TORONTO, Jan. 13 /CNW/ - Western Goldfields Inc. ("Western Goldfields" or
the "Company") (TSX:WGI, NYSE Alternext:WGW) is pleased to announce that it
has entered into additional fuel hedges for each of the next two years.
- Additional diesel fuel hedging program for approximately 25% of the
Mesquite Mine's diesel requirements for each of the next two years.
- Purchased 1,386,000 and 1,512,000 gallons of diesel at forward prices
of $1.68 and $1.87 per gallon in 2009 and 2010, respectively.
The Company announced its original fuel hedging program on December 18,
2008 with Western Goldfields hedging 1,512,000 gallons per year in each of
2009 and 2010. With its most recent hedges, the Company secured prices for
1,386,000 and 1,512,000 gallons of diesel for 2009 and 2010 at forward prices
of $1.68 and $1.87 per gallon, respectively. Combined with its previously
announced hedging program, Western Goldfields has now hedged approximately 50%
of its diesel requirement for each of the next two years at weighted average
prices of approximately $1.75 and $1.94 in 2009 and 2010, respectively. In
addition to the hedge price, Western Goldfields pays approximately $0.15 per
gallon for taxes and delivery charges. The hedge prices are materially lower
than the Company's plan which incorporated budgeted diesel costs of $2.40 in
2009 and $2.75 per gallon thereafter including taxes and delivery charges.
Approximately 20% of Mesquite's operating costs are attributable to diesel
All amounts in US dollars unless otherwise noted.
Western Goldfields Inc.
Western Goldfields Inc. is a gold production and exploration company with
a focus on precious metal mining opportunities in North America. The Mesquite
Mine, currently the Company's sole asset, was brought into production in
January 2008, and the Company's focus is now on achieving the anticipated rate
of production and completing planned improvements to the property. The Company
has 2.8 million ounces in Proven and Probable Reserves as outlined in more
detail in its latest annual report on Form 10-KSB filed on www.sedar.com.
Western Goldfields common shares trade on the Toronto Stock Exchange under the
symbol WGI, and on the NYSE Alternext under the symbol WGW. For further
details, please visit www.westerngoldfields.com.
Mr. Wes Hanson, P.Geo., Vice President of Mine Development, Western
Goldfields Inc., is the qualified person under National Instrument 43-101 who
supervised the preparation of the technical information contained in this news
release. Mr. Hanson is an officer of the Company.
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", "plans" and "hopes" and include, without
limitation, statements regarding the Company's plan of business operations,
production and cost estimates, potential contractual arrangements, receipt of
working capital, anticipated revenues, and capital and operating expenditures.
These forward-looking statements are based on the best estimates of management
at the time such statements are made. 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, those set forth in the
Company's Annual Report on Form 10-KSB for the year ended December 31, 2007
filed with the U.S. Securities and Exchange Commission and the Ontario
Securities 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.
For further information:
For further information: please visit www.westerngoldfields.com, or
contact: Raymond Threlkeld, President and CEO, (416) 324-6005,
email@example.com; Brian Penny, Chief Financial Officer, (416)
324-6002, firstname.lastname@example.org; Hannes Portmann, Director, Corporate
Development and Investor Relations, (416) 324-6014,