Western Goldfields Announces Additional Fuel Hedging for 2009 and 2010
14 January 2009 - 1:44AM
PR Newswire (US)
TORONTO, Jan. 13 /PRNewswire-FirstCall/ -- Western Goldfields Inc.
("Western Goldfields" or the "Company") (TSX:WGI, NYSE
Alternext:WGW) is pleased to announce that it has entered into
additional fuel hedges for each of the next two years. - Additional
diesel fuel hedging program for approximately 25% of the Mesquite
Mine's diesel requirements for each of the next two years. -
Purchased 1,386,000 and 1,512,000 gallons of diesel at forward
prices of $1.68 and $1.87 per gallon in 2009 and 2010,
respectively. The Company announced its original fuel hedging
program on December 18, 2008 with Western Goldfields hedging
1,512,000 gallons per year in each of 2009 and 2010. With its most
recent hedges, the Company secured prices for 1,386,000 and
1,512,000 gallons of diesel for 2009 and 2010 at forward prices of
$1.68 and $1.87 per gallon, respectively. Combined with its
previously announced hedging program, Western Goldfields has now
hedged approximately 50% of its diesel requirement for each of the
next two years at weighted average prices of approximately $1.75
and $1.94 in 2009 and 2010, respectively. In addition to the hedge
price, Western Goldfields pays approximately $0.15 per gallon for
taxes and delivery charges. The hedge prices are materially lower
than the Company's plan which incorporated budgeted diesel costs of
$2.40 in 2009 and $2.75 per gallon thereafter including taxes and
delivery charges. Approximately 20% of Mesquite's operating costs
are attributable to diesel consumption. All amounts in US dollars
unless otherwise noted. Western Goldfields Inc.
----------------------- Western Goldfields Inc. is a gold
production and exploration company with a focus on precious metal
mining opportunities in North America. The Mesquite Mine, currently
the Company's sole asset, was brought into production in January
2008, and the Company's focus is now on achieving the anticipated
rate of production and completing planned improvements to the
property. The Company has 2.8 million ounces in Proven and Probable
Reserves as outlined in more detail in its latest annual report on
Form 10-KSB filed on http://www.sedar.com/. Western Goldfields
common shares trade on the Toronto Stock Exchange under the symbol
WGI, and on the NYSE Alternext under the symbol WGW. For further
details, please visit http://www.westerngoldfields.com/. Mr. Wes
Hanson, P.Geo., Vice President of Mine Development, Western
Goldfields Inc., is the qualified person under National Instrument
43-101 who supervised the preparation of the technical information
contained in this news release. Mr. Hanson is an officer of the
Company. Forward-Looking Information ---------------------------
Certain statements contained in this news release and subsequent
oral statements made by and on behalf of the Company may contain
forward-looking information within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and similar
Canadian legislation. Such forward-looking statements are
identified by words such as "intends", "anticipates", "believes",
"expects", "plans" and "hopes" and include, without limitation,
statements regarding the Company's plan of business operations,
production and cost estimates, potential contractual arrangements,
receipt of working capital, anticipated revenues, and capital and
operating expenditures. These forward-looking statements are based
on the best estimates of management at the time such statements are
made. There can be no assurance that such statements will prove to
be accurate; actual results and future events could differ
materially from such statements. Factors that could cause actual
results to differ materially include, among others, those set forth
in the Company's Annual Report on Form 10-KSB for the year ended
December 31, 2007 filed with the U.S. Securities and Exchange
Commission and the Ontario Securities Commission, under the
caption, "Risk Factors". Most of these factors are outside the
control of the Company. Investors are cautioned not to put undue
reliance on forward-looking statements. Except as otherwise
required by applicable securities statutes or regulation, the
Company disclaims any intent or obligation to update publicly these
forward-looking statements, whether as a result of new information,
future events or otherwise. DATASOURCE: Western Goldfields Inc.
CONTACT: please visit http://www.westerngoldfields.com/, or
contact: Raymond Threlkeld, President and CEO, (416) 324-6005, ;
Brian Penny, Chief Financial Officer, (416) 324-6002, ; Hannes
Portmann, Director, Corporate Development and Investor Relations,
(416) 324-6014,
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