TORONTO, ON, October 6, 2011 – Gowest Gold Ltd. (“Gowest” or the “Company”) (TSX Venture: GWA) is pleased to provide a corporate update of the Company’s 2011 development program for the Gowest North Timmins Gold Project, including the 100% owned Frankfield East gold deposit located in the Timmins Ontario gold camp.
- In October, the Company will begin drilling targets for the first time in the south end of the Frankfield property. The Company is also finalizing its review of the new data obtained from the geophysical and geochemical (soil gas) regional surveys completed over the entire North Timmins project area this summer. This program was designed to delineate other high priority “Frankfield East style” exploration targets located along the Pipestone Fault in the Tully East and Pipestone East properties for drill testing during the winter 2011/2012. (See map below.)
- The Company will be releasing the results from their Preliminary Economic Assessment early in the fourth quarter. This assessment was undertaken at a high level of engineering detail to demonstrate the economic viability of the Frankfield East deposit and to outline the preferred scenarios for project development.
- Additional sensitivity analyses completed on the Frankfield East resource estimate demonstrate the potential to raise the average resource grade into the 7-8 gram per tonne of gold range with limited impacts on the overall resource totals. These evaluations using a higher cut-off than the 3 g/t cut-off used for the June 1, 2011 resource estimate further demonstrate the robust nature of the Frankfield East deposit mineralization. (see Resource Grade Sensitivity Table below)
- Recent assay results from the ongoing drill program at the Frankfield East deposit will be available shortly. As previously announced, the Company’s summer drill program has extended the surface strike length of the Frankfield East gold deposit to approximately 900m (versus 750m in the latest resource estimate). Drilling has also been completed to continue to test the depth potential of the deposit.
Resource Grade Sensitivity Table
| Cut-off Grade | 3.0 g/t gold | 3.5 g/t gold | 4.0 g/t gold | ||||||
| Resources | Tonnes (x1000) | Grade g/t gold | Ounces (x1000) | Tonnes (x1000) | Grade g/t Au | Ounces (x1000) | Tonnes (x1000) | Grade g/t Au | Ounces (x1000) |
| Indicated | 1,621 | 6.68 | 348 | 1,362 | 7.31 | 320 | 1,130 | 8.09 | 294 |
| Inferred | 4,342 | 6.01 | 839 | 3,571 | 6.75 | 775 | 3,088 | 7.26 | 721 |
| Change in Resources | 0% | -8% | -14% | ||||||
Notes:
- Resource estimates completed by ACA Howe International Ltd. (2m minimum width)
- Estimates completed using minimum 2 meter width and parameters as outlined in recent resource report (June 1, 2011)
Resources at 3.0 g/t cut-off are current 43-101 compliant estimates
The company is currently evaluating different mine development scenarios as part of its ongoing engineering efforts. As is evidenced in the resource grade sensitivity table, a large proportion of the gold contained in the Frankfield East deposit is present in higher grade mineralized structures. This is significant for mine planning as it allows for adjustments in the operating mining grades to correspond to changes in the long term gold prices with little impact on the overall size of the resource.
Greg Romain, President & Chief Executive Office of Gowest, commented, “As we prepare to provide the market with an estimate of the economic viability of the Frankfield East deposit, we continue to be particularly optimistic about findings such as this independent sensitivity analysis. At the same time, we are also looking forward at drilling several highly prospective targets on the south part of the Frankfield property where we may be able to discover additional deposits in what is a largely underexplored area of the Timmins gold camp”.
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. Technical information related to Gowest’s Frankfield East mineral resource estimate contained in this press release has been reviewed and approved by Ian Trinder, M.Sc., P.Geo., Senior Geologist, ACA Howe, an independent Qualified Person as defined by NI 43-101
About Gowest
Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Frankfield East gold deposit, as well as on the exploration of additional gold targets on North Timmins Gold Project area, part of the prolific Timmins, Ontario gold camp. The Frankfield East deposit has been estimated to contain 348,000 ounces of gold in the Indicated category (1,621,000 tonnes at a grade of 6.68 g/t Au) plus 838,900 ounces of gold in the Inferred category (4,342,000 tonnes at a grade of 6.01 g/t Au. The Company also continues to evaluate acquisition targets in the vicinity of the North Timmins Gold Project area.
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 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: 905 337-7673 / Mob: 416 605-5120
Email: [email protected]
