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.
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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
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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
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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
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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
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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
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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.
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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
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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
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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,
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Indicated and Inferred Resources
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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
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Intersection Assay
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Target Hole ID Type Horizon From To Interval Gold
(Au
(feet) (feet) (feet) oz/ton)
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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
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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
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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
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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
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Source: Western Goldfields Inc.
