NewWest Gold Corporation Reports First Quarter Operating and Financial Results
Lakewood, Colorado (ots/PRNewswire)
NewWest Gold Corporation
(TSX:NWG) ("NewWest"), an advanced gold exploration and development
company located in Nevada's established gold trends, today announced
its results for the first quarter ended March 31, 2007.Financial Overview
The loss for the first quarter ended March 31, 2007 was US $1.5 million or US $0.03 per share, compared to US $0.9 million or US $0.02 per share during the same quarter in 2006. The change in net losses was mainly attributed to higher exploration costs from additional drilling.
NewWest's total assets at March 31, 2007 were US $25.9 million compared to total assets of US $27.5 million at December 31, 2006. NewWest's working capital as at March 31, 2007 was US $8.6 million, which the Company believes will meet its working capital needs and growth objectives through the remainder of fiscal 2007.
Full interim consolidated financial statements and notes, as well as management's discussion and analysis, are available on NewWest's website at www.newwestgold.com, or www.sedar.com.
Project Overview
- In conjunction with recent drilling programs at the Sandman project,
we verified and expanded gold mineralization at Silica Ridge and
North Hill, and discovered new high-grade mineralization at Abel
Knoll
- The recent drilling programs at the Long Canyon project extended gold
mineralization and confirmed the presence of multiple zones of gold
mineralization
- Some holes from the Phase Two 2006 drilling program at the
Northumberland project encountered gold mineralization approaching
underground mineable grades
- Subsequent to quarter-end, we completed a first time resource at
Sandman (compliant with NI 43-101) with measured and indicated gold
resources of 271,900 contained ounces and inferred gold resources of
38,000 contained ounces (representing approximately 8.0 million tons
with an average gold grade of 0.034 oz Au/ton for measured and
indicated resources and approximately 1.4 million tons with an
average gold grade of 0.027 oz Au/ton for inferred resources)"This initial NI 43-101 compliant resource at Sandman brings our share of total measured and indicated resources to approximately 1.8 million contained gold equivalent ounces together with inferred resources of 239,000 contained gold equivalent ounces," said Steve Alfers, President and Chief Executive Officer. "In addition to Sandman, the progress we have made on our other high priority gold projects positions us for extending and discovering new mineralization together with adding more resource ounces."
Gold equivalent ounces are calculated at a gold-silver ratio of 67:1.
Sandman Project Update
In the first quarter of 2007, NewWest announced the results from the second of a two-phase 2006 drilling program at its Sandman project (Sandman). Sandman is an advanced exploration project spanning approximately 19,000 acres, entirely owned by NewWest. The entire 2006 drilling program at Sandman included 170 drill holes with total footage exceeding 60,000 feet. Specific achievements from the Phase Two drilling program are as follows:
- Expanded a newly discovered zone of mineralization at Abel Knoll;
- Extended near-surface mineralization at Silica Ridge by 700 feet,
where the mineralization remains open; and
- Encountered a high-grade intercept at North Hill and extended
mineable-grade gold mineralization, where the mineralization remains
openNewWest's successful drilling program enabled it to complete its first NI 43-101 compliant resource at the project subsequent to quarter-end, with measured and indicated gold resources of 271,900 contained ounces and another 38,000 contained ounces of inferred gold resources. This represents approximately 8.0 million tons with an average gold grade of 0.034 oz Au/ton for measured and indicated resources and approximately 1.4 million tons with an average gold grade of 0.027 oz Au/ton for inferred resources.
NewWest's focus for the 2007 drilling program is threefold. First, to increase the resources at the known deposits by further defining and drilling structures which control mineralization; second, to conduct follow-up drilling on three district targets and third, to define and explore frontier target areas to discover new deposits. All of the deposits have potential for discovering more ounces.
Long Canyon Project Update
In the first quarter of 2007, NewWest announced results from the second of a two-phase drilling program at the Long Canyon project (Long Canyon), one of NewWest's principal projects in the Eastern Great Basin area of Elko County, Nevada. The entire 2006 drilling program at Long Canyon consisted of 25 holes totaling 10,405 feet, and included construction of access roads, systematic geologic mapping and sampling. In addition to successfully extending the known mineralization, gold mineralization remains open in all directions and at depth. The 2007 exploration program will include core and reverse circulation drilling, surface and road cut mapping and sampling and aerial photography.
Northumberland Project Update
In the first quarter of 2007, NewWest announced results from the
drilling program at its Northumberland project (Northumberland). The
two-phase exploration drilling program was carried out by Newmont USA
Limited, a subsidiary of Newmont Mining Corporation (NYSE:NEM)
("Newmont"), at a total cost of approximately US$3.0 million. The
drilling program included 54 holes with a total footage of 55,357.
The drilling program encountered excellent grades and thicknesses in
step-outs from a previously discovered feeder system. While the
feasibility has not been assessed, this suggests that a portion of
the Zanzibar deposit may be exploitable by either open-pit or
underground mining.Qualified Person
James Ashton, P.E., Reno, Nevada, is NewWest's qualified person as defined by NI 43-101 and has reviewed and approved the technical data in this news release.
Annual General Meeting
NewWest will host its first annual general meeting of shareholders on May 10, 2007 at 11 a.m. ET at The Toronto Board of Trade, Downtown Centre in Toronto, Ontario. Following the formal meeting, there will be a presentation by management and a question and answer session. A simultaneous live webcast will accompany the event and can be accessed at NewWest's website at www.newwestgold.com. The webcast will also be archived on the website.
Forward-Looking Statements
This news release includes certain "forward-looking statements" within the meaning of Canadian securities laws. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed in such forward-looking information. Forward-looking information in this news release includes but is not limited to, economic performance, statements regarding potential mineralization and reserve exploration, and future plans and objectives of NewWest Gold Corporation including future exploration and development. Any number of important factors could cause actual results to differ materially from these forward-looking statements, including those set out in the Company's Annual Information Form as of December 31, 2006. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed timeframes or at all. The Company disclaims any intention or obligation to update or revise any forward- looking statement, whether as a result of new information, future events or otherwise.
About NewWest
NewWest is one of the largest holders of precious metals mineral rights in Nevada's gold trends, spanning approximately 623,000 acres. NewWest holds 19 exploration projects, including advanced staged projects with measured and indicated resources. NewWest's goal is to advance its projects along the pipeline into production.
Contact:
For further information: NewWest Gold Corporation, Stephen Alfers,
President and Chief Executive Officer, Tel: +1-303-425-7042, Fax:
+1-303-425-6634, newwest@newwestgold.com