Gowest Gold enters into Toll Milling Agreement with Northern Sun
Gowest Gold Ltd. has entered into a toll milling agreement with Northern Sun Mining Corp., pursuant to which Northern Sun will mill and process ore produced from Gowest's Bradshaw mine at its Redstone mill located in Timmins. The Toll Milling Agreement has an initial term expiring one year from the date of the commencement of the milling services to be provided by Northern Sun thereunder.
Pursuant to the Toll Milling Agreement, Gowest will pay Northern Sun's operating and capital costs to process the Bradshaw ore plus a fixed processing fee per tonne. The milling arrangements under the Toll Milling Agreement are non-exclusive while providing that Northern Sun has been granted a right to match the terms offered by any third-party offering milling services to Gowest.
In addition to other termination rights, Gowest has the right to terminate the Toll Milling Agreement if it is unable to secure adequate financing to recommence mining activities at Bradshaw in 2024. Gowest is currently in the process of seeking financing sufficient to restart mining activities on terms and conditions acceptable to it.
Gowest's President and CEO, Dan Gagnon said, "This agreement with Northern Sun represents another important step in our plans for restarting and developing the Bradshaw Gold Mine. We look forward to seeing this newest partnership coming to fruition."
About Gowest
Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Bradshaw Gold Deposit (Bradshaw) on the Frankfield Property, part of the Corporation's North Timmins Gold Project (NTGP). Gowest is exploring additional gold targets on its +100‐square‐kilometre NTGP land package and continues to evaluate the area, which is part of the prolific Timmins, Ontario gold camp. Currently, Bradshaw contains a National Instrument 43‐101 Indicated Resource estimated at 2.1 million tonnes ("t") grading 6.19 grams per tonne gold (g/t Au) containing 422 thousand ounces (oz) Au and an Inferred Resource of 3.6 million t grading 6.47 g/t Au containing 755 thousand oz Au. Further, based on the Pre‐Feasibility Study produced by Stantec Mining and announced on June 9, 2015, Bradshaw contains Mineral Reserves (Mineral Resources are inclusive of Mineral Reserves) in the probable category, using a 3 g/t Au cut‐off and utilizing a gold price of US$1,200 / oz, totaling 1.8 million t grading 4.82 g/t Au for 277 thousand oz Au.
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