Final Cash Payment A$1.625m For Remainder Of Promising Gold Project
Kingwest Resources Limited (ASX: KWR) has made the final cash and share payment to Horizon Minerals Limited of A$1.625 million cash along with 10,833,333 ordinary shares to complete the acquisition of the Menzies and Goongarrie gold projects in Western Australia as originally announced in July 2019.
CEO, Ed Turner, said that Ssnce first acquiring the Project, Kingwest has undertaken significant exploration programmes resulting in an increase in the total Project Mineral Resource Estimate by 160% to 446koz @1.3g/t (0.5g/t cut-off).
KWR also recently released a positive scoping study for the Menzies Gold Project based on an open pit mining and third-party toll treating arrangement.
He said the Board’s decision to proceed with completing the acquisition of the Project was validated by:
- Positive scoping study showing potential near surface Net Cashflow between AUS$95M and AUS$64M, EBITDA; and
- Goongarrie Gold Project discovery with extensive gold anomalism and mineralisation warranting further near surface targets including: 6m @ 17.2 g/t Au from 94m within 38m @ 3.1 g/t Au from 62m in KGA038 to end of hole.
“The Board and Management of Kingwest are very proud of the progress that has been made since first acquiring the Menzies and Goongarrie gold projects 18 months ago,” Mr Turner said.
“The company appreciates the support received from Horizon as its major shareholder during this time and looks forward to continue to realise value from both the advanced Menzies Project and greenfields exploration programmes at Goongarrie.”