Western Goldfields Announces First 2008 Gold Pour at Mesquite Mine
January 17 2008 - 9:13AM
PR Newswire (US)
All dollar amounts are in US millions (unaudited) TORONTO, Jan. 17
/PRNewswire-FirstCall/ -- 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. 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. 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 per ounce of gold. 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. DATASOURCE: Western Goldfields Inc.
CONTACT: please visit http://www.westerngoldfields.com/, or
contact: Raymond Threlkeld, President and Chief Executive Officer,
(416) 324-6005, ; Brian Penny, Chief Financial Officer, (416)
324-6002, ; Julie Taylor Pantziris, Director, Investor Relations,
(416) 324-6015,
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