Gold Resource Continues To Grow Significantly
Kingwest Resources Limited (ASX: KWR) has reported further significant gold intersections in its ongoing Reverse Circulation (RC) drilling programme at its Menzies Gold Project (MGP) in Western Australia.
A further 31 Resource Definition and exploration RC holes for 2,880 metres have now been completed within the Lady Shenton System and First Hit System.
The Resource Definition programme has now been extended with a further 80 RC holes for approximately 8,000m remaining to be drilled as well as approximately 2,00m of greenfield exploration drilling at various Menzies targets. All are planned to be completed in 2020.
There is an estimated global Indicated and Inferred Mineral Resource of 50 million tonnes at 1.3g/t gold for 2.0 million ouncesof contained gold at a 0.5g/t gold lower cut-off grade for the Central, East and West Lodes.
The contained gold in the updated Mineral Resource is around 43% greaterthan the contained gold in the previous Indicated and Inferred Mineral Resource of 1.4 million ounces at 1.4g/t gold released in December 2018. The gold grade of the updated Mineral Resource is 7% lower than the gold grade of the previous Mineral Resource.
Approximately 14%of the updated Mineral Resource is classified as Indicated and the remainder is classified as Inferred. The updated Indicated Mineral Resource increased by 41% to 310,000 ounces at 1.4g/t gold.
The more densely drilled Indicated Mineral Resource (nominal 50m x 50m to 50m x 25m patterns) is 17% higherin gold grade than the Inferred Mineral Resource. The planned infill drilling to increase the Indicated Mineral Resource is likely to have a positive impact on gold grade.
Most of the multiple, parallel lodes of gold mineralisation that comprise the Mineral Resource are open at depth and extend beneath the bottom of the optimised pit shells. Deeper holes, predominantly on the Central Lodes, are planned as part of the infill drilling program targeting higher grade and wider gold lodes.
A shallow, maiden, Inferred Mineral Resource of 48,000 ounces at 3.2g/tgolddefined at the East Lodes, is predominantly based on the high-grade Diabatou Gold Shoot. The bottom of the pit shell (~140m below surface) on the Diabatou Gold Shoot sits in high-grade mineralisation (7m at 4.6g/t gold, including 3m at 10.2g/t goldin hole MRC050) and deeper drilling offers an outstanding opportunity to add additional high-grade gold ounces (Figure 9).
The company said further exploration over several high priority regional target areas also offers potential to outline additional high-grade gold mineralisation.
These areas include: the Kogodou Prospect, which lies immediately to the east of the Central Lodes, and where previous rock chip samples returned up to 42.8g/t gold, 41.2g/t gold, 32.3g/t gold and 32.1g/t gold; and the Sirba Prospect, which lies 3km south of the Central Lodes, and where previous rock chip samples returned up to 43.7g/t gold and 11.3g/t gold.