Kingwest Resources Ltd (ASX:KWR) had its eyes trained on WA's Goongarrie Gold Project during the December quarter.
In the last three months of the year, the precious metals explorer continued a spate of exploration programs at the cornerstone project.
It seems the hard work is paying off, with Goongarrie’s Sir Laurence Gold Discovery doubling to more than 2 kilometres in strike over the period.
What’s more, aircore drilling has delivered substantial gold on every line over the 2 kilometres in strike to date, highlighting the discovery’s high-grade source potential.
Looking ahead, Kingwest plans to kick off diamond drilling at Goongarrie in the current quarter.
On top of that, at least 4,000 metres of additional aircore drilling is planned for the first quarter of this year to test for further extensions to Sir Laurence.
The company had $4.5 million in cash as at December 31, 2021.
December quarter work program
Kingwest’s second aircore program at Lake Goongarrie was completed during the quarter, comprising 139 holes for 10,066 metres.
This included 107 holes at Sir Laurence for 8,821 metres, as well as 32 regional holes for 1,245 metres.
At Sir Laurence, noteworthy mineralisation has now been intersected on all 14 lines of drilling over the entire strike length.
Mineralisation remains open in all directions and additional aircore drilling is planned to test the limits of the system in 2022.
What’s more, new aircore intersections from the northern extents of Sir Laurence demonstrate the potential for further discoveries within the mineralised system, as well as the potential for further extensions to the gold lode.
Highlights from the campaign include:
- 12 metres at 0.7 g/t gold from 64 metres;
- 16 metres at 1.4 g/t from 64 metres;
- 12 metres at 0.8 g/t gold from 64 metres; and
- 12 metres at 0.7 g/t from 60 metres.
Outside of Sir Laurence, drill holes on regional lines returned numerous significant intersections from lines 22, 19 and 8.
These included 8 metres at 5 g/t gold from 12 metres, recorded 1.5 kilometres to the west of Sir Laurence on line 8.
Ultimately, Kingwest believes the Goongarrie Gold Project has “exceptional potential” for multiple discoveries — including a major discovery — and the results to date support and enhance this potential.
The quarter ahead
An initial diamond core program — comprising at least 2,500 to 3,000 metres of diamond core drilling — will commence in January 2022 at Sir Laurence to determine the three-dimensional controls of the gold target’s primary mineralisation.
The diamond holes will target the bedrock mineralisation already encountered in both aircore programs, and this will be extended as required, depending on the results.
This is a larger program than was planned to commence in 2021, as multiple new zones of significant bedrock mineralisation have been intersected recently.
It will be completed with a newly acquired Raglan Drilling rig, which is more suitable to the lake conditions after the first diamond core rig became continually bogged and could not complete any of the planned drilling.
At least 4,000 more metres of aircore drilling is also planned at Sir Laurence to continue to test for extensions to the mineralisation that currently has not been closed off in any direction.
Corporate activities
Kingwest announced in early October it had inked a term sheet with FMR Investments Pty Ltd to form a 40% KWR / 60% FMR profit share joint venture (JV).
Through the JV vehicle, both parties hope to recommence mining at its first high-grade underground mineral resource estimate at Yunndaga, located 6 kilometres south of the town of Menzies within the Menzies Gold Project (MGP).
The term sheet was subject to a number of conditions, including due diligence, and KWR and FMR entering into a formal joint venture agreement by November 30, 2021.
While the parties are yet to enter a formal JV agreement, KWR intends to continue discussions with FMR in relation to a profit share JV, which may or may not lead to a binding agreement being signed.