EXHIBIT 99.1
WESTERN GOLDFIELDS, INC.
AN EMERGING NORTH AMERICAN GOLD PRODUCER OCTOBER 2004
CAUTIONARY STATEMENT
This presentation includes certain estimates, projections and "forward
looking statements" within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended that have been provided by the Company
with respect to its anticipated future performance. Such forward looking
statements reflect various assumptions by the Company concerning
anticipated results, which assumptions may or may not prove to be correct.
No representations are made as to the accuracy of such statements,
estimates or projections. These forward-looking statements are made
pursuant to the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. While these statements are made to convey
the Company's progress, business opportunities and growth prospects, such
forward-looking statements represent management's opinion. Whereas
management believes such representations to be true and accurate based on
information and data available to the Company at this time, actual results
may differ materially from those described. The Company's operations and
business prospects are always subject to risks and uncertainties.
WESTERN GOLDFIELDS, INC.
MISSION STATEMENT
FOCUSED ON BECOMING A MID-TIER NORTH AMERICAN GOLD PRODUCER
- EXPAND ANNUAL GOLD PRODUCTION FROM 30,000 THIS YEAR TO GREATER THAN
50,000 OUNCES IN 2005 FROM THE MESQUITE MINE, WHICH WAS ACQUIRED FROM
NEWMONT MINING COMPANY IN NOVEMBER 2003
- IMPROVE STOCK MARKET LIQUIDITY BY OBTAINING A CANADIAN LISTING IN
EARLY 2005 AND MOVE TO A SENIOR U.S. EXCHANGE BY YEAR END 2005
- ESTABLISH AT LEAST TEN YEARS OF GOLD RESERVES FROM MESQUITE, THE
ACQUISITION OF ADVANCED-STAGE PROJECT OPPORTUNITIES AND OUR IN-HOUSE
EXPLORATION PROJECTS
- INCREASE ANNUAL GOLD PRODUCTION TO 250,000 OUNCES WITHIN FIVE YEARS
- HIGHLY EXPERIENCED MANAGEMENT TEAM WITH A PROVEN TRACK RECORD IS
COMMITTED TO REDUCING OPERATING COSTS
MINING PROJECTS
- PRODUCING GOLD PROPERTY: OTHER EXPLORATION PROJECTS:
- Mesquite Gold Mine (California) Nevada (7 precious metal)
- ADVANCED GOLD EXPLORATION PROJECTS: California (2 gold projects)
- Cahuilla Gold Project (California) Idaho (3 silver projects)
- Lincoln Hill Gold Mine (Nevada)
- Sunny Slope Gold Mine (Nevada)
CAPITALIZATION
EXCHANGE: OTC BB
SYMBOL: "WGDF"
RECENT SHARE PRICE (9/28/04): $0.63
52 WEEK HIGH-LOW: $1.90 - $0.58
SHARES ISSUED/OUTSTANDING 38.3 MILLION
FULLY DILUTED SHARES: 65.1 MILLION
MARKET CAPITALIZATION: $24.9 MILLION
CASH: $2.0 MILLION
MANAGEMENT TEAM
- - THOMAS (TOBY) MANCUSO, PRESIDENT & DIRECTOR
(Formerly Rio Tinto/Kennecott and Freeport Gold)
- - LARRY O'CONNOR, VICE PRESIDENT OPERATIONS
(Formerly Eldorado Gold, Bema Gold, Western Mining)
- - MARK SHONNARD, CFO, SECRETARY & TREASURER
(Formerly BHP, Magma Copper, Nevada Colca Gold, Lacana)
- - THOMAS CALLICRATE, VICE PRESIDENT EXPLORATION & DIRECTOR
(Formerly Kennecott, Newmont, FMC Gold, Freeport Gold)
INDEPENDENT DIRECTORS
- - JAMES MANCUSO, CHAIRMAN
- Chairman, Monterrico Metals; Director, Queenstake
- Formerly President, Queenstake & Chevron Minerals
- - DOUGLAS NEWBY, DIRECTOR
- Currently President, Proteus Capital Corporation
- Formerly Managing Partner, Moyes Newby & Co.; held senior positions
within S. G. Warburg, Morgan Grenfell, and James Capel
- - GERALD RUTH, DIRECTOR
- Currently operating consulting business providing services to issuers
on corporate finance, exchange listing and corporate governance
matters
- Formerly Head of Listings Group at the Toronto Stock Exchange
FINANCIAL ACHIEVMENTS AND LISTING OBJECTIVES
- - COMPLETION OF $10 MILLION EQUITY FINANCING IN DECEMBER 2003
- - SB-2 REGISTRATION COMPLETED AUGUST 12, 2004
- - CONSIDERING FINANCING ALTERNATIVES FOR FUNDING MESQUITE MINE DEVELOPMENT
AND OTHER EXPLORATION PROJECTS
- - PLAN TO LIST ON A CANADIAN EXCHANGE IN EARLY 2005
- - PLAN TO LIST ON A SENIOR U.S. EXCHANGE IN 2005
MESQUITE MINE
ACQUIRED FROM NEWMONT ON NOVEMBER 7, 2003
PRIMARY CORPORATE OBJECTIVE: Initiate MINING OPERATIONS AT THE MESQUITE MINE
EXPANSION PROJECT AS RAPIDLY AS POSSIBLE.
