GWA.v GWSAF Gowest Gold 52 Week high. No news. Whats the story?
Many of you know, Gowest is my favorite micro explorer/developer and that I've been very close to the story for a few years now. After being up 300% this year, they still carry only a $15 million market cap while the shares are looking stronger than ever while most other shares are bleeding.
Gowest has told us in press releases, what is going to happen. They have the largest production ready project in Timmins ON without a mine. They have a 1.5 million oz high grade project with large upside, ready for a production decision. IMO, No question, they are going to move it to production and The time is now!
From the PEA (2yrs old)Up front now is the
Short Term Contract tolling option.
Initial capital requirement of $60 million
Total cash costs (including G&A) estimated at $891 per ounce at $1,200 / oz gold price
Pre-tax cash flow 28 million/yr at $1,200 gold $52 million at $1,500 gold
IRR 50% AND 2 YEAR PAY BACK
Wild card, w/additional value added to above scenario, is the ore sorting technology. Full scale production test demonstrated sucess at changing head grades from 6 g/t to 12-15 g/t gold. This was due to the uniqueness of the Bradshaw ore, allowing the ore sorter to reject the waste rock before it goes to the mill. It was sucessful in keeping 95% of the gold while getting rid of 50% of waste rock.
As to the $60M CAPEX, Some of this has been paid already and there is motivation for either of their 2 tolling partners (Xstrata Glencore or AC) at picking up some of these costs).
Xstrata may decide to pick up the roughly $15 mil to ready the mill lines for the GWA ore and AC has already said they will pick up costs for the refinery, or possibly they could trade for the rights to the rich tailing. GWA tailing have a desirable high surfer content. GWA possibly may partner in the refinery.
If they wanted to spend the CAPEX on sinking a shaft, this project will support a much larger throughput then the 1500tpd available from just the ramp. This resource is about 2% of their land holdings and is open on strike and at depth.
At any rate, Gowest is moving to production in some form. The feasibility, permits and bulk sample are coming soon. The market is soon going to catch on. If they press a good finance solution, I think the shares will move big and things will happen very fast.
You can link back for more information or I can answer most questions, but will be out for awhile.
Checkmate28
