Kingwest Resources Ltd (ASX:KWR) is trading higher after discovering two extensive zones of highly nickel anomalous ultramafic mineralisation during aircore drilling at the Lake Goongarrie Project in WA.
Promisingly, drilling has extended the width of the Highway ultramafic package to 500 metres over most of its length, which is twice its width in the original magnetic interpretation.
There are two zones of interest here:
- The Northern Nickel Zone is 2,600 metres long and 100 metres wide, with peak values of 8 metres at 0.5% nickel from 4 metres and 8 metres at 0.5% from 12 metres recorded in two different holes; and
- The Southern Nickel Zone is 1,700 metres long and 100 metres wide, with peak values of 4 metres at 0.4% nickel from 20 metres and 10 metres at 0.4% from 12 metres.
Kingwest is considering its next steps so it can get a closer look at both nickel targets.
Shares are 12.5% higher to $0.18 and are up from $0.13 at the market close on May 16.
In other news, diamond core drill testing at the Sir Laurence Gold Discovery is underway after some initial mechanical related delays.
And as flagged in early May, non-executive director Adrian Byass has stepped down from the KWR board.
“Compelling nickel exploration opportunity”
Kingwest CEO Ed Turner said: “We are very pleased with the results of this first nickel sulphide exploration drilling program at our Lake Goongarrie Project.
“They have confirmed the nickel fertility of the 11 kilometres of the Highway ultramafic within our tenements, have significantly extended the width of our prospective ultramafic package.
“Crucially, they have also identified two high-calibre, shallow nickel sulphide exploration targets, which we believe would warrant moving loop electromagnetic (MLEM) geophysical evaluation and potentially deeper reverse circulation drilling.
“These targets are located along strike from other Kambalda-type nickel sulphide deposits and present a compelling nickel exploration opportunity for Kingwest.
“I am also happy to report that after some early, mainly mechanical interruptions, our diamond drill core testing of our Sir Laurence Gold Discovery we are now making good progress and we look forward to having initial results to report in the first half of June.”
What do the findings say?
Kingwest has received all results from its 223-hole, 7,788-metre aircore program, which kicked off in early 2022.
This initial aircore nickel drilling was a reconnaissance program of 15 widely spaced lines using 25- to 50-metre spaced partly overlapping angled holes.
Some vertical holes were also drilled on Lines N7 and N9 due to the locally deep Tertiary alluvial channel cover in that area.
The program was designed to:
- Test the position and the lateral extent of the Highway ultramafic as interpreted from Kingwest’s recent high-resolution aeromagnetic survey;
- Locate the exact position of its eastern and western contacts;
- Confirm the nickel fertility of the ultramafic at several points along its length;
- Identify the hanging wall and footwall contact lithologies; and
- Test for signs of nickel mineralisation at komatiite flow boundaries and contacts and within the ultramafic package.
Positively, Kingwest’s Highway ultramafic package was confirmed to be continuous over its entire 11-kilometre strike length.
Next steps
Kingwest is weighing up whether it should conduct MLEM surveys over the aircore-defined Northern and Southern nickel targets.
This should detect any underlying nickel sulphide conductors in these areas down to roughly 300 metres depth, and potentially deeper, depending upon the conductivity of the lake cover.
In addition, work continues at the Sir Laurence Gold Discovery, with 645.8 metres of the 4,000-metre program completed to date.
The program experienced early delays due to mechanical problems and challenging ground conditions, however, further alterations to the drill rig have been made to account for these issues.
With the modifications made and the drilling now making good progress, it’s expected the initial 4,000-metre program will be completed by the end of July.