. The following is a description of the results from the areas drilled during our 2006-2007 drilling program. The Company intends to update its Reserve and Resource estimates in conjunction with the release of its year-end 2007 financial statements, early next year.

"The high grade zone discovered in Vista continues to demonstrate the potential for additional ounces that exists at Mesquite, and our exploration drilling at Brownie Hill has identified a potential new oxide zone," said Raymond Threlkeld, President and Chief Executive Officer. "The Company plans to conduct follow-up drilling in 2007-2008 to expand the zones discovered at Brownie Hill and Vista."

Vista

-----

Eight drill holes were completed to test the deep, non-oxide mineralization previously identified at Vista. Significant results include hole WM-123 which intersected 30 feet of non oxide mineralization averaging 0.562 ounces of gold per ton and hole WM-21 which intersected 150 feet of non-oxide mineralization, averaging 0.015 ounces of gold per ton. Both holes confirm the presence of non-oxide mineralization external to the current reserve pits.

Brownie Hill

------------

The majority of the initial exploration program was directed towards increasing the Reserve and Resource estimates at Mesquite through infill drilling at Brownie Hill. An updated Reserve and Resource estimate was reported March 26, 2007, and included results from 27 of 82 drill holes at Brownie Hill. Since that estimate, assay results have been received for all drill holes, which allows us to phase the mining at Brownie Hill. Significant results include hole WM-55, intersecting 295 feet of oxide mineralization averaging 0.021 ounces of gold per ton and hole WM-108, intersecting 125 feet of non-oxide mineralization averaging 0.050 ounces of gold per ton. Both holes extend the previously identified Brownie Hill mineralization to the southeast external to the current reserve pits. Brownie Hill infill drilling and exploration drilling in 2007 is expected to provide a slight increase to the Reserve and Resource estimates, when released early next year in conjunction with the release of its year-end 2007 financial statements.

In addition, results have been received for twelve exploration holes that were drilled to expand the Brownie Hill resource trend. Hole WM-92 intersected 130 feet of oxide mineralization averaging 0.021 ounces of gold per ton in what is interpreted to be a parallel zone to the main Brownie Hill trend. Hole WM-84, drilled to test the main Brownie Hill mineralized trend 1,250 feet to the southeast, intersected 120 feet of non-oxide mineralization averaging 0.020 ounces of gold per ton. The Company is preparing a drilling program commencing in the fal of 2007 to follow up on these previously unknown zones.

Big Chief

---------

Condemnation drilling in the Big Chief pit, designed to identify suitable areas for waste backfilling, has identified additional oxide and non-oxide mineralization. Eleven of the seventeen holes drilled encountered near pit bottom oxide and/or non-oxide mineralization. This mineralization is scheduled to be mined prior to waste backfilling the Big Chief pit. The remaining six holes confirmed the areas to be backfilled early in the mining sequence. Significant results include hole WM-66 which intersected 30 feet of non-oxide mineralization averaging 0.098 ounces per ton of gold approximately 55 feet below the current pit bottom.

Rainbow

-------

Six drill holes were completed to test oxide and non-oxide mineralization internal to the Rainbow reserve pit. Significant results include hole WM-124 which intersected 120 feet of oxide mineralization averaging 0.026 ounces of gold per ton and 560 feet of non-oxide mineralization averaging 0.020 ounces of gold per ton. Hole WM-125 intersected 185 feet of oxide mineralization averaging 0.023 ounces of gold per ton. Results were consistent with mineralization lying below the Rainbow pit.

Mesquite Mine Development

-------------------------

Since the first quarter of 2007, Western Goldfields has been vigorously executing its expansion program at Mesquite. Accomplishments to date are:


- The leach pad liner is being placed;
- Prestripping is averaging 130,000 tons per day;
- Two hydraulic shovels and a new LeTourneau 1350 front-end loader are
operating;
- Ten Terex haul trucks are commissioned and in full operation;
- Approximately 40,000 tons of new ore has been stockpiled on Pad 6;
- The new truck shop construction has commenced; and
- The new water line has been completed.

