LAKEWOOD, CO, Nov. 21 /CNW/ - 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 $25 million in expenditures on the
Northumberland project by 2010. As of September 30, 2006, Newmont has spent
$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 $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.
