INDICATED GOLD RESOURCES INCREASED BY 170% TO 945,600 Oz. AT FRANKFIELD EAST, NORTH TIMMINS GOLD PROJECT
TORONTO, ONTARIO – (Marketwire – January 7, 2013)
Previously announced summary of updated estimate results (see Gowest news release dated November 20, 2012) included 945,600 ounces of indicated gold resources plus an additional 536,800 ounces of inferred gold resources.
The large (170%) increase in indicated ounces of gold demonstrates the impact of the recent drill program, which was aimed at increasing the confidence level of the resources contained in the upper elevation of the deposit in preparation for detailed mine planning and engineering studies for planned fast-tracking of the project development.
Current indicated ounces are estimated from surface to a maximum depth of 400 metres (“m”) and along a strike of 950 m. In this area of the deposit, resources have been better defined at over 2,000 gold ounces per vertical meter. Inferred resources are at depths of between 400 m and 1000 m.
Significant upside potential remains as mineralization remains open along strike and at depth. The drilling completed to date has allowed the Company to demonstrate the continuity of mineralised structures down to a vertical depth in excess of 1000 m.
Gowest Gold Ltd. (“Gowest” or the “Company”) (TSX-VENTURE:GWA) (OTCBB:GWSAF) is pleased to announce that it has filed the technical report supporting its previously announced update on its gold resources at its 100%-owned Frankfield East Gold Deposit, part of its North Timmins Gold Project (NTGP) in the prolific Timmins Gold Camp in Ontario, Canada. The updated resource contains approximately 945,600 ounces of gold (“Au”) in the indicated category (6.0 million tonnes at a grade of 4.9 grams per tonne [“g/t”] Au) and 536,800 ounces of gold in the inferred category (3.7 million tonnes at a grade of 4.2 g/t Au). As was used in the Company’s recent Preliminary Economic Assessment, the current estimate is based on a 3.0 g/t Au cut-off and a conservative gold price of US$1,200/oz. This new resource estimate has been completed by Neil N. Gow, P. Geo., an independent Qualified Person, and reported in accordance with Canadian Securities Administration National Instrument 43-101 (“NI 43-101”) requirements and CIM Standards on Mineral Resources and Reserves.
The Frankfield East deposit modeling utilizes assay data from 292 diamond drill holes, including 60 holes for 20,319 metres that had not been included in the previous estimate. In line with the Company’s recently announced plans to accelerate the timetable for putting the Frankfield East deposit into production, (see Gowest news dated Nov. 12, 2012), a more detailed method was used for this latest resource estimate resulting in a block model more suitable for mine planning. The lower overall average resource grades are the result of the use of the 3D block modelling techniques. However, consistent with the previous resource estimates, the majority of the resource ounces in the project are contained in blocks greater than a 4 g/t Au cut-off with an average grade in excess of 6 g/t Au.
The Frankfield East mineralization is contained within a series of parallel zones that extend into the host rock away from the main zone located adjacent to the geological contact structure. Approximately half of the indicated resource ounces of gold are contained within the main zone area. The remaining indicated ounces are located in three other parallel structures.
The presence of multiple mineralized structures is significant in that it dramatically increases the density of gold ounces per vertical meter, which allows for lower overall mining costs as more gold can be mined for the same mine development costs (e.g. mine shaft, ramp, etc.). While the focus during the last drill campaign was to increase confidence in the resources above 400 m of depth, the Company believes future drilling below 400 m has the potential to convert more of the deep mineral potential for the deposit into additional gold resource ounces.
Qualified Person: Technical information related to Gowest’s Frankfield East mineral resource estimate contained in this press release has been reviewed and approved by Neil N. Gow, P. Geo., an independent Qualified Person as defined by NI 43-101, with the ability and authority to verify the authenticity and validity of this data. Mr. Kevin Montgomery, P. Geo., Manager of Exploration for Gowest, a Qualified Person under NI 43-101, has prepared or supervised the scientific or technical information for the property and verified the data disclosed in this press release.
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, part of the Company’s North Timmins Gold Project. Gowest is exploring additional gold targets on the 90-square-kilometre NTGP land package and continuing to evaluate area, which is part of the prolific Timmins, Ontario gold camp.
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] Email: [email protected]
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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