Wheels Group Inc GRFJF

Second Quarter Production on Target...

[infojoe]

Western Goldfields Second Quarter Production on Target

 <<  

- Gold production for second quarter at the high end of the  

forecasted range  

- Mine became cash flow positive in June 2008  

>>  

  

TORONTO, July 2 /CNW/ - Western Goldfields Inc. (TSX:WGI, AMEX:WGW) is  

pleased to provide an unaudited second quarter production update for its  

Mesquite Mine in California.  

  

Second Quarter and Year-to-Date Highlights  

------------------------------------------  

<<  

Gold production:  

  

- Gold produced was 28,524 ounces, which is at the high end of the  

forecasted range of 20,000 - 30,000 ounces of gold.  

- Gold sold during the quarter was 22,760 ounces at an average price of  

$893 per ounce.  

- Total year-to-date gold production was 37,590 ounces and year-to-date  

gold sales were 32,720 ounces at an average price of $905 per ounce.  

- Gold production has increased to over 600 ounces daily and is  

expected to remain at these levels for the remainder of 2008.  

  

The Mesquite Mine has achieved the following:  

  

- 1,926,738 tons of ore at an average grade of 0.037 ounces gold per  

ton, containing 72,840 ounces of gold, were placed on the leach pad  

during the second quarter.  

- 3,195,474 tons of ore at an average grade of 0.029 ounces gold per  

ton, containing 91,800 ounces of gold, were delivered to the leach  

pad year-to-date.  

>>  

  

"The mine equipment and operations are performing as planned and gold  

production is continually increasing as we add more ore to the leach pad,"  

reported Mr. Raymond W. Threlkeld, President and Chief Executive Officer. "Now  

that we have reached our targeted daily gold production we will focus our  

efforts on optimizing operations at the mine," he added.  

Daily gold production has continued to increase since production began in  

January 2008. The mine became cash flow positive during June 2008.  

  

2008 Outlook  

------------  

The Mesquite Mine is expected to produce between 55,000 to 60,000 ounces  

of gold during the third quarter of 2008 as higher grade ore from the Rainbow  

Pit is placed on the leach pad. Gold production for 2008 is projected to be  

135,000 - 145,000 ounces of gold.  

  

Western Goldfields Inc.  

-----------------------  

Western Goldfields Inc. is a gold producer 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 maximizing production and  

completing planned improvements to the operations. Western Goldfields common  

shares trade on the Toronto Stock Exchange under the symbol WGI, and on the  

American Stock Exchange under the symbol WGW. For further details, please  

visit   www.westerngoldfields.com.
  

  

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.  

  

%CIK: 0001394186  

  

For further information: please visit   www.westerngoldfields.com, or
  

contact: Raymond Threlkeld, President and CEO, [phone],  

  [e-mail]; Brian Penny, Chief Financial Officer, (416)
  

324-6002,   [e-mail], Julie Taylor Pantziris, Director,
  

Regulatory Affairs and Investor Relations, [phone],  

  [e-mail]