Gowest Increases Indicated Gold Resources by 170% to 945,600 Oz. at Frankfield East, North Timmins Gold Project
Wednesday, Nov 21, 2012
Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA)(OTCBB:GWSAF) Gowest Gold Ltd. today provided an update on its gold resources at its 100%-owned Frankfield East Gold Deposit, part of its North Timmins Gold Project in the prolific Timmins Gold Camp in Ontario, Canada. The updated resource (see Table 1) contains approximately 945,600 ounces of gold in the indicated category (6.0 million tonnes at a grade of 4.9 grams per tonne ("g/t") Au) and 536,800 ounces of gold in the inferred category (3.7 million tonnes at a grade of 4.2 g/t Au). As was used in the Company's recent Preliminary Economic Assessment, the current estimate is based on a 3.0 g/t Au cut-off and a conservative gold price of US$1,200/oz. This new resource estimate has been completed by Neil N. Gow, P. Geo., an independent Qualified Person, and reported in accordance with Canadian Securities Administration National Instrument 43-101 ("NI 43-101") requirements and CIM Standards on Mineral Resources and Reserves.
The Frankfield East deposit modeling utilizes assay data from 292 diamond drill holes, including 60 holes for 20,319 metres that had not been included in the previous estimate. In line with the Company's recently announced plans to accelerate the timetable for putting the Frankfield East deposit into production, (see Gowest news dated Nov. 12, 2012), a more detailed method was used for this latest resource estimate resulting in a block model more suitable for mine planning. The lower overall average resource grades are the result of the use of the 3D block modelling techniques. However, consistent with the previous resource estimates, the majority of the resource ounces in the project are contained in blocks greater than a 4 g/t Au cut-off with an average grade in excess of 6 g/t Au (see Table 2).
Noted Kevin Montgomery, Gowest Exploration Manager, "We have now delineated the mineralized structures to below 1000m and demonstrated good continuity of mineralisation within each structure. This is especially true for the upper 400m of the deposit, which is key to allowing us to advance our mine design. Immediate drilling will focus on tighter infill drilling for underground mine development."