EX-99.1 2 doc2.txt EXHIBIT 99.1 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 ---------------------- - 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 --------------------- 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