All prestripping and construction activities are on schedule for full production of 160,000 - 170,000 ounces of gold annually, commencing in January 2008.

"Our prestrip mining and construction of the leach pad and facilities is on schedule to bring the mine into full production in January 2008, three full months ahead of the feasibility schedule," said Mr. Threlkeld. "We have ramped up to over 160 employees and are currently mining an average of 130,000 tons per day. We have stockpiled about 40,000 tons of ore and anticipate loading the new leach pad in October."

Western Goldfields Inc.

-----------------------

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. With a 2.8 million ounce gold reserve, the Company is the only multi-million ounce US gold reserve not controlled by a major gold company. The Company is fully permitted and fully funded, and estimates production of 160,000-170,000 ounces of gold annually. In June 2007, Western Goldfields announced that its production schedule has been moved ahead by one full quarter, which will bring the company into full production by January 2008. 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 WGDFF.OB. For further details regarding the mineral reserves and mineral resources at Mesquite, please visit www.westerngoldfields.com.

Notes regarding Technical Information

-------------------------------------

The data contained in this news release has been prepared by or under the supervision of Wes Hanson, P.Geo., Vice President of Mine Development, Western Goldfields, and the Qualified Person for the project. A partial table of select drill results is included in the Appendix to this release. A complete summary of results from all drilling returned to date as well as updated plans and sections of the drill results outlined in this release are available at Western Goldfield's website at www.westerngoldfields.com.

Detailed description of the geology, mineral occurrences and nature of the mineralization at Mesquite as well as details regarding the sample spacing, collection, preparation and data verification are outlined in the Technical Report dated May 26, 2006, titled Mesquite Gold Project Imperial County, California, USA; prepared by Independent Mining Consultants Inc. All data disclosed herein has been collected with a Quality Assurance and Quality Control (QA/QC) procedure in place. The QA/QC procedure employs the use of standard reference material (SRM), duplicates and check assays.

SRMs are inserted into the sample stream at a rate of 1 SRM for every 20 samples. Duplicate samples are prepared at a rate of one duplicate in 40 samples, duplicate samples are selected randomly. Reject duplicates are prepared during sample preparation at a rate of one reject duplicate for every 5 samples. For every 100 samples submitted for analysis, a total of 4 duplicate samples, 20 reject duplicate samples and 5 SRMs are added as part of the company's QA/QC procedure.

All analyses were performed by American Assay Laboratories, Inc. (Reno, Nevada, USA), an ISO/IEC 17025 certified laboratory. Assay results are received electronically from the lab. Site personnel review all results and 5% of the samples are randomly selected for check assaying. As a final step, 10% of the reject duplicates are prepared as pulps and submitted to the original lab and the Mesquite lab for analysis. These samples are then re-submitted to a second lab for comparative analysis.

Results of the QA/QC data are monitored by site staff. Where results fall outside of specification, the site staff will request that a sample series be re-assayed.

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 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 "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, potential increase in estimates of mineral resources or reserves, 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, the uncertainties involved in interpreting drilling results and those set forth in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2006 filed with the U.S. Securities and Exchange Commission, 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, or refers to documents that use, the terms "measured", "indicated" and/or "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 by 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
Select Drilling Results
September 6, 2007

