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