Gold News

Western Goldfields exploration gets California gleaming

Western Goldfields has successfully completed exploration drilling in California with promising results, say the company.

After exploration that entailed the making of 125 reverse circulation drill holes at its 100 per cent owned Mesquite Mine in California's Imperial County, the company has detected good potential for gold.

Drilling at the Vista site intersected 30 feet containing 0.562 ounces of gold per ton, while at Brownie Hill a potential new oxide zone was uncovered, intersecting 130 feet of oxide mineralization, carrying an average of 0.021 ounces of gold per ton.

The Brownie Hill discoveries came after drilling depth was extended to 100,000 feet, up from the proposed 70,000 feet last September.

Western Goldfields president and chief executive, Raymond Threlkeld, was positive about the findings. "The high grade zone discovered in Vista continues to demonstrate the potential for additional ounces that exists at Mesquite," he said.

The Canadian junior mining company is expected to move from development stage to production output by January 2008, hoping to impact on the gold market with the yield of the Mesquite Mine.

A net loss of $6.6 million, or $0.06 per share, was suffered by the start-up company in the first half of 2007, but Western Goldfields announced this figure to be entirely consistent with its projections.


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