-------------------------------------------------------------------------
Intersection Assay
------------------------------
Target Hole ID Type Horizon From To Interval Gold
(Au
(feet) (feet) (feet) oz/ton)
-------------------------------------------------------------------------
Brownie WM-26 Infill Oxide 350 555 205 0.011
WM-27 Infill Oxide 335 590 255 0.013
WM-29 Infill Oxide 320 550 230 0.012
WM-35 Infill Oxide 445 525 80 0.013
WM-35 Infill Non-oxide 525 635 110 0.013
WM-38 Infill Oxide 335 535 200 0.014
WM-40 Infill Oxide 360 615 255 0.012
WM-47 Infill Oxide 450 535 85 0.027
WM-47 Infill Non-oxide 535 585 50 0.039
WM-48 Infill Oxide 405 525 120 0.031
WM-48 Infill Non-oxide 525 705 180 0.015
WM-50 Infill Oxide 515 560 45 0.034
WM-53 Infill Oxide 265 380 115 0.021
WM-55 Infill Oxide 345 640 295 0.021
WM-56 Infill Oxide 390 555 165 0.010
WM-57 Infill Oxide 345 510 165 0.015
WM-57 Infill Non-oxide 585 670 85 0.028
WM-58 Infill Oxide 405 590 185 0.009
WM-76 Infill Oxide 315 675 360 0.015
WM-84 Exploration Non-oxide 345 465 120 0.020
WM-89 Exploration Non-oxide 530 805 275 0.013
WM-92 Exploration Oxide 505 635 130 0.021
WM-96 Infill Oxide 355 505 150 0.009
WM-108 Infill Non-oxide 500 625 125 0.050
-------------------------------------------------------------------------
Big Chief WM-62 Condemnation Non-oxide 125 175 50 0.023
WM-66 Condemnation Non-oxide 55 85 30 0.098
WM-80 Condemnation Oxide 5 30 25 0.022
WM-81 Condemnation Oxide 300 320 20 0.013
WM-82 Condemnation Oxide 325 345 20 0.029
-------------------------------------------------------------------------
Vista WM-21 Exploration Non-oxide 590 740 150 0.015
WM-122 Exploration Non-oxide 460 1290 830 0.018
WM-123 Exploration Non-oxide 435 610 175 0.120
(incl) 435 465 30 0.562
-------------------------------------------------------------------------
Rainbow WM-124 Infill Oxide 360 480 120 0.026
Non-oxide 480 1040 560 0.020
WM-125 Infill Oxide 255 440 185 0.023
Non-oxide 440 540 100 0.018
-------------------------------------------------------------------------





--------------------------------------------------------------------------------
Source: Western Goldfields Inc.

[silver100]

Press Release Source: Western Goldfields, Inc.


Western Goldfields Announces Second Quarter Results
Wednesday August 1, 9:30 am ET
- All second-quarter milestones achieved to bring Mesquite Mine into full production
- Term loan facility and related gold forward sales contracts in place
- Mine fleet deliveries and construction program on schedule
- Pre-strip mining commenced June 2007
- Full production expected January 2008


TORONTO, Aug. 1 /PRNewswire-FirstCall/ - Western Goldfields Inc. (TSX:WGI, OTC BB:WGDFF.OB) today announced financial results for the six-month and three-month periods ended June 30, 2007. The Company's financial statements were prepared in accordance with accounting principles generally accepted in the United States (US GAAP). Dollar amounts are expressed in U.S. dollars unless otherwise stated.
"Western Goldfields made significant progress in the first six months of 2007 toward bringing the Mesquite Mine into full production," reported Mr. Randall Oliphant, Chairman. "We have met all of our second-quarter milestones and we have brought forward anticipated full production by three months. Everything is now in place to make Mesquite a successful producing mine and to establish a platform for the growth of Western Goldfields."

"With the completion of the term loan facility for $105 million, the project is fully financed," continued Mr. Oliphant. "To secure the terms of the loan facility, we have executed flat forward gold sales contracts for approximately 40% of our expected gold production during the life of the loan at $801 per ounce."

"We have taken delivery of and commissioned six haul trucks and two shovels as part of our mine fleet," said Mr. Raymond Threlkeld, President and Chief Executive Officer. "Pre-stripping commenced in June, and we are planning for full production of 160,000-170,000 ounces of gold annually commencing in January 2008."



Financing Transactions
----------------------


In the first quarter of 2007, the Company completed a common share equity financing, which provided net proceeds of $59.2 million. On March 30, 2007, the Company entered into a term loan facility under which the Company will be able to borrow up to $105 million, of which $87.3 million is expected to be drawn for the development of Mesquite. The balance will be available for other corporate purposes until late 2009. In connection with this facility, the Company has entered into hedging contracts for the forward sale of 429,000 ounces of gold at a price of $801 per ounce during the period July 2008 to December 2014. On July 18, 2007, an initial draw of $20.4 million was received. These transactions complete the financing requirements for the development of the Mesquite Mine.

