Gowest Gold Ltd.
TSX VENTURE : GWA
OTC Bulletin Board : GWSAF
FRANKFURT : 1GW

Gowest Gold Ltd.

June 01, 2011 08:00 ET

Gowest Demonstrates Large High-Grade Gold Deposit Near Timmins, Ontario

TORONTO, ONTARIO--(Marketwire - June 1, 2011) -

  • Gold resource estimate includes 348,000 ounces of indicated resources plus an additional 838,900 ounces of inferred resources
  • The discovery cost for the new ounces reflected in the updated resource (2010/11 drilling campaign) was less than CDN$10 per ounce of gold
  • The gold deposit has been delineated over a strike length of 750 metres and to a depth in excess of 800 metres to date.
  • The potential for further resource additions remains excellent as the Frankfield East deposit mineralization remains open at depth. In addition a number of areas exist within the known zone of mineralization which are currently excluded from the resource calculations due to drilling density which will be addressed in the current drill program.
  • Drilling to expand the resources and to upgrade additional inferred resources into the measured and indicated categories is ongoing and will continue through 2012.
  • A preliminary economic assessment is in progress and is expected to be completed in fall 2011.

Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA)(OTCBB:GWSAF)(FRANKFURT:1GW) today announces a significant increase in resources at its 100% owned Frankfield East Gold Deposit located in the prolific Timmins Gold Camp in Ontario, Canada. The updated resource (see Table 1) contains approximately 348,000 ounces of gold in the Indicated category (1,621,000 tonnes at a grade of 6.68 g/t Au) and 838,900 ounces of gold in the inferred category (4,342,000 tonnes at a grade of 6.01 g/t Au). The resource estimate has been completed by ACA Howe International Limited ("ACA Howe") and reported in accordance with Canadian Securities Administration National Instrument 43-101 ("NI 43-101") requirements and CIM Standards on Mineral Resources and Reserves.

Table 1. Frankfield East Gold Deposit – Resources

Gold GradeContained Gold
CategoryTonnes(g/tonne)Ounces
Indicated1,621,0006.68348,000
Inferred4,342,0006.01838,900
Notes:
1.Resource estimate completed based on a cut-off grade of 3.0 g/t, and a minimum true thickness of 2.0 metres.
2.Tonnes and ounces have been rounded to reflect the relative accuracy of the mineral resource estimate.
3.Mineral Resources were calculated with commercial mining software. Mineralized drill hole intersects are composited and true widths calculated. Composites are projected onto a 2D plane in the orientation of the respective structures. Block grades and thicknesses are assigned by nearest neighbour interpolation. The result approximates traditional manual longitudinal section polygonal methodology in the plane of mineralization.
4.The resource estimate was prepared by Leon McGarry, B.Sc., Geologist, ACA Howe and supervised by Ian Trinder, M.Sc., P.Geo., Senior Geologist, ACA Howe.
5.There has been no statistical treatment of the assay data and no top-cut grade was used. In ACA Howe's opinion the use of a top cut-off will not significantly affect the results.
6.Gold price is US$1000 per ounce.
7.The Frankfield East mineralization has an average specific gravity (SG) value of approximately 2.9. Where a measured specific gravity for the composite interval is not available, the average SG of 2.9 was utilised.
8.Mineral Resource tonnes quoted are not diluted.
9.Indicated Resources are identified where the drill hole spacing is approximately 50m or less. Indicated resource polygons are extended half the distance to adjacent drill holes to a maximum of 50 metres. Inferred resource polygons are extended half the distance to adjacent drill holes to a maximum of 100 metres.
10.No Measured Resources or Mineral Reserves of any category are identified.
11.Mineral Resources are not mineral reserves and by definition do not demonstrate economic viability.

Deposit modeling utilizes assay data from 201 diamond drill holes. As was explained previously the Frankfield East mineralization is contained within a series of parallel zones that extend into the host rock away from the main zone located adjacent to the geological contact structure. These parallel zones generally become less contiguous as the distance from the contact is increased. All of the indicated resource ounces and more than 85% of the inferred resource ounces are presently contained within the main zone area and the first two parallel structures.

Greg Romain, President and CEO of Gowest commented, "We are extremely pleased to quantify the substantial increases in the gold resource at the Frankfield East Deposit resulting from our 2010/11 drilling campaigns. As the deposit remains open and unexplored at depth, we are confident that the ongoing drilling program will continue to demonstrate additional gold. We are also very encouraged by the sensitivity analysis completed which clearly demonstrates the robust nature of the deposit and the fact that the majority of the ounces are contained within high- grade structures that minimize potential impacts from fluctuations in gold prices. It is becoming increasingly apparent that the Frankfield East deposit has the characteristics of a multi-million ounce gold deposit."

Mr. Romain further commented; "Engineering studies are continuing and we look forward to the demonstration of robust economics in a Preliminary Economic Assessment currently planned for completion in the fall."

Table 2 below shows the variations in tonnes, gold grades and ounces in the mineral resource summarized at various cut off grades between 1.50 g/t and 3.00 g/t. The figures in the table demonstrate the robust nature of the Frankfield East deposit and the potential to respond to fluctuations in gold prices by adjusting the cut-off grade to change the average gold grade of the deposit with relatively limited impact on the overall deposit resources. The base case resource estimate (3 g/t Au cut-off) was selected as a conservative starting point based on selective mining techniques for similar deposits in the Timmins camp.

Table 2.Cut-off sensitivities of Frankfield East Deposit Mineral Resources
Gold Cut-off
Grade (g/tonne)
Resource
Category

Tonnes
Gold Grade
(g/tonne)
Contained Gold
Ounces
1.5Indicated2,678,0004.91422,400
Inferred6,865,0004.53999,000
2.0Indicated2,220,0005.54395,700
Inferred5,506,0005.22924,000
3.0Indicated1,621,0006.68348,000
Inferred4,342,0006.01838,900

As part of its ongoing metallurgical test work program Gowest has identified a potential opportunity for the utilisation of ore sorting techniques with the Frankfield East mineralogy. Should this technique be validated for the deposit, it would allow for gold to be mined using more cost effective bulk mining techniques with the crushed rock then being sorted at surface to reject low grade waste material prior to further processing. The significance of this opportunity is that it would allow for the deposit to be mined economically at a lower cut-off grade thereby increasing the size of the overall resources (see lower cut-off grade scenarios in Table 2).

Qualified Person

Technical information related to Gowest's Frankfield East mineral resource estimate contained in this press release has been reviewed and approved by Ian Trinder, M.Sc., P.Geo., Senior Geologist, ACA Howe, an independent Qualified Person as defined by NI 43-101, with the ability and authority to verify the authenticity and validity of this data. The NI 43-101 Technical Report on the Mineral Resource Estimate for the Frankfield East Deposit will be filed on SEDAR within 45 days of this press release. Mr. Darren Koningen, P. Eng., Vice President of Technical Services 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. Gowest is exploring additional gold targets on the 60 square kilometre land package it controls and continuing to evaluate acquisition targets in the vicinity of the Pipestone Fault 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.

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.

Contact Information

  • Gowest Gold Ltd.
    Greg Romain
    President & CEO
    (416) 363-1210
    info@gowestgold.com

    Gowest Gold Ltd.
    Rory Quinn
    Investor Relations
    Toll Free: (877) 363-1218 or Tel: (416) 363-1210 ext. 208
    roryq@gowestgold.com