Completes Joint Venture Earn-In with Transition Metals Corp. (“TMC”)
TORONTO, ONTARIO – (May 30, 2016) Gowest Gold Ltd. (“Gowest” or the “Company”) (TSX VENTURE: GWA) is pleased to announce that its recent Induced Polarization (“IP”) program has helped to reveal a distinct signature for the mineralization within its Bradshaw Gold Deposit (“Bradshaw”), part of the Company’s North Timmins Gold Project (“NTGP”). The Company can now use this knowledge to help identify the best new exploration targets in the immediate surrounding area as well as along untested portions of Gowest’s 20-kilometre segment of the prolific Pipestone Fault structure, which hosts Bradshaw and several other mineral deposits.
IP Program & the Pipestone Structure
In March 2016, the Company completed a deep-looking, IP survey with Insight Geophysics along the Pipestone structure. This structure is nearly completely covered by sand, gravel and overburden which, until now, has left this area largely under explored. The deep IP program looks beneath the mask of overburden to map the chargeability and resistivity of the underlying rocks. Upon commissioning of the survey, the Company completed a test block over the Bradshaw deposit to identify the geophysical signature of the deposit. The deposit was traced over the entire survey block as a resistivity high, due to the increased quartz veining, and a relative chargeability high due to the increased sulphides in proximity to the gold resources at Bradshaw (see Bradshaw & Wark 1 IP Map).
In addition to the test block at Bradshaw, the Company completed an initial exploration IP grid at the Wark 1 property (see Bradshaw & Wark 1 IP Map), 5 kms southwest of Bradshaw and along the southern contact of the Pipestone structure, host of extensive gold mineralization. Again, encouraging results from this work will be most useful in preparing for systematic field exploration programs both at Wark 1 and along the entire Pipestone structure.
Greg Romain noted, “We are very pleased with the outcome of our first ever IP program on the Pipestone structure. Our Bradshaw deposit popped out and was highlighted in the survey so that we now have a defined geophysical fingerprint to guide us in our search for additional gold resources along this extensive trend of our NTGP property.” Mr. Romain added, “The Company will also be providing the market with an update on Bradshaw, our continued main focus, soon.”
Gowest and TMC Joint Venture
The Company is also pleased to report that it has completed all of the necessary exploration work to satisfy a 60% earn-in interest in approximately 3,302 hectares (33 square kilometres) in the Pipestone Property, which is an integral part of the NTGP, and triggered the Joint Venture Agreement with TMC. The agreement, pursuant to which Gowest earned its interest in the Pipestone Property, was originally entered into on April 25, 2011. Gowest and TMC will be initiating exploration plans with a focus on locating additional gold bearing structures on this relatively underexplored area of the Porcupine Camp.
About Gowest:
The Company holds a significant and strategic 109 square-kilometre position in the underexplored and highly prospective Pipestone structure in the Timmins camp. Within Gowest’s land position the Company’s Bradshaw Gold Deposit (“Bradshaw”) is currently in the advanced stages of permitting for an underground mine bulk sample. While advancing Brashaw toward commercial production and to becoming the next new mine in Timmins, the Company is exploring its extensive North Timmins Gold Project area as well as additional prospective ground for additional gold resources. Currently, Bradshaw contains1 a National Instrument 43-101 compliant Indicated Resource estimated at 2.1 million tonnes (“t”) grading 6.19 g/t Au containing 422 thousand oz Au and an Inferred Resource of 3.6 million t grading 6.47 g/t Au containing 755 thousand oz Au. Further, based on the Pre-Feasibility Study produced by Stantec Mining and announced on June 9, 2015, Bradshaw contains Mineral Reserves, using a 3 g/t Au cut-off and utilizing a gold price of US$1,200 / oz, totalling 1.8 million t grading 4.82 g/t Au for 277 thousand oz Au.
Forward-Looking Statements
This news release may contain certain “forward looking statements”. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. 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: 416 605-5120
Email: [email protected] Email: [email protected]