Corporate Reorganization

------------------------

Effective June 29, 2007, the Company's place of incorporation was changed from Idaho, USA to Ontario, Canada, and its name was changed from Western Goldfields, Inc. to Western Goldfields Inc. The reorganization allows the Company to take advantage of financial and other business opportunities that would not be available under its previous corporate structure.

As a result of the reorganization, the common shares in Western Goldfields, Inc. (the predecessor Idaho corporation) automatically converted into an equal number of common shares in Western Goldfields Inc. (the successor Ontario corporation) and the economic ownership of shareholders in the new company remained unchanged.

Mesquite Mine Development

-------------------------

Planned spending on the mining fleet is $73.3 million, of which approximately $37.6 million had been spent as at June 30, 2007. In addition to the mining fleet, the Company plans to spend approximately $35.3 million on other plant and infrastructure upgrades and expansion projects at Mesquite, of which approximately $6.3 million has been spent as at June 30, 2007.

Since the first quarter of 2007, Western Goldfields has been vigorously executing its expansion program at Mesquite. Accomplishments to date include:


- Leach pad expansion contract was awarded, liner material was ordered,
and the site preparation is well advanced;
- Two O&K RH340 45 cubic yard hydraulic shovels were delivered to the
site from Germany, commissioning is complete and the units are now in
service;
- Six Terex 205-ton haul trucks have been delivered to the site, have
been commissioned and are now engaged in pre-stripping operations;
- Eight more trucks are on schedule for delivery by year-end;
- Despite the global shortage of mining truck tires, a full inventory of
tires for the initial fleet is now on site and additional tires are
being delivered to establish inventory;
- New truck maintenance building has been ordered and site preparation
is well advanced;
- Various site reclamation activities have been completed, including
regulatory approval of the Vista heap leach pad closure and the
removal and salvage of redundant facilities; and
- All planned senior mine staff positions have been filled with highly
qualified individuals.

Financial Results
-----------------

Western Goldfields reports a net loss to common shareholders for the six months ended June 30, 2007 of $6.6 million, or $0.06 per share (basic and diluted), and for the three months ended June 30, 2007 of $4.0 million, or $0.04 per share. The net loss to common shareholders for the six months ended June 30, 2006, was $6.4 million, or $0.11 per share (basic and diluted), and for the three months ended June 30, 2006, was $2.6 million, or $0.04. Gold sales for the six months ended June 30, 2007 were 4,225 ounces and for the three months ended June 30, 2007 were 2,350 ounces. Gold sales for the six months ended June 30, 2006 were 8,375 ounces and for the three months ended June 30, 2006 were 2,275 ounces. These operating losses are consistent with the Company's plans during its startup period.

Liquidity and Capital Resources

-------------------------------

At June 30, 2007, the Company's available cash balance was $18.8 million, restricted cash was $7.5 million and working capital was $11.5 million. This represents a significant improvement in the Company's financial position since December 31, 2006 when it reported cash of $5.5 million and working capital $4.6 million. The improved liquidity is due primarily to the equity offering of common shares in the first quarter of 2007 which raised net proceeds of $59.2 million. Liquidity was also improved through the conversion of warrants and the exercise of stock options for proceeds of $2.3 million. In addition, the Company has $105 million of available capacity under the term loan facility.



Western Goldfields Inc.
-----------------------


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. With a 2.8 million ounce gold reserve, the Company is the only multi-million ounce US gold reserve not controlled by a major gold company. The Company is fully permitted and fully funded, and estimates production of 160,000-170,000 ounces of gold annually. In June 2007, Western Goldfields announced that its production schedule has been moved ahead by one full quarter, which will bring the company into full production by January 2008. 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 WGDFF.OB. For further details regarding the mineral reserves and mineral resources at Mesquite, please visit www.westerngoldfields.com.

