Traderfan, Gowests, PFS is better than expected. For $21 Million Initial Capital, and $21million sustaining cost, Gowest will produce 40,000 Oz/yr with an AISC OF $891/oz and provide a total revenue of $341 million, after tax IRR of 27% and a NPV of $41 million
These numbers are a fantastic start and provide for IMO an easily fanciable project.
A couple things to note,
Stantec Mining, creator of the Pre Feas is one of the best in the business with 22 offices in 20+ countries. These numbers should be good and from talking with Gowest Mgt, Stantec had their best, most senior talent on this project and took a few extra months to validate everything. The PFS is extremely conservative.
A few things to note:
Gowests Bradshaw deposit is in Timmins Onterio, one of the best jurisdictions in the world. More golds come out of Timmins than anywhere else in all of Canada. Infrastructure, and on tap work force, is already there.
The Pre Feas by law can only be based off the Reserve ounces of around 300,000. The total NI43101 compliant resource including M & I plus inferred is about 1.5 million ounces (near 5 grams per ton) and that sits on only about 1% of the Gowest land package. Assuming that gold is there, they can produce 100k per year from Bradford. You can see where this is going. Gowest has laid a path, that gets them there without a huge start up expense. This project and its management are top notch IMO.
Permitting is deep on its way and should be forthcoming soon.
As to financing, $21M is not alot to ask for. A small mix of debt and equity financing and the initial CAPEX will be there. Their finance partner, Future Fortune, is already on board and Ill guess the directors will step up as well. Additional cash will come back from the proceeds of the bulk sample.
Traderfan, I couldn't be more excited.
This is going to get some traction when Gowest takes a few more stops and people start to digest the story.
As to now, looking at todays trading, Gowest is still the nobody on the block.
If you link back a post, I put up some other dry information that could be in Gowests future. Additional to the 1.5 M oz Bradford resource, there are 17 other targets with Bradford type signatures on there property.
Hold onto your shares. The potential here is large. Gowest just seriously derisked the project. For $21 million they can start unlocking the value without diluting away the farm. IMO, a fantastic investment comes, when you find a big story before it happens and that management executes in a share holder friendly manner. For me thats Gowest Gold. Still some hard work to do but their getting traction.
Somebody will pick this story up.
Checkmate28
