NewWest Gold Corporation Reports Phase One Drilling Results From Northumberland
Lakewood, Colarado, November 21 (ots/PRNewswire)
NewWest Gold
Corporation (TSX:NWG) ("NewWest" or "the Company") today announced
the preliminary results of the 2006 Phase One drilling program at
the Northumberland project, located in Nye County, Nevada. These
drill results were provided by the Company's joint venture partner,
Newmont Mining Corporation ("Newmont"). The Phase One program is
essentially complete and consisted of 37 reverse circulation (RC)
and core holes drilled with a total footage of 27,570 feet. The
purpose of the program was four-fold: to determine if the conceptual
pit at Northumberland could be expanded, to establish the
orientation and extent of the high-grade mineralization encountered
in hole NN-5, to obtain core samples for metallurgical and waste
rock characterization and finally, to test the Ziggurat anomaly on
the western range front.Holes NN-50 and NUN-75 indicate significant mineralization in or near the north wall of a conceptual pit that may result in expansion of the pit, which was developed internally by NewWest's partner, Newmont. Metallurgical testing on core samples is in progress. Complete drill and assay results from the Phase One program, as well as a map of the drill-hole locations, are available on the Company's website, www.newwestgold.com.
NewWest's wholly owned subsidiary, Nevada Western Gold LLC
("Nevada Western"), entered into a joint venture with Newmont on the
Northumberland project. Under the joint venture agreement terms,
Newmont may earn a 60% interest in the joint venture by completing
US$25 million in expenditures on the Northumberland project by 2010.
As of September 30, 2006, Newmont has spent US$4.8 million at
Northumberland. If Newmont fails to meet the expenditure
requirement, the joint venture will terminate and Nevada Western
retains 100% of the project. In addition, Nevada Western retains a
3% net smelter return royalty (NSR) on 100% of future gold
production."We expect the results from drill holes NN-50 and NUN-75 to drive expansion of the Northumberland conceptual pit to the north," said Steve Alfers, President and CEO. "Offset hole NN-56 confirmed continuity of a lower zone of mineralization, which could increase the depth of the conceptual pit and potentially expand our resource estimate at Northumberland. Moreover, the Phase One program included drilling in the shallow oxide material in the existing pit. Core hole NUN-74 encountered 40 feet of 0.285 ounces of gold per ton from 30 feet to 70 feet, and this confirmed the presence of significant shallow high-grade mineralization at the Northumberland project."
Zanzibar Deposit
The main focus of Phase One drilling in the mine area was to expand the Zanzibar Deposit by drilling around the north, west, and south sides of the conceptual pit, which was derived from Newmont's internal model of the Northumberland mineralization. Ten holes drilled in the general "north gulch" area, especially NN-50 and NUN-75, may expand the north wall of the conceptual pit. Two of the four holes drilled on the southern side of the conceptual pit, NN-65 and NUN-66, encountered 45 feet of 0.137 ounces of gold per ton (oz Au/ton) between 580 feet and 625 feet and 20 feet of 0.401 oz Au/ton between 765 feet and 785 feet, respectively. Three holes drilled in the west side, NN-33, NUN-71, and NUN-80, encountered lower-grade mineralization that is probably not sufficient to expand the conceptual pit to the west.
Two holes, NN-55 and NN-56, were angled to the south-southwest as 100- foot offsets to NN-5, a successful exploration hole drilled in 2004. The holes were drilled to find a continuation of the high-grade zone lying below the Zanzibar deposit that was intersected in hole NN-5. Hole NN-5 was Newmont's 2004 drill hole that encountered two zones of mineralization including 105 feet of 0.142 oz Au/ton and 65 feet of 0.267 oz Au/ton. The Phase One 2006 hole N-56 reported a 290-foot continuously mineralized zone grading 0.120 oz Au/ton that appears to be associated with both the Zanzibar Deposit (upper zone) and the lower zone discovered in hole NN-5. NN-56 extends the deep high-grade mineralization in NN-5 laterally approximately 65 feet to the east. Newmont plans to add two core holes to the Phase One program to follow-up on the success of NN-56.
Metallurgical Characterization
Seven core holes were drilled to obtain samples for metallurgical tests and waste-rock characterization. NN-60, NN-61, and NUN-74 were drilled to obtain oxidized samples from the Chipmunk and Main deposits. NUN -74 encountered 40 feet of oxide mineralization in the Main Deposit that averages 0.285 oz Au/ton within a depth range of 30 to 70 feet from the surface. NN-57, NN-58, NN-59, and NN-62 sampled sulfide material from the Zanzibar and States deposits. Metallurgical tests are in progress for the oxide samples.
Ziggurat Exploration Drilling
Five angle exploration RC holes, for a total footage of 2,976 feet, were drilled at the Ziggurat Anomaly, located approximately seven miles southwest of the mine area at the western front of the Toquima Range, to test a large area of strong outcrop gold and base-metal anomalies. The holes encountered no significant mineralization. Although the Ziggurat area still represents a viable exploration play, Newmont has no plans for additional drilling in the 2006 Phase Two program.
Phase Two Drill Program
During Phase Two, Newmont plans to spend approximately US$1.2 million. The objectives of the program are to explore for underground-mineable high- grade mineralization in the areas of NW1103 and NW1086A, and drilling the Orocopter target located at the eastern range front. Phase Two is in progress.
Qualified Person
Michael Gustin, Ph.D., of Mine Development Associates, Reno, Nevada, is NewWest's qualified person as defined by NI43-101 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, expansion of the conceptual pit, 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.
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, Jennifer Van
Dinter, Director of Investor Relations, Tel:+1-(303)-425-7042,
Fax:+1-(303)-425- 6634, info@newwestgold.com; NewWest Gold
Corporation, Stephen Alfers, President and Chief Executive Officer,
Tel:+1-(303)-425-7042, Fax:+1-(303)-425-6634