NewWest Gold Corporation Identifies New Gold Mineralization Zone at Abel Knoll
Lakewood, Colorado (ots/PRNewswire)
NewWest Gold Corporation
(TSX:NWG) ("NewWest") announced today that Phase Two drilling at its
Abel Knoll discovery at the Sandman Project in Humboldt County,
Nevada expanded a previously identified mineralized zone and
discovered a new zone of mineralization to the east-northeast.
NewWest's Phase Two drilling program followed a discovery of
high-grade gold mineralization at Abel Knoll disclosed on October
16, 2006.The Phase Two drilling program included 25 reverse circulation (RC) rotary holes with a total of 12,665 feet of drilling at Abel Knoll. The Abel Knoll drill holes were part of a US$1.2 million project-wide drilling program to test district exploration targets and to expand mineralization at three of the deposits at Sandman, including North Hill, Silica Ridge, and Southeast Pediment.
The Phase Two drilling program advanced the Abel Knoll target to a deposit with a quantifiable resource and significant upside potential.
"The presence of multiple and seemingly continuous high-grade zones in two holes (AK06-2 and AK06-23) is especially promising," said Steve Alfers, President and Chief Executive Officer. "The new discovery just to the east-northeast represents an exciting opportunity to add substantial size to the gold mineralization at Abel Knoll."
Phase Two results for Abel Knoll and a map of the drill-hole locations are available on the News page of NewWest's website at www.newwestgold.com. Reported average gold grades are based on a 0.010 0z Au/ton cutoff.
Abel Knoll Phase Two Drill Program Objectives
NewWest designed the Abel Knoll Phase Two drilling program to test the extent of the mineralization identified in the two exploration holes drilled during the Phase One drilling program. As reported on October 16, 2006, both Phase One drill holes intercepted gold mineralization. Hole AK06-2 encountered 420 feet of continuous gold mineralization from 245 to 655 feet with an average grade of 0.087 oz Au/ton. This interval includes two higher grade zones of 0.397 oz Au/ton between 350 and 375 feet and 0.192 oz Au/ton between 535 and 635 feet. The Phase Two step-out drilling near AK06-2 substantially defined the shape of this mineralized zone which remains open to the northwest. The Phase Two program also tested an inferred structural trend to follow-up the mineralization encountered in AK06-1, which contained two low-grade intervals.
Phase Two Drilling Defines Pipe-Shaped Mineralized Zone and Discovers New Zone of Mineralization
Twenty-one of the Phase Two drill holes were located to determine the size and geometry of the AK06-2 mineralized zone. Drilling results reveal a steeply-dipping, pipe-shaped mineralized body that is roughly 400-feet long in an east-west direction, 150-feet wide in a north-south direction, and 600 feet deep. Table 1 shows selected mineralized intervals in several of the drill holes that tested this pipe-shaped body.
Vertical hole AK06-18 encountered 325 feet with an average grade of 0.035 oz Au/ton. This hole was lost in mineralization due to bad ground conditions at a depth of 460 feet. Angle hole AK06-23 was drilled to a depth of 650 feet; however, assay results are only reported to a depth of 480 feet. Fire assays indicate that the remainder of the hole from 480 to 650 feet is mineralized with local high-grade intervals. Because this mineralization occurs below a 1.8 oz Au/ton interval at a depth of 440 to 445 feet, there is a concern that some of the higher grades below this interval could be related to contamination. NewWest intends to verify these assay results with a core hole before the RC results are released.
Four of the Phase Two drill holes tested an inferred structural trend near AK06-1. All four holes encountered mineralization and discovered a new mineralized zone that may be related to an apparent east-west or east-northeast-trending structure. Table 1 lists selected mineralized intercepts from these holes.
Table 1: Selected Phase Two Abel Knoll Drilling Results
Drill Depth From To Intercept Gold Grade High 5' Gold
Hole (feet) (feet) (feet) (feet) (oz Au/ton) (oz Au/ton)
Pipe-Shaped Mineralized Zone
AK06-4 470 330 430 100 0.039 0.232
AK06-11 580 170 175 5 0.053
AK06-14 740 550 700 150 0.031 0.067
AK06-15 440 340 380 40 0.080 0.267
AK06-18 460 135 460 325 0.035 0.094
AK06-19 460 160 405 245 0.030 0.100
AK06-23 650 215 220 5 0.010
235 260 25 0.024 0.047
285 480 195 0.136
Includes 425 450 25 0.604
Includes 440 445 5 1.800
AK06-26 470 230 275 45 0.063 0.313
305 355 50 0.041
365 375 10 0.031
Newly Discovered Mineralized Zone
AK06-9 360 160 240 80 0.029 0.065
AK06-20 280 170 215 45 0.033 0.131
AK06-24 220 175 180 5 0.022
180 185 5 No sample
185 195 10 0.021 0.021
AK06-25 320 245 320 75 0.023 0.052Future Planned Drilling
NewWest will conduct follow-up drilling of both the pipe-shaped mineralized body and the newly discovered zone. Because the pipe-shaped body contains significant groundwater, two core holes are planned to verify the high-grade zones identified in AK06-2 and AK06-23. Additional RC drilling will investigate the extent of the new discovery east-northeast of AK06-1.
Qualified Person
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 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-stage projects with measured and indicated resources. NewWest's goal is to move its projects 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, info@newwestgold.com