Gowest to start target drilling on south end of Frankfield East, PEA due in Q4

Gowest Gold (CVE:GWA) announced several updates from its North Timmins Gold project, located in Timmins, Ontario.

The company said it will start drilling targets in the south end of its wholly owned Frankfield East property this month. Gowest had completed sensitivity analyses on the resource, which demonstrate the potential to raise the average resource grade into the 7 gram per tonne (g/t) to 8 g/t range, it said.

Currently, the resource estimate at Frankfield East is 1.62 million tonnes at 6.68 g/t gold, for 348,000 ounces of gold in the indicated category, and 4.34 million tonnes at 6.01 g/t gold for 838,900 ounces of gold in the inferred category.

Gowest said it is also finalizing its review of new data obtained from the geophysical and geochemical surveys completed over the entire North Timmins project this summer. The program was intended to delineate other high priority exploration targets. These "Frankfield East style" targets will be drill tested during the winter 2011/2012 program.

By the fourth quarter of this year, Gowest said it will release its preliminary economic assessment (PEA). The PEA was completed with strong attention to detail, the company said, in order to demonstrate the economic value of the Frankfield East deposit.

President and CEO, Greg Romain said: "As we prepare to provide the market with an estimate of the economic viability of the Frankfield East deposit, we continue to be particularly optimistic about findings such as this independent sensitivity analysis.

"At the same time, we are also looking forward at drilling several highly prospective targets on the south part of the Frankfield property where we may be able to discover additional deposits in what is a largely underexplored area of the Timmins gold camp."

Gowest also said assay results from its ongoing drill program at the Frankfield East deposit will be available shortly. The summer drill program at the property had extended the deposit's strike length to about 900 metres. Drilling to test the depth potential of the deposit has also been completed, it said.

On the TSX-Venture, Gowest shares shed 2.0% as of 1:37 pm EDT, to trade at $0.245.