Further Information

-------------------

For further information about the financial results of the Company, see the unaudited interim financial statements of the Company for the six months ended June 30, 2007 and the related management's discussion and analysis, which will be filed on Form 10-QSB with the U.S. Securities and Exchange Commission and the applicable Canadian securities regulatory authorities and will be available under the profile of the Company on EDGAR and SEDAR.

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 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 "intends", "anticipates", "believes", "expects", "plans" 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, production and cost estimates, 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, 2006 filed with the U.S. Securities and Exchange Commission, 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.




WESTERN GOLDFIELDS INC.
CONSOLIDATED BALANCE SHEETS


June 30, December 31,
2007 2006
------------- -------------
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash $ 18,750,186 $ 5,502,535
Restricted Cash 7,500,000 -
Receivables 147,352 223,507
Inventories 551,554 511,663
Prepaid expenses 763,127 841,636
------------- -------------
TOTAL CURRENT ASSETS 27,712,219 7,079,341
------------- -------------

Property, plant, and equipment, net of
accumulated amortization 41,862,081 4,328,512
Construction in progress 7,963,092 2,880,775
Gain on mark-to-market of gold hedging
contracts 758,877 -
Investments - reclamation and remediation 8,448,953 6,337,006
Long-term deposits 338,371 329,146
Long-term prepaid expenses 1,634,993 1,009,555
Deferred debt issuance/stock offering costs 3,318,806 250,000
------------- -------------
TOTAL OTHER ASSETS 64,325,173 15,134,994
------------- -------------

TOTAL ASSETS $ 92,037,392 $ 22,214,335
------------- -------------
------------- -------------

LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 12,554,211 $ 1,663,080
Accounts payable to related party 25,387 31,165
Accrued expenses 3,364,577 835,740
Accrued agency and commitment fees 241,250 -
------------- -------------
TOTAL CURRENT LIABILITIES 16,185,425 2,529,985
------------- -------------

LONG-TERM LIABILITIES
Reclamation and remediation liabilities 4,825,645 4,805,473
------------- -------------

TOTAL LIABILITIES 21,011,070 7,335,458
------------- -------------


COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
Common stock, of no par value, unlimited
shares authorized; 117,221,002 and
78,452,876 shares issued and outstanding,
respectively 95,664,291 32,884,798
Share subscription receivable (150,000) -
Stock options and warrants 7,841,063 7,674,270
Accumulated deficit (32,318,943) (25,678,233)
Accumulated other comprehensive income (10,089) (1,958)
------------- -------------
TOTAL STOCKHOLDERS' EQUITY 71,026,322 14,878,877
------------- -------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 92,037,392 $ 22,214,335
------------- -------------
------------- -------------



WESTERN GOLDFIELDS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(Unaudited)

Three Months Ended June 30, Six Months Ended June 30,
---------------------------- ---------------------------
2007 2006 2007 2006
-------------- ------------- ------------- -------------
REVENUES
Revenues from
gold sales $ 1,546,073 $ 2,104,315 $ 2,778,877 $ 4,878,943
-------------- ------------- ------------- -------------

COST OF GOODS SOLD
Mine operating
costs 2,662,308 1,892,336 4,569,386 3,871,503
Mine site
administration 681,925 348,813 1,112,824 676,595
Selling,
transportation,
and refining 6,252 7,534 11,627 16,876
Amortization and
accretion 377,210 335,030 752,318 647,244
Royalties 59,423 80,383 104,360 183,243
Inventory
adjustment 115,310 9,242 (19,351) 312,210
-------------- ------------- ------------- -------------
3,902,428 2,673,338 6,531,164 5,707,671
-------------- ------------- ------------- -------------

GROSS PROFIT
(LOSS) (2,356,355) (569,023) (3,752,287) (828,728)
-------------- ------------- ------------- -------------

EXPENSES
General and
administrative 1,137,758 1,105,652 2,222,490 2,175,604
Stock based
compensation 820,388 730,231 1,288,554 1,770,156
Exploration 748,594 272,260 1,031,926 711,217
-------------- ------------- ------------- -------------
2,706,740 2,108,143 4,542,970 4,656,977
-------------- ------------- ------------- -------------

