Gowest Gold (TSX: V.GWA, Stock Forum) Wednesday said it has entered into a non-binding Letter of Intent with Glencore Xstrata's Kidd Operations, located in Timmins, Ontario, to process Gowest's ore into a high-grade (+90 grams per tonne) gold concentrate.
Gowest estimates that this arrangement will reduce the capital cost to develop its Frankfield East gold deposit by an estimated $107 million, and will enable it to begin commercial production two to three years earlier since a new mill would not have to be constructed.