NewWest Gold Corporation Reports Second Quarter 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 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
Financial Overview
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 http://www.newwestgold.com, or http://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.
Qualified Person
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 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, 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.
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 staged projects with measured and indicated resources. NewWest's goal is to advance its projects along the pipeline into production.
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