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Kingwest Resources plans to unlock value of WA projects over the next 12 months

Snapshot

The company is leveraging off record high gold prices as it advances its range of high-quality brownfields and greenfields exploration opportunities in WA's eastern Goldfields region.

Kingwest Resources Ltd -

Quick facts: Kingwest Resources Ltd

Price: 0.16 AUD

ASX:KWR
Market: ASX
Market Cap: $23.41 m
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Kingwest Resources Ltd (ASX:KWR) has plans to unlock the value of the historical Menzies Gold Project (MGP) and the Goongarrie Gold Project (GGP) in Western Australia with an aggressive drilling program to take place in the next 12 months.

In an investor presentation on August 19, chief executive officer Ed Turner highlighted the company’s vision to drill a range of shallow, deep high-grade gold targets at MGP along with greenfields drilling at GGP. 

Infill drilling of existing mineral resource

At the MGP, the company intends to continue exploration drilling to follow up intersections such as 3 metres at 158g/t gold from 180 metres and 3 metres at 75 g/t gold from 84 metres in the First Hit system, which is open at depth and along strike.

Around 10,000 metres of reverse circulation (RC) and infill drilling of the existing mineral resource estimates (MRE) is planned for the second half of 2020, which will add to the resource and improve confidence levels.

Kingwest believes that a substantial amount of exploration targets exist for high-grade underground deposits at the MGP site.

The company is also continuing to expand shallow resources, which have increased from 170,000 ounces gold at 2.1 g/t gold in September 2019 to 320,000 ounces gold at 2.1 g/t gold in July 2020.

This has been done through methodological shallow reverse circulation drilling designed to increase resource confidence, resource size and potentially leading to economic optimisation studies.

Exploration to build on previous success 

Greenfields exploration at the GGP intends to build on recent exploration success along strike and immediately adjacent to the tenement boundary.

The project sits on the strike extension of Bardoc Gold’s 1.7 million ounce Aphodite gold deposit, around 7 kilometres south of Kingwest’s lease.

Kingwest is planning first-pass drill testing of multiple major geological contacts that run through the GGP under shallow salt lakes.

Neighbouring companies such as Ardea Resources Ltd (ASX:ARL) and Bardoc Gold Ltd (ASX:BDC) have had notable success in recent months directly along strike to the south of the GGP.

Substantial gold intersections in first reverse circulation drilling (RC) at ARL’s Aphrodite North gold project area include 6 metres at 3.6 g/t gold from 44 metres, including 2 metres at 9.99 g/t gold from 44 metres and 8 metres at 4.94 g/t gold from 172 metres, including 4 metres at 9.42 g/t gold from 12 metres.

Kingwest holds 125 square kilometres of the Goongarrie greenstone belt with 80% of it lying under salt lake cover.

An inaugural 5,000-metre RAB and air core drilling program is set to test new targets at three regionally significant gold mineralised structures which run mainly undercover.

The GGP has substantial historical gold production but is largely unexplored due to shallow salt lake cover.

Market outlook

Turner believes the gold market is moving into high-grade and high-margin mining projects, which is beneficial for Menzies as it is one of WA’s original large scale and high-grade gold camps.

The project can deliver quick results as it holds numerous high-grade lodes to follow up as well as drill targets to test.

MGP’s drilling success is expected to rapidly prove high-grade resources, which will lead to scoping studies and reserve estimations.

CEO Investor Sessions Australia

Kingwest CEO Ed Turner is presenting at Proactive’s virtual investor conference on Tuesday, August 25 at 12pm Sydney time / 10am Perth time.

The webinar will also feature WA-focused gold explorer Vango Mining Ltd (ASX:VAN) and Moho Resources Ltd (ASX:MOH) which is exploring for gold and nickel in WA and Queensland.

To register for the August 25 webinar, please click here.

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Full interview: Kingwest Resources on the latest at the Menzies Gold Project

Kingwest Resources Ltd (ASX:KWR) chief executive officer Ed Turner speaks to Proactive about the Menzies Gold Project north of the Super Pit in Western Australia. Turner said the company spent the summer holidays collating data at the site ahead of a 12,000-metre drilling program planned for...

on 21/2/20

3 min read