While the underlying company, Gowest Amalgamated Resources Limited, has operated for considerably longer, what was to become the “new” Gowest Gold Ltd. (“Gowest”) was advanced with the introduction on May 1, 2008 of a new management team headed by President and Chief Executive Officer, Gregory Romain.
Since 2009, Gowest has expanded its land holdings in the North Timmins Gold Project (“NTGP”) area to cover a total of 109 square km in the Timmins gold camp, with much of the additional lands being located along the same geological structures – the along the largely undeveloped Pipestone Fault, believed to be a splay off the prolific Porcupine-Destor Fault, which has produced the majority of the 145 million ounces of gold produced historically along the Abitibi-Greenstone belt – that host Gowest’s Bradshaw Gold Deposit (formerly Frankfield East) as well as a number of other gold showings.
March 2009: Gowest acquired 100% of the Frankfield East gold project, gaining the final 50% from New Texmont Exploration Ltd., as well as New Texmont’s additional land holdings in the bordering Tully area, all of which comprised Gowest’s NTGP area. In December 2009, Gowest added a series of adjacent properties from Goldcorp, thereby quadrupling its land position. In April 2010, following another extensive round of drilling, the Company found significant extensions to the Frankfield East deposit and in August, announced it had demonstrated the potential to find in excess of one-million ounces of gold at the deposit.
June 2011: Gowest released an updated gold resource for the Frankfield East deposit, which was estimated to contain 348,000 ounces of gold in the Indicated category (1,621,000 tonnes at a grade of 6.68 g/t Au) and 838,900 ounces of gold in the Inferred category (4,342,000 tonnes at a grade of 6.01 g/t Au). The resource estimate was completed by ACA Howe International Limited (“ACA Howe”) and reported in accordance with Canadian Securities Administration National Instrument 43-101 (“NI 43-101″) requirements and CIM Standards on Mineral Resources and Reserves. Subsequent drilling that same year saw the strike length extended to approximately 900m and to a vertical depth of at least 1,000 m.
October 2011: Gowest entered into an Exploration Agreement (EA) with the Mattagami First Nation and the Matachewan First Nation in order to promote a cooperative ongoing discussion between the parties with regards to the company’s NTGP.
November 2011: The Company announced that the Preliminary Economic Assessment completed for Frankfield East estimated a pre‐tax* net cash flow of US$265 million and a 3.3 year payback period based on the current resources with annual production rate averaging 95,000 ounces of gold over a 10-year mine life. (*This assessment does not include project taxes, which are typically in the range of approximately 30%.)
February 2012: Gowest reported that a metallurgical and engineering study showed that the Frankfield East ore could be processed to produce a gold concentrate in excess of 90 g/t Au. Further, a commercial test using Gowest ore demonstrated the efficacy of using proven automated ore-sorting technology to dramatically increase the grade of ore being sent for processing while reducing the amount of waste being handled, providing still further potential for economic savings.
November 2012: The Company signed a Memorandum of Understanding with Glencore Xstrata’s Kidd Operations group, an operating processor in the Timmins area, which has sufficient milling capacity to be able to process ore from the Frankfield East gold deposit for a fee. The current plan is to produce a high-grade gold concentrate to be sold through a separate off-take agreement. With the baseline environmental study already completed, current plans include Gowest securing appropriate mining permits to enable it to begin mine development at Frankfield East towards the end of 2013.
May 2013: Gowest announced that it had entered into a non-binding Letter of Intent with Glencore Xstrata’s Kidd Operations in Timmins, Ontario. The plan is to refurbish the Division ‘D’ line of the mill at Kidd Operations to process Gowest’s ore into a high-grade (+90 grams per tonne) gold concentrate. The proposed arrangement between the companies significantly reduces the cost and time to commercial production of the Frankfield East gold deposit.
July 2013: The Frankfield East Gold Deposit was renamed the “Bradshaw Gold Deposit” (“Bradshaw”) after Ronald J. Bradshaw who, as founder of Gowest (formerly Gowest Amalgamated Resources Ltd.), was instrumental in the discovery of this now-advanced gold asset. Gowest’s Tully North Gold Zone, located approximately two km. northeast of Bradshaw, was renamed the “Roussain Gold Zone” after Randal J. Roussain. Randal was instrumental in negotiating Gowest’s acquisition agreement of this claim package with Goldcorp in 2011, and assisted in hole location for the successful exploration drill campaign completed in the winter of 2012-13. The Texmont Gold Zone, located just west of Bradshaw, was renamed the “Sheridan Gold Zone” after J. Patrick Sheridan, a long-time prospector and Gowest investor and the owner of New Texmont, a company that initially discovered the zone in the late 1980’s.
December 2013: Gowest received a $750,000 royalty payment from Gold Royalties Corporation (“Gold Royalties”) for the purchase of a 1.0% gross royalty interest on gold production from Gowest’s NTGP, including the Bradshaw Gold Deposit (formerly named Frankfield East) and a right-of-first refusal agreement with respect to future gold streams associated with the NTGP.
