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. In October 2021, Dan Gagnon took over those positions as Gowest prepared to complete its transition from being a successful resource developer to advancing the Bradshaw Gold Deposit towards production.
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.
January 2023: A number of investors, including Greenwater Investment Hong Kong Limited and Lush Land Investment Canada Inc., agreed to purchase from Gowest, on a non-brokered private placement basis, securities of the Corporation for aggregate gross proceeds of $25,000,000. These funds were to be used to restart mining activities at Bradshaw and continue to move toward production.
December 2022: Gowest closed its previously announced non-brokered private placement of 3,375,000 flow-through common shares, at an issue price of $0.08 per share, for gross proceeds of $270,000, the gross proceeds of which are to be used to expand the mineable resource at the Bradshaw Gold Deposit, as well as to further test other parts of the Corporation’s North Timmins Gold Project area where notable gold has previously been intercepted.
March 2022: A significant majority of shareholders present or represented by proxy voted in favour of the resolution approving the previously announced investment by Greenwater Investment Hong Kong Limited of up to $19 million. In accordance with the policies of the TSX-V, Greenwater and any of its related parties were excluded from voting on this resolution. The initial portion of this two-part private placement financing was completed earlier in the month.
January 2022: The Company announced that Greenwater Investment Hong Kong Limited had agreed to purchase from Gowest, on a private placement basis, pursuant to a subscription agreement between the parties including promissory notes in an aggregate principal amount of $7,500,000, for an aggregate purchase price of $7,500,000, which shall be convertible, subject to the receipt of requisite shareholder approval, into Units; and, subject to the receipt of requisite shareholder approval, up to an aggregate of 88,461,358 units of the Corporation, at an issue price of $0.13 per Unit, for an aggregate purchase price of up to $11,500,000. Assuming the completion of the two-part Offering in full, the Corporation would raise aggregate gross proceeds of $19,000,000. Additional funds may be raised subsequently through the exercise of the Warrants issued pursuant to the Offering.
December 2021: Following acceptance of the transaction by the TSX Venture Exchange, the Company issued 1,503,644 shares to settle an aggregate of $240,583 of indebtedness. The shares were issued at a deemed price of $0.16 per share, to non-management directors of the Company, in satisfaction of director fees owing and outstanding to such individuals as of October 31, 2021. This issuance of common shares was made in order to preserve cash and improve the Company’s balance sheet.
November 2021: The Company entered into a loan agreement with Lush Land Investment Canada Inc. in respect of a bridge loan in the principal amount of $1,000,000 for working capital. The loan matures on October 31, 2022. Interest on the outstanding principal balance shall accrue daily and be calculated, in arrears, at the rate of 10% per annum. The bridge loan may be repaid at any time prior to maturity without penalty. Meirong Yuan, a director of Gowest, holds 25% of Lush Land.
October 2021: The Company announced that it had completed its previously reported conversion of an aggregate of $18,024,088 of debt owed to four separate creditors into equity of Gowest. The Debt was converted into common shares of Gowest at a conversion price of $0.25 per share, resulting in the issuance of an aggregate of 72,096,350 common shares of Gowest.
September 2021: The Company was saddened to announce the recent passing of Gregory ‘Greg’ Hart, the Company’s previous Mine Manger. Mr. Hart died in Timmins, Ontario on August 29th in his 61st year. Mr. Hart joined the Gowest team as Mine Manager in September 2017, bringing his over 38 years of direct experience in leading mining and construction activities to fortify the foundation for the development of the Bradshaw gold project. Prior to that, he had been Underground Manager and Manager of Operations for Goldcorp’s Porcupine Gold Mine in Timmins, as well as VP, Operations with Dumas Contracting.
The Company announced that it had entered into a loan agreement with Meirong Yuan, a director of Gowest, in respect of a bridge loan in the principal amount of $500,000. The proceeds of the loan will be used by Gowest for general corporate purposes. The bridge loan matures on September 15, 2022. Interest on the daily outstanding principal balance shall accrue daily and be calculated, in arrears, at the rate of 12% per annum. The bridge loan may be repaid at any time prior to maturity without penalty.
