Westgold Resources Limited - Announce Strong Initial Results at Central Murchison Gold Project and Project Update

11:56 AEST Sept 9, 2011 ABN Newswire (C) 2004-2011 Asia Business News PL. All Rights Reserved.

Perth, Australia (ABN Newswire) - Westgold Resources Limited (ASX:WGR) is pleased to announce that, in line with the development strategy for the Central Murchison project, a review of the assets commenced in June and an RC drill rig mobilised to site in late August.

The rig is currently drilling shallow open pit targets capable of supporting the existing high grade underground reserves.

The program will also complete the drill-out of the Jim's Find prospect to support resource estimation and subsequent reserve calculation.

Initial drilling has focussed on the Big Bell shear zone at Big Bell South, located 500m from the currently proposed site for the new processing facility.

This drilling was designed to validate the along-strike and down-dip extensions of the unmined southern section of the Big Bell pit.

Drilling has confirmed the base of the previous workings which are partially backfilled, and has in-filled existing intersections in the ore body below the pit.

Further drilling is planned to assist with resource estimation, with the aim of subsequently defining open pit reserves within close proximity to the proposed mill.

Hole BRC596 (98m at 1.59g/t from 101m) has been successful in validating the backfill limits of the previous mine workings and confirms the mineralisation below the pit.

This hole dipped into and drilled down the dip of the orebody confirming down dip continuity and identifying several internal high grade intervals.

These results indicate an increase in the width of the mineralised shear in this area from 20 metres up to 30 metres wide, and at depths considered suitable for open pit mining methods.

Further infill drilling will be undertaken to confirm this interpretation.

Westgold's Managing Director ScottHuffadine said, 'this is a great result from the first round of drilling arising from the review instigated in early June, it clearly highlights the potential in the broader Big Bell trend and certainly bodes well for the drilling planned here and at the other open pit targets in close proximity to the planned plant site.'

The review of the Big Bell mineralised trend has also highlighted the potential which exists below and along strike of the existing resources at Fender, 700/1100 and 1600N/Shocker.

These resources will be incorporated into a global model and optimised in aggregate, ensuring any benefits of scale are realised during future mining.

To date this review has only considered 4km of the 25km of strike of the Big Bell structural corridor which lies within the Company's tenements.

Further drilling and evaluation is planned.

Resource drilling at Jim's Find, in the Cuddingwarra area approximately 10 kilometres east of Big Bell, has commenced and is planned to be completed by late September.

Generation of a resource estimate will take place pending results and interpretation. The Company intends to maintain arig capable of RC and diamond drilling on site permanently to advance the development of additional targets.

Rover Project

The strategy to systematically drill test the six highest priority geophysical targets generated from the recent incorporation of the powerful Heli-TEM geophysical method has commenced.

Two holes have been completed at the Rover 7 deposit, with low level chlorite and magnetite alteration noted.

A downhole magnetic probe survey has been carried out to identify any stronger potential magnetic sources off hole.

This has been done on the basis that the observed alteration is not considered sufficient to generate the recorded magnetic response evident in the airborne data.

All casing has been left in the hole to allow for re-entry pending results. While the results at Rover 7 are modeled and evaluated for further drilling,

drilling has commenced at the Pathfinder 1 magnetic-gravity-EM target, located approximately 25 kilometres south west of Rover 1.

The first hole has confirmed the presence of magnetite and chlorite alteration, ranging in scale from narrow veins to broader zones within a brecciated lithology.

This style of alteration and mineral assemblage is considered encouraging and provides strong support for further drilling.

Geological and geophysical evaluation is underway with assay samples yet to be submitted.

Drilling of a second hole is currently in progress.

For the complete Westgold Resources Limited announcement including figures and tables, please view:
http://media.abnnewswire.net/media/en/docs/ASX-WGR-556556.pdf


About Westgold Resources Limited:

Westgold Resources Limited (ASX:WGR) has established the strong platform to build Australia’s next mid-tier Gold producer targeting production of 200,000 ounces per annum. This will be sourced from two main production centres located within two geological provinces which have historical combined production in excess of 10 Million ounces of gold.

The key projects are the Rover 1 Gold-Copper Project in the Northern Territory and the Central Murchison Gold Project in Western Australia which contain a 3 Million ounce gold equivalent resource base in aggregate. Both projects hold significant underlying exploration potential which will see the company well positioned to advance to production and build a project pipeline leveraging shareholder value from long life projects with established infrastructure.

The Company is building near term gold production from an integrated open pit and underground mining operation at the brown fields Central Murchison Gold Project (CMGP) and will move to develop a decline access to the Rover 1 deposit over the next 12 months.



Contact:

Scott Huffadine, Managing Director
Andrew Beckwith, Director - Exploration

Phone: +61-8-9326-5700
Email: admin@westgold.com.au
http://www.westgold.com.au