NewWest Gold Corporation Completes Drilling Program at Long Canyon
Lakewood, Colorado (ots/PRNewswire)
- Not for Distribution to United States Wire Services or for Dissemination in the United States
- Reports High Grade Intercept at LC-018
NewWest Gold Corporation (TSX:NWG) ("NewWest") today announced
results from its Phase One drilling program at Long Canyon, one of
NewWest's principal projects in the Eastern Great Basin area of Elko
County, Nevada. The best results include 0.585 oz Au/ton over 45 feet
(hole LC-018) and 0.092 oz Au/ton over 85 feet (hole LC-020). NewWest
plans a Phase Two drilling program later this fall.NewWest's wholly owned subsidiary, NewWest Gold USA Inc. is the
manager of a joint venture at Long Canyon with AuEx Ventures, Inc
(TSX-V: XAU) ("AuEx"). Under the terms of the joint venture, the two
companies combined NewWest's private land position with AuEx's mining
claims at Long Canyon. NewWest's initial interest on the project is
51% and AuEx's interest is 49%. NewWest has the right to earn its 51%
in the project by spending US$5.0 million within five years. Once
NewWest completes its earn-in, NewWest has the option to increase its
ownership to 65% by completing a feasibility study."We are encouraged by the results thus far in the 2006 drilling program," said Steve Alfers, President and CEO. "The drilling continues to produce impressive grades, and we have established the likely presence of multiple zones of gold mineralization."
The drilling 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. Gold mineralization remains open in all directions and at depth.
NewWest's 2006 Phase One program consisted of 16 reverse-circulation drill holes totaling 6,610 feet, construction of access roads, continued surface sampling, and geologic mapping. The program produced 13 drill holes with significant near surface intercepts, as shown in Table 1. Hole LC-018 contains the highest grade intercept to date at Long Canyon, with 45 feet averaging 0.585 oz Au/ton.
Two holes (LC-018 and LC-020) with higher grade intercepts also returned interesting gold grades in wide zones further down hole. However out of concerns about sample quality from the deeper reverse circulation drilling, these results are shown separately in Table 1. NewWest plans further investigation, including core drilling to confirm these downhole zones of potential mineralization.
All intercepts are reported as drilled; investigations to calculate true widths are ongoing. All drill intercepts from the current program consist of visually oxidized material. Preliminary cyanide amenability tests and check assays are in progress for all intervals. For complete results including a drill-hole location map, please visit NewWest's website at www.newwestgold.com.
Exploration by past operators in 2000 and AuEx in 2005 outlined a Carlin-style gold target within an anomaly defined by geologic mapping, grid soil geochemistry and rock chip sampling. Analysis of this data indicates that the target area is approximately 4,800 feet long. Prior operators completed fourteen reverse-circulation drill holes along the northern 1,200 feet of the gold anomaly, encountering significant gold mineralization.
TABLE 1
Hole From To Drill Gold Inclu- Inclu- Drill Gold
(feet) (feet) Inter- at a ding ding Inter- at a
cept 0.01 From To cept 0.15
(feet) ounce (feet) (feet) (feet) ounce
per ton per ton
("opt") ("opt")
cutoff cutoff
LC-015 90 140 50 0.040 - - - -
LC-016 20 30 10 0.010 - - - -
LC-017 75 100 25 0.014 - - - -
LC-018 115 160 45 0.585 130 155 25 0.959
160 275 115 0.065 - - - -
LC-019 - - - - - - - -
LC-020 35 120 85 0.092 80 90 10 0.231
120 170 50 0.020
LC-021 - - - - - - - -
LC-022 - - - - - - - -
LC-023 5 35 30 0.109 15 25 10 0.226
LC-024 20 60 40 0.048 20 25 5 0.160
LC-025 5 25 20 0.037 - - - -
LC-026 10 20 10 0.019 - - - -
LC-027 60 65 5 0.015 - - - -
LC-028 55 135 80 0.074 65 70 5 0.208
115 120 5 0.182
LC-029 65 90 25 0.036 - - - -
LC-030 85 105 20 0.032 - - - -
190 225 35 0.025 - - - -
250 295 45 0.065 - - - -Qualified Person
All drill samples were collected following standard industry practice and were assayed by American Assay Laboratories, Inc. of Sparks, Nevada. Gold results were determined using standard fire assay techniques on a 30 gram sample with an atomic absorption finish. QA/QC included the insertion of numerous standards and blanks into the sample stream. All data as disclosed in this news release, including analytical and test data, have been verified by Michael Gustin, Ph.D., of Mine Development Associates, Reno, Nevada. Mr. Gustin is NewWest's qualified person as defined by NI43.101 and has reviewed this news release.
About NewWest Gold Corporation
NewWest Gold Corporation is one of the largest holders of precious metals mineral rights in Nevada's gold trends, spanning approximately 623,000 acres. NewWest holds nineteen exploration projects, including advanced staged projects with measured and indicated resources. NewWest's goal is to advance its projects along the pipeline into production. In addition to Long Canyon, NewWest has active drilling programs at Northumberland and Sandman, where drilling programs are now complete, and NewWest awaits results.
Forward-Looking Statements
Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. Implicit in this information, particularly in respect of future operating results, economic performance, potential mineralization and resources, exploration results and further plans and objectives are forward looking statements that involve various risks and uncertainties which, although considered reasonable by NewWest at the time of preparation, may prove to be incorrect. Readers are cautioned that there can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the common shares in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The common shares of NewWest have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an application for exemption from the registration requirements of U.S. securities laws.
Contact:
For further information: NewWest Gold Corporation, Stephen D. Alfers,
President and Chief Executive Officer, Tel: +1-303-425-7042, Fax:
+1-303-425-6634, info@newwestgold.com; BarnesMcInerney Inc., Daniel
Weinerman, Tel: +1-416-367-5000 ext. 248, Fax: +1-416-367-5390,
dweinerman@barnesmcinerney.com