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Micro-cap Gowest Gold aims for 2015 production
Going it alone by Greg Klein

http://resourceclips.com/2012/11/12/going-it-alone/2/

The take here is, the reality that the Commodas Ultrasort X-ray ore sorting process may be a blessing, because of the Unique nature of the Gowest ore. This process, will allow for a 12 -15gpt head grade ore, going into 3rd party processing. Thats a big cost saving, as the huge grade will allow for smaller processing capacity and processing costs. Also less ore to haul up and down the shafts as the sorting equipment may be set up under ground and less ore to move down the road to the processor. If the 3rd party agreement with the local processor is fair, Gowest will save the initial costs and aggravation of a new facility and take advantage of another proven companys expertise and permitting. The 90gpt gold concentrate can be easily shipped to one of many places cost effectively for the final pore. My gut take here, is that grade conquers easily, the few extra costs here, and allows for a speedy run to revenue and that the 3rd party plus Communitas, will make this deal winners for all and a reality. Gowest, the 3rd party, and the local community/gov all have a win here in keeping the 1200 current jobs, plus the new ones this creates in the community. I believe grades and communitas, allowing this to be a success, may later be looked upon as a brilliant way for Gowest to have kept 100% of the project as opposed to giving away the farm like most companies are. For the speculators, this is a huge opportunity to get a very favorable risk reward ratio or to watch close. Gowest is about to put up a new NI43-101 with a significant boost to the 1.2 million oz - 1 year old resource. Your risk? What is $13mil MC /1.8 million oz (guess) worth per share? Thats high grade gold for $7.22MC/oz that not long ago, was averaging $87MC/OZ in the Timmins areas for explorers. The hints lead me to Xstrata being the 3rd party unless someone has a better fit of the known information. My opinions of coarse Checkmate28

The body of the link.
But for another company, the path to production might not require wealthy suitors or even large capitalization. Gowest Gold TSXV:GWA closed November 12 at $0.095 for a market cap of $12.53 million. Even so, it’s determined to take its Frankfield East gold deposit into production by Q1 2015, and to do so itself—well, with a little help from some friends.


Gowest Gold plans to use high-tech ore-sorting and third-party processing to begin mining quicker and cheaper.
The company hopes to shorten the path and lower the capex by contracting a third party to produce high-grade concentrate. That, in turn, would be sold to a customer who would refine it further. Gowest’s location in the Timmins mining camp helped the company find a processor with sufficient capacity, which led to the memorandum of understanding announced November 12.

“It’s a matter of building the mine a couple of years sooner and putting less than a third of the capital into it than if we tried to do it ourselves,” says IR manager Greg Taylor. “That would mean generating cash flow a couple of years early, and then we’d make a separate decision on whether to continue doing it that way or to build our own plant after we’ve already started mining.”

To that end, Gowest is now working on engineering, metallurgical and mine development studies prior to hammering out a final agreement with the mill operator next year. A report announced last February suggests the mill would produce concentrate grading over 90 grams per tonne gold.

The 2,444-hectare Frankfield East deposit forms part of Gowest’s 90-square-kilometre North Timmins Gold Project. The deposit’s August 2011 resource shows an indicated category of 1.62 million tonnes grading an average 6.68 g/t for 348,000 gold ounces. The inferred category shows 4.34 million tonnes grading an average 6.01 g/t for 838,900 ounces.

The deposit starts near surface and is open along strike and at depth. Taylor says he expects a resource update soon, followed by an update to last year’s PEA.

The ore-sorting, third-party processing and concentrate upgrade mean we can go into production more quickly and without having to rely as much on capital markets.
—Gowest Gold IR manager Greg Taylor

The deposit holds refractory ore, Taylor points out. “That means it’s a little harder and a little more expensive to produce. All the tests we’ve done indicate that it’s economically viable. We’ve tested this on a commercial basis using an ore-sorting process that’s really quite remarkable.”

Normally refractory gold is separated from sulphides using an oxidation process in either a roaster or an autoclave. Taylor says this deposit features “a very strong correlation between arsenopyrite and gold.” Gowest plans to use technology from the German firm CommodasUltrasort that features “an X-ray system that detects incredibly low levels of arsenopyrite and kicks aside the rest. So you end up putting though only half the rock and losing less than 1% of the gold, while more than doubling the grade. It’s really quite a remarkable process. Then we have the third-party process that can turn this into 90-gram-plus [per tonne] concentrate. The ore-sorting, third-party processing and concentrate upgrade mean we can go into production more quickly and without having to rely as much on capital markets.”