Published on: 1/24/2014 10:28:35 AM Print | Font Sizes:  Normal Text Large Text

Gowest signs gold processing agreement


By: Northern Ontario Business staff

Gowest Gold signed a memorandum of understanding (MOU) with Swiss-based United Commodities AG (UC) in moving toward an agreement that will see future concentrate from Gowest’s Bradshaw gold deposit processed at UC’s facility in North Cobalt.
Gowest Gold signed a memorandum of understanding (MOU) with Swiss-based United Commodities AG (UC) in moving toward an agreement that will see future concentrate from Gowest’s Bradshaw gold deposit processed at UC’s facility in North Cobalt.

Gowest Gold signed a memorandum of understanding (MOU) with Swiss-based United Commodities AG (UC) in moving toward an agreement that will see future concentrate from Gowest’s Bradshaw gold deposit processed at UC’s facility in North Cobalt.

In a Jan. 20 news release, Gowest president Greg Romain called it a “win-win opportunity” for both parties.

“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 Bradshaw deposit is part of its 107-square-kilometre land package is part of the Timmins gold camp. The latest updated resource estimate includes 945,600 ounces of indicated gold and 536,800 ounces of inferred gold.

Also under the MOU, UC would have an opportunity to invest in Gowest’s mining operations.

Gowest has also entered into a non-binding letter of intent with Kidd Operations in Timmins to process Gowest’s ore into high-grade gold concentrate.

"This potential partnership with UC,” said Romain, “when combined with our plans with the Kidd Operations, provides the final operational piece for our plan to bring the Bradshaw gold deposit into production within two years. While more work is required, this is an exciting milestone toward building the mine."

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