Gowest Gold

Company Data | Introduction | Projects in Hand | Management
News Update | Chinese

Company Data

Introduction

Gowest is a Canadian gold exploration and development company focused on developing its 100% owned and fully permitted 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 Gold Camp in Ontario.

Investment Highlights

Building the Next New Gold Mine in the Timmins Gold Camp

• Mine restarted in April 2023
• Production targets: 26,000 oz in year1 , 58,000 oz in year 2 and 100,000 oz in year 3
• Additional gold mineralization intercepted at depth below established resources; potential to double resource based on regional deposits
• Fully permitted for 1,500 Tonnes-Per-Day production
• Robust local presence with strong community and First Nations support

Strengthened Management and Financial Position

• New Management leading project into production in 2023
• Converted 32.4M of short-term and long-term loans into common shares
• Received $11M in 2022 and $36M in 2023 from the main shareholders for the Bradshaw mine startup
• Restructured Balance Sheet allows the Company to move forward with new financings

Extensive Exploration Upside on 120 sq. km Land Package

• 120 sq-km North Timmins Gold Project situated along a highly prospective but underexplored mineral belt
• Three strong gold mineralized zones showing earmarks of additional deposit potential
• Two mineralized zones less than 1km from the Bradshaw Deposit
• Significant exploration potential along a newly identified mineral belt larger than the historic gold belt
• Optimizing the Mine-to-Mill strategy
• Opportunity to build and support a centralized refinery for Northeastern Ontario and Northwestern Quebec
• M&A platform for further growth

Projects in Hand

North Timmins Gold Project (NTGP)

Gowest's NTGP covers numerous unexplored or underexplored areas with gold potential. In recent years, the Company's primary focus has been on the Frankfield Property.

Bradshaw Gold Deposit (Bradshaw)

Currently, the Bradshaw Gold Deposit (Bradshaw) on the Frankfield Property 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.

*Mineral Resources are inclusive of Mineral Reserves

Bradshaw: Multi-Million Ounce Gold Potential

• Gold mineralization continues to surface; multiple parallel gold structures throughout deposit
• Numerous high-grade gold intercepts drilled outside the resource area
• Bradshaw remains open at depth and along strike
• Potential to extend resources below 1,000m depth
• Current mineralized strike: 1,350 m

Bradshaw Site Startup Plan and Overview

• Complete ~25,000 m diamond drilling program targeting resource upgrade and expansion.
• Assembled the mining and technical team.
• Complete the mine restart plan – 1.04 million tonnes of ore with average grade of 5.50 g/t and produce 184K Oz gold (3-year mine plan).
• Average AISC: US$1,470/oz within 3 years, and US$1,350 during the LOM.
• Complete surface vent raise development and surface infrastructure upgrade.
• Develop mine to sustain 400 tonnes-per-day (t/d) and ramp up to at least 1,000 t/d.
• Bradshaw Gold Mine Restart Progressing Well On All Fronts

Dan Gagnon, President and Chief Executive Officer of Gowest, said, “While it's only been three months since we began the restart of Bradshaw, working together, our team and partners have made excellent progress on all fronts, including with our recently launched diamond drilling exploration program to expand our resources. We are well on our way to delivering greater than 20 metres per day of ramp development and an average of 800 tons per day of ore in our first 12 months of operation. We are also targeting starting the toll milling our ore at the Redstone Mill in the fourth quarter of this year.” (See news release dated July 11, 2023)

2023 – Use of Exploration Funds

• Up to $5 million of flow-through financing
• ~20,000 metres surface infill diamond drilling on Bradshaw deposit to convert Inferred to Indicated resources and expand the current resources along strike and down dip
• ~4,000 metres diamond drilling on Sheridan zone to generate new resources
• ~1,000 metres diamond drilling for new discoveries on the existing anomalies

Management

Management and Directors

Dan Gagnon, President & Chief Executive Officer, Director

Mr. Gagnon has over 30 years of experience in geology and general management in all aspects of the mining operations of a number of companies, including operations, milling, maintenance, engineering, administration, health safety and environment, as well as community relations.

Demin (Fleming) Huang, CPA, CMA, Chief Financial Officer & Corporate Secretary

Mr. Huang has over 20 years of administration and corporate finance experience in different industries, including resource exploration. Prior to his current role, he held various management and accounting roles with multiple companies and has been involved in a variety of transactions in resource exploration and utility industries, including financings, acquisitions, joint ventures, mergers, and divestitures.