August 2021: Gowest announced the appointment of Mr. Dan Gagnon as President and Chief Executive Officer of the Corporation, effective October 4th. He would replace Interim President and CEO, Mr. Yungang Wu, P. Geo., who would remain a member of Gowest’s Board of Directors and Technical Team. Mr. Gagnon, who is from and lives in Timmins, brings over 30 years of experience in geology and general management from a wide range of operations across Canada.
The Company also announced the appointment of Mr. Demin (Fleming) Huang as Chief Financial Officer of the Corporation, effective August 28th, replacing Ms. Janet O’Donnell. Mr. Huang is a Chartered Professional Accountant and Certified Management Accountant with over 20 years of administration and corporate finance experience in different industries, including resource exploration.
July 2021: Ms. Janet O’Donnell, the Chief Financial Officer of the Corporation, gave notice that she would be resigning from the Corporation effective August 28, 2021. The Corporation commenced the process of identifying a new Chief Financial Officer and Ms. O’Donnell remained available assist with an orderly transition. Ms. O’Donnell served as the Chief Financial Officer of the Corporation for the past 13 years and has played a key role in the growth and development of Gowest over that period.
Subsequently, subject to TSX Venture Exchange approval and compliance with all applicable regulatory requirements, the Company announced its intension to convert a total of $18,024,088 of debt, owed to four separate creditors, into equity of Gowest. The Debt, which was incurred by the Company to support operations since 2017, was expected to be converted into common shares at a conversion price of $0.25 per share, resulting in the issuance of an aggregate of 72,096,350 common shares of Gowest.
June 2021: The Company announced that Gregory Romain was stepping down effective immediately from the Board of Directors and as President and Chief Executive Officer of the Corporation after having served the Corporation for the past 13 years. Replacing Mr. Romain as Interim President and Chief Executive Officer was Yungang Wu who was a member of the Gowest Technical team and a member of the Board of the Corporation. Mr. Wu is a geologist, bringing a wealth of experience to developing mines in Canada.
Subsequently, the Company entered into a loan agreement with Lush Land Investment Canada Inc. in respect of a bridge loan in the principal amount of $1,000,000. The proceeds of the loan would be used by Gowest for general corporate purposes. Meirong Yuan, a director of Gowest, is also a director of Lush Land. The bridge loan matures on June 30, 2022. Interest on the daily outstanding principal balance, from time to time, shall accrue daily and be calculated and payable periodically on each of September 15, 2021, December 15, 2021, March 15, 2022 and June 30, 2022, in arrears, at the rate of 18% per annum.
February 2021: Gowest successfully completed processing 23,000 tonnes of the gold-bearing mixed development, unclassified material stockpiled during the commencement of its bulk sample program at Bradshaw. The Company had planned to first process this unclassified gold-bearing material in order to gather valuable evidence of how it responds to ore-sorting, grinding, flotation, dewatering and concentrate smelting. This trial has also demonstrated that the mill site water quality and tailings impoundment were in regulatory compliance confirming that they are operating properly in protecting the surrounding environment.
December 2020: The Company reported that Northern Sun’s Redstone Mill began processing the first gold-bearing mixed development ore from Bradshaw on December 1, 2020. As previously reported, this material was part of the gold-bearing mixed development ore that had been collected and stockpiled on-site from the Company’s ongoing Advanced Exploration Bulk Sample program. The Company also noted that it was continuing to work with interested parties and reviewing both short- and long-term financing opportunities required to raise sufficient funds to complete the bulk sample and advance Bradshaw towards commercial production.
Subsequently, the Company completed two tranches of a private placement, on a non-brokered basis, of 3,000,326 flow-through units of the Company at a price of $0.39 per FT Unit, for gross proceeds of $1,170,127. Each FT Unit comprised 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 Company at a price of $0.45 until December 31, 2022. The common shares underlying the Warrants will not be issued as flow-through shares. The proceeds of the Private Placement were to be used by the Company for the continued development of Bradshaw and for “Canadian exploration expenses” (within the meaning of the Income Tax Act (Canada)) in connection with the mineral exploration programs of the Company.
