Kingwest Resources Ltd (ASX:KWR) welcomes high-grade gold results of up to 1-metre at 108 g/t in recent reverse circulation (RC) infill drilling campaigns at the Stirling and Pericles deposits of the flagship Menzies Gold Project in WA.
Forty RC holes, targeting high-grade mineralisation, have been drilled for 2,094 metres and the company has now wrapped up the initial program.
This program was designed to improve confidence in the grade and mineralisation continuity within possible pit outlines and to target high-grade extensions.
The holes were planned during updated resource estimation work for Stirling and Pericles which was being completed as the drilling kicked off in November.
Highlights
The first assays have been received from Stirling and Pericles:
Stirling
- 1-metre at 108 g/t gold from 36 metres;
- 5 metres at 8.49 g/t from 42 metres including 1-metre at 36.69 g/t from 42 metres;
- 1-metre at 10.0 g/t from 66 metres;
- 4 metres at 5.70 g/t from 29 metres including 1-metre at 21.58 g/t from 32 metres;
- 2 metres at 9.05 g/t from 32 metres including 1-metre at 15.46 g/t from 33 metres;
- 4 metres at 3.06 g/t from 46 metres including 1-metre at 6.92 g/t from 47 metres; and
- 2 metres at 6.4 g/t from 53 metres.
Pericles
- 5 metres at 10.11 g/t gold from 47 metres including 3 metres at 15.83 g/t from 47 metres;
- 6 metres at 3.86 g/t from 27 metres including 1-metre at 17.59 g/t from 27 metres;
- 1-metre at 8.83 g/t from 32 metres;
- 1-metre at 5.8 g/t from 47 metres; and
- 1-metre at 5.7 g/t from 47 metres.
Updated resource calculations have also identified shallow high-grade subsets of the Pericles and Stirling deposits with 45,000 ounces at 5.2 g/t identified within 100 metres of surface.
The company is confident that the near-surface high grades found at the Pericles and Stirling deposits reflect the unique potential of the Menzies project. They’re expected to be a key component of the project’s future development.
"Primarily a high-grade goldfield"
Kingwest executive chairman Greg Bittar said: “We believe that these encouraging drilling results support the interpretation that Menzies is primarily a high-grade goldfield.
“The results will be used to further define the areas of high-grade gold mineralisation and will support economic studies.
“Menzies is well positioned to recommence mining evaluation given the existing underlying granted mining licence, grid power, proximity to existing mills with sealed highway access.
“Both the Pericles and Stirling deposits represent previously unmined resources and mineralisation extends from near surface and remains open-ended at depth.”
Investors have also welcomed the results with shares as much as 29.1%R higher intra-day to $0.04.
Extraordinary potential
“The development opportunities resulting from a recent independent review of the resources and historic drilling are very exciting. Menzies has previously produced nearly 787,200 ounces at 19 g/t gold from predominantly narrow, high-grade shoots," Bittar said.
“The discovery of the Stirling deposit was essentially accidental as it was discovered high up in deep drill holes targeting Lady Shenton remnant resources. This highlights the extraordinary exploration potential across the whole field.”
The resource estimation work has also highlighted the opportunities for high-grade extensions that have not been fully tested in this current drilling campaign. Kingwest intends to complete another drill program early in 2023.