Gowest Gold Ltd. (TSX VENTURE:GWA)(OTCBB:GWSAF) is pleased to announce that it has entered into a non-binding Letter of Intent with Glencore Xstrata’s Kidd Operations, located in Timmins, Ontario. The plan is to refurbish the Division ‘D’ line of the mill at Kidd Operations to process Gowest’s ore into a high-grade (+90 grams per tonne) gold concentrate. The proposed arrangement between the companies significantly reduces the cost and time to commercial production of the Frankfield East gold deposit.
Highlights of the collaboration between Gowest and Glencore Xstrata:
-- Utilizes excess capacity at the Kidd Operations mill, reducing overall
milling costs and increasing revenue;
-- Significantly reduces Gowest capital cost requirements by an estimated
$107mm in avoiding the construction of a stand-alone facility ($60mm vs.
-- Enables Gowest to begin commercial production 2-3 years earlier since a
new mill would not have to be constructed.
(i) See news release dated November 12, 2012 and NI 43-101 Technical Report dated November 11, 2011.
Gowest has completed a detailed concept engineering study for the mill refurbishment and is now advancing detailed mining plans and initiating a feasibility study. A Definitive Agreement is expected in the latter part of 2013.
Gowest is planning to begin commercial production of its Frankfield East gold deposit in 2015.
Gowest President and CEO, Greg Romain, said, “We have achieved an extremely important milestone in our plans to develop our Frankfield East deposit into the next new gold mine in the Timmins Camp. I am confident that, with the expertise and dedication of the team, we will achieve this goal.” He added, “The use of the Kidd Operations mill will significantly reduce our capital expenditures and expedite our path to generating cash flow. It is also evidence of Glencore Xstrata’s willingness to support the continued development of the Timmins economy.”
Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Frankfield East gold deposit, part of the Company’s North Timmins Gold Project. Gowest is exploring additional gold targets on the 107-square-kilometre NTGP land package and continues to evaluate the area, which is part of the prolific Timmins, Ontario gold camp. The latest updated resource estimate for Frankfield East included approximately 945,600 ounces of gold (“Au”) in the Indicated category (6.0 million tonnes at a grade of 4.9 grams per tonne (“g/t”) Au) and 536,800 ounces of gold in the Inferred category (3.7 million tonnes at a grade of 4.2 g/t Au). As was used in the Company’s recent Preliminary Economic Assessment, the current estimate is based on a 3.0 g/t Au cut-off and a conservative gold price of US$1,200/oz. This resource estimate has been completed by Neil N. Gow, P.Geo., an independent Qualified Person, and reported in accordance with Canadian Securities Administration National Instrument 43-101 (“NI 43-101”) requirements and CIM Standards on Mineral Resources and Reserves.
Aya Gold & Silver Inc. (TSX: AYA) is pleased to announce hig... READ MORE
IAMGOLD Corporation (TSX: IMG) (NYSE: IAG) is pleased to announce... READ MORE
Troilus Gold Corp. (TSX: TLG) (OTCQX: CHXMF) reports additional r... READ MORE
Thor Explorations Ltd. (TSX-V: THX) (AIM: THX) announces the exer... READ MORE
Tarachi Announces Drill Results from San Javier Concession in Son... READ MORE
We acknowledge the [financial] support of the Government of Canada.