Gowest Gold has picked a contractor to resume underground development work at its Bradshaw gold deposit, north of Timmins.
The Toronto gold company has signed Dumas Contracting to a four-year contract. The mine construction firm is rapidly moving equipment to the site to commence work in April.
On the financing front, Gowest announced it had secured $25 million in late January from Greenwater Investment Hong Kong and Lush Land Investment Canada to cash up for development.
Gowest has also settled its lawsuit with its previous mine contractor, Cementation Canada.
Gowest's only asset is Bradshaw, 32 kilometres northeast of the city. A 2015 preliminary economic assessment placed an indicated resource estimated at at 2.1 million tonnes, grading 6.19 grams per tonne gold (g/t) containing 422,000 ounces, and an inferred resource of 3.6 million t grading 6.47 g/t containing 755,000 ounces.
“We are extremely pleased to have Dumas with their extensive experience and focus on safety, as our long-term partner in restarting mining activities at Bradshaw,” said Dan Gagnon, president-CEO of Gowest, in a news release.
“At the same time, now that we have the significant financial support of several of our major shareholders, we are also quickly advancing on several related fronts. This includes hiring personnel, mobilizing equipment, ordering consumables and other preparations to ensure Bradshaw’s success as the next new gold mine in the Timmins camp.”