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

Gowest Amalgamated Resources Ltd.

December 15, 2010 13:28 ET

Timmins-Gowest Announces Multiple High Grade Gold Intersections in Shallow Extensions of Frankfield East Gold Deposit

TORONTO, ONTARIO--(Marketwire - Dec. 15, 2010) - Gowest Amalgamated Resources Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA)(OTCBB:GWSAF) is pleased to announce it has intersected significant high grade gold mineralization from surface down to approximately 200m vertical depth during the company's ongoing drilling program at its Frankfield East gold deposit near Timmins, Ontario. 

The purpose of the drilling program was to demonstrate the continuity of mineralization contained within the significant strike extensions outlined for the Frankfield East deposit. These strike extensions were identified as part of the previously completed 2010 drilling activities and increased the overall strike of the deposit from 450m to approximately 775m at surface (70% increase). The spacing between the holes was set in order to allow for resources (existing and new potential) to be upgraded from an inferred category to the measured and indicated categories. Utilising all of the new data provided by the successful 2010 drill program, the company is planning to release an updated 43-101 compliant resource estimate for the Frankfield East project in Q1 of 2011. 

The results from the ongoing drilling program include some of the highest grade mineralization encountered to date on the deposit and have confirmed that the mineralized zones extend to surface. Drilling highlights include:

  • 3.5m of 10.8 g/t Au (including 1m of 33.7 g/t Au) in the Eastern zone and
  • 3m of 9.9 g/t Au and 1.9 m of 14.6 g/t Au in the Western zone

Critically, with one exception, every hole drilled as part of the 2010 drill program within the currently defined mineralized envelope (775m strike at surface by 830m depth) has intersected gold. As a result of the company`s confidence in the continuity of mineralization within the deposit, Gowest has decided to aggressively expand the shallow drill program in 2011. A third and fourth drill rig are expected on site early in 2011, which will better facilitate the company's efforts to confirm and expand the mineralized envelope at its Frankfield East deposit. In addition, the added equipment will allow this work to continue in parallel with the exploration of other previously undrilled high priority gold targets south of the Frankfield East deposit.

Table 1 lists the results from the drill holes completed to date and where appropriate zones of primary and secondary intersection. As discussed in a previous release (Dec 7, 2010), the Frankfield East gold deposit exhibits the widespread presence of multiple parallel gold structures. This is observed in drill holes GW10-82B, GW10-94 and GW10-95 where two gold zones were intersected. The deeper intersections are shaded in grey for ease of understanding. The company has previously confirmed the presence of up to four parallel gold zones at depths of 800m. 

Table 1 Shallow Drilling Results – Frankfield East Gold Deposit
Hole No. Depth (m) Interval (m) Grade (g/t gold)
GW10-82B 154.0-156.8 2.8 3.4
  191.8-194.8 3 3.9
GW10-86 164.8-166.8 2 4.2
GW10-87B 150.0-151.9 1.9 14.6
GW10-88 101.4-104.4 3 9.9
GW10-91 170.0-173.1 3.1 3.4
GW10-93 228.5-230.1 1.6 7.1
GW10-94 191.6-193.3 1.8 2.6
  199.0-203.1 5.8 3.1
GW10-95 44.0-47.5 3.5 10.8
including 45.5-46.5 1 33.7
  89.4-90.9 1.5 12.9
GW10-97 9.9-11.5 1.6 10.1
Grey shading = secondary (deeper) intersection, Yellow highlight = high grade (True widths are estimated at approximately 90% of drill interval width)

"Given the company is having very good success exploring this deposit and continues to find gold along strike, close to surface and at depth our goal in 2011 is to translate this potential into new ounces and to upgrade existing ounces into a measured and indicated resource while working to expand the envelop further", stated Greg Romain, President & CEO of Gowest. "We also look forward to exploring the regional land package, including a gold target to the south which is a similar alteration zone to the Frankfield East gold deposit, and has never been drilled."

Figure 1. (below) shows the existing (2006) Frankfield East resource, the expanded mineralized envelope and the current areas of drilling between the existing resource and the strike extensions drilled earlier in 2010.

http://media3.marketwire.com/docs/gowestfig1.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 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
    (416) 363-1210 or Toll Free: (877) 363-1218