TORONTO, ONTARIO--(Marketwired - Jan. 20, 2014) - Gowest Gold Ltd. (the "Company") (TSX VENTURE:GWA)(OTCBB:GWSAF) is pleased to announce that it has signed a Memorandum of Understanding (MOU) with United Commodities AG (UC), which contemplates a potential strategic partnership that would enable Gowest to have future concentrate from the Company's Bradshaw Gold Deposit (Bradshaw) refined at UC's processing facility in North Cobalt, Ontario.
UC is a Thun, Switzerland-based public company listed on the Stuttgart Stock Exchange and an international investment group focused on innovative commodity processing technologies, including its UC-CRT® (UC Clean Refining Technology.) UC's Yukon Refinery in North Cobalt is specially equipped and licensed to process the type of refractory material contained in the Bradshaw Gold Deposit.
Greg Romain, President of Gowest said, "This is truly a win-win opportunity for both sides involved in this plan. Not only would it secure a long-term refining facility for our concentrate and provide long-term feedstock for the North Cobalt plant, but it is the foundation for a partnership that could, in time, benefit from the significant upside we have on the rest of our substantial land position in the North Timmins Gold Camp."
Gowest's 100% owned Bradshaw deposit, on the Frankfield Property, is part of the Company's 107-square-kilometre North Timmins Gold Project (NTGP) located in the prolific Timmins, Ontario gold camp.
As previously announced (see Gowest releases dated May 29 and December 20, 2013), Gowest has also entered into a non-binding Letter of Intent with Kidd Operations in Timmins, Ontario. That plan is to process Gowest's ore into a high-grade (+90 grams per tonne) gold concentrate.
Gowest will provide UC Yukon Refinery with gold concentrate test samples from Bradshaw. This would provide the primary basis for a decision to move forward, in which event, UC would install a new refinery on its North Cobalt facility, at its own cost, to refine Gowest's concentrate into gold doré. Gowest would also be invited to become a co-owner of this refinery. Also, under the terms of this MOU, UC would have the opportunity to invest in Gowest's mining operations. In addition, as previously announced (see Gowest release dated March 28, 2012), Gowest has purchased the pressure autoclave and associated equipment that had been operating at Miramar Northern Mining Ltd.'s Con Mine near Yellowknife, Northwest Territories. This unit may make up part of Gowest's investment participation with UC.
Greg Romain added, "This potential partnership with UC, when combined with our plans with the Kidd Operations, provides the final operational piece for our plan to bring the Bradshaw Gold Deposit into production within two years. While more work is required, this is an exciting milestone toward building the mine."
Gowest is a Canadian gold exploration and development company focused on the development of its 100% owned Bradshaw Gold Deposit (Bradshaw), on the Frankfield Property, part of the Company's North Timmins Gold Project (NTGP). Gowest is exploring additional gold targets on the 107-square-kilometre NTGP land package and continues to evaluate the area, which is part of the prolific Timmins, Ontario gold camp. The latest updated resource estimate for Bradshaw included 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 gold price of US$1,200/oz. The resource estimate was updated on November 20, 2012 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.
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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