Westgold Resources Limited (ASX: WGR)

• Two new mineralised zones discovered to the west of previous drilling indicate potential for significant extensions to the large-scale Tennant Creek Style system

• Strong Copper-Gold-Cobalt-Bismuth mineralisation now defined over 500m strike length and within an 800m long magnetic and gravity target

• Second diamond drill rig commissioned to target immediate extensions of new zone before utilisation on new regional targets ~ drilling scheduled to commence on 18 June

Following the successful completion of a $5.7M Rights Issue and the commencement of 2009 drilling season, Westgold provides the following update on progress at the Company’s Rover 1 Project, located in the Northern Territory. 

The drilling programme, which consists of both Reverse Circulation (RC) and diamond drilling, is progressing well. RC drilling commenced in mid-March, where 27 pre-collars for a total of 6,240m have been completed. The RC drilling allows for the rapid penetration through the barren cover sequence and provides effective and rapid access for the subsequent diamond drilling programme.

Diamond drilling commenced in early April and is also progressing well with 7 diamond ?tails? for a total of 2,104m completed to date. Results for the first three holes have been received and most importantly, have discovered two new zones of mineralisation, 250m to the west of previous drilling. Results for hole WGR1D018 include:

Ironstone Hosted  53m @ 0.5% Cu, 0.03g/t Au, 0.3g/t Ag, 02% Co from 446m

                       (including 8m @ 1.2% Cu, 0.09g/t Au, 1.0g/t Ag, 0.06%Co)

Stringer Zone                     18m @ 1.2% Cu, 0.71g/t Au, 3.1g/t Ag, 0.15% Bi, 0.15% Co from 536m

                       (including 8m @ 1.6% Cu, 1.2g/t Au, 4.9g/tAg, 0.23% Bi, 0.19% Co)

These two new zones of mineralisation add an exciting new dimension to the scale of this large Tennant Creek Style system with strong Copper-Gold-Cobalt-Bismuth mineralisation now defined over a 500m strike length and within an 800m long magnetic and gravity target.

The mineralisation occurs within a 75m wide (true width), well-developed magnetite-rich ironstone and intense chlorite alteration zone. The strongest copper and gold (18m @ 1.2% Cu, 0.71g/t Au) are hosted within the chlorite-rich alteration in a brecciated and veined Stringer Zone which typically hosts the-high grade gold mineralisation 250m along strike to the immediate east. The massive magnetite-rich ironstone portion also hosts further copper mineralisation with 53m @ 0.5% Cu from 446m including 8m @ 1.2% Cu.

In light of the Company’s recent exploration success, Westgold has scheduled a second diamond drill rig to commence on 18 June. This rig will target immediate extensions to this new zone and potential high-grade gold structures before utilisation on new regional targets.

Drill hole WGR1D013  which targeted the eastern most limit of drilling, immediately below the previously reported high-grade copper zone (65m @ 2.6% Cu, 0.09g/t Au)  has intersected a broad 90 metre wide (true width), magnetite-rich ironstone and chlorite alteration zone with the following results:

52m @ 0.72% Cu, 0.07g/t Au, 0.8g/t Ag, 0.02% Bi, 0.04% Co from 446m

(including 12m @ 1.7% Cu, 0.06g/t Au, 0.9g/tAg, 0.01% Bi, 0.02% Co); and

17m @ 0.44% Cu, 0.19g/t Au, 1.0g/t Ag, 0.01% Bi, 0.05% Co from 503m

Further planned drilling beneath this zone will target an interpreted high-grade gold zone based on geological interpretation and strong vertical zonation. This zonation is seen in holes immediately to the west within the Rover 1 system and is evident at many other Tennant Creek style orebodies.

No significant results were received from hole WGR1D014.

Progressive geological logging of the next four diamond holes shows further typical Iron Oxide Copper-Gold (IOCG) magnetite-rich and hematite ironstones and associated intense chlorite alteration zones together with variable visible copper and/or bismuth mineralisation. Assay results for these holes remain pending and Westgold expects to provide these results, as well as further updates on its drilling progress in the June Quarterly Report. 

Table 1     Drillhole location data

Co-ordinates in GDA94, Zone 53

Intercept Notes

Assays based on a nominal 1 metre sample of cut half NQ and HQ core.

Analysis of gold by 30g Fire Assay, AAS Finish other metals by Four Acid Digest, ICP-AES Finish.

All intersections are reported using uncut upper assays

All intersections reported are downhole lengths.

Andrew Beckwith

Managing Director

Please direct enquiries to:

Andrew Beckwith

Westgold Resources Limited

Telephone: (08) 9326 5700

Alternatively

Nicholas Read

Read Corporate

Telephone: (08) 9388 1474