NEWS RELEASE TRANSMITTED BY Marketwire
FOR:
Gowest Amalgamated Resources Ltd.
TSX VENTURE SYMBOL:
GWA
Gowest Amalgamated Resources Ltd: Gold Resource Defined By Joint Venture North Of Timmins, Ontario
FEB 28, 2006 - 08:30 ET
TORONTO, ONTARIO--(CCNMatthews - Feb. 28, 2006) - Gowest (TSX VENTURE:GWA) and New Texmont are pleased to announce that a NI 43-101 compliant inferred resource estimation has been completed of the Frankfield gold deposit owned jointly (50-50) by Gowest and New Texmont. This deposit is located 42 km northeast of Timmins, Ontario and is accessible by a 14 km all-weather road which runs east from Highway 655, 11 km north of the Kidd Creek mine.
The database used by Mr. G.A. Harron P.Eng. to define the resource relies mainly on the 30 holes that have been drilled at 50 metre intervals from 100 to 300 metres vertically by the joint venture over the past several years. These holes have been surveyed and the treatment of the core and samples, including QA/QC protocols, conforms to industry best practices.
The Frankfield gold deposits occur within a package of generally intermediate volcanic rocks and thin sedimentary units about 100 metres wide and at least 500 metres long and 600 metres deep. This package overlies a soft, talcose ultramafic unit which dips north at about 70 degrees and strikes east- northeast.
The main gold zone is hosted by a carbonaceous volcanic tuff, variably mineralized, adjacent to and within 25 metres of the ultramafic unit contact. A second type of mineralization termed quartz breccia is hosted by basalt flows, within 100 metres of the ultramafic contact.
Two methods were used for estimating the inferred resource. One estimate using Gemcon software generated 50 m radius polygons projected onto a vertical longitudinal section with each polygon containing a sampled true width intercept. The inferred resource estimated by this method is 2.6 million tonnes grading 5.8 grams per tonne gold, equivalent to 490,000 ounces of gold. The Gemcon estimate employs a 2 gram per tonne lower cut-off grade over a minimum true thickness of 2 metres to a depth of 500 metres. The second more traditional geometric method (as employed at active mines in the past) uses large geometric panels, containing multiple drill intercepts, projected onto the same vertical longitudinal section indicates an inferred resource of 2.4 million tonnes grading 6.5 grams per tonne gold, equivalent to 510,000 ounces of gold. This method employs a 3 gram per tonne lower cut-off grade over a minimum true thickness of 2.5 metres. Mr. Harron considers the variance between the two methods of calculation to be acceptable for this level of resource estimation.
Higher grade sections identified within the inferred resource estimated using Gemcon Software are estimated to contain 946,000 tonnes with a grade of 8.5 grams per tonne containing 265,000 ounces of gold. In view of the potentially economic mineralization so far defined and the untested extensions of the favourable host rocks laterally and vertically, Mr. Harron recommends additional work.
Diamond drilling would have two objectives; firstly to extend the deposits east, west and vertically and secondly to increase the sample density, near surface at about the 100 metre level to guide the positioning of underground workings, required to confirm and upgrade the resource definition. A 6,000 metre program is recommended. The program has started and is being concentrated at about the 100 metre level where a ramp decline is most likely to be located. Once sufficient data is available, a study of the economics of exploiting the deposit should be undertaken including drafting of a mining plan and acquisition of information concerning metallurgy, and specific gravity of the gold bearing mineralization.
Mr. Bradshaw is the qualified person under National Instrument 43-101 responsible for preparation of this announcement. Mr. Harron has approved the contents of the announcement. Mr. Harron's complete report, dated February 15, 2006 is available at
www.sedar.com and is also a qualified person as set out in NI 43-101.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this announcement.
FOR FURTHER INFORMATION PLEASE CONTACT:
Gowest Amalgamated Resources Ltd
Ronald J. Bradshaw, P.Eng.
President
(519) 538-5858
www.gowestamalgamated.com
or
G.A. Harron & Associates Inc.
Gerald A. Harron, P.Eng.
