Kingwest Resources Ltd (ASX:KWR) has made the final cash and share payment to Horizon Minerals Limited (ASX:HRZ) of $1.625 million cash and 10,833,333 ordinary shares to acquire 100% of the Menzies and Goongarrie gold projects.
Since first acquiring the Menzies Gold Project (MGP), the company has undertaken significant exploration programs resulting in a 160% increase in the total project mineral resource estimate to 446,000 ounces at 1.3 g/t gold.
KWR also recently released a positive scoping study for the MGP based on an open pit mining and third-party toll treating arrangement which showed potential near-surface net cashflow between A$95 million and A$64 million, EBITDA.
“Menzies project well advanced”
KWR chief executive officer Ed Turner said: “The board and management of Kingwest are very proud of the progress that has been made since first acquiring the Menzies and Goongarrie gold projects 18 months ago.
“The company appreciates the support received from Horizon as its major shareholder during this time and looks forward to continue to realise value from both the advanced Menzies Project and greenfields exploration programs at Goongarrie.”
The Goongarrie discovery shows extensive gold anomalism and mineralisation warranting further follow-up of near-surface targets that returned 6 metres at 17.2 g/t gold from 94 metres within 38 metres at 3.1 g/t gold from 62 metres.
Strong results to date
Since recommencing drilling at Menzies in January 2021, 46 RC holes have been completed for 7,372 metres, focused on infill drilling of the current mineral resource estimates at Pericles, Lady Shenton, Stirling, Lady Harriet, Lady Irene and Yunndaga - as well as deeper extensional drilling at Pericles and Stirling.
High-grade gold intersected in 2021 drilling includes:
- 7 metres at 7.1 g/t from 204 metres;
- 1-metre at 35.3 g/t from 32 metres;
- 7 metres at 4.3 g/t from 65 metres;
- 10 metres at 2.8 g/t from 93 metres;
- 4 metres at 7.2 g/t from 187 metres;
- 9 metres at 3.1 g/t from 147 metres;
- 2 metres at 7.5 g/t from 49 metres; and
- 2 metres at 6.9 g/t from 65 metres.
Deep extension drilling at the Stirling target has discovered a new lode returning up to 4 metres at 3.7 g/t gold including 1-metre at 12.0 g/t from 141 metres with additional follow-up drilling planned.
Plan showing all new drill holes within the Lady Shenton System on resource block model background.
“Contributing to future resource updates”
Turner said “These infill drilling results continue to prove the high-grade nature of the mineral resources at Menzies.
“None of these results were included in the recent mineral resource estimate update and so will contribute to future updates and help convert more inferred resources to indicated resources.
“Deeper extensional drilling has also been completed at multiple lodes as part of this 2021 drilling program and we look forward to receiving those assays over the next few weeks.
“The deeper drilling at Stirling has already discovered a new lode which is very encouraging and we look forward to more discoveries of high-grade lodes with more drilling.”