Gowest Gold Signs Definitive Milling Agreement
TORONTO, Oct. 30, 2018 (GLOBE NEWSWIRE) — Gowest Gold Ltd. (“Gowest” or the “Company”) (TSX-VENTURE: GWA) is pleased to announce that it has entered into a definitive Custom Milling Agreement (“the Agreement”) with QMX Gold Corporation (“QMX”) pursuant to which QMX will process material from the Company’s Bradshaw Gold Deposit (“Bradshaw”) at its Aurbel Mill (the “Mill”) located in Val d’Or, Quebec.
Pursuant to the Agreement, Gowest will be obligated to fund certain upgrade permits and capital expenditures necessary to use the Mill to process Bradshaw material as part of its bulk sample and pre-production program, followed by production at Bradshaw. Assuming all necessary permits are received and upgrades are performed, the Agreement will have a four (4) year term with an option to extend. Gowest has already stockpiled over 28,000 tonnes of development material on surface in preparation for ore-sorting. (See Gowest news release dated April 16, 2018.) The Company intends to truck sorted mineralized material to the Mill for toll milling into a high-grade gold concentrate. Gowest will then ship the gold concentrate to the Humon Smelter, Shandong Province China (see Gowest news release dated February 14, 2018) for final processing and sale.
With the execution of the definitive agreement, QMX and Gowest will immediately form a Technical Committee made up of individuals from both parties that will oversee the application and receipt of necessary permits required by the Province of Quebec to process third party material and start up of the Mill. At this time, it is expected that processing will begin mid-2019. In conjunction with preparing the Mill for start up, the Company intends to crush and sort the material on surface at the Bradshaw site, continue the infill drill program and continue preparations for underground mining. Gowest will provide updates on its progress and timing as information becomes available.
Gowest President & CEO, Greg Romain said, “We are very pleased to have reached this agreement with QMX, which represents a vital milestone in our development of Bradshaw and in our goal of advancing it into a commercial gold mine.” Mr. Romain added, “The termination of the previously executed agreement for toll milling prevented the Company from moving the project into the next phase of mining and financing. Now that we have closed the loop, we will be able to finalize discussions on completing the necessary funding of the project.”
The technical information in this news release has been reviewed and approved by Mr. Jeremy Niemi, P.Geo., Gowest’s Director of Exploration, who is the Qualified Person for the technical information in this news release under National Instrument 43‐101 standards.
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 Corporation’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 grams per tonne gold (g/t Au) containing 422 thousand ounces (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 Mineral Reserves (Mineral Resources are inclusive of Mineral Reserves) in the probable category, using a 3 g/t Au cut-off and utilizing a gold price of US$1,200 / oz, totaling 1.8 million t grading 4.82 g/t Au for 277 thousand oz Au.
This news release may contain certain “forward looking statements”. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. 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.
For further information please contact:
|Greg Romain||Greg Taylor|
|President & CEO||Investor Relations|
|Tel: (416) 363-1210||Tel: 416 605-5120|
|Email: [email protected]||Email: [email protected]|