Sept. 2020: Gowest received all environmental permits required to bring the Bradshaw mine into commercial production, with the exception of the Mine Production Closure Plan, which had just been submitted to Ontario’s Ministry of Energy, Northern Development and Mines for final review and filing. This represented the final step towards receiving the Commercial Mine Production permit for Bradshaw. Gowest recently completed the final revisions to the Closure Plan, which provides details for how the mine will be operated and closed, and how the site will eventually be reclaimed once mining activities are completed. At the site, Gowest commenced the start-up of the ore-sorter in preparation for sorting the mixed development ore currently stockpiled on surface, which would be trucked to Northern Sun’s Redstone Mill for processing. The Company also noted that the vent raise permitting was complete, and construction required for production mining was well underway.
June 2020: The Company entered into a bridge loan agreement with Lush Land Investment Canada Inc. for a loan facility of up to C$2.5 million. The purpose of the Agreement was to enable Gowest to continue to move ahead with its Advanced Exploration Bulk Sample program at Bradshaw, while also continuing to work towards a significantly larger financing. Gowest was continuing discussions with interested parties regarding one or more financings to raise sufficient funds to complete the bulk sample and take Bradshaw to commercial production.
May 2020: The Company started the construction of the main vent raise and secondary egress at the mine site, which is required for the Company to transition into production without delay once the bulk sample is completed.
April 2020: The Company entered into a bridge loan agreement with Lush Land Investment Canada Inc. for a loan facility of up to C$1.6 million, funds that were received shortly thereafter. The purpose of the agreement was to enable Gowest to continue to move ahead with its bulk sample program at Bradshaw while the Company continues to work towards a significantly larger financing. Gowest has started initial discussions with interested parties regarding one or more financings to raise sufficient funds to complete the bulk sample and take Bradshaw to commercial production, targeted for 2021.
In light of the COVID-19 situation and to ensure the safety of all of the Company’s employees and contractors, all appropriate health and safety precautions have been instituted both at Bradshaw as well as at the Company’s offices in Timmins and Toronto.
January 2020: Gowest held a public open house to update the community regarding its ongoing plans for the Advanced Exploration and Mine Production Phases at Bradshaw, including providing information about the environmental permitting and current approvals and reporting on the ongoing Health, Safety, Environmental and Social performance at the site. This session was also arranged to enable further interaction with the community and to obtain feedback on the Bradshaw Mine Project and the Bradshaw Mine Production Closure Plan.
October 2019: Larry Phillips and John Frostiak resigned as directors of the Corporation, while Mr. Frostiak agreed to remain as a technical advisor to the Corporation. Parviz Farsangi joined the Board as a director.
Gowest entered into a binding term sheet with Northern Sun Mining Corp. with respect to the processing at Northern Sun’s Redstone Mill in Timmins, Ontario, of up to 30,000 tonnes of ore developed from Gowest’s bulk sample program at Bradshaw. Northern Sun had begun working on obtaining the necessary permits to process this ore, and it is currently expected that this processing will begin by mid-2020.
The Company completed a settlement with PGB Timmins Holdings LP in accordance with the minutes of settlement previously entered into between the parties. Pursuant to the Minutes of Settlement, Gowest has paid to PGB the final required cash payment of US$7.5 million. The parties are now fully and finally released in respect of any and all claims and other matters arising in respect of the Pre-Paid Forward Gold Purchase Agreement dated as of December 16, 2016, entered into between PGB and Gowest. In connection with this settlement with PGB, Gowest entered into a credit agreement with Greenwater Investment Hong Kong Limited, pursuant to which Greenwater advanced US$7.0 million to Gowest. The proceeds advanced under the Credit Agreement were used by Gowest, together with cash on hand, to fund the final cash payment obligation owed to PGB under the Minutes of Settlement.
June 2019: At an annual and special meeting of shareholders, Gowest received approval of a special resolution of shareholders (i.e. “the majority of the minority”) for the consolidation of the outstanding common shares of the Corporation, on a one (1) for ten (10) basis. Shareholders also approved the sale and issuance through a Private Placement to Fortune Future Holdings of 17,777,777 common shares at a price of $0.45 per share on a post-Consolidation basis for aggregate gross proceeds of $8,000,000.
