Gowest Amalgamated Resources Ltd.

Gowest Amalgamated Resources Ltd.

April 02, 2007 09:00 ET

Gowest Amalgamated Resources Ltd.: Press Release

TORONTO, ONTARIO--(CCNMatthews - April 2, 2007) - Gowest Amalgamated Resources Ltd. (TSX VENTURE:GWA) -

for Molybdenum, Gowest

Gowest is presently winding up the winter geophysical program on their Wawa properties. The Aldo Palma property in Lastheels Township is located 10 kilometres east and the Molybdenite Lake property is located 17 kilometres west of Wawa, Ontario, respectively.

At Molybdenite Lake a ground magnetic survey was conducted over the frozen unexplored Lake and surrounding area, measuring about one by two kilometers. The survey confirms the existence of major faults through the property and provides greater clarity of the geological structure as related to the molybdenite mineralization. In conjunction with a review of the induced polarization survey work conducted on the frozen surface of the Lake, diamond drill targets are being identified.

Previously, at the Aldo Palma property, a ground magnetic survey had been conducted by Amax Minerals in 1979. This work together with an outline of area of mineralization and other pertinent data has been compiled and digitized for presentation on appropriate plans. This compilation confirms the similarity of the mineralized setting to that at Molybdenite Lake, which is further described below. Areas requiring special attention and testing have been identified.

Molybdenite Lake

As previously reported Gowest purchased a 100% interest in the claim covering the main Molybdenite Lake surface showing. Subsequently, additional adjoining land was acquired for Gowest by staking. The property covers all known mineralization along the shore of the Lake, an area of about one by two kilometers as well as potential area to the north and south.

This occurrence has a long history as reported by the Ministry of Northern Development and Mines (MNDM). Trenching was first carried out some 100 years ago on the main showing on the southeast shore of the Lake. Subsequently, in 1939, Superior Molybdenum carried out more trenching, sampling and ground geophysics and drilled four holes at the main showing. In 1958 International Ranwick reported additional sampling. Algoma Central Railway completed additional sampling, mapping and ground geophysics in 1964 followed by the most recent work in 1965 by Inco. They conducted mapping, stripping, trenching, sampling and four diamond drill holes totaling 1534 feet. The bulk of this work was confined to the main showing area measuring 100 by 300 metres south of the southeast bay.

Records provided by MNDM show a broad range of assay results. The samples were recovered and assayed long before present day certification and protocol standards were implemented. The sludges from the 1939 drill core averaged 0.25% molybdenum; a drill core sample over 10 feet returned 0.26%. Samples from trenches returned 0.26% over 100 feet; 0.43% over 66 feet and 1.41% over 50 feet. A 120 ton bulk sample shipped to Ottawa in 1939 assayed 0.5% molybdenum. However, subsequent sampling by Algoma Central Railway in 1965 failed to replicate assays from previous trench sampling; their samples assayed about half the values previously reported. The Inco drilling did intersect some molybdenite but the values and widths were substantially less than those reported from surface.

The geology is depicted on a map titled Geology of Molybdenite Lake (P2406) undertaken by Zenon Mandziuk et al for the Ontario Geological Survey in 1980. Mandziuk reports that the molybdenite mineralization is associated with quartz stringers, veins and stockworks in gneissic granitic terrane. The primary trend of the quartz deposits is 030 degrees, parallel to a prominent fault trend in the area. Mandziuk reports that the grade and distribution of the mineralization is highly erratic which, has in the past, frustrated workers efforts to determine an average grade over a mineable dimension. Nevertheless, he states that the deposit warrants careful consideration because of the increasing value and demand of the product (In 1980 molybdenum was selling for $20 per pound, subsequently falling to about $6.00 per pound by 1998).

The writer believes that the primary factor in the deposition of the mineral is a regional northerly trending compressive force which formed and modified existing faults, including the fractures which host the sulphide mineralization in a deep-seated hydrothermal environment, not unlike formation of the typical lode gold deposit.

Aldo Palma

The agreement for the Aldo Palma property was executed this past January. It is essentially a four year option agreement in which Gowest may acquire a 50% interest in the property. Thereafter, the agreement provides for a joint venture.The reader is referred to the latest Gowest MD&A, dated March 22nd for details of the transaction.

The setting of the mineralization and even the exploration history is similar to that of Molybdenite Lake. According to MNDM it was discovered in the mid thirties and Falconbridge trenched and sampled the occurrence in 1939. In 1943 additional trenching and sampling was completed by Deep Lake Gold Mines. By today's standards, some impressive assays were reported for molybdenite. These include Falconbridge assays of 0.313% and 0.373% molybdenite over 22.0 and 20.6 feet respectively. Bulk sampling by Deep River in 1943 returned assays of 2.65, 4.92, 1.95 and 7.37% molybdenite. To what extent the sampling and assay methods compare with the standards now in place is not known.

In 1958 International Ranwick mapped and sampled the occurrence and Billiton optioned the property. They drilled three holes totalling 1896 feet but did not intersect significant mineralization.

In 1978 Amax minerals optioned the property and commenced a work program. This included magnetic and geological surveys, stripping and trenching. In 1979-80 they drilled 26 percussion holes and one short diamond drill hole. Assay results from the percussion holes were poor; however, sample recovery was less than 50%, not conducive to a representative assay.

The mineralization occurs over an area of 150 metres wide and at least 500 metres long in a northeasterly direction. The molybdenite is hosted by quartz veins and stringers trending northeasterly in a gneissic granite in turn hosting large xenoliths of mafic volcanic rock. Topographic maps of the area and the Amax ground magnetic survey indicate the existence of strong northerly and northeasterly faults, the development of which, as at Molybdenite Lake, caused the fracturing for the quartz emplacements.

Despite the inconclusive results from the most recent work on the Aldo Palma and Molybdenite Lake properties there are special reasons why Gowest should undertake new exploration in the area. Firstly, the surface mineralization in both instances was, in the past sufficiently impressive to attract the expertise of major mining companies including Falconbridge, Inco, Amax and Billiton. Records of previous work indicate that all of the sub surface testing was confined to the surface showing; potential elsewhere, particularly below the water of Molybdenite Lake was not tested. Finally the differential in price of molybdenum over the past 67 years is notable. According to USGS statistics the price of molybdenum is 10 times higher today than it was in 1960. Copper for instance, which is getting much attention, is about 4 times higher in price today than it was in 1960. The price differential for molybdenum means lower grades can be mined at a profit and that the exploration approach for a different deposit model can change.

The writer is the qualified person responsible for the verification of the information and data used in this release and is satisfied the announcement meets the appropriate standards.

For additional information see our website at: www.gowestamalgamated.com

The TSX Venture Exchange has neither approved nor disapproved the information contained herein.

Contact Information

  • Gowest Amalgamated Resources Ltd.
    Ronald J. Bradshaw, P. Eng
    (519) 538-5858
    (519) 538-5530 (FAX)
    Website: www.gowestamalgamated.com