CPTMatt GWA.v Its a good day to see Gowest Gold unleashed. 5 year permitting process in Ontario has to be hurting the local industry.
GWA is my largest position and its going to be nice to watch the progress. Shares have been stedily moving up but are still cheap for a well managed developer with a high quality resource. The market has no idea how good Gowests property is. The Bradshaw deposit is already one of the largest strike (1300 meters) deposits in the Timmins area and is open on strike and at depth. Going to be well over 2 million ounces there alone. This deposit sits on about 1% of their contiguous land package on the Pipestone fault where there are at least 17 other targets , some partially delineated, with similar geo physic signatures. GWA has one of the lowest CAPEX development projects with high IRR and AISC under $900. The economics are based on reserves (about 500k oz)and theirfore not indicating the potential shown by the earlier PEA with the NI43 resource near 1.5 million oz. Once they get this bulk sample out of the way, they will get the next permit to push 600tpd through the mill and grow from there. At 10gpt head grades after the ore sorter, this will produce some serious cash. Mark this ! They should get this funded with little to no dilution.
For anyone who doesn't know Timmins ON is one of the safest jurisdictions for a mining company. All the infrastructure is already there. More gold come out of Timmins camp than anywhere in Canada. This is my favorite jurisdiction. The shares just move faster sooner IMO.
For comparisons see the chart for Harte Gold down the road. They are about 8 -10 months ahead of Gowest. They have a similar resource to Gowest but moved forward with no reserves and are toll milling a concentrate like Gowest will be. Harte Gold traded at .07 in Jan, has more shares but still trades at .26/share daily with triple the market cap of Gowest Gold.
Back to now. From todays release
Funding
The Company has ongoing positive discussions with lending groups to fund the removal and processing of the bulk sample from selected portions of the underground deposit. The Company is also in discussions with contractors to participate in the development of the mine, reducing start-up cash requirements by deferring a significant portion of mining costs until revenues are available from the sale of gold produced from the bulk sample.
The Timmins mine developers/drillers are starving in Onterio due to the Onterio government taking years to let progress forward. They are probably more than willing to work now and get paid with revenues from the bulk sample in lieu of being rewarded with further Gowest contracts. I see this happening because of the quality of the deposit\mgt and the contractors wanting to be part of the future.
Checkmate28
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