Kingwest Resources Ltd (ASX:KWR) partner BML Ventures Pty Ltd has delivered positive results from infill drilling at Selkirk deposit within the Menzies Gold Project in Western Australia that confirms the high-grade nature of mineralisation.
Drilling of 21 reverse circulation (RC) holes totalling 1,109 metres was completed by BML, the 50-50 JV partner and manager of the Selkirk deposit, and is the precursor to completing an updated mineral resource estimate (MRE).
Some of the highlights from the drilling include:
- 7 metres at 24.8 g/t gold from 43 metres;
- 6 metres at 20.0 g/t from 41 metres;
- 2 metres at 12.9 g/t from 42 metres;
- 2 metres at 7.4 g/t from 43 metres; and
- 1-metre at 13.9 g/t from 51 metres.
The mineralisation remains open at depth and along strike to the north and the south, with several of the significant intersections near the base of the current MRE.
Other work to support a commercial processing agreement is also underway, including the finalisation of metallurgical test-work.
Drill hole location plan.
More confident
Kingwest executive chairman Greg Bittar said: “BML is making excellent progress as we move towards the recommencement of production at Selkirk and these results give us more confidence in the resource as well as underpinning viability of the proposed cut back of the pit.
“The restart of commercial mining at Menzies after more than 20 years since open-cut mining finished will be significant and we expect this to be the first of a number of low capex mining operations at Menzies that could deliver attractive short and medium-term cashflow to KWR,” he added.
Historic goldfield
Menzies Gold Project (MGP) is one of Western Australia’s major historic goldfields, 130 kilometres north of the globally significant gold deposits of Kalgoorlie.
The project covers a contiguous land package over a strike length of more than 15 kilometres and has been historically mined to show a series of structurally controlled high-grade gold deposits with the potential for high-grade extensions.
Modern exploration since its closure more than 20 years ago has been limited, but historical production recorded 643,200 ounces at 22.5 g/t gold from underground between 1895 and 1943 and 145,000 ounces at 2.6 g/t gold open cut between 1995 and 1999, for a total of 787,200 ounces at 18.9 g/t gold.
The MGP is hosted within the Menzies Shear Zone, and all deposits within the granted mining leases are 100% owned by Kingwest.
The current JORC mineral resources total 505,100 ounces at 1.33 g/t gold using a 0.5 g/t gold cut-off.
Importantly, the MGP lies on the Goldfields Highway, has power and water and is within trucking distance of numerous gold processing plants.