Kingwest Resources Ltd (ASX:KWR) has established its first high-grade underground mineral resource estimate (MRE) at Yunndaga deposit within the Menzies Gold Project (MGP) north of Kalgoorlie in WA.
At a 3.0 g/t gold cut-off the estimate totals 57,000 ounces at 4.6 g/t gold while at a 2.0 g/t cut-off, the total is boosted to 79,200 ounces at 3.7 g/t with the resource being open at depth and to the north.
The new estimate prepared by Cube Consulting and based on additional drilling completed at the project since the previous MRE in March 2021, takes total resources at MGP to more than 475,000 ounces.
Amenable to underground mining
Kingwest CEO Ed Turner said: “We are very pleased to complete a maiden high-grade underground MRE at Menzies.
"The Yunndaga deposit is more amenable to underground mining than open cut mining given the current pit extends to 120 metres depth already and the ramp to the bottom of the pit gives excellent access for a portal and decline.”
Location of the Yunndaga MRE projected to surface.
The new resource estimate allows KWR to consider various commercial underground mining options, including profit share or toll treatment.
This updated MRE was also aimed at producing a resource suitable for underground mining studies given the earlier March 2021 was estimated by Localised Uniform Conditioning and more applicable to open pit mining.
MGP, which is about 130 kilometres north of Kalgoorlie, is well serviced by infrastructure and within trucking distances of numerous treatment plants.
Potential for more resources
Turner said: "The MRE is constrained by the depth of current drilling from surface, which only extends approximately 100 metres below the current pit, so the potential to add additional resource ounces with deeper drilling from underground is high.
"The Princess May Shoot, which is part of the Yunndaga System, has historic workings down to 600 vertical metres so there is a good chance other shoots within the system also extend to significant depths below the MRE defined here.”
Cube Consulting was provided with an updated database which included recent drilling completed at Yunndaga.
The final grade estimate was based on 317 RC holes, 12 RC pre-collar holes with diamond tails, 26 diamond holes and 10 RC grade control holes within the pit area.
The MGP covers a contiguous land package over a strike length in excess of 15 kilometres. Within this, a series of structurally controlled high-grade gold deposits have been historically mined and display extensive exploration potential for high-grade extensions.
Importantly the MGP lies on the Goldfields Highway, has power and water and is within trucking distance of numerous gold processing plants.