January 2014: The Company signed a Memorandum of Understanding (MOU) with United Commodities AG (UC), which contemplates a potential strategic partnership that would enable Gowest to have future concentrate from the Company’s Bradshaw Gold Deposit (Bradshaw) refined at UC’s processing facility in North Cobalt, Ontario. UC is a Thun, Switzerland-based public company listed on the Stuttgart Stock Exchange and an international investment group focused on innovative commodity processing technologies, including its UC-CRT® (UC Clean Refining Technology.) UC’s Yukon Refinery in North Cobalt is specially equipped and licensed to process the type of refractory material contained in the Bradshaw Gold Deposit.
February 2014: Gowest amended its Option and Joint Venture Agreement with Transition Metals Corp. (“TMC”), dated April 25, 2011, pursuant to which Gowest can earn an initial 60% interest and up to a 75% interest in approximately 3,400 hectares (34 square kilometres) in the Porcupine mining district (the “Pipestone Property”). Specifically, TMC has agreed to extend the period during which Gowest can earn its initial interest in the Pipestone Property by one year.
March 2014: The Company finalized an agreement to acquire two mining leases (12 claim units) covering 193 hectares (1.93 sq km) adjacent to the eastern portion of the Bradshaw Gold Deposit. Formerly known as the White Star property, the surface rights (81 hectares) accompanying these newly acquired leases provide additional land needed for the infrastructure to be built around Gowest’s planned mine at Bradshaw, including room for the planned waste rock dump and settling ponds. Importantly, Gowest also believes that this new property has strong geological potential and could enable the Company to extend Bradshaw’s current 1.3 kilometre gold mineralization strike length still further to the east. White Star contains a 1.2-km strike length of the same volcanic stratigraphy that hosts this mineralization.
July 2014: Gowest received a further extension of up to six months with regard to the previously announced non-binding Letter of Intent (“the LOI”) the Company had entered into with Kidd Operations, in Timmins, Ontario. The plan is to refurbish the Division ‘D’ line of the mill at Kidd Operations to process Gowest’s Bradshaw Gold Deposit (“Bradshaw”) resources into a high-grade (+90 grams per tonne) gold concentrate. The proposed arrangement between the companies significantly reduces the cost and time to commercial production of Bradshaw. The LOI has now been extended to on or before December 31, 2014. According to the terms of the LOI as requested by management of the Kidd Operations, Gowest has completed a detailed concept engineering study for the mill refurbishment and is now advancing detailed mine planning, site infrastructure engineering, the planned mill refurbishment as part of a pre-feasibility study as well as working on advanced underground exploration permit applications.
September 2014: Following shareholder approval and sanctioned by the TSX Venture Exchange, the Corporation raised gross proceeds of $3,400,000 through the sale of a total of 42,500,000 Units to Fortune Future Holdings Limited, at a price of $0.08 per Unit, with each Unit being comprised of one common share of the Corporation and one common share purchase warrant. Each Warrant is exercisable to acquire one common share of the Corporation at a price of $0.11 for a period of two years following the closing date. In connection with this investment, Mr. Yungang Wu, a nominee of Fortune, was appointed to the board of directors of the Corporation.
January 2015: Gowest received another extension of up to six months with regard to the previously announced non-binding Letter of Intent (“the LOI”) that the Company had entered into with the Kidd Operations, located in Timmins, Ontario. The LOI, which had been scheduled to terminate on or before December 31, 2014, was extended to on or before June 30, 2015
June 2015: Gowest announced the results from the Pre-Feasibility Study (“PFS”) completed for its Bradshaw Gold deposit (“Bradshaw”). In preparing to reach this critical milestone, Gowest had raised sufficient capital over the last few years to enable the Company to significantly advance Bradshaw by expanding the historical resource (through drilling and analysis in excess of 65,000 meters of core), developing a detailed mine plan and completing the work required to obtain the various mining permits. The PFS was conducted by Stantec Mining through their Mississauga, Ontario office. The PFS was focused on mining the upper 500 vertical meters (“m”) of mineralization at Bradshaw. Previous drilling has intercepted mineralization at a vertical depth of 1,350 m, indicating the deposit remains open for additional development.
August 2015: Gowest completed the acquisition from Crown Mining Corp. of a 100% interest in four patented claims totalling 64 hectares located in Whitney Township near Timmins, Ontario. The acquired claims adjoin the north and northwest boundary of the Hallnor property and lie approximately one kilometre northwest of the Hallnor Gold Mine. The Hallnor Gold Mine was among the richest in the Timmins camp, with grading of 0.41 ounces of gold per ton for 4.2 million tons, and was notable in that production of 1.7 million ounces of gold came from an area enclosed within under 65 hectares. The claims to be acquired are contiguous with five patented claims (80 hectares) already owned by Gowest in Whitney Township. Gowest’s total land holdings in the Timmins Gold camp now total approximately 11,000 hectares (110 square kilometers).
October 2015: Gowest completed a program encouraging the early exercise of up to 50,000,000 of the outstanding common share purchase warrants of the Company issued between June 23, 2014 and September 30, 2014. In total, 46,962,500 warrants were exercised at $0.06, raising aggregate gross proceeds to the Company of $2,817,750. Of this total, Directors, Officers and Insiders exercised 44,512,500 warrants to contribute $2,670,750. The funds raised from the Program were to be used to advance the development of Bradshaw and for general and administrative expenses.
