Gowest News
TORONTO, ON, July 6, 2010 – Gowest Amalgamated Resources Ltd. (“Gowest” or the “Company”) (TSX Venture: GWA) is pleased to provide an update on its plans for the second phase of 2010 drilling at the 100% owned Frankfield Gold Project in Timmins, Ontario.
- Gowest will investigate three highly prospective gold targets to the west, northwest and southwest of its Frankfield East gold deposit that exhibit structures similar to those seen at the location of the company’s existing Frankfield East gold deposit. A second drill rig will be mobilised this month and will be designated exclusively to the exploration of these previously undeveloped areas. The existing drill rig located at the Frankfield East gold deposit will continue to be utilised there.
- The Company will continue its present drilling program aimed at expanding the Frankfield East gold deposit both at depth (+800 meters) and along strike. As outlined previously (April 6, 2010), work to date has already demonstrated that the extents of the mineralised horizon at the Frankfield East area has increased by in excess of 100% from that of the previously identified resource (510,000 inferred ounces — 2.4 million tonnes @ 6.5 g/t) prior to the current drill program. Work continues to expand this envelope of mineralization further.
- The second phase of drilling is fully funded at a total budget of $2.25 million and will run through the end of the year.
Process to identify gold targets for drilling
One of the primary reasons for the potential to discover significant and previously unknown resources at the Frankfield Project is the presence of glacial sediments over much of the project area. Although limited in depth and not an impediment to mining, these sediments obscure the underlying bedrock and make traditional prospecting difficult. Over the past year Gowest has utilised recently available surveying technologies to provide a much more complete understanding of the entire regional area and its potential for additional Frankfield East style gold targets.
3D magnetic survey
A Government magnetic survey completed in the early part of this decade hinted at the presence of a large regional fault system that runs almost east-west through the Frankfield area and is the likely source of the gold mineralisation. In the latter part of 2009, Gowest expanded on this work with a higher resolution airborne geophysical survey. The extremely detailed data provided by this survey allowed the company to utilise 3D magnetic inversion modelling techniques to allow the company to view up to 600m below the surface of the bedrock (see image below). The significance of this new model is that for the first time it clearly shows the outlines of the large hydrothermal alteration zones on the property including the one that encircles the Frankfield East known mineralization area.
Gold deposited at Frankfield East was precipitated from extremely hot fluids rising to surface from deep in the earth. Where these fluids passed through the existing bedrock they created an environment (alteration zone) where iron-containing magnetic minerals that were naturally present in the bedrock were converted (oxidised) to more stable but non-magnetic products. The evidence of this activity can clearly be illustrated in the image by the ring shaped fluid “pipe” of non-magnetic rocks (in the northeast of the property) with the Frankfield East resource situated almost exactly in the center. Using this technique the company has been able to identify another large alteration zone on the southwest side of the main fault structure that is similar in size and setting to that present at the Frankfield East area. In addition, it appears that there is a large area of alteration running almost north-south that passes from this anomaly to the northwest section of the property where limited historical drilling had identified previously a number of other gold showings.
Soil Gas hydrocarbon analysis
In addition to the geophysical work completed by Gowest, the company also completed a soil sampling program over the entire project area using a relatively new technique referred to as soil gas hydrocarbon analysis (SGH). The focus of this work was to identify the presence of sulphide minerals, which in the case of the Frankfield East deposit, are found to be present in the alteration areas where the gold mineralization is located. SGH allows for the company to once again view through the glacial sediments present on the property and locate areas where bacteria are present which typically feed on these sulphide minerals. The purpose of the SGH analysis was to seek and identify areas containing the greatest evidence of sulphide bacteria activity, shown below.
3D magnetic anomalies and soil gas hydrocarbon anomalies overlap
By combining the new exploration data Gowest has seen an excellent correlation between the areas of fluid alteration identified in the 3D magnetic survey and the areas of sulphide bacteria activity identified by the SGH analysis (see image below). A series of east-west trending SGH anomalies can be seen running almost parallel to the main fault structure passing through the Frankfield Project area with an offset to the north likely due to the presence of more fractured rocks north of the fault. In addition, SGH anomalies are seen immediately above the large alteration zone identified southwest of the fault and along the north-south structures that extend from this area to the northwest section of the property.
The utilisation of these new techniques has allowed the company to view below the glacial sediments present on the property to gain an increased level of confidence that the gold-bearing environment present around the Frankfield East deposit can also be observed in specific areas on the west portion of the project. A drill program focussing specifically on exploring these newly identified targets will be initiated and continue through year end.
Greg Romain, President & Chief Executive Officer of Gowest, said, “The Company is extremely pleased with the 2010 drill program completed to date aimed at demonstrating a potentially economic resource at the Frankfield East gold deposit. In addition to this ongoing deep drilling it is also very encouraging to see how our team has been able to utilise innovative exploration techniques to complement historical data in order to identify for the company three outstanding target areas which appear to have very similar environments to those that resulted in the gold deposition at Frankfield East. Gowest is excited to initiate drilling at these key target areas while continuing our ongoing efforts to expand the Frankfield East gold deposit”
Qualified Person
This press release has been reviewed by Mr. Darren Koningen, P. Eng., Gowest’s Vice President of Technical Services. Mr. Koningen is a Qualified Person under National Instrument 43-101.
About Gowest
Gowest is a Canadian gold exploration and development company focused on the delineation, development and operation of its 100% owned Frankfield East gold deposit while continuing to evaluate additional exploration and acquisition targets in the vicinity of the Frankfield project area, part of the prolific Timmins, Ontario gold camp.
For further information please contact;
Greg Romain
President & CEO
Tel: 416.363.1210
Email: [email protected]
Rory Quinn
Investor Relations
Toll Free: 877.363.1218
Tel: 416.363.1210 ext. 208
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.
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