C. Fraser Elliott, Chairman

Mr. Elliot is President of CFE Financial Inc., a private investment banking company. He is formerly Chief Financial Officer of Tangerine Payment Solutions Corp.

Peter Quintiliani, Chair of Audit Committee

Mr. Quintiliani is a Chartered Accountant with over 35 years of experience in corporate finance.

Meirong Yuan, Director

Mr. Yuan is currently Vice President of Fortune Futures Holding Limited with more than 22 years of experience in corporate finance.

Douglas Cater, Director

Mr. Cater is a professional geologist with more than 35 years of experience in exploration and mining of precious metals including project management of exploration programs and mining projects.

Xuejun Guo, Director

Mr. Guo has worked in the mining industry for over 30 years. He worked on the front line of production. He is also familiar with managing human resources and finance departments.

Technical Team

Bill Hosken, Mine Manager / Engineering Coordinator

Even Stavre, Chief Geologist

Cassidy Sabourin, Environmental Technologist

Connor Ranger, Human Resources / Safety / Training Manager

Garth Wilcox, Project Manager

Kevin Montgomery, Exploration Consultant

News Update

On June 24, 2024, Gowest Gold Ltd. has entered into a definitive arrangement agreement dated June 21, 2024, with a group of existing shareholders of Gowest, pursuant to which the acquiring group will acquire all of the outstanding common shares of Gowest not already owned by the acquiring group for cash consideration of 15 cents per common share.

The Acquiring Group, which collectively holds approximately 91.5% of the outstanding common shares of Gowest, is comprised of Lush Land Investment Canada Inc., Greenwater Investment Hong Kong Limited, 1000216244 Ontario Inc., Debao Wang, Yun Zhao, Fortune Future Holdings Limited, Meirong Yuan, C. Fraser Elliott and CFE Financial Inc. (a corporation controlled by Mr. Elliott).

With respect to the announcement, Dan Gagnon, President and Chief Executive Officer of Gowest, commented:

"Gowest has faced significant challenges for a number of years in raising sufficient capital to carry out its objective of developing the Bradshaw deposit and ultimately bringing it into production. Operating as a public company is expensive and has become a constraint on the ability of the Company to raise capital and operate efficiently.

This transaction will allow a small group of our committed investors, who historically have been our most substantial source of capital, to bear the significant continuing exploration, financing and other risks facing the Company going-forward. At the same time, it will also provide our existing shareholders with liquidity and the opportunity to realize certainty of value for their common shares, in cash, at a significant premium to the Company's recent trading price. This transaction is intended to benefit not just shareholders, but all stakeholders of the Company."

On June 17, 2024, Gowest Gold Ltd. has entered into a loan agreement with 15748593 Canada Inc. (the lender), pursuant to which Gowest may borrow up to an aggregate principal amount of $10-million.

The proceeds of this loan are intended to be used by Gowest for ongoing general working capital requirements, to fund its exploration program, and to prepare the Redstone Mill for the anticipated milling of Gowest ore. As announced on June 7, 2024, Gowest entered into a toll milling agreement with Northern Sun Mining Corp. ("Northern Sun"), pursuant to which, subject to certain terms and conditions, Northern Sun has agreed to mill and process ore produced from Gowest's Bradshaw mine at its Redstone Mill located in Timmins, Ontario.

On May 13, 2024, Gowest Gold Ltd. has provided a further update on the latest assay results from phase 2 of its previously announced surface diamond drill program at its 100-per-cent-owned North Timmins gold project (NTGP). This latest work is part of the $10-million exploration program phase, which aims to expand the minable resource at the Bradshaw gold deposit, as well as to further test other parts of the corporation's NTGP area where notable gold has also been intercepted previously (see Gowest news releases dated Dec. 27, 2023, and March 1, 2024). Diamond drilling highlights since last update:

• A total of 12,769 metres (m) of drilling have been completed as of April 30, including 32 completed holes and two holes in progress on the Sheridan gold zone and west of Bradshaw.
• Highest intercept: 13.6 grams per tonne (g/t) gold (Au) over 1.1 m from hole GW23-352, including 20.06 g/t Au over 0.6 m from the Bradshaw HW8 zone.
• Other significant gold mineralization: 5.27 g/t Au over 2.6 m (including 22.3 g/t Au over 0.6 m) in hole GW23-346 on the HW7 zone, and 23.2 g/t Au over 1.5 m in hole GW24-351A on newly discovered HW10 zone.

