TORONTO, ONTARIO – (Marketwire – January 14, 2013): Gowest Gold Ltd. (“Gowest” or the “Company”) (TSX-VENTURE:GWA) (OTCBB:GWSAF) is pleased to announce that John Frostiak, P. Eng., an internationally experienced mining engineer, has agreed to become a Senior Consultant to the Board providing technical opinions, advice or input as required. This appointment is in support of the Company’s recently announced plans to accelerate the timetable for putting its wholly-owned Frankfield East deposit in the Timmins Gold Camp into production (see Gowest news dated Nov. 12, 2012.)
Mr. Frostiak is a registered professional engineer in the province of Ontario, a member of the Canadian Institute of Mining Metallurgy and Petroleum and the Society for Mining, Metallurgy and Exploration Inc. He recently retired as Corporate Project Manager for Barrick Gold Corporation (“Barrick”), where he was responsible for the Kabanga Ni project (Xstrata Ni is the operator), capital project risk assessment and the Barrick Development System, which governed the minimum standards required for conducting studies and executing projects. In prior years, he held other positions within Barrick and was responsible for numerous technical accomplishments, including leading the development of the process plant and surface facilities for the Pierina mine in Peru, the Bulyanhulu mine in Tanzania, and the Cowal mine in Australia. Prior to joining Barrick, he spent eight years at the Campbell Mine, now part of the Red Lake gold mine complex – Canada’s largest gold mining operation – where, as Mill Superintendent, he managed the process selection, engineering, design, and construction of the autoclave and other modernisation projects. Mr. Frostiak has been a director of Colossus Minerals Inc. since 2007 and was appointed Chairman of the Board in October 2012.
The Company is advancing plans to initiate mining operations at the Frankfield East deposit prior to 2015. Accordingly, Gowest has entered into a memorandum of understanding with an existing third party processor in the Timmins area, which has sufficient milling capacity to allow Gowest to process ore from the Frankfield East gold deposit for a fee. The Company is preparing a number of engineering, metallurgical, and mine development studies aimed at establishing appropriate technical, operational and economic parameters required by all parties. With the baseline environmental study completed at the Frankfield East deposit this past summer, current plans include Gowest securing appropriate mining permits to enable it to begin mine development at Frankfield East towards the end of 2013. The current plan is to produce a high-grade gold concentrate to be sold through a separate off-take agreement.
Further, Gowest has entered into a Letter of Intent (“LOI”) (see Gowest news dated March 28, 2012) to purchase the pressure autoclave and associated equipment (“autoclave”) previously operating at Miramar Northern Mining Ltd.’s (“Miramar”) Con Mine near Yellowknife, Northwest Territories. Gowest intends to incorporate the autoclave into the Company’s mine development plans.
“There are several reasons that we are extremely pleased to have John’s input and support as we accelerate our plans to go into production at our North Timmins Gold Project, not the least of which is his expertise in all aspects of designing, engineering, constructing and operating an autoclave, along with a wide variety of other gold processing systems and equipment,” said Gowest CEO, Greg Romain. “Although he will not be directly joining our management group, his extensive, hands-on planning and operational experience will be greatly appreciated by the very strong Board and Technical Management team that we already have in place.”
The Company has granted Mr. Frostiak options to purchase up to 200,000 common shares of the Company at an exercise price of $0.12 per share, expiring on January 11, 2018.
Frankfield East Gold Resource
Gowest recently provided and updated resource estimate for Frankfield East, including 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.
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 continues to evaluate the 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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