During a Proactive gold CEO investor session today, chief executive officer Ed Turner provided an insight into the company’s vision of becoming a key gold producer in the Eastern Goldfields region of WA.
Turner said Kingwest was currently leveraging off record gold prices – a crucial change that would drive shareholder value.
Plans to unlock value
As it stands, the company has a market cap of around $17.6 million and held cash on hand at the end of the June quarter totalling $2.8 million.
This amount, Turner said, is set to increase over the next few weeks following the company being in the middle of a $3.3 million rights issue and upon Kingwest receiving an estimated $2.1 million from the sale of non-core assets (Goongarrie Lady, Crawford’s and Gambier North).
Kingwest’s long-term plan remains on unlocking the value of the historic Menzies and Goongarrie goldfields as well as to take advantage of infrastructure nearby.
Advantages of Menzies
Menzies is within trucking distance of numerous process plants, with the closest toll mill being around 80 kilometres away by sealed road - further enabling a rapid move towards production.
Turner said the project had water, power and technical skill support on the ready due to its location being in the mining heartland of the Goldfields.
There are clear brownfields exploration drill targets on the project site area, which Turner said had been dormant for more than 20 years as well as additional underground potential yet to be tested.
Around 10,000 metres of reverse circulation drilling is planned for the second half of 2020, which will add to the resource base and improve confidence levels – potentially leading to optimisation and mining studies.
Goongarrie greenfields exploration
As well as Menzies, Kingwest holds 125 square kilometres of the Goongarrie greenstone belt, of which 80% lies under thin salt lake cover.
The project is largely unexplored due to the shallow salt lake cover, however, the company plans to begin an inaugural 5,000-metre RAB and aircore drilling program testing new targets shortly.