Subsequently, a multi-purpose drill program at Bradshaw designed to provide infill detail on stopes to be mined in the bulk sample area and to test recently identified, new high-grade gold zones to the north of the main deposit included six holes and completed 1,024 m of underground drilling from the 45m Level. This drilling successfully intersected multiple gold horizons at north high-grade gold target, returning 1.9 m of 11.54 g/t gold in hole BGM19-045-033 and 1.5m grading 13.57 g/t gold in BGM19-045-033.
March 2019: The Company issued, on a non-brokered private placement basis, 40,000,000 common shares of the Company, at a price of $0.05 per common share, for aggregate gross proceeds of $2,000,000.
November 2018: The Company entered into a definitive Custom Milling Agreement with QMX Gold Corporation (“QMX”) pursuant to which QMX will process material from Bradshaw at its Aurbel Mill located in Val d’Or, Quebec. In reaching this agreement, Gowest has achieved a critical milestone, one that had proven to be a major impediment in the Company’s efforts to raise the additional funds needed to continue Bradshaw’s development, let alone for conducting further work on the rest of its more than 100-square-kilometre North Timmins Gold Project.April 2018: Gowest completed over 2,098 metres of underground development on levels 30, 45 and 60 metres. 28,567 tonnes of development material have been stockpiled on surface for sorting, milling and sale as concentrate. No injuries at the project to date for mine site surface and underground construction. Water treatment plant was fully operational and the discharge environmentally compliant. Mining was temporarily suspended due to the lack of room for further development material stockpiling as well as uncertainty on the timing of material processing.
February 2018: An underground infill drilling program at Bradshaw revealed two, new, high-grade gold zones. The Company alo signed an agreement to sell gold concentrate produced from Bradshaw to Shandong Humon Smelting of China.
In connection with entering into this agreement, Humon has advanced US$3.0 million to Gowest as a pre-payment for the planned delivery and sale of gold concentrate to be produced as part of Gowest’s ongoing Advanced Exploration – Bulk Sample program.
December 2017: Gowest closed a non‐brokered private placement for aggregate gross proceeds of $707,400. The Company issued 190,000 common share units at a price of $0.16 per unit for $30,400 and 3,761,112 flow‐through units at a price of $0.18 per unit for $677,000. Each common share unit consists of one common share in the capital of the Company and one half (1/2) of a common share purchase warrant. Each flow‐through unit consists of one common share in the capital of the Company issued on a “flow through” basis pursuant to the Income Tax Act (Canada) and one half (1/2) of a common share purchase warrant. Each warrant entitles its holder to purchase one common share in the capital of the Company at an exercise price of $0.25 per share for a period of 24 months from the date of issuance.
November 2017: Assay results from the recently completed underground infill drilling program at Bradshaw included 156 grams per tonne (g/t) (5.02 oz/t) gold (Au) over 1 metre (m) in hole BGM17-045-015, which was the highest gold sample intersected to date.
September 2017: The development team intercepted the first ore zone at the 45 metre (“m”) level, and total development reached 580 m.
August 2017: The Bulk Sample program at Bradshaw continued with ramp development exceeding 350 meters towards the first ore zone.
July 2017: The Company completed 2,097 metres (“m”) of HQ* diameter drill core from 23 holes, all drilled in the area where the 30,000 tonne AE bulk sample was being collected. Every drill hole in this drill program intersected gold mineralization.
June 2017: Gowest entered into a definitive share purchase agreement with Northern Sun Mining Corp., pursuant to which Gowest was to acquire a 50% interest in a joint-venture corporation (“JVco”) that will own and operate the Redstone Mill. Upon completion of the Transaction, each of the parties would hold a 50% interest in JVco.
May 2017: Gowest closed a non-brokered private placement of 10,423,684 “flow-through” common shares of the Corporation at a price of $0.19 per Share, for aggregate gross proceeds of $1,980,500. The Company also provided and update on its progress on its Advanced Exploration – Bulk Sample program at Bradshaw, noting in particular that, following approximately three months of extensive surface preparation work, underground development began on May 11, 2017, when the first blast was executed at the portal.
March 2017: Gowest engaged Cementation Canada Inc. as the mining contractor to assist in the underground development of the Bradshaw Gold Deposit as part of the Company’s Advanced Exploration – Bulk Sample program.
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.
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.
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.
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”).
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.
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.
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.
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.
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).
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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 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%.)
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.
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.
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.
One focus – Gold.