Kingwest Resources Ltd (ASX: KWR) has announced a highly positive update on the drilling at its Menzies Gold Project (MGP) in Western Australia’s Eastern Goldfields region.
The company reported that the highest grades yet were returned at Menzies Gold Project.
Significant hits include 3m @ 158.4 g/t Au from 180m (inc. 2m @ 237.5 g/t Au from 180m) below underground workings at First Hit; 5m @ 13.1 g/t Au from 32m (inc. 1m @ 58.6 g/t Au from 32m); and 3m @ 7.2 g/t Au from 47m (inc. 1m @ 13.4 g/t Au from 47m).
KWR said that a new lode was discovered west of Stirling lode within Lady Shenton System. The company reported that RC pre-collar results have been received, and diamond drilling is ongoing.
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.
The Menzies gold project has recorded historical production of 643,200 oz @ 22.5g/t Au1 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/t1 Au.
Drilling at Menzies
The company had commenced drilling at Menzis in 2020. KWR said that 14 RC pre-collars and 10 RC drill-holes, which will not have diamond core tails, were completed for 3,402 metres.
These focussed on three Exploration Target areas within the MGP, First Hit, Lady Shenton, and Yunndaga. Historical production from these deposits in underground operations (all completed prior to 1948) was 164k oz Au @ 32.5 g/t, 191k oz Au @ 32.3 g/t and 270koz Au @ 16 g/t respectively.
Diamond core extensions
The company announced that the diamond core extensions to the 14 pre-collars are now being drilled. These holes focus on two of the Exploration Targets within the MGP, Lady Shenton and Yunndaga. The third Target (First Hit) was tested with RC drill-holes only.
The company said that the diamond core program is anticipated to be completed in 6-7 weeks.
High-grade results reported
The company said that the results to date from the 2020 RC drilling again confirm the high-grade nature of the mineralisation at MGP.
KWR said that the drilling success at Lady Shenton was above expectations. The company announced that the recently completed drilling has confirmed the potential of the Stirling Lode, with KWR009 intersecting 5m @ 13.1 g/t Au from 32m including 1m @ 58.6 g/t Au from 32m and KWR003 intersecting 1m @ 9.4 g/t Au from 44m.
New lode discovered
Kingwest said that the high-grade intersections in KWR005 and KWR010 have discovered another new lode further to the west of the Stirling lode and once again highlight the excellent exploration potential within the MGP outside of the main Exploration Targets associated with known historic producers.
These new intersections include: 3m @ 7.2 g/t Au from 47m in KWR005 including 1m @ 13.4 g/t Au from 47m and 2m @ 6.5 g/t Au from 74m including 1m @ 9.5 g/t Au from 74m in KWR010.
KWR noted that the new lode is sub-parallel to the lodes which host the proven, high-grade Lady Shenton deposit.
Best grades from First Hit
The company reported that at First Hit, the four RC holes completed (KWR021 – 024) are the first holes to be drilled beneath the historical First Hit underground workings.
KWR said that the results included 3m @ 158.4 g/t Au (including 2m @ 237.5 g/t Au) from 180m in KWR023.
The company said that these extremely high grades prove the potential here for further depth extensions. KWR announced that these results will be reviewed in order to plan the most appropriate follow up drilling. There is no diamond core drilling planned here in the current program.
The company said that all of the holes completed at Yunndaga are pre-collars except for KWR012 and 013 which were testing for southern extensions to known mineralisation closer to surface and therefore significant mineralisation was not expected in all but these holes.
Exploration tenure sold
KWR reported that it has sold some of its exploration tenure around Leonora including the Emperor Project (E37/1054, E37/1086, E37/1319, E37/1321 and E37/1322) and King of the West Project (E37/1253) for cash consideration of $100,000.
The Company said that it has also disposed of the remaining tenement at the Emperor Project (E37/882) for $250,000 with $50,000 received as part payment and the balance due in late May 2020.
The above tenements were acquired by Darlot Mining Pty Ltd, a wholly owned subsidiary of Red 5 Limited.
KIngwest said that additional drilling will be designed to test the depth and lateral extensions to the priority areas which will be determined upon completion of the full 2019 programs.
Kingwest CEO Ed Turner said: “These results are very pleasing and ratify our belief that the high-grade ore zones continue at First Hit and Lady Shenton and throughout the MGP. We were expecting something exceptional if we drilled enough holes in the right areas and 3m @ 158.4 g/t Au is hard to beat, and it is within one of our high-grade Exploration Targets that we announced only last month.
The preliminary diamond drilling campaign in late 2019, detailed reinterpretation of the geology and detailed airborne geophysical surveying has allowed us to better define controls of high-grade mineralisation at Menzies.
At the First Hit Gold Deposit continuation of the high-grade gold mineralisation historically exploited from the First Hit underground mine was shallow enough for RC drilling to test depth extents efficiently in this program.
Historically, the underground workings at the First Hit Gold Deposit collectively produced 164,138 ounces of gold at an extraordinary 32.5 g/t gold.
The KWR drilling has now proven that high grade gold continues beneath the historic workings and diamond drilling is underway at Lady Shenton and will then move to Yunndaga, both large, historically high-grade producers.
Our aim to test for the potential to delineate similar resources should be very exciting for our shareholders.”