Gowest Gold (TSXV:GWA) has arranged a new $10-million loan, which will be used in part to rehabilitate the Redstone mill in preparation to treat ore from the Bradshaw deposit, part of the North Timmins gold project, 32 km north-northwest of the city of the Timmins, Ont. The proceeds will also be used for general working capital and to repay $4.6 million to Northern Sun Mining, the owner of the mill.
The two companies are currently negotiating a definitive milling agreement.
The Redstone mill is fully permitted and situated 25 km southeast of Timmins. It was built in 2006 to process nickel ore but began operating as a toll mill in 2014. It is the only mill available that focuses on third party toll processing.
Gowest plans to complete 25,000 metres of diamond drilling to upgrade and expand the resources. The company believes mining could be restarted to produce 184,000 oz. of gold over three years from 1 million tonnes of ore averaging 5.50 g/t gold. The deposit is open at depth and along strike. The mine will initially operate at 400 t/d and will be ramped up to at least 1,000 t/d.
More information can be found in the corporate presentation on www.GowestGold.com.
April 25, 2024
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