Western Goldfields Begins Gold Production After Major Mine Expansion

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Researched by Industrial Info Resources (Sugar Land, Texas)--Earlier this quarter, gold production began at the Mesquite gold mine in Brawley, California. The owner, Western Goldfields (AMEX: WGW) (Toronto, Ontario) indicates that construction is nearing completion on a $109 million heap leach pad addition and mine expansion that will enable gold production of up to 165,000 ounces in 2008.

The majority of the project's cost went to purchase mining equipment. In addition, a multicell heap leach pad was constructed to handle 137 million tons of ore, as well as upgrades to the pumping and processing equipment.

Before beginning the expansion in 2007, Western Mesquite Mines Incorporated (Brawley), a subsidiary of Western Goldfields, produced gold at the Mesquite mine at reduced rates since the company acquired the property from Newmont Mining in 2003. Newmont had ceased operations in 2001. Owners of the Mesquite mine have been evaluating a heap leach expansion for more than 15 years, but market conditions have never allowed it to take place until now. Industrial Info first reported this project in 1993, when then-owner Santa Fe Pacific Gold (later acquired by Newmont Mining) began studying an expansion.

Gold mining firms are developing more than 40 projects totaling $4.9 billion in North America.

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