Kingwest Resources Limited (ASX:KWR) announced on 16 th November 2021 first results of an ongoing aircore program over the Lake Goongarrie salt pan at the Company’s wholly owned Goongarrie Gold Project (GGP) in Western Australia.
The drilling currently being undertaken is following up and expanding drill coverage along strike of the Company’s recent gold discovery at Sir Laurence prospect, announced 13th September 2021, testing for the first time, litho-structural and geochemical targets.
Initial assay results received from 29 of 80 holes, has further discovered new gold mineralisation, this time located 800m to the south of the original Sir Laurence Discovery.
Results include:
• 28m grading 1.9gpt Au from 20m (16m of which is reported in bedrock) and
• 8m grading 2.2gpt Au from12m
KWR has also reported anomalous results on drill lines B & C and on assay results testing the gold content of the extensive vein quartz gravel intersected on the Sir Laurence discovery holes with the gravels assaying 31.0gpt Au and 5.4gpt Au
Key Takeaway Points from this Announcement
1) We are encouraged with the initial results of this follow-up reconnaissance aircore drilling program, which expanding on the initial Sir Laurence discovery is testing similar highly prospective lithostructural and geochemical targets located beneath the salt pan again with success.
2) The new program which commenced on Line A (See Fig 2) has intersected significant gold mineralisation in two holes (28m grading 1.9gpt Au from 20m and 8m grading 2.2gpt Au from 12m). Additional highly anomalous gold intersections were also reported on drill lines B and C including 4m grading 0.6gpt Au which is a great result bearing in mind aircore is essentially a geochemical sampling tool aimed at providing drill targets for later RC and diamond drilling.
3) This mineralisation appears to be geologically located along strike to the Sir Laurence discovery holes on line 5 located 800m to the north. Whether this new mineralisation is directly related/connected to the Sir Laurence mineralisation is currently too early to tell, as assays are still pending for the 5 fence lines of drilling between the two gold discoveries.
4) The intersection reporting 28m grading 1.9gpt Au from 20m is particularly importantin that we observe that over half of that mineralised intersection is present in the underlying conglomerate bedrock and not just in the overlying lake sediments. This strongly indicates to us the presence of
an in-situ gold system. Furthermore, the fact that Sir Laurence is located 800m to the north, further indicates the system to be of considerable size which is highly encouraging for the delineation of one or more commercial gold deposits.
5) A track mounted diamond rig will arrive shortly (ETA 1 to 2 weeks) which will drill test the depth component to the newly discovered mineralisation and that at Sir Laurence and provide the Company with critical core orientation data. We eagerly look forward to the commencement of that drilling which will also provide visuals on the mineralisation.
6) Finally we must also not forget that KWR will very shortly drill test 5 other targets of elevated gold values also located beneath Lake Goongarrie. These early gold discoveries whilst they may not initially look exciting are significant as they occur over similar lithostructural targets to that of Sir Laurence i.e. on the intersection of a NW trending D4 fault zone with a magnetically prominent stratigraphic unit (See Fig 5). We look forward to the imminent air core drilling program testing those targets in the very near term following the rig completing its planned 6,000m at Sir Laurence in the coming week or so.
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This may explain the sudden interest we have seen in KWR the past week and a bit.
On a big red day with the ASX down 137 points and with US futures down heavily we managed to not only hit a new 52 week high of 24c we closed at 24c with solid buying support in the closing auction ensuring we closed on the high for the day.
That's bullish!!
Hopefully further news in the morning before the AGM kicks off.
