Newwest Gold Corporation Reports 2006 Operating and Financial Results
Lakewood, Colorado (ots/PRNewswire)
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.Project Highlights
- 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 previously discovered.
- 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 +1-416-644-3414 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 +1-416-640-1917 and entering the passcode 21220902 followed by the number sign. The webcast can be accessed at NewWest's web site at www.newwestgold.com.
Qualified Person
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 news release.
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.
Forward-Looking Statements 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.
Contact:
For further information: NewWest Gold Corporation, Stephen Alfers,
President and Chief Executive Officer, Tel: +1-303-425-7042, Fax:
+1-303-425-6634, newwest@newwestgold.com