MESQUITE MINE
ACQUISITION TERMS
- WESTERN GOLDFIELDS ASSUMED RECLAMATION AND CLOSURE RESPONSIBILITY OF
APPROXIMATELY $6 MILLION, COVERED BY A COMPREHENSIVE ENVIRONMENTAL
INSURANCE POLICY WITH AIG
- PAYMENT TO NEWMONT OF 50% OF CASH FLOWS FROM GOLD RECOVERED FROM
EXISTING LEACH PADS, LESS CERTAIN ALLOWANCES, CURRENTLY UNDER
RE-NEGOTIATION
- ROYALTIES OF 0.5% TO 2% ON NEWLY-MINED ORE TO NEWMONT
- ISSUANCE OF 3.4 MILLION SHARES TO NEWMONT WHO REPRESENTS A MAJOR
STAKEHOLDER IN WESTERN GOLDFIELDS
MESQUITE MINE
MAJOR ACCOMPLISHMENTS
- OPERATIONS TRANSITION FROM CONTRACTOR TO WESTERN GOLDFIELDS COMPLETED
- GOLD REFINERY RE-COMMISSIONED, GOLD DORE' IS PRODUCED ON SITE
- FAVORABLE INTERNAL SCOPING STUDY FOR RE-PROCESSING LEACH PAD MATERIAL
- FAVORABLE INTERNAL SCOPING STUDY FOR EXPANDING MINING OPERATIONS
- EXCELLENT SHALLOW HIGH GRADE AND DEEP ORE DEVELOPMENT POTENTIAL
IDENTIFIED
MESQUITE MINE
EXISTING LEACH PADS
- - MESQUITE HAS PRODUCED 2,991,000 OUNCES OF GOLD AS OF SEPTEMBER 1, 2004
- - STRIVING TO IMPROVE LEACHING OPERATIONS
- Improving the leach cycle and pad solution chemistry
- Conducted heap drill programs in conjunction with extensive ore
testing
- Heap re-processing feasibility study in progress designed to enhance
gold recovery, scoping study positive
MESQUITE MINE
MINE EXPANSIONS
PERMITTED EXPANSIONS AS CALCULATED BY NEWMONT, VALIDATED BY MINE DEVELOPMENT
ASSOCIATES
- - GLOBAL RESOURCE - 120.7 MILLION TONS @ 0.018 OZ/TON GOLD
- - MINEABLE MATERIAL - 42 MILLION TONS @ 0.021 OZ/T GOLD
MESQUITE MINE
BIG CHIEF NORTH EXTENSION
- - IN-HOUSE GEOLOGIC MINERAL MODEL COMPLETE INDICATING RESOURCE OF 19,727,300
TONS @ 0.022 OZ/TON
- - 5,200,000 TONS @ 0.032 OZ/TON ESTIMATED TO BE MINEABLE
- - 100% OF THE RESOURCE IS OXIDIZED
- - GOLD MINERALIZATION IS OPEN-ENDED, DRILLING PROGRAM IS BEING DESIGNED TO
EXPAND RESOURCE
MESQUITE MINE (PHOTO)
MESQUITE MINE
HIGH GRADE POTENTIAL
- - BIG CHIEF SOUTH/BAYHORSE - HIGH GRADE DRILL INTERCEPTS IN PLACE:
- MR-3052 - 80 feet averaging 0.67 oz/t gold including 30 feet averaging
1.71 (HIGHEST 5' VALUE @ 6.14 OZ/TON)
- SM-1404 - 50 feet @ 0.96 oz/t gold including 10' @ 4.41 OZ/T
- SM-1970 - 10 feet @ 3.88 oz/t gold including 5' @ 7.5 OZ/T
- MR-2793 - 50 feet @ .37 oz/t gold including 10' @ 1.74 OZ/T
- - HIGH GRADE GOLD MINERALIZATION ALSO ENCOUNTERED IN MANY OTHER AREAS
THROUGHOUT THE PERMITTED MINE SITE
