ONTARIO – Gowest Gold of Toronto has signed a non-binding letter of intent with Glencore Xstrata‘s Kidd Operation in Timmins for the treatment of ore from Gowest’s Frankfield East gold deposit 50 km northeast of the town. The plan is to refurbish the Division D line at the Kidd mill to produce a high grade (over 90 g/t) gold concentrate.
Both the time and cost to put Frankfield East into production will be reduced by this agreement. By using existing capacity, overall milling costs will be lower and revenues higher for Gowest. The company stands to save an estimated $107 million, the difference between refurbishing the Kidd mill and building a new, stand alone mill. The timeline to commercial production will be shortened by two or three years; it is now planned for 2015.
Gowest says it has completed a detailed concept engineering study for the refurbishment of the Kidd mill and is now advancing detailed mining plans and initiating a feasibility study for Frankfield East.
Details concerning the Frankfield geology are posted at GowestGold.com.