$4-million investment in golden property TIMMINS - Another junior mining company is betting it has found a viable gold property in the city with a heart of gold.
Gowest Gold Ltd., a firm with solid roots in Timmins, is planning to fast track an exploration program for its Bradshaw gold deposit, located about 40 kilometres north of the built up area of Timmins.
The company held an open house Monday at the McIntyre Auditorium to bring shareholders, supporters and members of the public up to speed on the work the company is planning in the coming year.
One of the first things the company has planned is to prepare the Bradshaw site to remove overburden and create a water management infrastructure. The company has also planned significantly more exploration drilling, according to company president and CEO Greg Romain, a Timmins native.
He said the company is in an enviable position of having closed a $4-million financing deal with Fortune Future Holdings Limited of China, who Romain said has demonstrated significant faith in the project.
'First of all it is one of the newest deposits, not near an existing mine, to be found what I've been told since Hoyle Pond was discovered 25 years ago. It is one of the longest strike lengths found in the Timmins camp and it is still open at depth, and that's just at the Bradshaw deposit," said Romain, adding that the property is named for his father-in-law Ron Bradshaw, well known in the business and mining community in Timmins.
"The other upside is that we were able to close a $4-million financing this past summer and fall," said Romain, commenting on the Fortune Future deal.
"We found partners out of China who are excited about this area. They want to build a mine and they want to drill some more in the future," he said.
"There's lots of good things happening right now from a junior mining perspective.
Not a lot of companies are in our position right now," said Romain.
He added that for whatever reason, investment money is currently coming from the Middle East and Asia.
"I mean you always like to get the deals financed at home, but everybody in junior mining is having their own issues at home. So you go where the money is. And they came and found us. They did their due diligence on Gowest and liked what they saw," said Romain.
"They wanted to get involved in gold in Canada, specifically in the Timmins camp. Fortunately they chose us and we're happy to have them as our new partner."
Currently, Gowest is in the process of having a pre-feasibility study carried out by Stantec Consulting of North Bay. It is the same company that provided pre-feasibility, engineering and conceptual scoping for Glencore's Nickel Rim Project.
Romain said he is hoping to see that report tabled by the end of the first quarter in 2015. He said Gowest has not done a preliminary economic assessment since 2011, but despite that, he is confident.
"What I can tell you is that internally we have run models, even with the current price of gold, and we're still comfortable that it is a viable project," he said.
"People have to remember the price of gold may have dropped but our exchange rate has gone in the opposite direction so you're still looking at mid-1300 dollar gold price."
Romain said that is enhanced by the fact that nearly all of the operating costs are in Canadian dollars, which puts Gowest in a good position for the coming year.
"Our plans, assuming everything lines up and the stars line up on our side, we look at going underground for advance exploration this time next year. And then we would be in production towards the end of 2016. That's our game plan right now," said Romain.
He added that he is indeed pleased to be able to help carrying out work on the prospect here in Timmins, his hometown.
"The deposit was discovered by my father-in-law Ron Bradshaw who spent most of his working career in the Timmins camp and there's nothing better to create jobs and opportunities for all the people for years to come," he said.
Romain said the company is in the process of getting all the consultations required with First Nations and higher levels of government.
He said the momentum on the project keeps moving because the company is seeking more than one approval at a time. Romain said instead of getting one permit and then moving on to apply for another permit, several of the applications are being made in parallel.
"If we had done one thing at a time we wouldn't be at this stage today, given the difficulties in the market," he said.
"I mean I would have liked to have been quicker, but it is what it is, and I am a realist."