Westgold Resources Limited - Reports High Grade Gold Intercepts at South Fingall Prospect

12:27 AEST Nov 3, 2011 ABN Newswire (C) 2004-2011 Asia Business News PL. All Rights Reserved.

Perth, Australia (ABN Newswire) - Westgold Resources Limited (ASX:WGR) ('Westgold') is pleased to advise its recent drilling has intercepted a high-grade reef structure at the South Fingall Prospect in the Day Dawn Goldfield at its Central Murchison Gold Project (CMGP).

The area has previously been subject to wide-spaced shallow drilling, with a small open-pittable mineral resource of 65,000t @ 3.0 g/t Au defined. Westgold has reviewed the area with regard to the geological setting, structural interpretation and the proximity to the prolific Great Fingall and Golden Crown reef systems.

Westgold believes the area holds potential for additional narrow, moderately dipping quartz lode structures within the basalts in the footwall of the Great Fingall Dolerite unit. A focussed program of RC drilling was completed, with the following significant results returned:

GCRC1359 3m at 16.09g/t Au from 43m
Including 1m at 46.4g/t Au

GCRC1379 3m at 6.4g/t Au from 26m
Including 1m at 13.9g/t Au

GCRC1380 6m at 9.54g/t Au from 37m
Including 2m at 25.95g/t Au

GCRC1382 3m at 10.77g/t Au from 24m
Including 2m at 15.85g/t Au

GCRC1383 4m at 5.25g/t Au from 43m
Including 3m at 6.58g/t Au

The interpretation of the new and previous drilling from this area indicates a mineralised strike-length for the structure at South Fingall of circa 600 metres. The area now shows considerably more open pit potential and that a larger resource may be defined.

Importantly, the drilling has shown that there appears to be an increase in grade within the vein structure at depth which remains open. The results present real potential for additional high grade material which could be accessed in conjunction with the Company's development strategy for the re-start of underground mining at the Great Fingall and Golden Crown lodes. A depletion zone has historically been identified at the nearby Golden Crown reef being non-economic at surface, only reaching commercial grades below 100m vertical depth. Deeper drilling of the area is planned evaluate for depth extensions.


Westgold Managing Director Scott Huffadine said:

'This mineralisation is considered to be structurally related to the nearby Great Fingall Reef which has historically produced 1.2M ounces of gold at an average grade of 19.5 g/t Au and has been shown to continue to at least 1 kilometre in depth.

'We are excited by these early results which indicates both higher grade open pit potential, and points to additional significant high grade reef development in the area.'

The Day Dawn Gold field is located approximately 25 kilometres east of the proposed site for the CMGP processing facility at Big Bell, and 1km from the Great Northern Highway, with haul road infrastructure already in place. Westgold's continued strategy is develop several open-pit and underground mines from the many sources in its overall 2 Million ounce Identified Mineral Resource base as feedstock for a new plant.

For the complete announcement including figures and Appendix, please refer to the following link:
http://media.abnnewswire.net/media/en/docs/ASX-WGR-565284.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
Westgold Resources Limited

Andrew Beckwith
Director
Westgold Resources Limited

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