Western Goldfields Announces 2008 Production on Target
December 13 2007 - 4:30PM
PR Newswire (US)
- Heap leaching of new ore has commenced at Mesquite - Gold
production is on target for January 2008 - Capital costs are in
line with forecast TORONTO, Dec. 13 /PRNewswire-FirstCall/ --
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 http://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.
DATASOURCE: Western Goldfields Inc. CONTACT: please visit
http://www.westerngoldfields.com/, or contact Raymond Threlkeld,
President and Chief Executive Officer, (416) 324-6005, ; Julie
Taylor Pantziris, Director, Regulatory Affairs and Investor
Relations, (416) 324-6015,
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