Kingwest Resources Ltd (ASX:KWR) has submitted a Mining Proposal and Mine Closure Plan to recommence production at Selkirk Cutback open pit within the Menzies Gold Project in WA.
BML Ventures Pty Ltd made the submission to the Western Australian Department of Mines, Industry Regulation and Safety in its capacity as JV partner and manager of the Selkirk Cutback project, a discrete gold orebody within M29/154 in the Menzies Project.
“BML continues to make good progress towards recommencing production at Selkirk. The completion of further drilling, metallurgical test work and other work over the course of the next several weeks will allow BML to enter into a toll processing agreement and finalise mining preparations,” said Kingwest executive chairman Greg Bittar.
“This could be the first of a number of mining opportunities at Menzies and is expected to deliver attractive short and medium-term cash inflow to Kingwest. Selkirk shows the way.”
Earlier this month, the explorer confirmed the high-grade nature of gold mineralisation at Selkirk in a report that included 6 metres at 24.62 g/t gold from 92 metres.
“The success delivered through the increase in drilling density at Selkirk has implications across many of the Menzies deposits and existing defined resources," Bittar added.
"The high-grade nature of Menzies will be the subject of an investigation with a strategy and explanation to be communicated to shareholders in the near future and further drilling can be undertaken as Kingwest retains a healthy cash position of circa $2.9 million.”
About the Selkirk Cutback project
Aerial view showing Selkirk Cutback Project Mine Plan.
The Selkirk mining proposal consists of a cutback of the existing Selkirk Pit that enables the extraction of ore both laterally and from the base of the pit. The ore is planned to be processed at one of several nearby mills in Leonora or Kalgoorlie.
About 125,000 bank cubic metres (BCM) of waste will be mined from a cutback along strike to the southeast and northwest and stored onsite at a waste dump.
All mining and project activities will occur within the granted mining licence, including access routes via existing roads and access points from the Menzies-Sandstone Road.
Mining operations will take about three months, with ore haulage and rehabilitation likely to continue for a further three months.