Kingwest Resources Ltd (ASX:KWR) has resumed extensional reverse circulation (RC) drilling at the Menzies Gold Project (MGP) targeting high-grade extensions to the current mineral resources.
Around 4,000 metres of drilling is planned at the Lady Shenton, Lady Harriet and Yunndaga Systems.
Drilling is set to target areas deeper than the current 446,000-ounce resource.
“Time to pursue deeper high-grade extensions”
Chief executive officer Ed Turner said: “Now that we have proved up significant near-surface MRE’s at Menzies and the economic case for mining them in our scoping study completed in March 2021, it is time to pursue deeper high-grade extensions that could be included in future underground MRE’s.
“Our extensional drilling already completed has intersected numerous very high grade mineralised zones that warrant more extensive drilling.
“Follow-up RC drilling at Goongarrie to better test the exceptional high-grade mineralisation intersected in KGA038 in the first pass air core drilling is also eagerly anticipated.
“We also wait on the availability of a track-mounted air core rig to test the high priority targets that lie under the northern part of Lake Goongarrie, which have never been drilled.
“This is expected to commence in early July and will comprise 3,500 metres of drilling.”
Well-placed to continue strategy
RC drilling comprising 1,200 metres at Goongarrie will follow to better test depth and strike extensions to aircore results that included 38 metres at 3.1 g/t gold from 62 metres in drill hole KGA038.
Kingwest received firm commitments from professional and sophisticated investors to raise $3 million in a placement of 37.5 million shares at an issue price of 8 cents per share on May 31.
The company has received a firm commitment from major shareholder Horizon Minerals Ltd (ASX:HRZ) to subscribe for 6.25 million ordinary shares with a total value of $500,000.
Funds raised from the placement will be used to continue the company’s strategy of growing the resources at Menzies Gold Project with extensional drilling, additional exploration drilling at the Goongarrie Gold Project as well as general working capital.
Peloton Capital Pty Ltd acted as the lead manager to the placement and will receive a 6% fee on all the funds raised under the placement.