Kingwest Resources Ltd (ASX:KWR) has surged on hitting its first gold intersection of note in diamond drilling at Sir Laurence prospect within the Lake Goongarrie Project in Western Australia, confirming the company’s geological model and the size and grade potential of the prospect.
Drill hole KGD004 returned several mineralised intersections, including:
- 1.13 metres at 4.76 g/t gold, including 2.3 metres at 9.4 g/t from 113.29 metres;
- 1.28 metres at 13.87 g/t from 114.42 metres;
- 0.69 metres at 2.22 g/t gold from 117.56 metres; and
- 0.33 metres at 1.27 g/t from 136.81 metres.
KWR says these mineralised intersections demonstrate the potential for multiple lodes within the Sir Laurence mineralised system, possibly in a reef-style bedrock formation.
Shares have been as much as 61.02% higher intraday to $0.095.
“Large and prospective system”
“We are excited by these drilling results so early on in a major drilling program for the company,” Kingwest Resources CEO Ed Turner said.
“This high-grade intersection validates the geological model that Kingwest has developed at Sir Laurence and confirms that we are drilling within a large and prospective system.
“This hole is on the extreme western limit of the known bedrock gold mineralisation and demonstrates the potential to continue to grow Sir Laurence.
“The gold intersection remains open to the west, southwest and northeast at Target 1. We look forward to testing other aircore bedrock gold targets within Sir Laurence in the remainder of this drill program.”
Kingwest intends to test several other targets during the rest of the drill program, specifically where bedrock mineralisation has previously been intersected by the company’s aircore drilling.