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Western Goldfields Releases Information on the Gold Point Project.

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PLANO, Texas--(BUSINESS WIRE)--Dec. 9, 2002

Western Goldfields, Inc. (OTC: WGDF) is pleased to announce information regarding its Gold Point project which is an underground, high-grade, quartz-gold occurrence located in Sierra County, California.

Western Goldfields owns a 100% interest in the unpatented claims that have no underlying royalties.

Prospecting was initiated in the project area during the early 1900's while ore production from the Gold Point vein reportedly began in 1918. According to the California State Mining Report of April 1923, "the mine was processing 60 to 75 tons per day with the ore averaging 1/2 ounce (17 grams) of gold per ton." It is estimated that approximately 100,000 tons of ore were mined through 1948 averaging about 10 grams/ton gold.

From 1984 to 1990, more than $1.5 million was spent on the project for underground mine rehabilitation and diamond drilling and which was conducted largely by a subsidiary of Battle Mountain Gold Company. More than 10,000 feet of drilling and 500 feet of drifting were completed including about 40 diamond drill holes. As an example of this work, eight core holes were drilled from diamond drill station #3. One of these holes was drilled away from the known vein to explore for additional structures and encountered no mineralization. However, seven of the holes encountered anomalous gold mineralization with intercepts ranging from 8.48 feet of 2.77 grams/ton (0.081 ounces/ton) to 5.39 feet of 41.51 grams/ton (1.212 ounces/ton) gold.

Gold mineralization is hosted in quartz vein material that occurs within a high angle fault zone juxtaposing metamorphosed limestone against greenstone of the Calaveras Formation. Vein thickness is variable although underground mining records indicate that it averages approximately 6 to 12 feet thick. The higher grade gold mineralization is associated with banded quartz veins that contain arsenopyrite.

Initial evaluation of the Gold Point mine suggests that additional development work and drilling is warranted to possibly delineate mineable resources. Exploration and development drilling to date indicates that the Gold Point vein is completely open down dip, and that strike potential also remains. If the results of future exploration are positive, management believes that the property may be capable of producing more than 25,000 ounces of gold per year from underground operations.

Certain statements contained herein may contain forward-looking statements that involve risks and uncertainties. Therefore, actual results may differ materially from those projected or implied.
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Publication:Business Wire
Date:Dec 9, 2002
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