December 2015 Gowest purchased the 1.5% net smelter return royalty (the “Royalty”) held by the Sheridan group. on the Company’s Frankfield Property, which includes the Bradshaw Gold Deposit and the Sheridan Zone for an aggregate consideration of 10,000,000 common shares of Gowest (each share having a deemed value of CDN$0.10). Gowest also closed a non-brokered private placement of 10,177,420 “flow-through” units of the Corporation (the “Units”), at a price of $0.10 per Unit, for aggregate gross proceeds of $1,017,742. Each Unit was comprised of one common share and one-half of one common share purchase warrant issued on a flow-through basis, with each Warrant being exercisable to acquire one common share of the Corporation at a price of $0.15 until December 22, 2017.
February 2016 Gowest provided an update on its development plans for the Company’s North Timmins Gold Project (“NTGP”), including plans to make the Bradshaw Gold Deposit the next new gold mine in the Timmins gold camp:
- Advanced Exploration (“AE”) permitting process is in the final stages of review, but has been delayed by Ontario government processing
- Revised target to commence site preparation work and mine development at Bradshaw: Q3 2016 and AE bulk sample collection to begin latter part of Q4 2016
- Previous Bradshaw area drill results proximal but not included in the resource estimation, due to insufficient drilling, provide opportunity with further drilling to expand resources – drilling plans are being prepared
- Ongoing technical review indicates excellent potential to expand the global NTGP gold resource beyond Bradshaw deposit area
- Planning new geophysical surveys followed up by drill programs at Sheridan and Roussain gold zones
Gowest also announced its intention to issue an aggregate of 1,312,500 common shares to non-management directors of the Corporation, as partial payment of fees owed to such directors in respect of the period from November 1, 2013 to October 31, 2015. The aggregate deemed value of the common shares to be issued is $105,000.00. The shares are being issued in lieu of cash in order to conserve the cash resources of the Corporation.
May 2016 Gowest’s Induced Polarization (“IP”) program has helped to reveal a distinct signature for the mineralization within its Bradshaw Gold Deposit, providing knowledge to help identify the best new exploration targets in the immediate surrounding area, as well as along untested portions of Gowest’s 20-kilometre segment of the prolific Pipestone Fault structure, which hosts Bradshaw and several other mineral deposits.
June 2016 The Company reported that it has received all of the permits required to begin Advanced Exploration (“AE”) work at Bradshaw; is advancing discussions to secure all required contracts and funding to allow for the mining and processing of the AE bulk sample; and, is progressing on detailed engineering work in advance of the start of the AE bulk sample collection. The Company also entered into an negotiation agreement with Northern Sun Mining Corp. (“Northern”) for the use of the Redstone Mill (the “Mill”) located in Timmins, Ontario to process material from the Company’s Bradshaw Gold Deposit (“Bradshaw”). Further, Gowest closed a non-brokered private placement of 12,225,000 “flow-through” common shares of the Corporation and 325,000 non-“flow-through” common shares of the Corporation (collectively, the “Shares”), at a price of $0.20 per Share, for aggregate gross proceeds of $2,510,000 (the “Offering”).
August 2016 Gowest entered into a definitive Pre-Paid Forward Gold Purchase Agreement with PGB Timmins Holdings LP, a limited partnership organized under the laws of the Province of Ontario, to finance the development of its Bradshaw Gold Deposit. PGB agreed to advance to the Company up to an aggregate of US$17,600,000 (the “Gold Prepayment Amount”), in four tranches over a period of approximately 12 months, as partial consideration for the purchase of up to an aggregate of 65,805 ounces of gold to be produced from Bradshaw and delivered to PGB. The full funding of the Gold Prepayment Amount is subject to the satisfaction of certain conditions precedent applicable in respect of each tranche, as specified in the Agreement.
January 2017 Gowest entered into a Letter of Intent (“LOI”) with Valard Construction LP (“Valard”) for the financing, design, procurement and construction of a high-voltage electrical infrastructure (the “Transmission Facilities”) to connect its Bradshaw Gold Deposit to the provincial power transmission grid. The parties have agreed to work towards formalizing an agreement in early 2017. Gowest also entered into a non-binding letter of intent with Northern Sun Mining Corp., a corporation existing under the laws of the Province of Ontario, with respect to the creation of a joint-venture corporation (“JVco”) that will own and operate the Redstone Mill. Upon completion of the proposed Transaction, each of the parties will hold a 50% interest in JVco. The Redstone Mill, located near Timmins, Ontario, which has the capacity to process approximately 1,500 tonnes of ore-per-day, is well-situated to satisfy Gowest’s anticipated future ore processing requirements.
February 2017 PGB Timmins Holdings LP (“PGB”) funded the initial tranche of US$5,600,000 pursuant to the previously announced Pre-Paid Forward Gold Purchase Agreement entered into between PGB and Gowest on December 16, 2016. PGB is an investment vehicle controlled by Pandion Mine Finance, LP.
One focus – Gold.