Saturday 10th December 2016

Resource Clips


Posts tagged ‘Gowest Gold Ltd (GWA)’

Gowest Gold IR manager Greg Taylor on plans to bring the Frankfield East gold deposit into production by Q1 2015

November 16th, 2012

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Going it alone

November 12th, 2012

Micro-cap Gowest Gold aims for 2015 production

by Greg Klein

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Not all companies follow the same path to production. In fact they can diverge radically, as two November 12 announcements show.

Queenston Mining TSX:QMI is poised to follow the more common route. A smaller company develops and de-risks a deposit until it’s all but irresistible to a bigger company. The latter then makes an offer shareholders rarely refuse. In this case, Osisko Mining TSX:OSK is offering 0.611 of one of its shares for each Queenston share. Based on Osisko’s November 9 close of $9.82, the offer was worth $6 per Queenston share. Queenston had closed that day at $5.01. The November 12 announcement then saw Osisko drop to a $9.02 close, making its 0.611 offer worth $5.51. Queenston, meanwhile, closed November 12 at $5.75. Nevertheless Queenston seems ready for acquisition, whether by Osisko or another mid-tier outfit.

But for another company, the path to production might not require wealthy suitors or even large capitalization. Gowest Gold TSXV:GWA closed November 12 at $0.095 for a market cap of $12.53 million. Even so, it’s determined to take its Frankfield East gold deposit into production by Q1 2015, and to do so itself—well, with a little help from some friends.

Micro-cap Gowest Gold aims for 2015 production

Gowest Gold plans to use high-tech ore-sorting and
third-party processing to begin mining quicker and cheaper.

The company hopes to shorten the path and lower the capex by contracting a third party to produce high-grade concentrate. That, in turn, would be sold to a customer who would refine it further. Gowest’s location in the Timmins mining camp helped the company find a processor with sufficient capacity, which led to the memorandum of understanding announced November 12.

“It’s a matter of building the mine a couple of years sooner and putting less than a third of the capital into it than if we tried to do it ourselves,” says IR manager Greg Taylor. “That would mean generating cash flow a couple of years early, and then we’d make a separate decision on whether to continue doing it that way or to build our own plant after we’ve already started mining.”

To that end, Gowest is now working on engineering, metallurgical and mine development studies prior to hammering out a final agreement with the mill operator next year. A report announced last February suggests the mill would produce concentrate grading over 90 grams per tonne gold.

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Gowest reports Ontario Gold Assays including 13.4 g/t over 4.7m

February 17th, 2011

Gowest Amalgamated Resources Ltd TSXV:GWA announced results from its Frankfield Gold Project in Timmins, Ontario. Assays include 10.9 g/t gold over 1.5 metres, 4.9 g/t over 5 metres, 3.3 g/t over 3.2 metres, 5.4 g/t over 3.3 metres, 2.1 g/t over 3 metres, 13.4 g/t over 4.7 metres (including 37 g/t over 1.5 metres), 7.3 g/t over 2.1 metres and 3.7 g/t over 3 metres.

President/CEO Greg Romain said, “The aggressive drilling campaign that is currently underway is consistent with the company’s 2011 goal to continue the expansion of gold ounces contained within the Frankfield East resource in order to publish an updated NI 43-101 resource estimate in the first quarter of this year. The increased definition provided by this drill program will also allow for the completion of mine planning activities which have recently been initiated.”

View Company Profile

Contact:
Greg Romain
President/CEO
416.363.1210

or Rory Quinn
Investor Relations
416.363.1210

by Ted Niles