Kingwest Resources Limited (ASX: KWR) is looking to fast-track development of the Pericles Prospect at its Menzies Gold Project (MGP) in Western Australia following the release of a positive updated Mineral Resource Estimate (MRE).
The new estimate is 0.63 Mt at 1.8 g/t Au (Indicated Resource) and 0.78 Mt at 1.7 g/t Au (Inferred Resource) for a combined total of 1.4Mt at 1.8 g/t Au (79.5K oz Au), representing an 87% increase in contained Au metal over the previous estimate in March 2016.
Kingwest CEO Ed Turner said that importantly the Pericles resource is shallow, extending from surface to 120 metres below surface and has potential to be exploited as an open pit.
KWR plans to undertake pit optimisation and economic studies in the coming months to evaluate the potential for open pit mining of the resource.
This is another great result with limited amount of drilling late in 2019 contributing to an impressive increase in the Pericles resource estimate. Mineralisation remains open along strike and at depth and therefore further increases in the future are possible,” Mr Turner said.
The new MRE is based on geological assay data from 182 RC and five diamond core drill holes completed up to the end of December 2019.
The new February 2020 estimate for Pericles globally contains significantly higher tonnages and contained gold ounces at lower grades than the February 2016 estimate. This difference can be attributed to differences in domaining, classification, additional drilling and differences in bulk density values used.
Pericles is not the only JORC resource in the MGP. Other resources at Yunndaga, Bellenger and Warrior bring the total to 208,300 oz @ 1.96 g/t Au and numerous other deposits have potential for resource estimates to be calculated and the company is in the process of reviewing these existing and potential resources.
Mr Turner said that at the same time Kingwest continues to focus on proving up high-grade deeper mineralisation at multiple deposits as evidenced by recent ASX announcements that highlighted the existence of high-grade mineralisation existing at the lowest levels of both the Yunndaga and Lady Shenton historic underground workings.