Gowest Amalgamated Resources Ltd.
TSX VENTURE : GWA
OTC Bulletin Board : GWSAF

Gowest Amalgamated Resources Ltd.

December 07, 2010 12:34 ET

Gowest Finds Presence of Significant Parallel Gold-Bearing Structures at Its Frankfield East Gold Deposit Near Timmins, Ontario

TORONTO, ONTARIO--(Marketwire - Dec. 7, 2010) - Gowest Amalgamated Resources Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA)(OTCBB:GWSAF) is pleased to announce further updates from its ongoing geological and deep drilling program at the Frankfield East Gold Deposit near Timmins, Ontario.

  • Detailed geological interpretations in advance of an updated resource estimate are almost complete and demonstrating the presence of multiple parallel gold-bearing structures throughout much of the Frankfield East deposit. When combined with gold contained within the deposit's Main Zone these additional lenses offer the opportunity for significant increases in resource potential over equivalent vertical and horizontal distances.

  • Recently completed deep drill hole GW10-60WA cut a total of 9.5m of 7g/t gold at a vertical depth of 750-830m in four distinct parallel structures (see Table 1 below).

  • Considered in context alongside hole GW10-46, which cut 10m of 6.5g/t (see Aug 4th news release for details) at 630m vertical depth it appears that the mineralised alteration zones in the eastern portion of the deposit have widened significantly at depth. The presence of these broad zones of alteration may indicate that the mineral structure opens and plunges eastward.

  • The presence of significant multiple parallel gold bearing structures at the Frankfield East deposit offers the characteristics of a significant gold deposit, similar to established gold mines in the Timmins area. The majority of the mines in the nearby prolific Porcupine area are made up of multiple gold bearing structures at depth within defined alteration envelopes.

Table 1. Deep hole GW10-60WA drilling results – Frankfield East gold deposit    
Hole No. Depth (m) Interval (m) Grade (g/t gold)
GW10-60WA 755.5-757.5 2 8.8
  775.5-777.0 1.5 4.1
  790.3-793.3 3 7.6
  829.0-832.0 3 6.5
Total (avg.)   9.5 7.0

Gowest Gold's exploration group have been active in the preparation of geological interpretations for the Frankfield East deposit, defining the continuity of the gold-bearing structures between drill holes, serving as the basis for the company's new resource estimate presently slated for release in Q1-2011. Previous drill results released from the 2010 Frankfield drill program have focussed primarily on the Main Zone of mineralization located next to the shear zone contact that passes south of the deposit.

Recent interpretations have demonstrated that the Main Zone is only one of a series of parallel gold-bearing structures that appear to be present throughout most of the deposit. Depending on the location, one to four distinct gold zones have now been identified.

Figure 1 illustrates a section of the eastern portion of the deposit showing the "typical" gold distribution. In addition to the presence of multiple mineralised zones, results from drilling completed on the eastern portion of the Frankfield deposit has demonstrated that the width of the mineralised rock alteration zone appears to be increasing at depth. In addition to being the deepest intersections ever drilled at site, the multiple gold structures displayed in hole GW10-60WA are very profound and separated by sufficient distances to allow for mining effectively as distinct zones. Additional drilling is planned in this area to test the continuity of the multiple gold-bearing horizons and also to explore an apparent easterly plunge of the deposit.

To view Figure 1 – Frankfield East Gold Deposit Easterly Cross Section Interpretation, please visit the following link:
http://media3.marketwire.com/docs/gowest_amalgamated_fig01_dec07.pdf

"The success of the deep drilling at Frankfield East continues to demonstrate the potential to define a multi-million ounce gold deposit. In addition, the results coming from the group's ongoing geological interpretations are extremely promising. If the current interpretations continue to be supported as the drill program continues, Frankfield could turn out to be one of the most significant new gold deposits discovered in an entirely undeveloped area of the Timmins camp in recent years." stated Greg Romain, President & CEO of Gowest Gold. "With an updated resource study based on our successful 2010 drill campaign expected in Q1-2011 and the initiation of a more aggressive expansion and infill drilling program planned for 2011, we believe this is an excellent time to be a Gowest shareholder."

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 varied 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 and development of its 100% owned Frankfield East gold deposit. Gowest is exploring additional gold targets on the Frankfield land package and continuing to evaluate 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.

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 Amalgamated Resources Ltd.
    Greg Romain
    President & CEO
    (416) 363-1210
    info@gowestgold.com
    or
    Gowest Amalgamated Resources Ltd.
    Rory Quinn
    Investor Relations
    Toll Free: (877) 363-1218 or (416) 363-1210