- - SIGNIFICANT DEEP HIGH GRADE TARGETS HAVE BEEN IDENTIFIED THROUGH DETAILED
EVALUATION OF THE VAST GEOLOGIC DATABASE
MESQUITE MINE (PHOTO)
MESQUITE MINE
OPERATIONS PLAN
- - INITIATE RE-PROCESSING OF THE LEACH PADS DURING 4TH QUARTER 2004
- - BEGIN DEVELOPMENT DRILL PROGRAM ON MINE EXPANSIONS 4TH QUARTER 2004
- - RESUME MINING OPERATIONS IN BIG CHIEF NORTH EXTENSION 1ST HALF 2005
- - INITIATE DRILL TESTING OF BOTH SHALLOW AND DEEP HIGH GRADE POTENTIAL 2005
- - EVALUATE UNDERGROUND MINING AND ALTERNATIVE PROCESSING METHODS FOR HIGH
GRADE MINERALIZATION 2005
ADVANCED EXPLORATION
CAHUILLA GOLD PROJECT
- - HOSTS A RESOURCE OF 856,000 OUNCES, BOTH HIGH-GRADE AND BULK DISSEMINATED
GOLD
- - MAJORITY OF PROJECT IS ON THE TORRES MARTINEZ RESERVATION IN CALIFORNIA,
PROVIDING SIGNIFICANT DEVELOPMENT AND PERMITTING BENEFITS
- - EXPLORED BY MAJOR MINING COMPANIES; ESTIMATED $5 MILLION SPENT BY NEWMONT,
HOMESTAKE (BARRICK) AND KENNECOTT
ADVANCED EXPLORATION
CAHUILLA GOLD PROJECT
- - HOLD EXCLUSIVE EXPLORATION & MINING RIGHTS; SUBMITTED FORMAL MINING
AGREEMENT, AWAITING BIA APPROVAL
- - POTENTIAL FOR HIGH-GRADE UNDERGROUND AND BULK-TONNAGE OPEN PIT MINES
- - MAJORITY OF THE BEST TARGETS REMAIN UNTESTED, DEMONSTRATES MULTI-MILLION
OUNCE GOLD POTENTIAL
EXPLORATION PROPERTIES
ADVANCED PROJECTS
- - LINCOLN HILL, NEVADA - ADJACENT TO THE COEUR ROCHESTER MINE
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- - EXECUTING JV AGREEMENT, DESIGNING EXTENSIVE EXPLORATION/DEVELOPMENT PROGRAM
- - MULTI-MILLION OUNCE POTENTIAL, PROSPECTIVE FOR HIGH-GRADE UNDERGROUND AND
BULK-MINEABLE OPEN PIT DEVELOPMENT
- - SUNNY SLOPE, NEVADA - GOLD VALUES UP TO 24.572 OZ/T DETECTED FROM
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SURFACE HIGH GRADE VEINS
- - EXECUTED LETTER OF INTENT TO INITIATE PROJECT EXPLORATION AND DEVELOPMENT
- - COMPLETELY UNDER-EXPLORED, NEVER DRILL TESTED
SUMMARY
- - MESQUITE MINE
- ACCELERATE MINING OF ADDITIONAL GOLD RESOURCES
- IMPROVE GOLD RECOVERY BY RE-PROCESSING EXISTING LEACH PADS
- - EXCELLENT POTENTIAL TO SIGNIFICANTLY INCREASE GOLD RESOURCES AND PRODUCTION
IN BOTH THE SHORT AND LONG TERM
- - AGGRESSIVE PLAN TO IMPROVE STOCK MARKET LIQUIDITY
- - IMPRESSIVE PORTFOLIO OF SUPERIOR EXPLORATION PROJECTS
- - HIGHLY EXPERIENCED AND COMMITTED MANAGEMENT TEAM
Western Goldfields, Inc.
An Emerging North American Gold Producer