Gowest Gold (TSXV: GWA) has signed a tolling agreement with Northern Sun Mining for the treatment of ore from Gowest’s Bradshaw gold mine at Northern Sun’s Redstone mill near Timmins, Ont. The deal will run for one year, beginning on the date milling services begin.
Gowest will pay Northern Sun’s operating and capital costs to process the Bradshaw ore plus a fixed fee per tonne treated. The agreement is non-exclusive, but Northern Sun has been granted a right to match terms that may be offered by a third party. Gowest also has the right to terminate the tolling agreement if it cannot secure financing to restart mining activities at Bradshaw this year.
Gowest owns 100% of the North Timmins gold project which includes the Bradshaw deposit, in the Abitibi Greenstone Belt, near Timmins, Ont. The company began exploring the deposit in 1983, and it more than doubled the original mineralized envelope. A prefeasibility study was completed in 2015.
According to the most recent corporate presentation, the Bradshaw deposit has probable reserves of 1.8 million tonnes grading 4.82 g/t gold (included in resources). Contained gold is estimated at 277,000 oz. in the reserves. There are 2.1 million indicated tonnes at 6.29 g/t gold, plus 3.6 million inferred tonnes at 6.47 g/t gold. The deposit remains open at depth and along strike. Gowest believes the mineralization may extend below 1,000 metres. The company plans to spend $10 million on drilling and other exploration activities at Bradshaw this year.
Readers wanting to learn more about the Bradshaw gold project should visit www.GowestGold.com.
