Published on: 1/20/2014 4:12:02 PM Print | Font Sizes:  Normal Text Large Text

Gowest signs MOU with United Commodity

By: Northern Ontario Business staff

A memorandum of understanding (MOU) signed between Gowest Gold Ltd. and United Commodity (UC) could lead the way for concentrate from Gowest’s Bradshaw gold deposit refined at United Commodity's processing facility in Cobalt.

UC's Yukon Refinery in north Cobalt is specially equipped and licensed to process the type of refractory material contained in the Bradshaw gold deposit.

"This is truly a win-win opportunity for both sides involved in this plan,” Gowest president Greg Romain said in a news release. “Not only would it secure a long-term refining facility for our concentrate and provide long-term feedstock for the north Cobalt plant, but it is the foundation for a partnership that could, in time, benefit from the significant upside we have on the rest of our substantial land position in the north Timmins gold camp."

Gowest's 100 per cent-owned Bradshaw deposit, on the Frankfield Property, is part of the company's 107-square-kilometre north Timmins gold project in Timmins.

Last May, Gowest announced it had entered into a non-binding letter of intent with Kidd Operations in Timmins to process Gowest's ore into a high-grade (+90 grams per tonne) gold concentrate.

Gowest will provide UC’s refinery with gold concentrate test samples from Bradshaw. This would provide the primary basis for a decision to move forward, in which event, UC would install a new refinery on its north Cobalt facility, at its own cost, to refine Gowest's concentrate into gold doré. Gowest would also be invited to become a co-owner of this refinery. Also, under the terms of this MOU, UC would have the opportunity to invest in Gowest's mining operations.

The latest updated resource estimate for Bradshaw included approximately 945,600 ounces of gold in the indicated category (6.0 million tonnes at a grade of 4.9 grams per tonne gold) and 536,800 ounces of gold in the inferred category (3.7 million tonnes at a grade of 4.2 g/t gold).

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