Kingwest Resources Ltd (ASX:KWR) has surpassed 500,000 ounces of gold at 1.3 g/t at the Menzies Gold Project (MGP) in WA through updated resource estimates from Pericles, Lady Shenton and Stirling deposits.
Updated mineral resource estimates (MREs) for these deposits are based on additional reverse circulation (RC) drilling completed last year that was not included in previous MREs.
New drill intersections included:
- 26 metres at 4.56 g/t gold from 158 metres, including 2 metres at 49.49 g/t from 169 metres in KWR277; and
- 19 metres at 2.15 g/t from 167 metres in KWR274.
Project resource estimates.
The overall JORC-compliant MRE at Menzies increased to 505,100 ounces of gold at 1.3 g/t with the Lady Shenton System MRE now comprising 293,200 ounces at 1.3 g/t gold.
At Pericles, the MRE increased by 20% to 192,400 ounces at 1.3 g/t gold at a discovery cost of $5 per ounce.
All resources remain open at depth.
Commercialisation options
Kingwest CEO Ed Turner said the company continued to investigate the best options to develop and commercialise the Menzies resources.
“We are very pleased to continue to increase our near-surface gold resources at Menzies, particularly with Pericles increasing by 34,000 ounces at a discovery cost of only $5 per ounce.”
“It is important to note that these MRE’s are constrained by depths that are likely to be captured within open cut mining. Kingwest continues to investigate the best options to develop and/or commercialise these significant resources.”
The MGP is about 130 kilometres north of Kalgoorlie and is well serviced by infrastructure and within trucking distances of numerous treatment plants.
It has recorded historical production of 643,200 ounces at 22.5 g/t from underground between 1895 and 1943 plus 145,000 ounces at 2.6 g/t open cut between 1995 and 1999, for a total of 787,200 ounces at 18.9 g/t.
Watch: Kingwest Resources passes half a million ounces at the Menzies Gold Project
- By Duncan Bailey