A $1.6-million bridge loan from Lush Land Investment Canada will allow Gowest Gold to go ahead with its bulk sample program at the Bradshaw Gold development near Timmins.
On April 6, the Toronto-based exploration company announced it had received the first $1 million from the company, and the balance was expected by the end of the month.
“This loan provides us with the necessary support we need to continue to advance Bradshaw while we press ahead towards raising the additional capital required to complete the bulk sample beginning in Q3 and move Bradshaw into production,” Greg Romain, Gowest’s president and CEO, said in the release.
Bradshaw has an NI 43-101 indicated resource estimated at 2.1 million tonnes, grading 6.19 grams per tonne gold, containing 422,000 gold ounces, and an inferred resource of 3.6 million tonnes, grading 6.47 grams per tonne gold, containing 755,000 gold ounces.
It's part of Gowest's North Timmins Gold Project located 32 kilometres northeast of Timmins.
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Gowest said it had started discussions with interested parties to raise the funds needed to complete the bulk sample and move Bradshaw into production, which is targetted for 2021.
Gowest entered an agreement with Northern Sun Mining in 2017 to truck its bulk sample ore to the Redstone Mill south of Timmins. The mill has a capacity of 1,500 tonnes per day; however, the circuit can also be split to provide two independent circuits, each with an output of 750 tonnes per day.
Gowest said it was still on track to deliver the first ore from the bulk sample in the third quarter of 2020.