OPERATING LOSS (5,063,095) (2,677,166) (8,295,257) (5,485,705)
-------------- ------------- ------------- -------------

OTHER INCOME
(EXPENSE)

Interest income 524,750 86,367 1,042,253 178,614
Interest expense (839) - (839) (20,434)
Agency and
commitment fees (241,250) - (241,250) -
Amortization of
deferred debt
issuance costs (109,544) - (109,544) -
Gain on
extinguishment
of debt - - - 142,949
Gain on
mark-to-market
of gold hedging
contracts 758,877 - 758,877 -
Gain on foreign
exchange 124,200 - 205,050 -
Loss on sale of
assets - (18,837) - (18,837)
Expenses of
Romarco merger
termination - - - (1,225,000)
-------------- ------------- ------------- -------------
1,056,194 67,530 1,654,547 (942,708)
-------------- ------------- ------------- -------------

LOSS BEFORE
INCOME TAXES (4,006,901) (2,609,636) (6,640,710) (6,428,413)

INCOME TAXES - - - -
-------------- ------------- ------------- -------------

NET LOSS (4,006,901) (2,609,636) (6,640,710) (6,428,413)

PREFERRED STOCK
DIVIDENDS - (4,479) - (16,979)
-------------- ------------- ------------- -------------

NET LOSS TO
COMMON
STOCKHOLDERS (4,006,901) (2,614,115) (6,640,710) (6,445,392)

OTHER
COMPREHENSIVE
INCOME
Foreign currency
translation
adjustment (2,874) (4,322) (8,131) (3,813)
-------------- ------------- ------------- -------------

NET COMPREHENSIVE
LOSS $ (4,009,775) $ (2,613,958) $ (6,648,841) $ (6,432,226)
-------------- ------------- ------------- -------------
-------------- ------------- ------------- -------------

BASIC AND DILUTED
NET LOSS PER
SHARE $ (0.04) $ (0.04) $ (0.06) $ (0.11)
-------------- ------------- ------------- -------------
-------------- ------------- ------------- -------------

WEIGHTED AVERAGE
NUMBER OF
COMMON SHARES
OUTSTANDING 113,641,025 62,389,376 108,240,372 56,025,181
-------------- ------------- ------------- -------------
-------------- ------------- ------------- -------------



WESTERN GOLDFIELDS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

Three Months Ended June 30, Six Months Ended June 30,
---------------------------- ---------------------------
2007 2006 2007 2006
-------------- ------------- ------------- -------------
CASH FLOWS FROM
OPERATING
ACTIVITIES
Net loss $ (4,006,901) $ (2,609,636) $ (6,640,710) $ (6,428,413)
Adjustments to
reconcile net
loss to net
cash provided
(used) by
operating
activities:
Amortization
and
depreciation 297,671 274,000 592,407 529,509
Amortization of
deferred debt
issuance costs 109,544 - 109,544 -
Accretion
expense 84,294 58,868 168,588 117,735
Loss on sale of
assets and
investments - 18,837 - 18,837
Interest on
investments -
reclamation and
remediation (86,644) (67,749) (170,269) (151,696)
Common stock
issued for
exploration
assets and
services - - - 136,500
Stock based
compensation 820,388 730,232 1,288,554 2,003,157
Gain on mark-to-
market of gold
hedging
contracts (758,877) - (758,877) -
Changes in assets
and liabilities:
Decrease (increase)
in:
Restricted
cash (7,500,000) - (7,500,000) -
Accounts
receivable 174,147 (7,459) 76,155 (11,010)
Inventories 31,405 (44,146) (39,891) 229,213
Prepaid
expenses (369,126) 50,286 (546,929) 103,719
Long term
deposits (5,938) (2,385) (9,224) (4,872)
Increase (decrease)
in:
Accounts
payable (158,672) (354,565) (948,783) (171,865)
Accounts payable
- related
parties 5,138 118,201 (5,778) 118,201
Accrued
expenses (794,623) 215,461 200,559 322,255
Accrued expenses
- related
parties - - - (45,835)
Accrued interest
expense - - - (48,695)
Accrued agency
and commitment
fees 241,250 - 241,250 -

