Gowest Gold Granted Extension for Letter of Intent
December 20 2013 - 9:41AM
Marketwired
Gowest Gold Granted Extension for Letter of Intent
Continues Plan to Process Bradshaw Gold Deposit Ore at Kidd
Operations Mill
TORONTO, ONTARIO--(Marketwired - Dec 20, 2013) - Gowest Gold
Ltd. ("Gowest" or the "Company") (TSX-VENTURE:GWA)(OTCBB:GWSAF)
reports that it has received an extension of up to six months with
regard to the previously announced non-binding Letter of Intent
("the LOI") the Company had entered into with Kidd Operations,
located in Timmins, Ontario (see Gowest news release dated May
29, 2013). 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 Bradshaw Gold Deposit. The
LOI, which had been scheduled to be terminated on or before
December 31, 2013, has now been extended to on or before June 30,
2014.
According to the terms of the LOI as requested by management of
the Kidd Operations, Gowest has completed a detailed concept
engineering study for the mill refurbishment and is now advancing
detailed mine planning, a feasibility study on the planned
refurbishment as well as working on an advanced exploration permit
application. However, a combination of the amount of technical work
required as well as the economic restrictions Gowest - along with
the majority of companies in the resource sector - faces have led
to this delay.
Highlights of the planned collaboration between Gowest and the
Kidd Operations:
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Utilizes excess capacity at the Kidd Operations mill, reducing
overall milling costs and increasing revenue; |
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Significantly reduces Gowest capital cost requirements by an
estimated $107mm in avoiding the construction of a stand-alone
facility ($60mm vs. $167mm)*; and, |
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Enables Gowest to begin commercial production 2-3 years earlier
since a new mill would not have to be constructed. |
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* see news release dated November 12, 2012 and NI
43-101 Technical Report dated November 11, 2011 |
Gowest President and CEO, Greg Romain, said, "We continue to
focus on bringing the Bradshaw Gold Deposit into production as
quickly as possible and making it the next new gold mine in the
Timmins Camp." He added, "While this extension reflects the
difficult financial environment this sector faces, it also shows
the good relations we have with the Kidd Operations as well as
their recognition of Bradshaw's potential and their desire to
provide reasonable support for the continued development of the
Timmins economy."
Qualified Person: This press release has been reviewed by Mr.
Kevin Montgomery, P.Geo., Gowest's Manager of Exploration, and a
Qualified Person under National Instrument 43-101.
About Gowest
Gowest is a Canadian gold exploration and development company
focused on the development of its 100% owned Bradshaw Gold Deposit
(Bradshaw) (formerly Frankfield East), on the Frankfield Property,
part of the Company's North Timmins Gold Project (NTGP). 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 Bradshaw 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 gold price of US$1,200/oz. The resource estimate was updated
on November 20, 2012 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.
Forward-looking statements
This news release contains certain "forward-looking statements".
Such forward-looking statements involve risks and uncertainties.
The results or events depicted in these forward-looking statements
may differ materially from actual results or events. Any
forward-looking statement speaks only as of the date of this news
release and, except as may be required by applicable securities
laws, the Company disclaims any intent or obligation to update any
forward-looking statement, whether as a result of new information,
future events or results or otherwise.
NEITHER THE TSX-VENTURE EXCHANGE NOR ITS REGULATION PROVIDER (AS
THAT TERM IS DEFINED IN THE POLICIES OF THE TSX-VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.
Gowest Gold Ltd.Greg RomainPresident & CEO(416)
363-1210info@gowestgold.comGowest Gold Ltd.Greg TaylorInvestor
Relations905 337-7673 / Mob: 416 605-5120gregt@gowestgold.com
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