Gowest Announces MOU With United Commodity AG for Future Processing of Bradshaw Concentrate
January 20 2014 - 7:45AM
Marketwired
Gowest Announces MOU With United Commodity AG for Future Processing
of Bradshaw Concentrate
Proposed Partnership includes Refining Agreement as well as
Co-Investment Opportunities
TORONTO, ONTARIO--(Marketwired - Jan 20, 2014) - Gowest Gold
Ltd. (the "Company") (TSX-VENTURE:GWA)(OTCBB:GWSAF) is pleased to
announce that it has signed a Memorandum of Understanding (MOU)
with United Commodities AG (UC), which contemplates a potential
strategic partnership that would enable Gowest to have future
concentrate from the Company's Bradshaw Gold Deposit (Bradshaw)
refined at UC's processing facility in North Cobalt, Ontario.
UC is a Thun, Switzerland-based public company listed on the
Stuttgart Stock Exchange and an international investment group
focused on innovative commodity processing technologies, including
its UC-CRT® (UC Clean Refining Technology.) UC's Yukon Refinery in
North Cobalt is specially equipped and licensed to process the type
of refractory material contained in the Bradshaw Gold Deposit.
Greg Romain, President of Gowest said, "This is truly a win-win
opportunity for both sides involved in this plan. Not only would it
secure a long-term refining facility for our concentrate and
provide long-term feedstock for the North Cobalt plant, but it is
the foundation for a partnership that could, in time, benefit from
the significant upside we have on the rest of our substantial land
position in the North Timmins Gold Camp."
Gowest's 100% owned Bradshaw deposit, on the Frankfield
Property, is part of the Company's 107-square-kilometre North
Timmins Gold Project (NTGP) located in the prolific Timmins,
Ontario gold camp.
As previously announced (see Gowest releases dated May 29
and December 20, 2013), Gowest has also entered into a
non-binding Letter of Intent with Kidd Operations in Timmins,
Ontario. That plan is to process Gowest's ore into a high-grade
(+90 grams per tonne) gold concentrate.
Gowest will provide UC Yukon Refinery with gold concentrate test
samples from Bradshaw. This would provide the primary basis for a
decision to move forward, in which event, UC would install a new
refinery on its North Cobalt facility, at its own cost, to refine
Gowest's concentrate into gold doré. Gowest would also be invited
to become a co-owner of this refinery. Also, under the terms of
this MOU, UC would have the opportunity to invest in Gowest's
mining operations. In addition, as previously announced (see
Gowest release dated March 28, 2012), Gowest has purchased the
pressure autoclave and associated equipment that had been operating
at Miramar Northern Mining Ltd.'s Con Mine near Yellowknife,
Northwest Territories. This unit may make up part of Gowest's
investment participation with UC.
Greg Romain added, "This potential partnership with UC, when
combined with our plans with the Kidd Operations, provides the
final operational piece for our plan to bring the Bradshaw Gold
Deposit into production within two years. While more work is
required, this is an exciting milestone toward building the
mine."
About Gowest
Gowest is a Canadian gold exploration and development company
focused on the development of its 100% owned Bradshaw Gold Deposit
(Bradshaw), 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 TSX-VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE
TSX-VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY 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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