ONTARIO – Gowest Gold of Toronto has signed a non-binding letter of intent with Pandion Mine Finance for US$17.6 million with which to take a bulk sample at its Bradshaw gold deposit. The deposit is part of Gowest’s North Timmins advanced exploration project 50 km northeast of Timmins.
The financing is subject to completion of due diligence and the negotiation and execution of gold streaming arrangement. Funds are to be received in a number tranches with a total term of 72 months, subject to certain conditions and milestones.
Gowest president and CEO Greg Romain says the deal is a major step towards building a new gold mine in the Timmins camp. Bulk sampling is to begin later this year and mine production in 2017.
The Bradshaw deposit (formerly Frankfield East) has resources of 2.1 million indicated tonnes grading 6.2 g/t Au and 3.6 million inferred tonnes grading 6.5 g/t Au. The deposit remains open along strike and at depth. The preliminary feasibility study, using a gold price of US$1,200/oz, puts the after tax net present value (5% discount) at US$29.2 million and internal rate of return at 27%. The initial capital requirement will be US$21.5 million to create a mine that averages 40,500 oz annually at an all-in sustaining cost of US$891/oz.
More information about the project and its geology is posted at www.GowestGold.com/north-timmins-gold-project/frankfield-property/.