Reports Multi-Ounce Intercept at SEP06-104c
LAKEWOOD, CO, Dec. 21 /CNW/ - NewWest Gold Corporation (TSX:NWG) ("NewWest") today announced that three of its 20 holes drilled at Southeast Pediment verified high-grade occurrences, with one hole reporting significant thickness of near-surface high-grade mineralization. The announced results at Southeast Pediment are in conjunction with NewWest's Phase Two drilling program at its Sandman Project (Sandman), located in Humboldt County, Nevada. Southeast Pediment is one of the four deposits being explored at Sandman.
Phase Two drilling at Southeast Pediment consisted of 20 drill holes, including 10 reverse circulation (RC) holes and 10 core holes with total footage of 10,793 feet. In addition to Southeast Pediment, NewWest's Phase Two program at Sandman is ongoing and is designed to include an additional 80 holes at North Hill, Silica Ridge and Abel Knoll. The estimated budget for the complete Phase Two program at Sandman is approximately US$1.2 million. Phase Two results for Southeast Pediment and a map of the drill-hole locations are available on the News page of NewWest's website at www.newwestgold.com.
"The Phase Two program at Southeast Pediment clearly achieved its objectives, further defining the shape and continuity of mineralization along the andesite sills." said Steve Alfers, President and Chief Executive Officer. "SEP06-104c with 75 feet of 1.047 oz Au/ton, including 10 feet of 7.549 oz Au/ton is especially exciting and speaks to the potential of Southeast Pediment. The program also confirmed significant thicknesses of mineralization at depth as seen in hole SEP06-112, including 150 feet of 0.051 oz Au/ton beginning at a depth of 335 feet. Finally, the results from West Southeast Pediment are encouraging because they identify a new high-angle structure and a prospective exploration target."
Phase Two Drill Program Objectives at Southeast Pediment
The objectives for the Phase Two drill program at Southeast Pediment were to determine the size and continuity of the mineralized zones at the andesite sill contacts, obtain core samples for metallurgical testing, confirm grades from previous RC holes, and explore for mineralization at the eastern margin of the West Southeast Pediment andesite sill.
Selected assay results are presented below. Intervals are averages of fire assay gold values using a cut-off grade of approximately 0.010 oz Au/ton. Mineralization at Southeast Pediment occurs in various orientations (see cross sections on Company website); reported intercepts are generally slightly greater than true thickness.
Core Verification
Four vertical core holes, SEP06-102c through SEP06-105c, were drilled to twin RC holes and/or verify grade projections based on the earlier drill data. These four holes have a total footage of 655 feet.
Core verification holes SEP06-103c, SEP06-104c, and SEP06-105c verified high-grade occurrences, and in the case of SEP06-104c with 10 feet of 7.549 oz Au/ton, reported significantly higher grade than the RC twin. Results from SEP06-102c encountered mineralization that generally supports the location of mineralized zones indicated by adjacent holes.
Andesite Target
Six HQ core holes, SEP06-96c through SEP06-101c, were drilled into the andesite sill at the Southeast Pediment deposit. Results from holes SEP06-96c through SEP06-99c are consistent with mineralization indicated by the older drill data. SEP06-100c and SEP06-101c, as well as eight RC holes (SEP06-106 through SEP-113), were drilled to extend the andesite sill to the north and down-dip to the west. Total core footage for the six holes is 3,768 feet; total RC footage for the eight RC holes is 5,210 feet.
The drilling established an 800-foot north-south length to the sill. SEP06-109 and SEP06-113 defined the northern limit to the sill. Mineralization associated with the sill was encountered in all of these holes except SEP06-100c.
SEP06-110 through SEP06-112 encountered strong mineralization within the andesite. Specifically, hole SEP06-112 encountered 150 feet of continuous mineralization with an average grade of 0.051 oz Au/ton between 335 and 485. This zone includes 15 feet of 0.188 oz Au/ton with a five-foot high of 0.366 oz Au/ton. Hole SEP06-111, in addition to successfully testing the deeper zone, encountered shallow mineralization between 30 and 125 feet. This shallow mineralization, which includes 25 feet of 0.197 oz Au/ton with a five-foot high of 0.428 oz Au/ton, extends previously defined high-grade mineralization approximately 50 feet to the east.
West Southeast Pediment
SEP06-115 successfully encountered the West Southeast Pediment sill. This hole was drilled to a total depth of approximately 700 feet. Low-grade mineralization encountered in both SEP06-114 and SEP06-115 occurs above the andesite in tuffaceous rock, possibly associated with a newly recognized high-angle fault. This strongly anomalous mineralization adds to the discovery potential of the West SEP anomaly.
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, 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.