- Kingwest Resources (KWR) announces its first high-grade underground mineral resource estimate (MRE) for the Yunndaga deposit in WA
- The JORC MRE measures 57,000 ounces at 4.6 grams of gold per tonne (g/t) with a 3g/t cut-off — representing a 384 per cent increase since March
- Kingwest has also updated the total MRE for the Menzies Gold Project to 475,100 ounces at 1.4g/t
- The Yunndaga resource remains open at depth and to the north
- Shares are in the grey at 7.1 cents at 1:46 pm AEST
Kingwest Resources (KWR) has announced its first high-grade underground mineral resource estimate (MRE) for the Yunndaga deposit in Western Australia.
The new JORC-compliant MRE measures 57,000 ounces at 4.6 grams of gold per tonne (g/t) with a 3g/t cut-off — or 79,200 ounces at 3.7g/t gold with a 2g/t cut off.
According to KWR, the former estimate represents a 384 per cent increase on the deposit’s MRE recorded in March, with the resource remaining open at depth and to the north.
In light of the upgrade, the company has updated the total MRE for the wider Menzies Gold Project, which lies some 130 kilometres north of Kalgoorlie.
In a statement this morning KWR said resources at Menzies had increased from 446,200 ounces at 1.3g/t to 475,100 ounces at 1.4g/t.
Commenting on the new figures, Kingwest’s CEO Ed Turner said the company was pleased to complete the maiden underground MRE.
“The Yunndaga deposit is more amenable to underground mining than open-cut mining given the current pit extends to 120 metres’ depth already and the ramp to the bottom of the pit gives excellent access for a portal and decline,” he said.
“The MRE is constrained by the depth of current drilling from surface, which only extends approximately 100 metres below the current pit, so the potential to add additional resource ounces with deeper drilling from underground is high.”
Mr Turner said the Princess May Shoot, which also forms part of the Yunndaga system, had historic workings down to 600 vertical metres.
He said this meant there was a good chance that other shoots in the system also extended to significant depths below the defined MRE.
On the market, shares in Kingwest Resources were in the grey at 7.1 cents at 1:46 pm AEST.