Gowest Amalgamated Resources Ltd.
OTC Bulletin Board : GWSAF

Gowest Amalgamated Resources Ltd.

October 20, 2010 08:30 ET

Gowest Continues to Intersect Significant Gold at +750 Metre Depth and Begins Infill Drilling on Its Frankfield East Gold Deposit Near Timmins, Ontario

TORONTO, ONTARIO--(Marketwire - Oct. 20, 2010) - Gowest Amalgamated Resources Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA)(OTCBB:GWSAF) is pleased to announce that its ongoing drill program aimed at expanding the mineralization at the Frankfield East gold deposit continues to encounter significant gold intersections. Recent highlights include:

  • The completion of the deepest hole ever drilled on the Frankfield property has confirmed the continuity of mineralisation to at least 780m vertical depth. Strike length was previously expanded to 700-750m and vertical depth to 700m, more than doubling the size of the original mineralized resource (deposit remains open). The drilling completed to date has allowed the company to demonstrate a mineral potential at Frankfield East gold deposit in excess of 1 million ounces (4.5-5.5 million tonnes @ 6.5-7.0 g/t Au)** (see press release dated August 4th, 2010)

  • Hole GW10-78 which was designed to provide further detail in an area of the mineralised structure that was not well defined in the previous resource intersected 4m of 6.9 g/t gold at 640m. The grade and width are typical of the average width and grade of the existing Frankfield East gold resource and typical of the Timmins Camp in general.

  • Significantly, drill hole GW10-60 intersected 5.5 g/t gold at approximately 780 metres vertical depth before entering the footwall structure. In addition to this final intersection hole GW10-60 also encountered two large low grade mineralised zones (each one +20 meters width). The company plans to follow up with additional definition drilling in near proximity to this hole in order to better understand the significant widths and contained gold associated with these intersections in the context of the overall deposit.

  • The company has initiated an infill drilling campaign at its Frankfield East gold deposit in order to allow for an upgrade in resources (existing and future) from the inferred category to the measured/indicated ("M&I") category. Upgrading to this category of resource will further assist the company in defining contained gold located in the deposit for possible future development and also in communicating a higher degree of confidence to the market regarding the significance of the deposit.

  • The current infill drill program will focus on a depth from surface down to approximately 200 metres and is intended to provide data for an updated 43-101 resource estimate. Gowest has temporarily re-mobilised the second drill rig originally earmarked for the exploration of undrilled Phase 2 gold targets elsewhere on the property to complete this Frankfield East infill program.

  • Due to unacceptably wet conditions, drilling of the high priority gold targets to the south and west will now be rescheduled for this upcoming winter season. A second drill located on the Frankfield East deposit will continue to drill at depth

  • The current infill program will also focus on the area along the entire strike of the deposit (700-750m length) between surface and 100 meters depth. Due to issues in the past related to property boundary limitations, prior to Gowest Acquiring 100% ownership of the entire property, little of this upper zone (surface to 100 meters depth) of the deposit was previously drilled or defined. The company is confident that the continuity of the Frankfield east mineralization extends to surface and anticipates that the infill program will locate additional gold mineralization in these upper areas.

  • The current drilling program is fully funded at $2 million.

Table 1. Drilling Results for the Frankfield East Exploration Program.
Hole No. (m) Interval (m) Grade (g/t gold) Notes
GW10-57 462.2-462.6 0.4 6.4 Breccia Zone
  483.5-485.4 1.9 5.7 Breccia Zone
  508.3-509.3 1.0 5.7 Main Zone
GW10-60 746.0-770.0 24.0 1.0 Breccia Zone
  802.0-821.5 19.5 0.8 Main Zone
including 820.5-821.5 1.0 5.5 Main Zone
GW10-76 283.0-289.0 6.0 2.6 Breccia Zone
including 287.0-289.0 2.0 4.4 Breccia Zone
  481.6-482.6 1.0 2.1 Main Zone
GW10-78 722.0-723.0 1.0 2.5 Breccia Zone
  739.0-745.0 6.0 5.6 Main Zone
including 740.0-744.0 4.0 6.9 Main Zone
m – metre, g/t gold – grams per tonne contained gold
Note: - 1. Intervals shown are core lengths (true width of mineralization will be slightly reduced).
  2. Holes drilled were not in numeric order due to logistics and planning.

Greg Romain, President & CEO of Gowest, said, "We continue to be extremely pleased with the consistency of the drilling results being received at Frankfield East in terms of grade and widths. The company continues to demonstrate new gold mineralization both along strike and now perhaps more significantly, at depth. As our comfort level has grown with respect to the resource potential of the deposit we can become more aggressive and the recently announced infill program to help upgrade inferred ounces into an indicated category reflects this confidence. This is shaping up to be an incredibly exciting year for the company and its shareholders with more to come."

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/gwa1020a.pdf

Qualified Person

This press release has been reviewed by Mr. Darren Koningen, P. Eng., Gowest's Vice President of Technical Services. Mr. Koningen is a Qualified Person under National Instrument 43-101. All drill core samples were photographed prior to being split and logged. Sample intervals were determined based on geological context and typically vary in length from 0.3 – 1.5m. Half of the split core from each interval was bagged and delivered to the ALS Laboratory Group ("ALS") preparation facility located in Timmins, Ontario. All samples were prepared by ALS and analyzed for gold using fire assay procedures with an Atomic Adsorption Spectroscopy ("AAS") finish in addition to the completion of a multi-element ICP-AES scan. ALS's main North American assay laboratory in Vancouver, British Columbia is accredited to ISO/IEC 17025:2005.

About Gowest

Gowest is a Canadian gold exploration and development company focused on the delineation, development and mining of its 100% owned Frankfield East gold deposit while continuing to evaluate additional exploration and acquisition targets in the vicinity of the Frankfield project area, part of the prolific Timmins, Ontario gold camp.

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.

**Areas estimated for resource expansion potential are assumed to be similar in grades and widths to the 43-101 compliant resource for the Frankfield East deposit. Tonnages of potentially mineralized material have been calculated based on these grades/widths and the extents of the mineralized envelope as defined by the recent drill holes reported herein. All quantities and grades of this material are conceptual in nature and it is uncertain if further exploration will result in the targets eventually being delineated as a mineral resource.


Contact Information

  • Gowest Amalgamated Resources Ltd.
    Greg Romain
    President & CEO
    (416) 363-1210
    Gowest Amalgamated Resources Ltd.
    Rory Quinn
    Investor Relations
    Toll Free: (877) 363-1218 or (416) 363-1210 ext. 208