Kingwest Reports Surge in Menzies’ Near Surface MRE’s, Share Price Soars

  • Mar 16, 2020 AEDT
  • Team Kalkine
Kingwest Reports Surge in Menzies’ Near Surface MRE’s, Share Price Soars

It’s a remarkable achievement for the Australian gold explorer, Kingwest Resources Ltd (ASX:KWR), which has declared an updated Mineral Resource Estimate’s (MRE’s) for the Lady Harriet – Bellenger - Warrior System and Selkirk Prospects at its flagship Menzies Gold Project (MGP). Reported in accordance with the JORC Code (2012), the new estimates are contingent on the Company’s 2019 drilling and remodelling and re-evaluation of the various deposits.

The updated MRE add to the totals at Menzies and Goongarrie projects, which now have combined estimates of over 250,000 ounces. The new estimates represent an increase of about 35 per cent since the previous estimate at Lady – Harriet -Warrior reported in March 2016.

Details of the New MRE’s

The new MRE and geological interpretation have been completed by a consultant, Don Maclean, to Kingwest. The new estimate is based on geological assay data from 22 RC drill holes at Warrior, 134 RC drill holes at Lady Harriet-Bellenger and 44 RC and three diamond core drill holes at Selkirk, finalised up to the end of December 2019. The RC drilling has been concluded by the previous project operators.

Resources estimated at Lady Harriet and Selkirk extend beneath formerly mined shallow open pits and possibly be able to be mined through pit cut-backs.

In addition, resources at Warrior and Bellenger are shallow extending from near surface to 120 metres below surface and have the capability to be exploited as open pits. The new March 2020 estimate for both Warrior and Bellenger represent significantly higher tonnages and contained gold ounces at lower grades than their February 2016 estimate (see figure below):

Source: Company’s Report (16th March 2020)

The Company notified that mineralisation is hosted in:

  • three main moderately to steeply southwest dipping gold mineralised shear/fracture zones at Lady Harriet-Bellenger,
  • three gold mineralised lodes ranging from sub vertical in dip to moderately southwest dipping at Warrior, and
  • two moderately south west dipping lodes at Selkirk.

 

The Resource estimate has been formulated assuming mining and processing can be economically undertaken utilizing conventional CIL/CIP processing and open pit mining methods.

Drilling Programme Underway to Further Increase MRE’s at Menzies

The Company is progressing with drilling at the current, high-grade underground gold targets at MGP, retaining its focus on the high-quality gold beneath old pits and the incremental, steady increases in near surface resources. Near surface Menzies MRE’s have continued to increase from 171koz Au in Dec 2019, 208koz Au in February 2020 to 233k oz Au in March 2020.

Interesting Read Kingwest Makes Headway, Commenced Drilling at Menzies

Recently, the Company informed that it has developed Exploration Targets within the Yunndaga, Lady Shenton and First Hit systems at the MGP, which are currently being drilled as part of an initial ~8,300 metre Reverse Circulation (RC) and Diamond core (DD) drilling programme.

The Company believes there is considerable opportunity to delineate additional near surface mineralisation at the MGP. The existing high-grade, deeper drilling targets as part of the Exploration Target are all beneath historically mined open pit mines(1990’s) with underground mining (finalised 1940’s) of plunging shoots, which are confirmed to be persisting at depths over 600m vertical.

For Instance, Lady Shenton is a very high-grade historical producer (185kt @ 32 g/t Au for 191k oz Au), wherein open pit mining in the 1990’s produced 349kt @ 2.7 g/t Au for 30.3k oz Au.

Deposits like Lady Shenton and First Hit don’t have near-surface MRE’s but are being drilled presently.

Kingwest is continuing with deeper drilling targeting high-grade gold extensions, in addition to progressing with improving its near surface gold resources.  The Company has planned to embark on pit optimisation and economic studies in the coming months to assess the potential for open pit mining of resources estimated at Lady Harriet, Selkirk and Warrior.

On 16th March 2020, KWR ended the trading session at $0.10, with a rise of 5.263 per cent.

Also Read Catch Sight of Kingwest’s Operational Highlights in 1H FY20


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