Dan Gagnon, president and chief executive officer of Gowest, said: "As we have seen throughout this extensive drill program, our team has steadily revealed more and more gold mineralization both at Bradshaw and across a number of other areas on our NTGP. We remain confident that we will further expand our resources, including the very real potential to develop more than one important new mine on our property in the Timmins gold camp. Meanwhile, we are also planning for the restart of underground mining at Bradshaw soon."

On April 25, 2024, Gowest Gold Ltd. has provided an update on its annual and special meeting of shareholders held earlier today, at which shareholders of the company approved all presented matters. Specifically, at the meeting:

• The following individuals were elected as directors of the company: C. Fraser Elliott (chairman), Dan Gagnon, Peter Quintiliani, Meirong Yuan, Douglas Cater and Fuhua Zhou.
• DNTW Toronto LLP was reappointed as the auditor of the company.
• Shareholders reapproved and confirmed the 10-per-cent rolling stock option plan of the company in accordance with the applicable policies of the TSX Venture Exchange.

Additional details regarding each of these matters are included in the management information circular prepared in connection with the meeting. A copy of the management information circular is available for review under the company's profile on SEDAR+ and on the company's website.

Mr. Elliott stated: "On behalf of our management team and the rest of our directors, I would like to thank all of our shareholders for their exceptional support, and we look forward to demonstrating significant progress in the months and years to come as we further develop and expand both the Bradshaw gold mine and the rest of our highly prospective NTGP portfolio."

On January 22, 2024, Gowest Gold Ltd. has entered into a loan agreement with Lush Land Investment Canada Inc. (the lender), pursuant to which Gowest may borrow up to an aggregate principal amount of $10-million.

The proceeds of this loan are intended to be used by Gowest for continuing general working capital requirements, the payment of outstanding accounts payable due to Northern Sun Mining Corp. of approximately $4.55-million and proposed advances to be made to Northern Sun as a prepayment for future milling services, such advances to be used by Northern Sun for certain expenses to be incurred in connection with the construction of the tailings pond at the Redstone mill and/or other capital investments, in preparation for milling Gowest's ore mined from Bradshaw. Definitive terms for such a milling agreement between the corporation and Northern Sun are currently being negotiated.

Dan Gagnon, president and chief executive officer of Gowest, said: "Thanks to the ongoing strong support of our largest shareholders, we are continuing to advance our development and operational plans for Bradshaw and our other North Timmins gold project properties. In addition to Greenwater's exploration-focused loan, announced last month, Lush Land is helping us to press forward with Northern Sun to ready the Redstone mill for milling our ore when we return underground at Bradshaw later this year."

On December 27, 2023, Gowest Gold Ltd. has completed its previously announced 5,000-metre phase 1 surface diamond drill program, and has entered into a loan agreement for an aggregate principal amount of up to $10-million to finance additional exploration at its North Timmins gold project (NTGP). The additional exploration will be focused on the corporation's 100-per-cent-owned Bradshaw gold mine. This newly financed program is part of a larger planned program aimed at expanding the minable resource at Bradshaw, as well as to further test other parts of the corporation's NTGP area where notable gold has also previously been intercepted (see Gowest news releases dated Nov. 14, 2023, Sept. 15, 2023, June 26, 2023, June 1, 2020, and June 27, 2019).

The proceeds of the loan are to be used to continue the corporation's previously noted exploration program at Bradshaw as well as on previously identified areas of the NTGP with the objective of increasing Gowest's gold resources.

On December 20, 2023, The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement announced on Nov. 21, 2023.

Number of shares: 9,047,617 flow-through (FT) units (Each FT unit consists of one common share and one-half common share purchase warrant.)

Purchase price: 10.5 cents per FT unit

Warrants: 4,523,809 share purchase warrants to purchase 4,523,809 common shares

Warrant exercise price: 14 cents per common share for a two-year period

Number of placees: five placees

Total existing insider involvement: 428,571 (two insiders)

On December 20, 2023, Gowest Gold Ltd. has closed the final tranche of its previously announced upsized non-brokered private placement of flow-through units of the corporation.

