On Oct. 30, the companies announced they had reached a four-year milling agreement, with an option to extend.
Gowest will be responsible for funding upgrade permits and capital expenditures to prepare the mill for processing the ore as part of its bulk sample and pre-production program, followed by production at Bradshaw.
Gowest said it has stockpiled more than 28,000 tonnes of development material on surface in preparation for ore-sorting. Sorted ore will then be trucked to Aurbel for milling into high-grade gold concentrate, which will be shipped to Humon Smelter in Shandong Province, China, for final processing and sale.
“We are very pleased to have reached this agreement with QMX, which represents a vital milestone in our development of Bradshaw and in our goal of advancing it into a commercial gold mine,” Gowest president-CEO Greg Romain said in a news release.
“The termination of the previously executed agreement for toll milling prevented the company from moving the project into the next phase of mining and financing. Now that we have closed the loop, we will be able to finalize discussions on completing the necessary funding of the project.”
Gowest said it would work on completing the necessary mill permits leading to mill startup and would continue preparations for underground mining.
The company expects processing to begin mid-2019.
Located about 32 kilometres northeast of Timmins, Bradshaw contains a National Instrument 43‐101 indicated resource estimated at 2.1 million tonnes grading 6.19 grams per tonne gold, containing 422,000 ounces of gold, and an inferred resource of 3.6 million tonnes grading 6.47 grams per tonne gold, containing 755,000 ounces of gold.