Gowest Completes Acquisition of 100% Interest in Claims Adjacent to Past-Producing Hallnor Gold Mine
Transition Metals Option and Joint-Venture Agreement Extended
TORONTO, ONTARIO--(Marketwired - Aug 26, 2015) - Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA) is pleased to announce that it has completed its previously-announced transaction with Crown Mining Corp., pursuant to which Gowest has acquired a 100% interest in four patented claims totalling 64 hectares located in Whitney Township near Timmins, Ontario (see Gowest announcement dated July 22, 2015).
The claims acquired by Gowest adjoin the north and northwest boundary of the Hallnor property and lie approximately one kilometre northwest of the Hallnor Gold Mine. The Hallnor Gold Mine was among the richest in the Timmins camp, with grading of 0.41 ounces of gold per ton for 4.2 million tons, and was notable in that production of 1.7 million ounces of gold came from an area enclosed within under 65 hectares. The claims to be acquired are contiguous with five patented claims (80 hectares) already owned by Gowest in Whitney Township.
With this closing, Gowest's total land holdings in the Timmins Gold camp now total approximately 11,000 hectares (110 square kilometers). Timmins is the most prolific gold camp in Canada, having produced more than 70 million ounces of gold or just under half of all of the gold ever mined in this country.
As consideration for the claims, Gowest paid $25,000 in cash and issued 1,000,000 common shares of Gowest.
TRANSITION METALS OPTION AND JOINT-VENTURE AGREEMENT EXTENDED
Gowest is also pleased to report that it has successfully completed a one-year extension of its Option and Joint Venture Agreement with Transition Metals Corp. ("TMC") to earn an initial 60% interest and up to a 75% interest in approximately 3,400 hectares (34 square kilometres) in the Porcupine mining district (the "Pipestone Property"). The agreement, pursuant to which Gowest can earn its interest in the Pipestone Property, was originally entered into on April 25, 2011 (see Gowest announcements dated February 4, 2014 and April 26, 2011). This extension was granted in exchange for the issuance to TMC of 500,000 common shares of Gowest.
About Gowest
Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Bradshaw Gold Deposit (Bradshaw), on the Frankfield Property, part of the Corporation's North Timmins Gold Project (NTGP). Gowest is exploring additional gold targets on its +100-square-kilometre NTGP land package and continues to evaluate the area, which is part of the prolific Timmins, Ontario gold camp. Currently, Bradshaw contains a National Instrument 43-101 compliant Indicated Resource estimated at 2.1 million tonnes ("t") grading 6.19 g/t Au for 422 thousand oz Au and an Inferred Resource of 3.6 million t grading 6.47 g/t Au for 755 thousand oz Au. Further, based on the Pre-Feasibility Study produced by Stantec Mining and announced on June 9, 2015, Bradshaw contains Mineral Reserves, using a 3 g/t Au cut-off and utilizing a gold price of US$1,200 / oz, totalling 1.8 million t grading 4.82 g/t Au for 277 thousand oz Au.
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 SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contact
Gowest Gold Ltd.
Greg Romain
President & CEO
(416) 363-1210
Gowest Gold Ltd.
Greg Taylor
Investor Relations
(905) 337-7673
Mob: (416) 605-5120
gregt@gowestgold.com