/NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES/
LAKEWOOD, CO, Aug. 13 /CNW/ - NewWest Gold Corporation (TSX:NWG)
("NewWest"), one of the largest holders of precious metals mineral rights
projects in Nevada's established gold trends, today announced its results for
the second quarter ended June 30, 2007.
Second Quarter Summary
- NewWest received its first National Instrument 43-101(NI 43-101)
compliant resource at its wholly owned Sandman project
- Subsequent to quarter-end, NewWest entered into an arrangement
agreement with Fronteer Development Group (Fronteer), pursuant to
which Fronteer will acquire all of NewWest's common shares through a
court-approved plan of arrangement
The loss for the second quarter was US $2.2 million or US $0.04 per
share, compared to US $1.4 million or US $0.03 per share during the same
quarter in 2006. The increased loss during the quarter was primarily the
result of higher exploration drilling costs, stock-based compensation expenses
and costs associated with the Fronteer transaction.
NewWest's total assets at June 30, 2007 were US $24.3 million compared to
total assets of US $27.5 million at December 31, 2006. NewWest's working
capital was $6.6 million at June 30, 2007.
The loss for the six months ended June 30, 2007 was US $3.7 million or
US $0.06 per share compared to $2.3 million or US $0.05 per share in the
comparable period last year.
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.
Sandman Project Update
During the second quarter of 2007, NewWest confirmed its first NI 43-101
compliant resource at Sandman. Located in Humboldt County, Nevada, the initial
Sandman resource estimate is based on resources from four deposits: Abel
Knoll, North Hill, Silica Ridge and Southeast Pediment, all of which
encountered high-grade gold mineralization.
The resource consists of measured ounces of 82,100 oz Au/ton and
indicated resources of 189,800 oz Au/ton, for measured and indicated resources
of 271,900 contained gold ounces (representing approximately 8,033,000 tons
with an average grade of 0.034) and an additional 38,000 contained gold ounces
of inferred resources (representing approximately 1,418,000 tons with an
average grade of 0.027 oz Au/ton). The resource is based on a 0.010 oz Au/ton
cut-off for all of the shallow deposits and a 0.020 oz Au/ton cutoff for the
deeper zones at the Southeast Pediment deposit.
At its Abel Knoll discovery at Sandman, NewWest reported that vertical
core hole AK07-28C returned a thick and nearly continuous section of gold
mineralization. The hole encountered 335 feet of continuous mineralization at
a grade of 0.075 oz Au/ton and provided the confidence to confirm the deeper
results for AK06-23 which now show 335 feet of continuous mineralization from
285 to 620 feet at a grade of 0.115 oz Au/ton.
Fronteer Agreement Arrangement
Subsequent to quarter-end, NewWest entered into an arrangement agreement
with Fronteer, pursuant to which Fronteer will acquire all of NewWest's common
shares through a court-approved plan of arrangement (the "Arrangement"). NWG
Investments Inc., the owner of approximately 86% of the outstanding common
shares of NewWest, has agreed to vote in favour of the Arrangement.
James Ashton, P.E., Reno, Nevada, is NewWest's qualified person as
defined by N I43-101 and has reviewed and approved the technical data in this
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, as well as completion of the Arrangement. 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.
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.
For further information:
For further information: NewWest Gold Corporation, Stephen Alfers,
President and Chief Executive Officer, Tel: (303) 425-7042, Fax: (303)