Kingwest Resources Ltd (ASX:KWR) has updated mineral resources estimates for all deposits at the Menzies Gold Project (MGP) to 446,200 ounces at 1.3 g/t gold (0.5 g/t cut off).
An extensive infill drilling campaign undertaken by the company resulted in a 170% increase in indicated resources above 1 g/t cut off and now indicated resources accounts for 46% of the total resources, up from 17% in the previous estimate.
Following the upgrade, the high-grade near-surface resources at the project now total 315,500 ounces at 1.8 g/t gold with having 1.0 g/t cut off.
The increased mineral resources estimates (MREs) indicated resources support the pit optimisation and economic studies as part of a scoping study.
“Finalising optimisation work for the scoping study”
Kingwest CEO Ed Turner said: “We are very pleased to continue to increase our near-surface gold resources at Menzies.
“The successful completion of the infill drilling allows the finalisation of optimisation work in the scoping study which will be released soon.
“It is important to note that these MRE’s are constrained by depths that are likely to be captured within open cut mining and Kingwest drilling has intersected significant amounts of deeper high-grade mineralisation that is not included here but may be included in future underground MRE’s.
“A large increase in the conversion of inferred resources to indicated resources aids us as we investigate the opportunities for economic production of these deposits.”
Cut-off grade
A cut-off grade of 0.5g/t gold has been used for reporting all mineral resources.
The resources occur near the surface and are amenable to mining by open-pit mining.
In order to satisfy ‘reasonable prospects of eventual economic extraction’ criteria, a maximum depth below the surface has been applied for reporting each resource based on each resource size, grade and orientation.
Resource classification criteria
The mineral resources have been classified as indicated and inferred mineral resource based on a number of factors including data quality, sample spacing, geological understanding of mineralisation controls and geological/mineralisation continuity and quality of the final grade estimate.
Indicated mineral resources are typically defined by 25 metres spaced drilling or less and include drilling completed by KWR.
Inferred mineral resources are defined by drilling spaced greater than 25 metres.
Menzies gold project
Menzies is one of Western Australia’s major historic goldfields and is around 130 kilometres north of the globally significant gold deposits of Kalgoorlie on the Goldfields Highway.
The project has power and water supplies available and is within trucking distance from numerous gold processing plants.
The project covers a contiguous land package over a strike length in excess of 15 kilometres, and
has recorded historical production of 643,200 ounces at 22.5g/t gold from underground between 1895 and 1943, plus 145,000 ounces at 2.6g/t open cut between 1995 and 1999, for a total of 787,200 ounces at 18.9g/t.