Gowest Gold is negotiating with Northern Sun Mining Corp. to mill ore from its Bradshaw gold deposit at Northern Sun's Redstone Mill.
Under the proposed agreement, Gowest will process up to 500 tonnes per day of material as part of its bulk sample and pre-production program at Bradshaw, near Timmins.
In an earlier press release, Gowest announced it had received provincial approval for advanced exploration at the site.
According to a NI 43-101 resource report, Bradshaw has an indicated resource estimated at 2.1 million tonnes grading 6.19 g/t gold containing 422 thousand ounces gold, and an inferred resource of 3.6 million t grading 6.47 g/t gold containing 755 thousand ounces gold.
Probable mineral reserves, using a 3 g/t gold cutoff and utilizing a gold price of US$1,200/ounces, total 1.8 million t grading 4.82 g/t gold for 277 thousand ounces gold.
Detailed engineering work is underway ahead of the site preparation, ramp construction and the underground development work required to extract the bulk sample.
Gowest is also out to raise capital to pay for the extraction and processing of the sample, while also talking with contractors to help in the development of a mine.
The two parties expect the milling agreement to be in place by Oct. 31.
