NEW YORK, December 1 (FinanceEnquiry.com) - Analysts at Fundamental Research Corp. initiate coverage of Gowest Gold Ltd (GWA) with a BUY rating. The fair value is set to $0.60.

In a research note published yesterday, the analysts mention that Gowest Gold (CVE:GWA) is an exploration and development company which is focused on developing the 100% owned Frankfield East gold deposit. A recently updated NI 43-101 resource contains 348,000 oz of gold with a grade of 6.68 g/t Au in the indicated category, and 838,900 ounces of gold at a grade of 6.01 g/t Au in the refined category, the analysts say. The company declared results of a PEA completed on the Frankfield East deposit, as it was based on 1,500 tpd production over 10 years.

The analysts indicate that GWA has successfully completed numerous strategic land acquisitions adjacent to the Frankfield property, which raises their total land package. The company is expected to spread their current resource and locate new gold deposits in 2011/12, the analysts add. The analysts cite some potential risks for the company, such as value of the company depends on commodity prices, exposed to delays that can affect entire mining industry, and on the outcome of environmental studies at the Frankfield Gold Property. In addition, the success of drilling, resource expansion, and development are important long-term success factors for the company, the analysts add.