Kingwest Resources (ASX: KWR) is the latest explorer to pile another brick on the fast-growing brownfield gold story and revivals of historic mines as it reveals “spectacular” results from its latest drilling campaign at the Menzies gold project in Western Australia.
One hole returned 1m at 107 grams per tonne gold.
The Perth-based explorer’s Menzies gold project is located 130km north of Australia’s gold mining capital, Kalgoorlie.
The project area was mined between 1895 and 1943 with underground workings producing 643,200 ounces at an average grade of 22.5g/t gold.
It was worked again between 1995 and 1999, this time with an output of 145,000oz at 2.6g/t, bringing Menzies’ historic production total to 787,200oz at 18.9g/t gold.
Modern exploration has been limited
Since mining ceased in 1999, modern exploration on the ground has been very limited, the company said.
Kingwest has expanded its reverse circulation (RC) drilling program to a total of 14,000m from the previous planned 10,000m.
A further 8,000m remains to be drilled, including 2,000m at a greenfield target.
This is aimed at expanding the existing JORC resource of 319,900oz at 2.1g/t gold.
In addition to the 1m intersection already noted, the other intercepts now being reported include 5m at 13.8g/t gold (including 2m at 31.8g/t), 2m at 18.1g/t (including 1m at 34.8g/t), 3m at 8.2g/t, 4m at 5.4g/t (including 1m at 16.5g/t), 1m at 22.4g/t and 2m at 10.1g/t.
Since its previous announcement on 6 October, Kingwest has completed 31 resource and definition RC holes for 2,880m.
These have been carried out at two of the four targets, the Lady Shenton and First Hit systems (the others being the Lady Harriet System and the Yunndaga prospect).
Assay results from 17 holes are still pending.
Menzies is one of WA’s major historic goldfields.
The company’s project area lies on the Goldfields Highway, has power and water supplies, and is within trucking distance of several gold processing plants.
Second brownfield project near Kalgoorlie
Kingwest also owns the Goongarrie gold project 100km north of Kalgoorlie.
It was discovered in 1893 and at that time mined underground.
Modern mining and exploration was conducted in the 1980s by the former Julia Mines, leading to the completion of four shallow oxide open pits that produced about 35,000oz from open cut mines until 1989.
The shell of Julia Mines in 2003 became the uranium explorer Deep Yellow (ASX: DYL).