Gowest Amalgamated Resources Ltd.
TSX VENTURE : GWA

Gowest Amalgamated Resources Ltd.

September 07, 2010 08:37 ET

Gowest Intersects 5m of 8.1 g/t Gold on New Texmont Exploration Target West of its Flagship Frankfield East Gold Deposit Near Timmins, Ontario

TORONTO, ONTARIO--(Marketwire - Sept. 7, 2010) - Gowest Amalgamated Resources Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA) is pleased to announce that it has intersected 8.1 grams per tonne gold over 5 metres on the new Texmont exploration target located approximately 1.5 kilometres west of the Frankfield East gold deposit on its 100% owned Frankfield Project located near Timmins, Ontario.

  • The Texmont target is the first of 3 new gold exploration areas identified as high priorities for the discovery of additional gold resources on the Frankfield property. 

  • Importantly, the mineralisation identified at this new location appears to exhibit the same characteristics as is seen at the Frankfield East gold deposit. Hole GW10-73 was targeted to intersect a specific region on the west of the Frankfield Project area which showed favourable potential for gold hosting based on the company's newly developed geological model. The model combines data from high resolution 3D magnetic inversion studies and sampling for soil gas hydrocarbon analysis to identify geological environments similar to that present at the Frankfield East gold deposit where the host rock has been altered by metallic-bearing hydrothermal fluids.

  • Gowest will continue to follow up on the Textmont gold target in order to better understand the size and orientation of the newly identified structure. The significant gold intersection seen in hole 73 and the highly anomalous intersections in holes 74, 75 and 77 validate the geological model developed for exploration work on the Frankfield property and indicates that the potential for the discovery of new gold zones on the property is excellent.

  • As part of Phase 2, the Company will also continue its ongoing drill program aimed at further understanding and expanding the envelope of mineralization at the Frankfield East gold deposit. A second drill rig will remain dedicated to the Frankfield East deposit full time. Recent drilling has confirmed the continuity of mineralization to at least 700m along strike and 700m vertical depth (deposit remains open), more than doubling the size of the original mineralized envelope. The drilling completed as part of the Phase 1 program has allowed the company to demonstrate a mineral potential at Frankfield East 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)

  • The budget for Phase 2 drilling is approximately $2.25 million of which approximately $700,000 is to be spent on the new gold exploration targets. The entire program is fully funded.

Table 1. Drilling Results for the Phase 2 Gold Target Exploration Program
Hole No. Depth (m) Interval (m) Grade (g/t gold) Notes
GW10-73 49.3-63.0 13.7 4.1 (main zone)
including 52.0-57.0 5 8.1  
including 52.0-56.0 4 9.5  
GW10-74 Minor sulphide content, <1 g/t gold (no main alteration zone)
GW10-75 102.9-103.3 0.4 1.3  
  123.5-125.0 1.5 1.3  
  154.6-161.2 Minor sulphide content, <1 g/t gold (main zone)
GW10-77 313.4-314.0 0.6 4.1 (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 GW10-76 and GW10-78 are still in progress on the Frankfield East deposit. Holes drilled were not in numeric order due to logistics and planning.

Greg Romain, President & CEO of Gowest, said, "We are excited about the results from the first few drill holes completed as part of our Phase 2 regional drilling program particularly the results from hole GW10-73. The early work to determine the size and orientation of the new target area has encountered anomalous gold values in all of the completed shallow drill holes and confirms that the Texmont target hosts additional "Frankfield East style" gold mineralisation. The significant amount of time invested in developing a new geological model for the Frankfield Project area is paying substantial dividends for the company. Gowest will continue to follow up on this and other promising targets located in areas of the Frankfield Gold Project that have never before been subjected to a comprehensive modern drill exploration program. I am confident that the current resources will be expanded and new discoveries will be made as our work program continues."

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.

Total shares outstanding: 81.9 million
Fully Diluted: 115.3 million
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Recent Price: $0.27

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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
    (416) 363-1210 ext. 208 or Toll Free: (877) 363-1218