NewWest Gold Corporation Receives its First NI 43-101 Compliant Resource Estimate for Sandman Project
Lakewood, Colorado (ots/PRNewswire)
- Brings Total NI 43-101 Compliant Measured and Indicated Resources to 1.8 Million Contained Gold Equivalent Ounces
NewWest Gold Corporation (TSX:NWG) ("NewWest"), today announced an
18% increase in its NI 43-101 compliant measured and indicated
contained gold resources, bringing the total contained gold
equivalent ounces attributable to NewWest's Northumberland, Zaca and
Sandman projects to approximately 1.8 million ounces. In addition,
NewWest has 239,000 contained gold equivalent ounces of inferred
resources for those projects. Gold equivalent is calculated at a
gold-silver ratio of 67:1. For a detailed resource table, please see
the table attached at the end of this release or refer to the Gold
Resources page of NewWest's website at www.newwestgold.com.NewWest made the announcement after confirming its first National Instrument 43-101 (NI 43-101) compliant resource estimate at its entirely owned Sandman Project (Sandman) in Humboldt County, Nevada. This is the first NI 43-101 compliant resource estimate for Sandman and incorporates results from NewWest's 2006 Sandman exploration drilling program. NewWest expects to file its NI 43-101 technical report within 45 days from the date of this news release.
The initial Sandman resource consists of measured and indicated resources of 271,900 contained gold ounces and an additional inferred resource of 38,000 contained gold ounces (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).
The NI 43-101 resource estimate at Sandman is comprised of resources from four deposits: Abel Knoll, North Hill, Silica Ridge, and Southeast Pediment. As previously reported, drilling at all four deposits has encountered high-grade mineralization.
"This initial resource estimate for Sandman sets the stage for our 2007 program to expand the resources at the four deposits, all of which remain open, and to continue testing identified targets, some of which already contain drilled mineralization," said Stephen Alfers, President and Chief Executive Officer. "The Abel Knoll deposit discovered in 2006 illustrates the potential to discover new deposits through additional exploration that will add ounces to the Sandman resource base."
Resource Estimate
Mine Development Associates of Reno, Nevada prepared the NI 43-101 compliant resource estimate using the standard inverse distance weighting method. The resource consists of measured and indicated gold resources of 271,900 contained ounces (representing approximately 8,033,000 tons with an average grade of 0.034 oz Au/ton) 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 resources for each of the four known gold deposits are shown in Table 1.
Table 1
Resource Estimates for the Four Sandman Gold Deposits
Measured &
Measured Indicated Indicated Inferred
Deposits Ounces Au Ounces Au Ounces Au Ounces Au
Abel Knoll 6,200 27,900 34,100 21,600
North Hill 14,400 78,400 92,800 6,200
Silica Ridge 16,200 39,000 55,200 7,400
SE Pediment 45,300 44,500 89,800 2,800
TOTALS 82,100 189,800 271,900 38,000
- Resource is based on a 0.010 oz Au/ton cutoff for the Abel Knoll,
North Hill, and Silica Ridge deposits, and 0.010 and 0.020 oz Au/ton
cutoffs for the SE Pediment deposit.The Sandman resource estimate is based on results from a total of 510 drill holes, 160 of which were drilled in 2006 within the resource calculation area. The 2006 drilling campaign consisted mainly of reverse-circulation rotary drilling augmented with some core drilling. The majority of the 2006 holes were step-outs drilled roughly on 100-foot centres making it possible to classify a large part of the resource into the measured and indicated categories.
2007 Sandman Exploration Program
This month, NewWest will initiate Phase One of the 2007 Exploration
Program at Sandman. This program is designed to accomplish three
objectives:
1) Increase the resources at the known deposits by further defining and
drilling structures which control mineralization. All of the deposits
have some potential for discovering more ounces because the 2006
drilling program ended before mineralization was completely closed
off by drill holes. Both the Abel Knoll and the North Hill deposits
look especially promising because they are open in several
directions;
2) Conduct follow-up drilling at the Sandbowl, Southeast Pediment West,
and Windmill targets. Each of these targets includes strongly
anomalous gold mineralization that was intercepted in holes drilled
in 2006; and
3) Define and explore frontier target areas to discover new deposits
that are as exciting and as significant as last year's frontier
discovery of the Abel Knoll deposit.NewWest will spend approximately US $0.6 million for reverse-circulation rotary drilling, geological research, and metallurgical scoping work during Phase One of the 2007 Sandman Exploration Program. Additionally, Phase One activities will include preparing a Plan of Operations for expanded exploration drilling at the North Hill and Silica Ridge deposits. NewWest will submit this permit application to state and federal regulatory agencies in the near future.
Phase Two of the 2007 Sandman Exploration Program is expected to consist of follow-up drilling on new discoveries identified by the 2007 Phase One drilling campaign, and district geochemical and geophysical surveys to identify new targets that are buried beneath the alluvial and wind-blown sand deposits that blanket the Sandman project area.
