- Kingwest Resources (KWR) has entered back-to-back trading halts ahead of a capital raise announcement
- Yesterday, Kingwest announced it would spend the next 12 months unlocking the value of the historic Menzies and Goongarrie goldfields in Western Australia
- This aligns with its strategy of becoming a significant gold producer
- As of July 1, Kingwest had $2.8 million in cash, but perhaps further funding is required to support its exploration plans
- Company shares last traded for 16 cents on Wednesday, August 19
Kingwest Resources (KWR) has requested two consecutive trading halts ahead of a capital raise announcement.
The company will remain in a trading halt until the earlier commencement of trading on Wednesday, August 26, unless the capital raise is announced earlier.
Yesterday, Kingwest presented its strategy for the next 12 months. The miner hopes to unlock the value of the historic Menzies and Goongarrie goldfields in Western Australia. This aligns with its strategy of becoming a significant gold producer.
Historically, the Menzies Gold Project has produced 643,200 ounces at 22.5g/t gold from underground between 1895 and 1943. Additionally, a further 145,000 ounces at 2.6g/t gold was produced from open-cut between 1995 and 1999. This totals 787,200 ounces at 18.9g/t gold.
The project includes multiple gold systems and is conveniently located near existing infrastructure.
The Goongarrie Project lies 40 kilometres south of Menzies. Goongarrie was first mined underground when the area was discovered in 1893. In the 1980s, Julia Mines conducted modern exploration which completed four shallow oxide open pits that produced around 35,000 ounces from shallow open cut mines until 1989.
Kingwest will conduct 10,000 metres of reverse circulation drilling to infill existing mineral resources.
The near-surface mineral resource estimate at Menzies now totals 320,000 ounces and if you include the nearby Goongarrie Project, the total mineral resource is 343,900 ounces.
The Menzies resource has increased by 87 per cent since September last year and the company plans to increase this further with upcoming drilling.
As of July 1, Kingwest had $2.8 million in cash, but perhaps further funding is required to support its exploration plans.
Company shares last traded for 16 cents each on Wednesday, August 19.