Gowest Gold completes PEA on Canadian project

15 November 2011 (Last Updated November 15th, 2011 18:30)

Gowest Gold has completed the preliminary economic assessment (PEA) on its Frankfield East Gold deposit located in the North Timmins gold project in Canada.

Gowest Gold has completed the preliminary economic assessment (PEA) on its Frankfield East Gold deposit located in the North Timmins gold project in Canada.

The PEA is based on the current resource estimate developed on the Frankfield East Gold deposit in June, which includes 348,000 indicated ounces and 838,900 inferred ounces.

The study has taken into consideration the construction of a new mine and processing facility with an average annual production of 95,000oz of gold at a cash cost of $660/oz over a mine life of ten years.

The initial capital cost is estimated to be $167m, including the construction of a new process facility, phase one of the tailings storage facility and the necessary site infrastructure.

Gowest Gold is currently carrying out baseline environmental studies on the deposit and is expected to provide the final applications required for the mining permits in 2012.