- Kingwest Resources Limited (ASX:KWR) has yet again disclosed encouraging intersections from the drilling campaign at the Menzies Gold Project.
- Since its previous announcement in late-October 2020, KWR has continued drilling at the Stirling prospect with further 38 Resource Definition and exploration RC holes completed.
- The continued drilling at the prospect now seems to be presenting a high-grade bonanza, increasing the potential of upgrading the Mineral Resource Estimates (MER).
Kingwest Resources Limited (ASX:KWR) has received exceptional gold intersections in Stirling Deposit Mineral Resource from continued Reverse Circulation (RC) drilling at the Menzies Gold Project (MGP).
The Company completed further 38 Resource Definition and exploration RC holes for 3,200m since its previous drilling result notification to the market in late-October 2020.
The continued drilling activity at the prospect seems to have bear fruits for the miner with KWR receiving some strong intersections from the Stirling Deposit, ranging from 56.54 g/t to 4.26 g/t of gold.
Some of the strong intersections received by the Company included:
With the encouraging results, KWR has extended the drilling activity to 48 RC holes for ~ 7,000m along with ~ 1,400m of exploration drilling across several targets in MGP, planned to be completed by end-2020.
The most important observations in the recent result is that intersections received from holes KWR123 and KWR124 lie on the southern edge of the current Mineral Resource, increasing the potential of a significant resource extension at the prospect.
Furthermore, the intersections returned are of a much higher grade than was previously estimated, which could possibly lead to an overall increase in the updated Mineral Resource Estimates (MRE).
© Kalkine Group 2020
Resource Definition Drilling
KWR is in the process of completing infill and extensional (Resource Definition) drilling as well as exploration drilling at the project with an aim to upgrade the current Mineral Resource estimates of 319,900 ounces of gold at an average grade of 2.1g/t, mostly belonging to the JORC 2012 classified Inferred Category.
The deposits under target include the First Hit, Lady Shenton, Lady Harriet and Yunndaga Systems. Of these, drilling is yet to commence at the Yunndaga Systems. Moreover, drilling at some deposits such as the First Hit System and the Central Zone has been concluded.
To date, KWR has completed 110 RC holes for ~ 10,084m and has time-to-time disclosed some encouraging intersections. The Company now plans to conclude drilling at other exploration targets by next month.
The Price Behaviour
As the Company is extending the current intersections and deposits, eying a potential increase in the MRE, the market seems to be noticing each development closely. The stock is trading in a continuous uptrend after hitting a low of $0.071 (intraday low on 23 March 2020).
From $0.071, KWR has recovered considerably, with the stock surging to the recent high of $0.250 (intraday high on 26 October 2020), increasing over two-fold in value with a price appreciation of ~ 252 per cent.
However, at present, the stock is consolidating within a range of $0.220 to $0.190.