-------------- ------------- ------------- -------------
Net cash provided
(used) by
operating
activities (11,916,944) (1,620,056) (13,943,404) (3,283,260)
-------------- ------------- ------------- -------------

CASH FLOWS FROM
INVESTING
ACTIVITIES
Purchase of
property &
equipment,
including
construction
in progress (25,661,610) (146,474) (31,376,510) (387,779)
Increase in
reclamation and
remediation
investment (2,090,094) - (2,090,094) -
-------------- ------------- ------------- -------------
Net cash provided
(used) by
investing
activities (27,751,704) (146,474) (33,466,604) (387,779)
-------------- ------------- ------------- -------------

CASH FLOWS FROM
FINANCING
ACTIVITIES
Principal
payments on
loan - - - (2,205,186)
Deferred debt
issuance costs (520,516) - (850,073) -
Common stock
issued for cash 1,005 - 59,191,196 4,012,000
Warrants issued
for cash - - - 1,988,000
Exercise of options
to purchase
common stock 355,558 3,650,250 500,983 3,650,250
Exercise of
warrants to
purchase
common stock 1,436,172 - 1,815,552 -
Preferred stock
dividends - (51,354) - (51,354)
-------------- ------------- ------------- -------------
Net cash provided
(used) by
financing
activities 1,272,220 3,598,896 60,657,658 7,393,710
-------------- ------------- ------------- -------------

Change in cash (38,396,428) 1,832,366 13,247,651 3,722,671

Cash, beginning
of period 57,146,614 1,942,692 5,502,535 52,387
-------------- ------------- ------------- -------------

Cash, end of
period $ 18,750,186 $ 3,775,058 $ 18,750,186 $ 3,775,058
-------------- ------------- ------------- -------------
-------------- ------------- ------------- -------------

SUPPLEMENTAL CASH
FLOW DISCLOSURES:
Interest paid $ 839 $ 69,430 $ 839 $ 69,430
-------------- ------------- ------------- -------------
-------------- ------------- ------------- -------------

NON-CASH FINANCING
AND INVESTING
ACTIVITIES:
Stock, options
and warrants
issued for
services $ 820,388 $ 730,232 $ 1,288,554 $ 2,003,157
Exploration fees
and assets paid
by issuance of
stock $ - $ - $ - $ 136,500
Equipment purchases
included in
accounts
payable $ 11,831,783 $ - $ 11,831,783 $ -
Deferred debt
issuance costs
included in
accrued
expenses $ 2,016,277 $ - $ 2,328,277 $ -




--------------------------------------------------------------------------------
Source: Western Goldfields, Inc.

[silver100]

Great news today!

[Frankdetroit]

I am still amazed that Randall Oliphant is on the BOD of this co. and it is still being ignored by the rest of the gold mining world.

Oh well I guess shares must still be a good buy at this price level if the public is still not in it.

[silver100]

Yaaaaaaaaaaaaaaaaaaa! This thing just doesn't stop going up.

"Gold, silver and the shares remain THE historic investment opportunity of a lifetime."

[silver100]

Completely out of it is right! I was lucky enough to buy at .19 ... bought solely because of the buyout value that was present at that time. Little did I know what would happen from there! Another 26.54% today on from what I can tell is no news but I am not complaining. Well only complaint is that I wish I could have bought more when I did! Anyone have any sell targets on this puppy?

[Frankdetroit]

Amazing performance of up 600% + since this board was started and the public is completely out of this company!! Go figure.

[Frankdetroit]

Check out the latest news above- It looks like they are getting ready to really pump this stock by bringing in the big leaguers. I am really impressed. Who would have thought that R Oliphant would get his hands in this pie.

[Frankdetroit]

Sorry- Not DMI as referenced in previous post but on this chart it is called ADX (same thing I think just different name)

[Frankdetroit]

for what it's worth

The DMI on the chart above now looks super bullish- all's we need is some volume and news and this little company might become a big one very shortly.

This is not a recommendation to buy or sell.