Gowest Gold Drills 7.70 Metres of 8.26 g/t Au at Bradshaw Deposit, Timmins Camp
TSX VENTURE: GWA
TORONTO, ONTARIO--(Marketwired - July 7, 2017) - Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA) is pleased to announce the results from the recently completed Advanced Exploration ("AE") drill program at the Bradshaw Gold Deposit ("Bradshaw"). The Company completed 2,097 metres ("m") of HQ* diameter drill core from 23 holes, all drilled in the area where the 30,000 tonne AE bulk sample is to be collected. (*Approximately 63.5 mm.)
Observed Jeremy Niemi, Gowest's Director of Exploration, "We are very pleased that every drill hole in this drill program intersected gold mineralization. This gives us confidence in our resource model and with several holes intersecting gold grades higher than anticipated it supported our interpretation that the Bradshaw Deposit has room to grow and the potential to be a very successful gold mine."
Highlights include: (For greater detail, see Table 1 below.)
- GW17-317 intersected 8.83m at 6.5 grams/tonne ('g/t') gold
- Including 3.8m at 13.91 g/t gold
- GW17-315 intersected 5.8m at 3.31 g/t gold
- Including 1.7m at 6.88 g/t gold
- GW17-312 intersected 1.3m at 17.49 g/t gold
- GW17-305 intersected 7.70m at 8.26 g/t gold
- Including 2.0m at 22.75 g/t gold
- GW17-306 intersected 1.1m at 15.6 g/t gold
- GW17-305 intersected 1.0m at 13.4 g/t gold
- GW17-304 intersected 1.9m at 11.1 g/t gold
- GW17-303 intersected 1.7m at 10.04 g/t gold
The advanced exploration drill program was designed to refine the geological model and the stope design in the upper portion of the Bradshaw deposit where the bulk sample will be extracted.
"These findings further support our conviction that the Bradshaw Gold Deposit will be the next new mine in the Timmins Camp," commented Gowest CEO, Greg Romain. "More importantly though, these drill results also provide a strong demonstration of the significant upside potential of the deposit that has thus far been untapped."
Table 1. Recent Bradshaw drill hole intercepts
|Hole #||From (m)||To (m)||Length (m)**||Gold g/t|
**Drill hole intercepts may not reflect the true width of the zones and no capping was applied to the gold grades.
Collar locations, hole lengths and orientations can be found on the Company website at the following link: (http://www.gowestgold.com/north-timmins-gold-project/resources/).
AE Bulk Sample Program Update
As at June 30, 2017, the onsite development team had advanced the underground ramp a total of 170 metres towards the location of the first bulk sample, where extraction is expected to begin in the third quarter of this year.
Also, as previously noted (see Gowest news release dated June 16, 2017), Gowest entered into a definitive share purchase agreement with Northern Sun Mining Corp. to acquire a 50% interest in a joint-venture corporation that will own and operate the Redstone Mill, which has the capacity to process approximately 1,500 tonnes of ore-per-day. Gowest plans to use the Redstone Mill to process the ore from the bulk sample as well as to satisfy the rest of Company's anticipated future ore processing requirements.
Construction of the site infrastructure is continuing on schedule, including construction of the maintenance shop. The water treatment plant design has been completed; and the plant is expected to be delivered early in the third calendar quarter. Meanwhile, the footprint for the ore sorting plant has been established and preparations for installation of the ore sorter are also continuing, including detailed engineering plans.
Gowest also announces that it has completed a non-brokered private placement of 4,347,826 "flow-through" common shares of the Corporation, at a price of $0.23 per Share, for aggregate gross proceeds of $999,999.08 (the "Offering").
The proceeds derived from the sale of the Shares will be used to fund the exploration work on the Company's North Timmins Gold Project and for general working capital purposes.
In connection with the Offering, the Corporation paid certain finders fees totalling $60,000 in cash and 130,435 non-transferable compensation warrants. Each compensation warrant entitles its holder to acquire one common share in the capital of the Company at a price of $0.23 per share for a period of two years after the closing date.
All of the securities issuable in connection with the Offering are subject to a four-month hold period pursuant to the applicable securities laws with an expiry date of November 7, 2017.
The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration Completion of the Offering is subject to receipt of TSX Venture Exchange approval.
Shares for Debt
Gowest announces that it intends to issue, subject to TSX Venture Exchange approval, an aggregate of 675,000 common shares to non-management directors and management of the Corporation, at a deemed price of $0.20 per share, as partial payment of fees owed to such directors and management in respect of the period from November 1, 2015 to January 31, 2017. The aggregate deemed value of the common shares to be issued is $135,000.00. The shares are being issued in lieu of cash in order to conserve the cash resources of the Company.
Gowest is a Canadian gold exploration and development company focused on the delineation and 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 its +100-square-kilometre NTGP land package and continues to evaluate the area, which is part of the prolific Timmins, Ontario gold camp. Currently, Bradshaw contains a National Instrument 43-101 Indicated Resource estimated at 2.1 million tonnes ("t") grading 6.19 g/t Au containing 422 thousand oz Au and an Inferred Resource of 3.6 million t grading 6.47 g/t Au containing 755 thousand oz Au. Further, based on the Pre-Feasibility Study produced by Stantec Mining and announced on June 9, 2015, Bradshaw contains Probable Mineral Reserves (Mineral Resources are inclusive of Mineral Reserves), using a 3 g/t Au cut-off and utilizing a gold price of US$1,200 / oz, totalling 1.8 million t grading 4.82 g/t Au for 277 thousand oz Au.