Gowest Amalgamated Resources Ltd.
TSX VENTURE : GWA

Gowest Amalgamated Resources Ltd.

June 09, 2010 10:55 ET

Gowest-Timmins, Ontario Completes Metallurgical Composite Drill Program Including Intersection of 5 Meters at 8.8 g/t Gold

TORONTO, ONTARIO--(Marketwire - June 9, 2010) - Gowest Amalgamated Resources Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA) is pleased to announce assay results from its metallurgical composite drill program for the 100% owned Frankfield Project in Timmins, Ontario.

  • Metallurgical test holes drilled through the deposit main zone indicated an average width approaching 4 meters at a weighted average grade of 7.3 g/t of gold. The mineralised intervals from the 1,300 meters of HQ drill core drilled to 125–150 meters vertical depth is intended to be used for the Company's detailed metallurgical program taking place at SGS Lakefield Research and targeted for completion in the second half of 2010.
  • The best intersection of the program was from hole GW10-65, which intersected 5 meters of 8.8 g/t gold. See Table 1 for additional results. Overall, the drilling results are in line with Gowest's resource average (existing 43-101 compliant Frankfield East 510,000 oz inferred mineral resource -- 2.4 million tonnes @ 6.5 g/t gold -- G.A. Harron, February 15, 2006) and recent drill results released on April 6, 2010.
  • The grades demonstrated for the Frankfield East deposit during the past and current drilling programs are consistent with what are generally accepted as typical norms for the Timmins mining camp area (6-8 g/t gold). 

Greg Romain, President & Chief Executive Officer of Gowest, said, "The assay results of the metallurgical test holes are consistent with the average grade of our current resource and with the grades from our Phase 1 drilling announced in April." Mr. Romain added, "As we work to complete additional deep holes at vertical depths of up to 800 meters we are encouraged with the progress made to date to demonstrate a potentially economic resource at the Frankfield East deposit. The Company continues to take advantage of the spring thaw period to complete detailed preparations for Phase 2 of the drill program which is expected to start late in June and is budgeted at $2.25 million. Phase 2 will target further extensions to the Frankfield East gold deposit as well as investigate other highly prospective but previously unexplored targets to the west and south of the current deposit that have recently been shown to possess very similar characteristics to the geological environment present at Frankfield East."

Table 1. Summary of Main Zone Drill Intersections Utilised for Frankfield East Gold Deposit Metallurgical Composite

Hole No. Depth (m) Interval (m) Grade (g/t gold)
GW10-63 127 – 129 2.0 6.7
GW10-65 119 - 124 5.0 8.8
GW10-66 140 - 145 5.0 6.9
GW10-67 124 - 127 3.0 6.9
GW10-70 122 - 125 3.0 6.3
m – metre, g/t gold – grams per tonne contained gold
Note: Intervals shown are core lengths (true width of mineralization will be slightly reduced).
  * Additional intervals of lower grade mineralization were blended with main zone intersections shown in table to produce approximately 250kg of final metallurgical composite material assaying 6 – 6.5 g/t.

The detailed information obtained from the metallurgical composite drill holes will also assist in the mineralization statistical work currently underway at Golder Associates as a precursor to developing a new Frankfield East resource model. The goal of this work is to upgrade a significant portion of the current inferred resource for the deposit into the indicated category while utilising information gained from the new drilling results to develop additional inferred resources.

The Frankfield Project

The Frankfield Project area is located in Tully Township approximately 30 km northeast of Timmins, Ontario. Located within the project area is the Frankfield East gold deposit containing an underexplored 510,000 oz (2.4 million tonnes @ 6.5 g/t gold) 43-101 compliant mineral resource that was previously delineated as part of a 50/50 joint venture. In March 2009, the Company began to consolidate the Frankfield regional area becoming the 100% owner of the Frankfield East gold deposit as well as adjacent mineral concessions. This consolidation continued in 2010 with the acquisition from Goldcorp of a significant land package contiguous to the east of the Frankfield project (see press release dated December 23, 2009), which quadrupled the company's land package in the area. The company will continue to evaluate opportunities to further consolidate the Frankfield regional area.

Prior to initiating the current drilling program, the Company completed a comprehensive review and re-evaluation of all geological, geochemical and geophysical data available from historical work carried out in the Project area. The results of this work allowed for the preparation of an updated regional geological model showing the potential for significant extensions of the Frankfield East gold deposit along strike and at depth as well as identifying a number of other significant unexplored anomalies. 

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 logged. Sample intervals were determined based on geological context to a maximum length of 1m. The entire core from each interval was bagged and delivered to the SGS Lakefield Research preparation facility located in Lakefield, Ontario. All samples were individually crushed prior to removing a representative sample which was 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. 

About Gowest

Gowest is a Canadian gold exploration and development company focused on the delineation, development and operation 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.

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
    416.363.1210 ext. 208