Kingwest drilling targets resource confidence and more gold ounces
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Special Report: Not content with the recent 37 per cent increase in near-surface resources, Kingwest has kicked off further resource drilling at its Menzies gold project (MGP) in WA.
Following the resource upgrade in July, the MGP has a resource of just under 320,000oz of contained gold, up 87 per cent from when the company acquired the project in September 2019 and highlighting the rapid progress it has made since then.
Kingwest Resources (ASX:KWR) now plans to carry out 10,000m of resource drilling to increase the confidence level of these resources, enabling most of the inferred resource to be converted to higher confidence indicated and/or measured resources.
Indicated resources provide the company with sufficient information on geology and grade continuity to support mine planning.
This targets the First Hit, Lady Shenton, Lady Harriet and Yunndaga systems and is also designed to prove up additional resource ounces.
The company will also carry out 3,000m of brownfields drilling to test extensions of known high-grade deposits such as First Hit and other prospects that have the potential to host high-grade resources.
Drilling is expected to be completed in December, enabling scoping studies to begin.
Successful drilling earlier this year returned extremely high-grade hits like 3m at 158.4 grams per tonne (g/t) gold below historical underground workings at First Hit and 1m at 25.4g/t gold from 731.5m at Yunndaga – the deepest mineralisation intersected at the MGP to date.
Results above 5g/t gold are generally considered to be high-grade, while hits of 158.4g/t would be labelled ‘bonanza’ – just a speccy way of describing really high grades.
The MGP in the Eastern Goldfields of WA consisted of five underground mines that produced a total of 650,000oz of gold at an average grade of 22.5g/t gold between 1895 and 1943.
A further 145,000oz at an average grade of 2.6g/t gold was produced from open cut mining between 1995 and 1999.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.