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 fire assay on a 30 gram sample with an atomic absorption finish. Samples with higher grades were re-assayed by fire assay with a gravimetric determination. QA/QC included assays on rig duplicate splits, and the insertion of numerous standards and blanks into the sample stream. Assays were checked using ALS Chemex, also of Sparks, Nevada. Michael Gustin, Ph.D., of Mine Development Associates, Reno, Nevada, is NewWest's qualified person as defined by NI 43-101 and has reviewed and approved the technical data in this news release.
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 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. 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, 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.
About NewWest
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-stage projects with measured and indicated resources. NewWest's goal is to move its projects into production.
NewWest Gold Resource Table(1)
Average Average
Northumberland Gold Grade Silver Grade Contained
Project(2)(3) Tons (oz Au/ton) (oz Ag/ton) Gold (oz)
Measured Resources 12,998,000 0.053 - 693,000
Indicated Resources 17,912,000 0.076 - 1,365,000
Total Measured and
Indicated Resources 30,910,000 0.067 - 2,058,000
Inferred Gold Resources 4,381,000 0.091 - 399,000
Inferred Silver
Resources 35,291,000 - 0.145 -
Total Inferred
Resources 399,000
Contained Gold NewWest's
Northumberland Contained Equivalent(4) Share
Project(2)(3) Silver (oz) (oz Au-eq) (oz Au-eq)
Measured Resources - 693,000 277,000
Indicated Resources - 1,365,000 546,000
Total Measured and
Indicated Resources - 2,058,000 823,000
Inferred Gold Resources - 399,000 160,000
Inferred Silver
Resources 5,111,000 76,000 30,000
Total Inferred
Resources 5,111,000 475,000 190,000
Average Average
Zaca Gold Grade Silver Grade Contained
Project(5) Tons (oz Au/ton) (oz Ag/ton) Gold (oz)
Measured Resources 8,097,000 0.019 0.704 151,000
Indicated Resources 18,730,000 0.014 0.707 266,000
Total Measured and
Indicated Resources 26,827,000 0.016 0.706 417,000
Total Inferred
Resources 329,000 0.018 1.033 6,000
Contained Gold NewWest's
Zaca Contained Equivalent(4) Share
Project(5) Silver (oz) (oz Au-eq) (oz Au-eq)
Measured Resources 5,700,000 236,000 236,000
Indicated Resources 13,242,000 464,000 464,000
Total Measured and
Indicated Resources 18,942,000 700,000 700,000
Total Inferred
Resources 340,000 11,000 11,000
Average Average
Sandman Gold Grade Silver Grade Contained
Project(6) Tons (oz Au/ton) (oz Ag/ton) Gold (oz)
Measured Resources 1,710,000 0.048 - 82,100
Indicated Resources 6,323,000 0.030 - 189,800
Total Measured and
Indicated Resources 8,033,000 0.034 - 271,900
Total Inferred
Resources 1,418,000 0.027 - 38,000
Contained Gold NewWest's
Sandman Contained Equivalent(4) Share
Project(6) Silver (oz) (oz Au-eq) (oz Au-eq)
Measured Resources - 82,100 82,100
Indicated Resources - 189,800 189,800
Total Measured and
Indicated Resources - 271,900 271,900
Total Inferred
Resources - 38,000 38,000
(1) Mineral resources have been estimated by Mine Development Associates
("MDA") in accordance with the standards adopted by the Canadian
Institute of Mining, Metallurgy and Petroleum ("CIM") Council in
August 2000, as amended, and prescribed by the Canadian Securities
Administrators' National Instrument 43-101 Standards of Disclosure
for Mineral Projects. The mineral resources expressed in the tables
above are based on the technical reports prepared by MDA as of
July 24, 2006 with respect to the Northumberland Project, May 24,
2006 with respect to the Zaca Project and the May 2007 resource
estimate with respect to the Sandman Project. NewWest expects to file
its NI 43-101 technical report for Sandman within 45 days from the
date of this news release.
(2) Resources are shown at both 100% and a 40% proforma basis, assuming
Newmont has earned its interest. Newmont can initially earn a 60%
interest in the joint venture by completing US$25 million of
expenditures on the property by the end of 2010. NewWest retains a 3%
net smelter return royalty on 100% of the Northumberland resources.
(3) The gold cut-off grades (expressed in ounces of gold per ton) for the
Northumberland Project measured, indicated and inferred resources are
0.01 for oxide material, 0.04 for shallow sulfide material and 0.10
for deep sulfide material. The inferred silver resources include only
silver lying within the modeled gold zones and within blocks that
exceed the gold cut-off grades; no silver cut-off is applied.
(4) Gold equivalent calculated at gold-silver ratio of 67:1.
(5) The cut-off grade for the Zaca Project measured, indicated and
inferred resources is 0.01 ounces of gold equivalent per ton.
(6) The cut-off grade (expressed in ounces of gold per ton) for the
Sandman Project measured, indicated and inferred resources is 0.01
for all of the shallow deposits and a 0.02 for the deeper zones at
the Southeast Pediment deposit.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