Kingwest Resources (ASX:KWR) reports it has found ‘numerous high-grade’ gold intersections at the Selkirk Deposit shared with BML Ventures, located within the Menzies Gold Project in Western Australia.
BML drilled 21 reverse circulation (RC) holes totalling 1,109m (22SKRC020-22SKRC040) as part of an infill drilling program at the deposit, which both Kingwest and BML have a 50% interest in.
Significant intersections recorded include 7m @ 24.8g/t Au from 43m, including 1m @ 167g/t Au from 43m in 22SKCR029, and 6m @ 19.96g/t Au from 41m including 2m @ 54.8g/t Au from 41m in 22SKRC036.
Other intersections include 2m @ 12.93g/t Au from 42m in 22SKRC038, 2m @ 7.43g/t Au from 43m in 22SKRC037 and 1m @ 13.85g/t Au from 51m in 22SKRC031, and the company says these results confirm the ‘high-grade’ nature of the deposit.
Kingwest also advises the mineralisation remains open at depth with several of these significant intersections near the base of the current Mineral Resource Estimate (MRE).
“The restart of commercial mining at Menzies after more than 20 years since open cut mining finished will be significant”
Kingwest Executive Chairman Greg Bittar said BML is making excellent progress as the company moves towards the recommencement of production at Selkirk, and these results give them 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 cash flow to Kingwest.”.
Kingwest says the infill drilling was required prior to completing an updated MRE, and optimised pit shell and mine planning, and reports this work is ‘well advanced’.
Other work to support a commercial processing agreement is also underway, including the finalisation of metallurgical testwork.
The Menzies Gold Project is one of Western Australia’s major historic gold fields, located 130km north of Kalgoorlie in Western Australia.
The project covers a contiguous land package over a strike length in excess of 15km, and within the project a series of structurally controlled ‘high-grade’ gold deposits have been historically mined and display exploration potential for ‘high-grade’ extensions.
Menzies has a recorded historical production of 643,200oz @ 22.5g/t Au from underground mining between 1895 and 1943, plus 145,000oz @ 2.6g/t Au from open cut mining between 1995 and 1999, for a total of 787,200oz @ 18.9g/t Au.
It is hosted within the Menzies Shear Zone, and all deposits lie within granted mining leases owned by Kingwest.
The current JORC mineral resources for the project total 505,100 oz @ 1.33 g/t Au, using 0.5g/t Au as a cut off.
Kingwest Resources is a mining and exploration company focused on advancing its gold projects into production, as well as discovering new gold resources in its projects in the eastern goldfields of Western Australia.
Its projects include the Menzies Gold Project, and the Goongarrie Gold Project.
Images: Kingwest Resources Ltd