Dallas, Texas (July 14 , 2011) – StockGuru shines its Spotlight on Gowest Gold Ltd. (“Gowest” or the “Company”) (TSX VENTURE:GWA)(OTCBB: GWSAF). Today the Company noted that ongoing exploration activities at its Frankfield East gold deposit provide high confidence that the recent resource estimate (see Gowest announcement dated June 1, 2011) may be significantly increased. On July 13, 2011, the Company closed at $0.26 trading in the middle of its fifty-two week range of $0.441 – $0.1948.
- The two deepest drill holes completed to date (GW11-155 & GW11-161) – subsequent to the recent resource estimate – intercepted significant mineralisation at a vertical depth of 1000 metres (m) (including GW11-155 with 7m of 9.1 grams per tonne (g/t) gold) and demonstrated the deposit remains open at depth.
- The gold resources contained in the Company’s recent resource estimate include only 55% of the identified mineralised zone down to a vertical depth of 1000m. The remaining area represents a zone with significant potential for additional resource ounces through an increase in drilling density.
- The Company’s shallow drill program has extended the surface strike length of the Frankfield East gold deposit to approximately 900m (versus 750-800m in resource estimate).
- All of the holes drilled during the first half of 2011 encountered zones of significant mineralisation (mineralised widths of 5-7m in most holes) in areas that were previously unexplored.
- Multiple parallel zones were identified in the majority of the drill holes, a feature found throughout most of the Frankfield east deposit.
“As important as the recent gold resource estimate for the Frankfield East deposit was for Gowest Gold, ongoing exploration has revealed mineralisation that may be used to add quickly and significantly to the resources contained within our project area,” stated Greg Romain, President & CEO of Gowest. “This doesn’t include the exploration potential in any of the other areas that the Company has recently acquired, which have already shown promise for additional Frankfield East style mineralisation.”
Background – Frankfield East Gold Resource
On June 1, 2011, the Company announced the results of an updated National Instrument 43-101 compliant resource estimate, which included 348,000 ounces of gold in the Indicated category (1,621,000 tonnes at a grade of 6.68 g/t Au) plus 838,900 ounces of gold in the Inferred category (4,342,000 tonnes at a grade of 6.01 g/t Au).
According to the procedures followed for the resource estimate, inferred gold resources in the Main Zone were only estimated for areas within a maximum distance of 50m from existing drill holes (25m for indicated ounces). These areas are outlined by the circles shown in the Figure 1. Due to a lack of drilling density, most of the area below a vertical depth of 350m has not been included in the current resource estimate. However, based on the excellent consistency achieved during the drilling completed during the 2010/11 programs, the Company strongly believes that the identified mineralised structures may prove to be continuous both horizontally and vertically. Thus, there remains significant potential for added resources within the already defined zone of known mineralisation. In total, the areas within the identified zone that have been included in the current resource calculations constitute only 55% of the overall horizon (800m average horizontal strike length x 1000m vertical depth).
Exploration drilling activities at the Frankfield East deposit are currently being organized according to two general priorities – shallower, in-fill drilling and deeper, resource expansion drilling (see Figure 1.)
In-fill drilling is being performed to depths of approximately 350m in order to convert additional Inferred gold ounces in this zone into the Indicated category status (currently 348,000 ounces / 1,621,000 tonnes at a grade of 6.68 g/t Au) as well as to provide better definition to the upper regions of the deposit, aiding in the following:
- Continuing to test the limits of the deposit strike length.
- Providing detail for initial mine planning activities that are currently underway.
- Retesting areas* where the company believes “historic” drill holes were not adequately sampled for gold mineralisation and where the potential exists to add more gold resource ounces.
(*A few areas within the upper zones of the deposit have been identified where the initial interpretations indicate an absence of gold mineralisation. The data utilised in these areas come from a series of older drill holes completed in the 1970s and early 1980s and appear to be inconsistent with recent drilling adjacent to these areas. It is known that the early drilling was aimed at base metals exploration and that most of the holes were not sampled unless there were indications of these metals. It is the Company’s belief that zones of unsampled gold mineralisation may have been present in these holes and therefore additional drilling has been planned in the current program in order to retest the areas.)
At greater depths, drilling is intended to confirm the continuity of mineralisation in areas that currently are devoid of drill data. The aim of this work is to expand the overall gold resource for the deposit, primarily in the Inferred category (currently 838,900 ounces / 4,342,000 tonnes at a grade of 6.01 g/t Au).
Table 1 highlights the results from the approximately 9000m of resource expansion drilling completed in the first half of 2011. Results from holes GW10-121 and GW10-134 were received prior to the completion of the recent resource update and have therefore been included in the calculations. Data from the remaining holes was received subsequently and is therefore excluded from the resource estimates.
The results from the in-fill holes drilled during the first half of 2011 are summarised in Table 2. The holes up to GW11-147 were included as part of the recent resource update. The remainder were excluded as data was not complete at the time the estimate was prepared.
- A comprehensive geophysical and geochemical survey program is underway over the Company’s extensive and growing land position that now extends for more than 60 square kilometers. This work is aimed at identifying additional Frankfield East style gold targets for exploration in the 2011/12 winter drilling season.
- The company has completed planning for a Phase 2 drill program aimed at better defining the size and orientation of the gold-bearing structures identified at the Texmont deposit located less than a kilometre west of Frankfield East. To date, no gold resources have been estimated for this new zone of mineralisation.
- The company is continuing to expand the deep drilling program at site and is in the process of completing an updated drill program that will be extended into the 2011/12 winter drill season.
To view, “Figure 1. Longitudinal section of Frankfield East deposit Main Zone mineralization,” please visit the following link: http://media3.marketwire.com/docs/gwa713fig1.pdf
|Table 1. Frankfield East resource expansion drilling|
|Drill Hole||From (m)||To (m)||Width (m)||(g/tonne)|
|(True widths are estimated at approximately 90% of drill interval width shown in the table)|
|Table 2. Frankfield East Resource In-Fill Drilling|
|Drill Hole||From (m)||To (m)||Width (m)||(g/tonne)|
|(True widths are estimated at approximately 90% of drill interval width shown in the table)|
This press release has been reviewed by Mr. Darren Koningen, P. Eng., Gowest’s Vice President of Technical Services. Mr. Koningen is a Qualified Person under National Instrument 43-101.
All drill core samples were photographed prior to being split and logged. Sample intervals were determined based on geological context and varied in length from 0.3 – 1.5m. Half of the split core from each interval was bagged and delivered to the ALS Laboratory Group (“ALS”) preparation facility located in Timmins, Ontario.
All samples were prepared by ALS and analyzed for gold using fire assay procedures with an Atomic Adsorption Spectroscopy (“AAS”) finish in addition to the completion of a multi-element ICP-AES scan. ALS’s main North American assay laboratory in Vancouver, British Columbia is accredited to ISO/IEC 17025:2005.
Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Frankfield East gold deposit, as well as on the exploration of additional gold targets on the Frankfield project area, part of the prolific Timmins, Ontario gold camp. The Company also continues to evaluate acquisition targets in the vicinity of the Frankfield project area.
This news release contains certain “forward looking statements”. Such forward-looking statements involve risks and uncertainties. The results or events depicted in these forward-looking statements may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
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