Kingwest Resources Limited (ASX: KWR) has announced an updated Mineral Resource Estimate for the Lady Shenton Deposit and an inaugural MRE for the Stirling Deposit at its Menzies Gold Project in WA, validating the company’s belief in the prospectively of the project.
The company reported that the near surface gold resources at Menzies increased by 37% and by 87% since KWR acquired the Menzies Project in September 2019.
KWR said that the drilling in 2020 has successfully extended high-grade mineralisation at depth as well as added 85,000 ounces to the Menzies total Mineral Resource Estimates.
The company said that it is planning further drilling with the objective of adding further increases to the size and confidence levels of the MRE’s in 2020. Kingwest reported that the pit optimisation and economic studies are underway for all of Menzies MRE’s.
Menzies is located 130 km north of Kalgoorlie and is reached via the sealed Goldfields Highway. The Menzies area is comprised of multiple mining leases, exploration, and prospecting licences.
The Menzies area comprises multiple prospects, Lady Irene, Warrior, Selkirk, First Hit, Pericles, Lady Shenton, Lady Harriet- Bellenger, Aspacia, and Yunndaga.
It may be noted that the Lady Shenton, Stirling, and Pericles deposits are considered one mineralised system by KWR.
The Menzies gold project has recorded historical production of 643,200 oz @ 22.5g/t Au from underground (U/G) between 1895 and 1943 plus 145,000 oz @ 2.6g/t Au1 open cut between 1995 and 1999, for a total of 787,200 oz @ 18.9g/t Au.
Lady Shenton system
The Lady Shenton System is a significant, structurally controlled mining centre at MGP. The Lady Shenton System had delivered very high-grade production (185kt @ 32 g/t Au for 191k oz Au) prior to 1946 and then later open pit mining in the 1990’s which produced 349kt @ 2.7 g/t Au for 30.3k oz Au.
The company said that the extensions of this mineralisation extend at depth and are repeated adjacent to the main workings (Pericles and Stirling deposits) have been discovered since completion of open pit mining in the 1990’s with Stirling being discovered during KWR drilling in 2019.
The Lady Shenton, Stirling and Pericles deposits are considered one mineralised system by KWR and is called as the Lady Shenton system.
Updated MRE for Lady Shenton system
The company announced that the combined MRE for the Lady Shenton System now stands at 166.10k oz Au. This includes the Pericles MRE of 1.4Mt @ 1.8 g/t Au for 79.50k oz Au, combined with the recently estimated Lady Shenton and Stirling lodes.
Estimates based on re-evaluation and new drilling
KWR said that the 2020 Mineral Resource Estimate at Lady Shenton is based on new drilling by Kingwest Resources in 2019 and re-evaluation and remodelling of historic drilling. The company said that the MRE is based on geological and assay data from 80 RC drill holes and 6 diamond core drill holes completed up to the end of December 2019.
The company said that the 2020 Mineral Resource Estimate at Stirling is based on drilling by Kingwest Resources in 2019 and 2020 and minor re-evaluation and remodelling of historic drilling. KWR said that the MRE is based on geological assay data from 31 RC drill holes and 3 diamond core tails drill holes completed up to June 2020.
Drilling at Yunndaga and First Hit
The company had completed successful drilling of high-grade underground Exploration Targets at First Hit, which returned 3m @ 158.4 g/t gold (Au) below the historic underground workings.
At Yunndaga, the drilling had intersected the deepest mineralisation to date at the MGP with 1.0m @ 25.4 g/t Au from 731.5m. This is 60 vertical metres extension below historical underground workings of the Princess May Shoot.
Following these successful drilling, the company has now announced resource upgrades.
37% increase in resources at the MGP
The Goongarrie project is located nearby the Menzies project. The important deposit within Goongarrie project is the Goongarrie Lady deposit.
The company reported that the resources at the MGP have increased by 37% since the previous estimate reported in March 2020 and by 87% since September 2019.
Kingwest said that Menzies Gold Project near surface MRE’s now totals 320,000 ounces and Menzies – Goongarrie combined total is now >340,000 ounces.
Kingwest announced that additional drilling is planned to infill Inferred Portions of the resource and to obtain material for bulk density and metallurgical testwork. The company said that pit optimisation studies and further economic evaluation of the project is planned.
Current exploration targets : The company said that the current deeper, high-grade drilling targets as part of the Exploration Target announced in March 2020 are all below historically mined (1990’s) open pit mines with underground mining (ended 1940’s) of plunging shoots which are proven to be continuing at depths in excess of 600 vertical metres from surface at Yunndaga and in excess of 200 vertical metres from surface at First Hit and Lady Shenton.
Kingwest CEO Ed Turner said: “We are very pleased to continue to increase our near surface gold resources at Menzies whilst at the same time we explore for higher-grade resources at depth, along strike from and between these near surface deposits.
We are now in a position to advance towards Scoping Studies in the second half of 2020 as we recently did at Goongarrie Lady and investigate the best pathway towards economic production of these deposits.”