Kingwest Resources Ltd (ASX:KWR) has been granted a trading halt by the ASX as it prepares to make an exploration update.
The halt will remain in place until the start of regular trade on Monday, September 13, or until an announcement is released to the market, whichever occurs earliest.
Maiden Yunndaga resource
Earlier this week, the company released its first high-grade underground mineral resource estimate (MRE) for 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 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 estimate 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.”