LAKEWOOD, CO, March 29 /CNW/ - NewWest Gold Corporation (TSX:NWG)
("NewWest"), one of the largest holders of precious metals mineral rights
projects in Nevada's gold trends, today announced its fourth quarter and
year-end results for fiscal 2006.
- Drilling at the Sandman project verified newly discovered zones of
gold mineralization at Southeast Pediment, expanded mineralization at
Silica Ridge and North Hill and confirmed newly discovered high-grade
gold mineralization at Abel Knoll
- Phase Two of the drilling at Sandman also reported a high-grade
intercept at North Hill and advanced Abel Knoll to a deposit with
further upside potential
- Defined an open-ended zone of shallow, oxidized gold mineralization
with high grade intercepts from a two-phase drilling program at the
Long Canyon project
- Drilling at the Northumberland project carried out by its joint
venture partner, Newmont USA Limited ("Newmont"), a subsidiary of
Newmont Mining Corporation (NYSE: NEM), encountered impressive grades
and thicknesses in step-outs from mineralization in a feeder system
- Completing a NI 43-101 compliant resource at Sandman during 2007
"Fiscal 2006 was a breakout year for NewWest, marked by the significant
progress we made on our projects with active drilling programs," said Steve
Alfers, President and Chief Executive Officer. "Results from our Sandman
project, which include a new high-grade gold mineralization discovery at Abel
Knoll and a multi-ounce intercept at Southeast Pediment, are particularly
encouraging. We are currently in the process of completing a NI 43-101
compliant resource at Sandman which is expected to be complete during 2007."
NewWest is focused on exploring and developing its robust pipeline of 19
gold properties on the Nevada gold trends, including the Carlin and Cortez
trends. NewWest's goal is to become a producing gold company by advancing its
projects along the pipeline and into production.
Sandman Project Update
During the fourth quarter of 2006 and the first quarter of 2007, NewWest
reported results from its 2006 drilling program at the Sandman Project
(Sandman), an advanced exploration project with drill delineated gold
mineralization. In total, the drilling program included 170 holes with total
footage exceeding 60,000 feet. The twofold purpose of Phase One of the program
was to expand and test shallow and deep targets at the known mineralized zones
of Southeast Pediment, Silica Ridge and North Hill and test three district
targets at Abel Knoll, Windmill and Sandbowl. The Phase Two program was
designed to advance the Southeast Pediment, Silica Ridge, North Hill and Abel
Knoll deposits at the Sandman project.
At a total cost of approximately US$2 million, the 2006 drilling program
resulted in the verification of newly discovered zones of mineralization at
Southeast Pediment, with excellent grades and thicknesses; expanded
mineralization at Silica Ridge and North Hill, both laterally and at depth;
and discovered and advanced new high-grade gold mineralization at Abel Knoll.
The 2006 program advanced the Sandman project to four deposits with further
upside potential. The Company is currently in the process of preparing a NI
43-101 compliant resource at Sandman.
Northumberland Project Update
In the fourth quarter of 2006 and the first quarter of 2007, NewWest
reported results from the 2006 drilling program at the Northumberland Project
(Northumberland) carried out by its joint venture partner, Newmont. The
two-phase exploration drilling program included 54 holes with total footage of
55,357 feet. Northumberland is NewWest's flagship and most advanced project
and is subject to a joint venture with Newmont.
At a total cost of approximately US$3 million, the 2006 program drilled
numerous targets within Newmont's conceptual open pit as well as underground
targets within the Southwest Zanzibar target area. In addition, early-stage
targets were drilled outside of the resource area, on the eastern and western
range front within the Northumberland Project area.
The 2006 drilling encountered impressive grades and thicknesses in
step-outs from mineralization in a feeder system previously discovered in Hole
NN-5. Although the feasibility has not yet been assessed, it suggests that
this portion of the Zanzibar deposit may be exploitable by either open-pit or
underground mining methods. Drill results from other areas of the deposit
complex confirm, and in some cases enhance, the NewWest resource model. Based
on these results, NewWest and Newmont are considering a 2007 follow-up
drilling program at Northumberland.
Long Canyon Project Update
NewWest completed a two-phase 2006 drilling program at Long Canyon
consisting of 25 holes totalling 10,405 feet. Construction of nearly a mile of
new access roads, and systematic geologic mapping and sampling was also
completed. Systematic rock-chip channel sampling and detailed geologic mapping
of the new road cut exposures were also completed, representing a critical
element in the interpretation of the geology and the controls on gold
mineralization. The 2006 program successfully extended the known
mineralization approximately 500 feet to the northeast and 1,200 feet to the
southwest, defining a current cumulative strike length of approximately 3,000
feet. The target as defined by the soil and rock chip sampling remains open to
the southwest for approximately 1,800 feet. Gold mineralization remains open
in all directions and at depth. Hole LC-018 contains the highest grade
intercept to date at Long Canyon, with 45 feet averaging 0.585 oz Au/ton.
2006 Financial Overview
The loss for the year ended December 31, 2006 was US$7.6 million or
US$0.14 per share, compared to US$6.4 million or US$0.13 per share for 2005.
The increase in losses during the year was primarily due to higher exploration
costs associated with NewWest's drilling programs during the year. Total
expenses for the year ended December 31, 2006 were US$8.1 million compared to
US$4.8 million for 2005.
NewWest's total assets at December 31, 2006 were US$27.5 million compared
to total assets at December 31, 2005 of US$15.7 million. NewWest had working
capital of approximately US$10.5 million at December 31, 2006.
The loss for the three months ended December 31, 2006 was US$2.2 million
or $0.04 per share, compared to US$1.8 million or US$0.04 per share for the
same period in 2005.
The complete consolidated financial statements for December 31, 2006 and
related notes, as well as management's discussion and analysis, are available
on NewWest's website at www.newwestgold.com or on SEDAR at www.sedar.com. The
financial statements and management's discussion and analysis will also be
available in NewWest's 2006 annual report.
Conference Call and Webcast
Management will host a conference call at 10 a.m. ET on Thursday,
March 29, 2007 to discuss results for the fourth quarter and year ended
December 31, 2006. The call can be accessed by dialling 416-644-3414 or
1-800-732-0232. A replay of the call will be available until midnight on April
12, 2007. It can be accessed by dialing 1-877-289-8525 or 416-640-1917 and
entering the passcode 21220902 followed by the number sign. The webcast can be
accessed at NewWest's web site at www.newwestgold.com.
James Ashton, P.E., Reno, Nevada, is NewWest's qualified person as
defined by NI43-101 and has reviewed and approved the technical data in this
About NewWest Gold Corporation
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.
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 statements. Forward-looking statements in
this news release, include but are 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 prospectus dated August 18, 2006, as
well as future results. 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.
For further information:
For further information: NewWest Gold Corporation, Stephen Alfers,
President and Chief Executive Officer, Tel: (303) 425-7042, Fax: (303)