The gross proceeds of the offering will be used to incur Canadian exploration expenses as defined in Subsection 66.1(6) of the Income Tax Act (Canada) and renounced to subscribers under the offering with an effective date no later than Dec. 31, 2023. Such Canadian exploration expenses will also qualify as flow-through mining expenditures as defined in Subsection 127(9) of the tax act.

On December 12, 2023, Gowest Gold Ltd. has upsized its previously announced non-brokered private placement of flow-through (FT) units of the corporation and completed an initial closing of the offering. The original offering size has been increased from $800,000 to up to a maximum of $1.1-million (see Gowest's news release dated Nov. 21, 2023.)

Pursuant to the initial closing of the offering, the corporation issued and sold an aggregate of 7,619,047 FT units at a price of 10.5 cents per FT unit for aggregate gross proceeds of $800,000.

Dan Gagnon, president and chief executive officer of Gowest, said: "As we progress the restart of the Bradshaw mine following its temporary period of care and maintenance, these funds from our supportive investors will enable us to further advance our proven exploration work focused on aggressively expanding our already substantial resources at and around Bradshaw, as well as in other gold zones previously revealed within other parts of our large and highly prospective North Timmins gold project area. We look forward to uncovering still greater upside and growth for the benefit of all of our investors in the near future."

On November 21, 2023, Gowest Gold Ltd. has arranged a non-brokered private placement of up to 7,619,048 flow-through (FT) units of the corporation at a price of 10.5 cents per FT unit for aggregate gross proceeds of up to $800,000. Each FT unit will comprise one common share and one-half common share purchase warrant, issued on a flow-through basis, with each whole warrant being exercisable to acquire one additional common share of the corporation at a price of 14 cents for a period of 24 months following the closing date of the offering. The common shares underlying the warrants will not be issued as flow-through shares.

More specifically, it is anticipated that the gross proceeds from the offering will be used to expand the mineable resource at the corporation's 100-per-cent-owned Bradshaw gold deposit, as well as to further test other parts of the corporation's North Timmins gold project (NTGP) area where notable gold has previously been intercepted. The latter includes both the Roussain gold zone, located approximately two kilometres northeast of Bradshaw, and the Sheridan gold zone, located just west of Bradshaw.

On November 14, 2023, Gowest Gold Ltd. has provided an update on the latest assay results from phase 1 of its previously announced surface diamond drill program at its 100-per-cent-owned Bradshaw gold mine. This first 5,000-metre program phase, which is expected to be completed in mid-November, is part of a larger planned program aimed to expand the minable resource at Bradshaw, as well as to further test other parts of the corporation's North Timmins gold project (NTGP) area, where notable gold has also previously been intercepted (see Gowest news releases dated Sept. 15, 2023, June 26, 2023, June 1, 2020, and June 27, 2019). Diamond drilling highlights:

• A total of 4,403 metres of drilling has been completed as of Oct. 31, including 14 completed holes and one in progress on the eastern portion of the Bradshaw deposit.
• Highest intercept: 9.77 grams per tonne (g/t) gold (Au) over three m from hole GW23-330, including 27.60 g/t Au over one m from the Bradshaw YDA zone.
• Hole GW23-328 cut 8.08 g/t Au over 2.8 m, including 11.10 g/t Au over 1.80 m from the Bradshaw HW2 zone.
• Drilling in hole GW23-333 also returned significant gold mineralization: 5.27 g/t Au over 2.6 m, including 11.98 g/t Au over 1.1 m on the HW2 zone and 7.57 g/t Au over 1.5 m in a new zone.

Dan Gagnon, president and chief executive officer of Gowest, said: "We are extremely encouraged by these continuing positive drill results at Bradshaw as they provide an even stronger foundation for our team's conviction that we will expand our current minable resources and reserves at the deposit. We have also recently completed preliminary planning for an additional $10-million exploration program to further test other parts of the NTGP, where we are also confident that we still have more significant upside."

On November 10, 2023, Gowest Gold Ltd. provided a general update on the operation of its 100% owned Bradshaw Gold Mine (Bradshaw).

