Funds To Support Accelerate And Expand Exploration At GGP
Kingwest Resources Ltd (ASX: KWR) has completed a bookbuild for a strongly supported capital raising of A$4.0 million from professional and sophisticated investors via a placement.
Euroz Hartleys Limited and Peloton Capital Pty Ltd are Joint Lead Managers (JLMs) to the Placement.
CEO, Ed Turner, said funds raised in the placement will be applied to exploration activity at the Goongarrie Gold Project (GGP), with particular focus on follow-up drilling at the recently announced Sir Laurence Discovery – a Kanowna Belle style litho-structural gold discovery lying under Lake Goongarrie in Western Australia.
In addition, funds will be applied to extensional / resource definition drilling at Menzies; progressing and executing further Menzies commercialisation transactions and for general working capital purposes.
First pass aircore drilling at Sir Laurence encountered +1g/t Au in 12 holes over a >400m line of drilling across strike with another hole drilled some 100m north of this line hitting 4m @ 1.7g/t Au.
With mineralisation open in all directions, deeper diamond and RC drilling is required to define the primary mineralisation at this exciting prospect.
Kingwest plans to embark on drilling campaigns at Sir Laurence including: Ø 1,000m diamond programme testing primary controls – Nov 2021, a 6,000m aircore programme to test structural targets along strike from Sir Laurence (COMMENCED), a RC Drilling booked for early CY 2022 to pattern drill best zones.
The announcement of the placement comes soon after the announcement of a mining and processing JV with FMR Investments Pty Ltd to profit share from the underground mining development of the Yunndaga resource at the Menzies Gold Project (MGP).
FMR has commenced a six-hole diamond core drilling programme to target the highest-grade depth extensions to the underground resource. This will aid FMR with planning of the decline and underground development drives next year when underground mining is planned to recommence. “We are very excited by our initial exploration success at Sir Laurence and eagerly anticipate the imminent drilling campaigns which we hope will confirm a large gold system,” Mr Turner said.
“This capital raise will provide the company with sufficient funding to test Sir Laurence and other regional targets in the period ahead of expected cash-flow from our Menzies mining JV which we hope will supplement future exploration expenditure.”
Funds raised will also be applied to a 2,000m aircore drilling programme to follow up other Lake Goongarrie targets that returned significant results in the first round of drilling and a KWR gold discovery at Target A9 at GGP which lies along strike from the Bardoc Gold Ltd 1.7moz Au Aphrodite deposit and Ardea Resources Ltd’s Aphrodite North discovery.
Target A9 has yielded results from aircore drilling including 6m @ 17.2g/t Au within 38m @3.1g/t Au from 62m.
In addition to activity at the GGP, Kingwest will continue to explore for near surface and depth extension mineralisation at the Menzies Gold Project, specifically targeting high grade shoots at several prospects to add to the current Mineral Resource Estimate at MGP of 475koz @ 1.4g/t Au.
For further information please visit: https://www.kingwestresources.com.au/