Gowest is pleased to note that a great deal of progress has been achieved at Bradshaw since work there began again in April. Overall, underground capital development is advancing in the East Zone and the Central Zone. Ore sills are being developed on the 100 m level in the East Zone and the mining team is about to access sills in the Central Zone on the 85 m level. The installation of the main fan and heater on surface is progressing well, and should be operational this month. This will include the conversion on site from diesel to compressed natural gas, which offers further money savings.

Exploration drilling is also continuing, with one drill rig operating from surface and a second rig underground. As previously noted, the initial 5,000 m surface drilling program will be complete by mid-November. Notably, all drill holes intersected ore and these latest results are expected to add new resource ounces.

In order to preserve cash, Gowest is temporarily moving the Bradshaw mine to a "Care & Maintenance" phase, which is expected to continue until the Northern Sun tailings pond construction has been completed in or around July 2024 and when the mill is ready to begin processing Bradshaw ore.

Northern Sun started the drilling and blasting of construction rock this week. Construction is expected to begin in January 2024 and to be completed in July 2024. Gowest is also exploring opportunities to keep funding its operational and exploration activities.

On September 19, 2023, This press release is being disseminated as required by National Instrument 62-103 -- The Early Warning System and Related Take-Over Bids and Insider Reporting Issues in connection with the filing of early warning reports by each of (i) Greenwater Investment Hong Kong Ltd. and (ii) Inner Mongolia Jinshengda Investment Co. Ltd., in connection with certain transactions involving the common shares of Gowest Gold Ltd. (the issuer), with its head office located at 80 Richmond St. West, suite 1400, Toronto, Ont., M5H 2A4.

On Aug. 18, 2023, Greenwater acquired an aggregate of 50 million common shares, by separate private agreements, from Jinshengda and an individual resident in China. Specifically, Greenwater acquired: (i) 45 million common shares from Jinshengda for aggregate consideration of $4.5-million (10 cents per share); and (ii) five million common shares from the individual resident in China for aggregate consideration of 500,000 (10 cents per share).

Set out below is certain disclosure in respect of each of Greenwater and Jinshengda required to be made in connection with the completion of the transactions pursuant to Part 3 of National Instrument 62-103.

All percentages set out in this press release are based on 661,924,253 common shares of the issuer being outstanding as of the date hereof.

On September 15, 2023, Gowest Gold Ltd. announced that the initial assay results from Phase 1 of its previously announced surface diamond drill program at its 100% owned Bradshaw Gold Mine (Bradshaw.) This first 5,000-metre program phase is part of a larger planned program that aims to expand the mineable resource at Bradshaw, as well as to further test other parts of the Corporation's North Timmins Gold Project ("NTGP") area where notable gold has previously been intercepted (see Gowest news releases dated June 26, 2023, June 1, 2020, and June 27, 2019). Diamond Drilling Highlights:

• Results received by Sept. 1st from the first seven diamond drill holes, all of which intersected gold mineralization
• A total of 2,255 m of drilling has been completed as of Aug 31, including ten completed holes and one in progress (Table 2.)
• Highest intercept: 10.64 g/t Au over 2.6 m from hole GW23-321, including 16.67 g/t Au over 1.5 m from the Bradshaw HAN zone
• Drilling on the HW2 zone also returned significant gold mineralization of 3.12 g/t Au over 1.8 m in Hole GW23-320 and 2.71 g/t Au over 5.0 m (including 3.27 g/t Au over 2.50 m) in Hole GW23-324.
• Hole GW23-326 intersected 3.48 g/t Au over 2.0 m in the HW4 Bradshaw Zone.

Dan Gagnon, President and Chief Executive Officer of Gowest, commented, "These positive initial drill results continue to support our team's expectation that we will be able to expand our current mineable resources and reserves at Bradshaw. At the same time, the mine restart is progressing very well. We remain on target on all fronts, including all production and key infrastructure programs, and anticipate starting the toll milling our ore at the Redstone Mill in the fourth quarter of this year."

July 11, 2023, Gowest Gold: Bradshaw Gold Mine Restart Progressing Well On All Fronts

https://www.gowestgold.com/2023/07/11/gowest-gold-bradshaw-gold-mine-restart-progressing-well-on-all-fronts/

July 4, 2023, Gowest Completes Debt Conversion and Raises Proceeds of $11,000,000 from Exercise of Warrants https://www.gowestgold.com/2023/07/04/gowest-completes-debt-conversion-and-raises-proceeds-of-11000000-from-exercise-of-warrants/

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